HeartCore Enterprises, Inc. (HTCR) AI Stock Analysis

• Market Cap: $6.22M
• Dividend Yield: 41.26%
• Average Volume (3M): 449.34K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.14
• Revenue Growth: -51.26%
• EPS Growth: -319.52%
• Country: US
• Employees: 91
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 25,419,807
• 10 Day Avg. Volume: 529,066
• 30 Day Avg. Volume: 449,340
• PEG Ratio: 0.39
• Price to Book (P/B): 8.19
• Price to Sales (P/S): 1.25
• P/FCF Ratio: -7.97
• Enterprise Value/Market Cap: 0.87
• Enterprise Value/Revenue: 0.37
• Enterprise Value/Gross Profit: 1.01
• Enterprise Value/Ebitda: -0.38
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 43 Neutral
• Price Target: $0.28 ▼(-9.35% Downside)

The score is primarily held back by deteriorating financial performance (steep revenue decline, worsening margins and losses, and negative operating/free cash flow). Technical indicators reinforce the weakness with a clear downtrend and negative momentum. Valuation is hard to assess due to losses (negative P/E) despite a very high dividend yield, while the subsidiary sale is a modest positive offset but not enough to overcome the fundamental and technical pressures.

Positive Factors

Lower Leverage

Material reduction in leverage meaningfully improves financial flexibility and reduces interest cost sensitivity. Over 2–6 months this gives management room to fund restructuring, cover shortfalls, or pursue targeted investments without relying on high-cost debt or immediate asset sales.

Strategic Divestiture

Divesting the Japan unit and reallocating capital toward Go IPO consulting is a structural pivot that narrows focus to higher-margin consulting services. Proceeds provide cash to shore up operations or return to shareholders, reducing reliance on underperforming software assets long-term.

Diversified Revenue Streams

Multiple income sources—device sales, subscription services, partnerships and digital advertising—create structural resilience. Recurring app subscriptions and partnerships can stabilize cash flow versus pure product sales, supporting steadier revenue composition over coming quarters.

Negative Factors

Steep Revenue Decline

A roughly 50% TTM revenue decline erodes scale economies and brand momentum, reducing ability to cover fixed costs and invest in product development. Persisting revenue contraction over several quarters jeopardizes long-term competitiveness and the sustainability of core offerings.

Margin & Profitability Deterioration

Sharp gross margin compression and deep negative net margins indicate structural issues with pricing, product mix, or cost control. Persistent poor profitability limits reinvestment, raises funding needs, and undermines the viability of growth initiatives without substantive margin recovery.

Negative Cash Flow

Sustained negative operating and free cash flow constrains capital allocation and forces reliance on asset sales, equity or debt. Declining FCF growth reduces runway for R&D, marketing, and scaling, making operational turns and strategic investments difficult without external financing.

HeartCore Enterprises, Inc. Business Overview & Revenue Model

Company Description

HeartCore Enterprises, Inc., a software development company, provides Software as a Service solutions to enterprise customers in Japan and internationally. Its customer experience management platform includes marketing, sales, service, and content management systems, as well as other tools and integrations, which enable companies to enhance the customer experience and drive engagement. The company also provides data analytics services that allow enterprise businesses to create web experiences for their clients. In addition, it operates a digital transformation business that provides customers with robotics process automation, process mining, and task mining to accelerate the digital transformation of enterprises. The company was founded in 2009 and is headquartered in Tokyo, Japan.

How the Company Makes Money

HeartCore Enterprises, Inc. generates revenue through multiple key streams. Primarily, the company earns income from the sale of its health monitoring devices and related accessories, which are marketed directly to consumers via its e-commerce platform and through retail partnerships. Additionally, HTCR offers subscription-based services for its mobile applications, providing users with premium features and personalized health insights. The company also benefits from collaborations with health-focused organizations and research institutions, which contribute to product development and innovation, enhancing its market reach and brand credibility. Advertising and affiliate marketing on its digital platforms further augment its revenue, creating a multifaceted approach to generating income.

HeartCore Enterprises, Inc. Financial Statement Overview

Summary

Weak fundamentals overall: revenue is down sharply (TTM growth -50.16%), margins deteriorated materially (gross margin 58.63% to 36.29%), and losses deepened (TTM net margin -73.58%). Balance sheet leverage improved (debt-to-equity 0.81 to 0.04), but profitability remains very weak (ROE -262.95%) and cash flow is negative with declining free cash flow growth (-28.51%).

Income Statement

HeartCore Enterprises, Inc. has experienced a significant decline in revenue, with a TTM revenue growth rate of -50.16%. The gross profit margin has decreased from 58.63% in 2024 to 36.29% in the TTM period, indicating reduced profitability. The net profit margin has also worsened, moving from -4.87% in 2024 to -73.58% in the TTM period. These metrics suggest challenges in maintaining revenue and controlling costs, impacting overall profitability.

Balance Sheet

The company's debt-to-equity ratio has improved significantly from 0.81 in 2024 to 0.04 in the TTM period, indicating reduced leverage. However, the return on equity remains negative at -262.95%, reflecting ongoing losses. The equity ratio is stable at 38.92%, suggesting a reasonable level of equity financing relative to total assets. Despite improvements in leverage, profitability remains a concern.

Cash Flow

Operating cash flow and free cash flow are both negative, with a TTM free cash flow growth rate of -28.51%. The operating cash flow to net income ratio is -0.47, indicating cash flow challenges. The free cash flow to net income ratio is slightly above 1, suggesting that free cash flow is closely aligned with net income, albeit negative. Cash flow management remains a critical issue for the company.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.77M	30.41M	21.85M	8.82M	10.82M	9.03M
Gross Profit	5.36M	17.83M	8.07M	3.35M	5.19M	4.02M
EBITDA	-14.35M	-4.46M	-4.16M	-6.55M	163.53K	399.69K
Net Income	-10.81M	-1.48M	-4.19M	-6.68M	-338.16K	150.96K
Balance Sheet
Total Assets	13.34M	13.97M	19.62M	12.14M	9.12M	10.36M
Cash, Cash Equivalents and Short-Term Investments	4.35M	6.62M	1.95M	7.18M	3.14M	3.06M
Total Debt	946.72K	3.78M	4.89M	4.55M	6.19M	8.49M
Total Liabilities	9.51M	10.50M	11.96M	7.33M	9.68M	11.42M
Stockholders Equity	5.19M	4.65M	5.17M	4.81M	-558.95K	-1.41M
Cash Flow
Free Cash Flow	-4.26M	-4.78M	-4.86M	-4.87M	730.15K	718.58K
Operating Cash Flow	-4.26M	-4.77M	-4.33M	-4.81M	766.30K	745.75K
Investing Cash Flow	4.81M	6.35M	-1.78M	-12.20K	-179.03K	-401.15K
Financing Cash Flow	1.21M	-318.65K	136.19K	8.92M	-257.35K	2.06M

HeartCore Enterprises, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HTCR, the sentiment is Negative. The current price of 0.31 is above the 20-day moving average (MA) of 0.29, below the 50-day MA of 0.35, and below the 200-day MA of 0.52, indicating a bearish trend. The MACD of -0.03 indicates Negative momentum. The RSI at 28.29 is Positive, neither overbought nor oversold. The STOCH value of 10.80 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for HTCR.

HeartCore Enterprises, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CXAI	48 Neutral	$6.92M	-0.36	-80.59%	―	-27.47%	83.06%
HTCR	43 Neutral	$6.22M	-0.46	-5.71%	41.26%	-51.26%	-319.52%
TGL	40 Underperform	$7.61M	-0.04	-269.14%	―	-73.83%	98.11%

HeartCore Enterprises, Inc. Corporate Events

HeartCore Enterprises Granted Nasdaq Listing Extension

On November 10, 2025, HeartCore Enterprises, Inc. announced it received an additional 180-day extension from the Nasdaq Listing Qualifications Department to meet the $1.00 minimum bid price requirement for continued listing on the Nasdaq Capital Market. The extension, which lasts until May 1, 2026, has no immediate effect on the company’s stock listing status, but failure to comply could lead to delisting. HeartCore is considering actions such as a reverse stock split to regain compliance, though no decisions have been made yet.

The most recent analyst rating on (HTCR) stock is a Hold with a $1.00 price target. To see the full list of analyst forecasts on HeartCore Enterprises, Inc. stock, see the HTCR Stock Forecast page.