Here Group (HERE) Q4 2025 earnings summary

Executive summary

• Announced and executed a strategic restructuring to divest non-property businesses and focus on the high-growth pop toy segment, fully integrating Letsvan (rebranded as Qímèng Dǎo) and consolidating its financials as of Q4 FY2025.

• Q4 FY2025 revenue was RMB 617.8 million, with the pop toy business contributing RMB 65.8 million (10.6% of total), reflecting the first-time consolidation of this segment.

• Adjusted net income for Q4 FY2025 was RMB 111.2 million, up sequentially but down year-over-year; net income was RMB 108 million.

• Strategic partnerships and collaborations, including with Juehua Entertainment, China Open, Universal Studios, and others, are expanding the IP portfolio and market reach.

• Cash and equivalents stood at RMB 1,040.9 million as of June 30, 2025, supporting further expansion.

Financial highlights

• Q4 FY2025 revenue: RMB 617.8 million, down 38.2% year-over-year but up 8.3% sequentially; gross profit: RMB 467.6 million.

• Adjusted net income: RMB 111.2 million, net margin: 17.5% (GAAP), 18% (adjusted); basic and diluted EPS: RMB 0.67 and RMB 0.65.

• Gross margin for Q4 FY2025 was 75.7% overall, with pop toy business gross margin at 34.7%.

• Operating expenses decreased 44.7% year-over-year to RMB 344.2 million; sales and marketing expenses dropped 49.3%.

• Cash and equivalents plus short-term investments totaled RMB 1,040.9 million as of June 30, 2025.

Outlook and guidance

• Pop toy business revenue guidance: RMB 100–110 million for Q1 FY2026 and RMB 750–800 million for FY2026.

• Management expects continued rapid growth driven by new IP launches, channel expansion, and international market penetration.

• Guidance may be updated in future quarters based on ongoing business developments.