Here Group (HERE) AI Stock Analysis

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Here Group

(NASDAQ:HERE)

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Rating:51Neutral

Price Target:$2.00▲(26.58% Upside)

Action:reiterated

Date:07/01/26

The score is held back primarily by weakening recent fundamentals (sharp annual revenue/earnings/cash flow contraction) and a clearly bearish price trend (trading below all major moving averages). The earnings call adds some support via margin improvement and new-IP traction, but downgraded guidance, widening losses, and a relatively high P/E with no dividend keep the overall outlook cautious.

Positive Factors

Scalable IP portfolio & flagship tractionA concentrated but scalable IP model with a flagship that already drives the majority of sales and a rapidly growing new IP demonstrates product-market fit and repeatable monetization. Proprietary IP plus licensed titles create a runway for cross‑IP merchandising, sequenced launches and higher lifetime value over months to years.

Negative Factors

Severe recent revenue & cash declineA near‑total decline in top‑line and free cash flow signals structural demand or execution problems that undermine durability of prior profitability. Such a collapse materially raises uncertainty about recurring revenue, weakens cash generation consistency, and increases reliance on corrective management actions to restore stability.

Here Group Key Performance Indicators (KPIs)

Revenue by Pop Toy BusinessRevenue from the Pop Toy Business shows how much of HERE’s sales come from consumer toy products, licensing, and related retail channels. A growing contribution can provide near-term cash and diversify income, but heavy dependence on a trend-driven consumer segment adds seasonality, inventory and retail risks, and may distract management from core mapping and location services. Investors should monitor growth trends, margins, and channel stability to decide if this business is a sustainable profit driver or a volatile, short-term boost.

Chart Insights

WAKUKU remains the revenue anchor but softened after a launch/seasonal peak; SIINONO is the clear breakout, ramping quickly and materially diversifying mix, yet company guidance trims near‑term pop‑toy revenue so new IP traction hasn’t offset market cooling. Management’s omnichannel rollout and margin gains are positive signs, but heavy reliance on the flagship plus rising S&M keeps adjusted losses elevated—treat SIINONO as validation of the IP strategy, not yet a cure for top‑line volatility or profitability pressures.

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The Fly

Here Group (HERE) vs. SPDR S&P 500 ETF (SPY)

Market Cap: $59.67M
Dividend Yield: ―
Average Volume (3M): 31.80K
Price to Earnings (P/E): -2.2
Beta (1Y): 1.02
Revenue Growth: -77.43%
EPS Growth: -166.23%
Country: US
Employees: 368
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Leisure

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...

Here Group Earnings Call Summary

Earnings Call Date:Sep 22, 2026(Q4-2026)|% Change Since:-14.59%|Next Earnings Date:Dec 16, 2026

Earnings Call SentimentPositive

The call was strategically optimistic, supported by 94.1% year-over-year fourth-quarter revenue growth, rapid expansion of newer IPs, a broader portfolio, and continued development of D2C, Roboshop, partnership, and experiential initiatives. However, the company faced significant near-term financial pressure, including sequential revenue decline, lower traditional channel sales, gross-margin compression, higher operating expenses, a CNY 124.1 million goodwill impairment, widened adjusted losses, and elevated channel inventory. The highlights outweigh the lowlights in terms of operating momentum and strategic progress, but management acknowledged that profitability and inventory normalization remain ongoing challenges.

Positive Updates

Strong Fourth-Quarter and Full-Year Revenue Growth

Fourth-quarter revenue was CNY 127.7 million, representing a 94.1% year-over-year increase. Full-year fiscal 2026 revenue reached CNY 596.8 million. The year-over-year growth was primarily driven by higher sales of both existing and newly launched IP product lines in the pop toy business.

Negative Updates

Sequential Revenue Decline

Fourth-quarter revenue of CNY 127.7 million increased 94.1% year over year but declined sequentially. Management attributed the sequential decrease to a challenging market environment and lower channel sales.

Company Guidance

Management’s near-term mandate is to “drive towards sustainable profitability at an early date,” while expecting the gap between revenue and cost trends to close “over time as our revenue stabilizes and our cost structures are optimized”; it will maintain a “steady, uncompromising cadence” in operating and incubating proprietary IPs, remain disciplined in capital allocation, and prioritize stores with sound unit economies, with seven D2C stores across four core cities, 25 Roboshops across six cities, and a portfolio of 22 IPs comprising 13 proprietary IPs and nine exclusively licensed IPs as of June 30, 2026. Management said the Hong Kong Central Pier IP boat experience is expected to launch early next month, with its maiden voyage on October 1, and that it does not anticipate a rapid market recovery in the near term; inventory pressure is “temporary and fully manageable,” but working it down structurally “will take time,” and the company will not use aggressive clearing measures that undermine its brand premium. The board approved a $20 million ADS repurchase program in June, and as of September 16, 2026, the company had repurchased approximately $0.4 million ADS for approximately $0.7 million.

Here Group Financial Statement Overview

Summary

Financials show a strong recovery into 2024 profitability and solid cash generation, but the latest annual period flags a severe deterioration: revenue, earnings, and free cash flow each fell roughly ~90% year-over-year. Balance-sheet leverage appears moderate, yet equity volatility (including periods of negative equity and a steep drop again in 2025) increases risk and reduces confidence in stability.

Income Statement

58Neutral

Balance Sheet

46Neutral

Cash Flow

55Neutral

Financial statement breakdown
Breakdown	TTM	Jun 2026	Jun 2025	Jun 2024	Jun 2023	Jun 2022
Income Statement
Total Revenue	594.49M	596.47M	2.73B	3.80B	3.08B	2.87B
Gross Profit	196.53M	197.14M	2.22B	3.25B	2.69B	2.46B
EBITDA	-150.11M	-170.24M	478.04M	392.43M	-83.25M	-204.48M
Net Income	62.60M	62.40M	358.73M	385.53M	-108.54M	-233.43M
Balance Sheet
Total Assets	1.14B	1.14B	1.66B	1.43B	1.22B	603.47M
Cash, Cash Equivalents and Short-Term Investments	610.55M	610.55M	1.04B	1.03B	930.58M	399.06M
Total Debt	34.79M	34.79M	34.54M	66.09M	93.93M	22.90M
Total Liabilities	286.85M	286.85M	728.56M	909.53M	997.60M	1.39B
Stockholders Equity	628.95M	628.95M	809.00M	516.48M	223.70M	-125.19M
Cash Flow
Free Cash Flow	0	0	27.82M	279.08M	229.87M	268.08M
Operating Cash Flow	0	0	28.25M	282.72M	235.62M	272.64M
Investing Cash Flow	0	0	-4.65M	-132.78M	201.00K	-108.58M
Financing Cash Flow	0	0	-13.65M	-130.19M	247.70M	71.63M

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

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

HERE against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
APEI	68Neutral	$731.77M	16.78	15.00%	―	2.95%	85.59%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
LINC	58Neutral	$707.98M	30.53	12.03%	―	18.96%	66.40%
IH	57Neutral	$52.14M	3.05	2.54%	9.35%	-12.17%	-78.28%
HERE	51Neutral	$86.76M	-2.20	7.89%	―	-77.43%	-166.23%
CHGG	48Neutral	$65.33M	-1.66	-33.87%	―	-47.68%	49.06%

* Consumer Cyclical Sector Average

Performance Comparison

HERE and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
HERE	Here Group Limited	1.58	-4.05	-71.94%
APEI	American Public Education, Inc.	42.28	7.73	22.37%
LINC	Lincoln Educational Services	23.51	2.70	12.97%
CHGG	Chegg Inc	0.61	-0.52	-46.02%
IH	Ihuman Inc.	1.07	-1.57	-59.44%

Here Group Corporate Events

Here Group Cuts FY 2026 Revenue Outlook and Launches New $20 Million Buyback

Jun 5, 2026

Here Group Limited reported unaudited results for the third quarter of fiscal 2026, covering January 1 to March 31, 2026, with revenue of RMB164.7 million, down from the prior quarter, and a net loss widening to RMB34.1 million, while adjusted net lo...

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.

Date of analysis: Jul 01, 2026

Here Group AI Stock Analysis