Here Group Limited (HERE)
NASDAQ:HERE
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Here Group
(NASDAQ:HERE)
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Rating:49Neutral
Price Target:
$3.50
▼(-35.06% Downside)
Action:ReiteratedDate:03/24/26
The score is held back primarily by deteriorating recent financial results (sharp 2025 contraction and equity volatility) and weak technicals (broad downtrend with negative momentum). Earnings-call commentary provides partial support via improving operational traction and revenue momentum in the latest quarter, but margin compression, higher spending, inventory build, and a near-term guidance dip temper the outlook, while valuation is difficult to support due to the negative P/E and no dividend yield.
Positive Factors
Top-line Traction
Sustained sequential revenue growth and a quarter that beat guidance indicate durable product-market fit for the new IP-led model. Consistent top-line expansion supports scale economics, strengthens distribution leverage, and creates momentum that can persist through upcoming launch cycles and omnichannel expansion.
Negative Factors
Margin Compression
A persistent shift into lower‑margin offline distributor channels and higher promotional intensity risks structurally lower gross margins. If channel mix and elevated S&M persist, operating leverage will be impaired and the company will need higher volumes or margin remediation to reach sustainable profitability.
Read all positive and negative factors
Positive Factors
Negative Factors
Top-line Traction
Sustained sequential revenue growth and a quarter that beat guidance indicate durable product-market fit for the new IP-led model. Consistent top-line expansion supports scale economics, strengthens distribution leverage, and creates momentum that can persist through upcoming launch cycles and omnichannel expansion.
Read all positive factors
Here Group (HERE) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$163.70M
Dividend YieldN/A
Average Volume (3M)161.79K
Price to Earnings (P/E)―
Beta (1Y)0.99
Revenue Growth-45.46%
EPS Growth-29.41%
CountryUS
Employees714
SectorConsumer Defensive
Sector Strength42
IndustryLeisure
Share Statistics
EPS (TTM)-0.02
Shares Outstanding37,764,930
10 Day Avg. Volume139,965
30 Day Avg. Volume161,789
Financial Highlights & Ratios
PEG Ratio-0.64
Price to Book (P/B)24.46
Price to Sales (P/S)7.31
P/FCF Ratio99.26
Enterprise Value/Market Cap12.77
Enterprise Value/Revenue3.17
Enterprise Value/Gross Profit24.51
Enterprise Value/Ebitda-22.53
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.66
Revenue Forecast (FY)$755.67M
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 Novemb...
How the Company Makes Money
HERE generates revenue through licensing its location data and digital mapping services to businesses, governments, and organizations. It monetizes its products via subscriptions, service fees, and direct partnerships with companies in the automot...
Here Group Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 05, 2026
Earnings Call Sentiment Neutral
The call highlights robust top-line momentum, strong flagship IP performance, rapid omnichannel expansion and meaningful supply-chain capacity gains, alongside narrowing adjusted losses. However, material margin compression (10 percentage points), elevated sales & marketing spend, higher inventories, and a near-term revenue guidance dip introduce meaningful profitability and working-capital risks. On balance the call reflects positive operational traction but with tangible near-term financial tradeoffs and execution risks.Positive Updates
Strong Revenue Growth
Total revenue of RMB 177.3 million in Q2 FY2026, representing sequential growth (management cited 35.4% QoQ in CEO remarks; CFO cited 39.4% QoQ). Revenue exceeded the high end of company guidance for the quarter and was driven primarily by pop toy sales.
Negative Updates
Decline in Gross Margin
Gross margin fell to 31% in Q2 from 41% in the prior quarter (a 10 percentage point decline). Management attributed the margin compression to strategic expansion into offline distributor channels which carry lower per-unit margins.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Revenue Growth
Total revenue of RMB 177.3 million in Q2 FY2026, representing sequential growth (management cited 35.4% QoQ in CEO remarks; CFO cited 39.4% QoQ). Revenue exceeded the high end of company guidance for the quarter and was driven primarily by pop toy sales.
Read all positive updates
Company Guidance
Management guided Q3 FY2026 revenue of RMB 140–150 million (vs. Q2 revenue of RMB 177.3 million), implying a sequential decline of about 15.4%–21.0% (they described this as a ~15–20% seasonal dip due to distributor slow‑downs around the Spring Festival); they said major new product launches will begin end of March and gave full‑year FY2026 revenue guidance with a lower bound of RMB 750 million (the transcript’s upper bound was not specified). The guidance is driven by assumed seasonality and launch cadence (products planned 3–6 months ahead), plus operational factors cited on the call—expanded supply‑chain capacity (~50x vs. early 2025) and a strategic inventory build (RMB 111.8 million) to support the upcoming product cycle.Here Group Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
46
Neutral
Cash Flow
55
Neutral
| 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
Negative
5.39
Price Trends
4.04
Negative
4.57
Negative
6.47
Negative
Market Momentum
-0.22
Negative
34.97
Neutral
57.94
Neutral
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 3.42, above the 50-day MA of 4.04, and below the 200-day MA of 6.47, indicating a bearish trend. The MACD of -0.22 indicates Negative momentum. The RSI at 34.97 is Neutral, neither overbought nor oversold. The STOCH value of 57.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HERE.
Here Group Risk Analysis
Here Group disclosed 103 risk factors in its most recent earnings report. Here Group reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Here Group Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $1.07B | 21.57 | 10.92% | ― | 6.75% | 141.11% | |
67 Neutral | $89.95M | 2.47 | 11.71% | 3.93% | -8.09% | -15.28% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.28B | 37.37 | 10.75% | ― | 16.90% | 41.11% | |
50 Neutral | $96.15M | -0.97 | -67.91% | ― | -32.37% | 90.99% | |
49 Neutral | $163.70M | -19.37 | 50.23% | ― | -45.46% | -29.41% |
* Consumer Defensive Sector Average
HERE
Here Group
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-32.05%
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Here Group Corporate Events
Here Group Posts Strong Q2 FY2026 Pop Toy Revenue Growth as It Completes Pivot to IP Trend Model
Mar 12, 2026
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 solel...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.