HeartCore Announces Preliminary Fiscal Year 2025 Financial Results
Rhea-AI Summary
HeartCore (NASDAQ: HTCR) announced preliminary, unaudited FY 2025 results on Feb 11, 2026, expecting revenue $8.5M–$9.5M and net income $3.0M–$4.0M.
The year‑over‑year revenue decline reflects the Oct 31, 2025 divestiture of HeartCore Japan, which removed about $7.0M–$8.0M of revenue but produced an approximate $7.0M gain and JPY 1.8B proceeds. FY2025 revenue split: Software related $7.0M–$7.5M, Go IPO $1.5M–$2.0M. The company has engaged 16 cumulative Go IPO clients, with five currently active.
Positive
- Net income expected $3.0M–$4.0M for FY2025
- Gain on sale of HeartCore Japan approx. $7.0M
- Divestiture proceeds of approximately JPY 1.8 billion
- Go IPO clients cumulative total of 16 (5 active)
Negative
- Revenue declined due to excluding $7.0M–$8.0M from sale
- Profitability driven largely by a one‑time ~$7.0M sale gain
- FY2025 organic revenue reduced to $8.5M–$9.5M post‑divestiture
Market Reaction
Following this news, HTCR has gained 4.28%, reflecting a moderate positive market reaction. The stock is currently trading at $0.29. This price movement has added approximately $302K to the company's valuation.
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Key Figures
Market Reality Check
Peers on Argus
HTCR was up 2.96% with modestly above-average volume. Peers in Software/Application showed mixed moves (e.g., AIXI and MTC up, MNDO and SAGT down), and no peers appeared in the momentum scanner, suggesting a stock-specific reaction instead of a sector-wide trend.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Nov 18 | Q3 2025 earnings | Neutral | -18.7% | Q3 and nine‑month 2025 results plus disclosure of Japan subsidiary divestiture. |
| Aug 13 | Q2 2025 earnings | Positive | +8.1% | Q2 2025 revenue growth, return to profitability, and stronger cash balance. |
| May 15 | Q1 2025 earnings | Negative | -17.6% | Q1 2025 revenue decline, wider net loss, and weaker cash position. |
| Mar 31 | 2024 annual results | Neutral | -12.5% | 2024 revenue and gross profit growth offset by goodwill impairment and net loss. |
| Nov 14 | Q3 2024 earnings | Positive | -5.6% | Exceptional Q3 2024 revenue and net income growth led by Go IPO business. |
Earnings-related headlines have often led to volatile and frequently negative moves, with an average same-tag reaction of about -9.26%, including several selloffs even on strong operational results.
Over the past year, HeartCore’s earnings reports have highlighted a transition from high-growth software revenues to restructuring and portfolio reshaping. Strong quarters in Q3 2024 and Q2 2025 produced profitability but were followed by negative or muted stock reactions. Subsequent 2025 results showed revenue pressure and strategic moves, culminating in divesting HeartCore Japan and reclassifying it as discontinued operations. Today’s preliminary FY 2025 numbers extend that narrative, emphasizing profitability helped by the gain on sale and a business mix centered on Go IPO consulting and related services.
Historical Comparison
In the past year, HTCR issued 5 earnings updates with an average move of -9.26%. The preliminary FY 2025 results continue the shift from software-led growth toward profitability aided by divestiture gains.
Earnings history shows a progression from high-growth software revenues and Go IPO-driven profits to restructuring, including the sale of HeartCore Japan, and a renewed focus on consulting profitability and capital redeployment.
Market Pulse Summary
This announcement presents preliminary FY 2025 results showing revenue of $8.5M–$9.5M but a swing to net income of $3.0M–$4.0M, helped by an approximate $7.0M gain on the HeartCore Japan sale. The business mix is shifting toward Go IPO consulting, with 16 cumulative clients and 5 active mandates. Historically, earnings news has produced volatile reactions, so investors may watch how recurring Go IPO fees, new financial-services offerings, and post-divestiture margins develop in audited results and future filings.
AI-generated analysis. Not financial advice.
FY 2025 Revenue Expected to Range Between
FY 2025 Net Income Expected to Range Between
NEW YORK and TOKYO, Feb. 11, 2026 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (NASDAQ: HTCR) (“HeartCore” or the “Company”), an IPO consulting services company based in Tokyo, today announced select preliminary financial results for the fiscal year ended December 31, 2025. These results are preliminary, unaudited, and subject to the completion of the Company’s annual audit. Actual results may differ materially as a result of the final audit process, including the receipt of additional information and related determinations.
Preliminary FY 2025 Financial Highlights
Based on currently available unaudited information, HeartCore expects:
- Revenue to be in the range of
$8.5 million to$9.5 million - Net income to be in the range of
$3.0 million to$4.0 million
The year-over-year decline in consolidated revenue primarily reflects the strategic divestiture of the Company’s wholly owned subsidiary, HeartCore Co., Ltd. (“HeartCore Japan”), which was completed on October 31, 2025. As a result of this transaction, approximately
Despite the decline in revenue, the Company recorded an approximately
Expected Fiscal Year 2025 Revenue by business type:
| Software Related Business | Go IPO Business | Total |
As of December 31, 2025, the Company has been engaged by a cumulative total of 16 Go IPO clients, with five companies currently under active engagement for listing preparation.
HeartCore CEO Sumitaka Kanno commented: “The divestiture of HeartCore Japan, which generated approximately JPY 1.8 billion in proceeds, represents a major milestone in our capital strategy and marks a transition into our next phase of growth. We are reallocating this capital into growth initiatives and strategically realigning our business to focus within the financial services sector. No matter how advanced autonomous AI becomes, we believe that businesses built on authentic human connection will remain irreplaceable. Our Go IPO business is the embodiment of this approach, and following the divestiture of our software business, we have focused on identifying new ways to broaden and elevate our practice within the financial services sector. With a few initiatives underway aimed at both expanding our service offerings and generating new, sustainable revenue streams beyond Go IPO, we look forward to sharing further details in the coming weeks.”
About HeartCore Enterprises, Inc.
HeartCore Enterprises, Inc. is headquartered in Tokyo, Japan, and is a leading consulting services company providing U.S. market listing support and related advisory services primarily to Japanese corporate clients. For more information, please visit https://heartcore-enterprises.com/.
Forward-Looking Statements
All statements other than statements of historical facts included in this press release are forward-looking statements. In some cases, forward-looking statements can be identified by words such as “believed,” “intend,” “expect,” “anticipate,” “plan,” “potential,” “continue,” or similar expressions. Such forward-looking statements include risks and uncertainties, and there are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors, risks, and uncertainties are discussed in HeartCore’s filings with the Securities and Exchange Commission. Investors should not place any undue reliance on forward-looking statements since they involve known and unknown uncertainties and other factors which are, in some cases, beyond HeartCore’s control which could, and likely will materially affect actual results, and levels of activity, performance, or achievements. Any forward-looking statement reflects HeartCore’s current views with respect to future events and is subject to these and other risks, uncertainties, and assumptions relating to operations, results of operations, growth strategy, and liquidity. HeartCore assumes no obligation to publicly update or revise these forward-looking statements for any reason, or to update the reasons actual results could differ materially from those anticipated in these forward-looking statements, even if new information becomes available in the future. The contents of any website referenced in this press release are not incorporated by reference herein.
HeartCore Investor Relations Contact:
Gateway Group, Inc.
Matt Glover and John Yi
HTCR@gateway-grp.com
(949) 574-3860
FAQ
What FY2025 revenue did HeartCore (HTCR) report in the preliminary release?
Why does HeartCore expect a FY2025 profit after a prior-year loss for HTCR?
How did the sale of HeartCore Japan affect HTCR’s reported revenue for 2025?
What is HeartCore’s FY2025 revenue mix and its Go IPO client activity for HTCR?
How much cash did HeartCore raise from the divestiture and how will it be used by HTCR?
