Here Group (HERE) AI Stock Analysis

• Market Cap: $208.84M
• Dividend Yield: N/A
• Average Volume (3M): 103.55K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• Revenue Growth: -45.46%
• EPS Growth: -29.41%
• Country: US
• Employees: 714
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Leisure
• EPS (TTM): -0.02
• Shares Outstanding: 37,764,930
• 10 Day Avg. Volume: 116,379
• 30 Day Avg. Volume: 103,550
• PEG Ratio: -0.64
• Price to Book (P/B): 24.46
• Price to Sales (P/S): 7.31
• P/FCF Ratio: 99.26
• Enterprise Value/Market Cap: 13.06
• Enterprise Value/Revenue: 4.14
• Enterprise Value/Gross Profit: 31.99
• Enterprise Value/Ebitda: -29.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.87
• Revenue Forecast (FY): $762.67M

• Rating: 51 Neutral
• Price Target: $4.00 ▼(-25.79% Downside)
• Action: Reiterated Date: 03/13/26
• Date: Action: Reiterated 03/13/26

The score is held back primarily by weak financial performance (profitability and cash-flow pressure, plus recent revenue decline) and bearish technicals (price below key moving averages with negative MACD). A very low P/E provides valuation support, while the latest earnings call shows solid top-line traction but meaningful near-term margin, inventory, and guidance-related risks.

Positive Factors

Flagship IP-driven revenue

A concentrated, high-performing IP (WAKUKU) that generated ~73% of Q2 sales demonstrates durable product-market fit and scalable monetization. Strong hit-driven revenue supports repeat launch economics, licensing and partner leverage, and gives the company an asset-light growth model that can persist across cycles.

Material supply-chain capacity expansion

A ~50x capacity increase is a lasting operational upgrade that enables scaling of seasonal and new-product demand. Higher capacity reduces fulfillment friction, shortens lead times, and positions the company to capitalize on future launches and omnichannel orders, improving long-term revenue capture if utilization rises.

Omnichannel reach and brand engagement

Substantial organic reach and engagement create durable customer-acquisition advantages for an IP-driven consumer brand. A ~700k follower base and massive exposures lower incremental marketing costs over time, support repeat-product launches, and enhance bargaining power for retail and licensing partnerships.

Negative Factors

Material margin compression

A 10 percentage-point gross-margin decline reflects a structural tradeoff from pushing lower-margin offline/distributor channels. Persisting channel mix shifts can erode operating leverage and free cash flow, meaning management must either improve mix or lower costs to restore sustainable profitability over multiple quarters.

Elevated sales & marketing intensity

Rising S&M spend as nearly 30% of revenue materially reduces operating margin and requires sustained conversion and retention to justify. If customer lifetime value does not scale with acquisition costs, this elevated intensity will continue to pressure profitability and cash generation for several quarters.

Working-capital strain from inventory build

A large inventory build to support seasonal and launch demand elevates working-capital needs and ties up cash. Combined with recent negative free-cash-flow trends (financial summary), this increases liquidity sensitivity and could constrain reinvestment or force financing if sales or sell-through weaken.

Here Group Business Overview & Revenue Model

Company Description

Here Group Limited designs and sells pop toys in China. It offers collectible pop toys, such as plush toys and figures under HERE brand. The company was formerly known as QuantaSing Group Limited and change its name to Here Group Limited in November 2025. Here Group Limited was founded in 2019 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

HERE generates revenue through multiple streams, primarily focusing on subscription-based services and licensing fees for its mapping and location data. Key revenue streams include the sale of APIs and SDKs that developers use to integrate HERE's location services into their applications. Additionally, HERE partners with automotive manufacturers to provide integrated navigation systems, which also contributes to its earnings through long-term contracts. The company further monetizes its data through partnerships with enterprises seeking location analytics and insights, helping businesses optimize their operations. Significant collaborations with tech companies and government entities enhance HERE's market presence and revenue opportunities.

Here Group Financial Statement Overview

Summary

Mixed fundamentals: strong gross margin signals decent cost control, but recent negative revenue growth and volatile profitability are key risks. Balance sheet leverage appears manageable, yet ROE has dropped recently and equity financing looks limited. Cash flow quality is pressured by negative free cash flow growth and weak cash conversion.

Income Statement

The income statement shows a mixed performance. The company has a strong gross profit margin, indicating efficient cost management. However, the net profit margin has been volatile, with a significant decline in revenue growth rate in the most recent year. EBIT and EBITDA margins have been inconsistent, reflecting operational challenges. The negative revenue growth rate in the latest period is a concern, suggesting potential market or operational issues.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio, indicating manageable leverage levels. However, the return on equity has been inconsistent, with a significant drop in the latest period. The equity ratio is relatively low, suggesting limited equity financing. Overall, the balance sheet reflects a stable but cautious financial position, with potential risks from fluctuating equity and leverage metrics.

Cash Flow

Cash flow analysis indicates challenges in maintaining positive growth. The free cash flow growth rate has been negative recently, and the operating cash flow to net income ratio is low, suggesting inefficiencies in converting income to cash. The free cash flow to net income ratio is relatively high, indicating good cash generation relative to net income, but the overall cash flow position is weakened by recent declines.

Breakdown	TTM	Jun 2024	Jun 2023	Jun 2023	Jun 2022	Jun 2021
Income Statement
Total Revenue	659.37M	377.72M	3.80B	3.08B	2.87B	1.76B
Gross Profit	85.26M	2.22B	3.25B	2.69B	2.46B	1.58B
EBITDA	-92.76M	405.45M	395.93M	-109.48M	-224.71M	-320.10M
Net Income	-14.19M	49.71M	385.53M	-108.54M	-233.43M	-316.04M
Balance Sheet
Total Assets	643.95M	1.66B	1.43B	1.22B	603.47M	330.23M
Cash, Cash Equivalents and Short-Term Investments	64.36M	1.04B	1.03B	930.58M	399.06M	54.73M
Total Debt	2.71M	34.54M	66.09M	93.93M	22.90M	9.07M
Total Liabilities	115.34M	728.56M	909.53M	997.60M	1.39B	609.73M
Stockholders Equity	-173.97M	112.90M	516.48M	223.70M	-789.35M	-279.51M
Cash Flow
Free Cash Flow	32.26M	27.82M	279.08M	229.87M	268.08M	43.80M
Operating Cash Flow	32.32M	28.25M	282.72M	235.62M	272.64M	79.42M
Investing Cash Flow	150.32M	-4.65M	-132.78M	201.00K	-108.58M	-62.35M
Financing Cash Flow	-867.00K	-13.65M	-130.19M	247.70M	71.63M	-21.09M

Here Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HERE, the sentiment is Negative. The current price of 5.39 is above the 20-day moving average (MA) of 4.32, above the 50-day MA of 4.60, and below the 200-day MA of 6.96, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 37.25 is Neutral, neither overbought nor oversold. The STOCH value of 11.58 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HERE.

Here Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APEI	71 Outperform	$1.03B	21.57	11.20%	―	6.75%	141.11%
IH	67 Neutral	$93.00M	2.45	11.71%	3.93%	-8.09%	-15.28%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
LINC	61 Neutral	$1.26B	37.37	10.75%	―	16.90%	41.11%
HERE	51 Neutral	$208.84M	-19.37	50.23%	―	-45.46%	-29.41%
CHGG	43 Neutral	$64.96M	-0.97	-67.91%	―	-32.37%	90.99%

Here Group Corporate Events

Here Group Posts Strong Q2 FY2026 Pop Toy Revenue Growth as It Completes Pivot to IP Trend Model

Here Group Limited reported unaudited results on March 12, 2026 for the second quarter of its 2026 fiscal year, covering the period from October 1 to December 31, 2025, with revenue rising 39.4% quarter-on-quarter to RMB177.3 million, driven solely by its high-growth pop toy business. The company remained loss-making, posting a net loss from continuing operations of RMB25.4 million and an adjusted net loss of RMB16.1 million, as it continued to invest in sales, marketing, and IP development while absorbing lower margins from a strategic push into offline retail channels following the disposal of its legacy businesses in September 2025.

Management emphasized that the second quarter marked the first full period operating as a fully independent IP trend company and highlighted ongoing cost-structure refinements to align with its asset-light, high-value-added model. The firm forecast pop toy revenues of RMB140 million to RMB150 million for the third fiscal quarter and RMB750 million to RMB800 million for the full fiscal year ending June 30, 2026, while also disclosing that it had repurchased 1.7 million ADSs for US$10.8 million under a US$20 million buyback program in place through June 2026, underscoring confidence in its long-term growth prospects despite current losses.

The most recent analyst rating on (HERE) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Here Group stock, see the HERE Stock Forecast page.