HeartCore Reports First Quarter 2026 Financial Results
Rhea-AI Summary
HeartCore (Nasdaq: HTCR) reported first quarter 2026 results for the period ended March 31, 2026.
- Revenue of $1.2 million, down from $2.1 million year over year
- Net loss improved to $2.0 million from $3.1 million
- Adjusted EBITDA loss of $1.6 million vs. $1.3 million
- Gross profit of $74,000 vs. $0.5 million
- Operating expenses decreased to $1.6 million from $1.7 million
- Cash and equivalents of $0.8 million
- 16 Go IPO clients, including 6 in preparation for potential U.S. listings
- Regained Nasdaq $1.00 minimum bid compliance
- Authorized a $2.0 million share repurchase program
AI-generated analysis. Not financial advice.
Positive
- Net loss narrowed to $2.0 million from $3.1 million year over year
- Operating expenses decreased to $1.6 million from $1.7 million
- Regained compliance with Nasdaq $1.00 minimum bid price requirement
- Authorized $2.0 million share repurchase program
- Engaged with 16 Go IPO clients, including 6 preparing for U.S. listings
Negative
- Revenue declined to $1.2 million from $2.1 million year over year
- Gross profit decreased to $74,000 from $0.5 million
- Adjusted EBITDA loss increased to $1.6 million from $1.3 million
- Cash and cash equivalents were $0.8 million as of March 31, 2026
News Market Reaction – HTCR
On the day this news was published, HTCR declined 3.27%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
Among tracked peers, several names such as CREX, AIXI, and MTC appeared on momentum scans with moves down around a median of -5.4%, suggesting broader software/application sector pressure alongside HTCR’s decline of -4.84% pre-earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Mar 31 | Full-year 2025 results | Positive | -26.1% | Reported 2025 profitability, divestiture of HeartCore Japan, and share repurchase plan. |
| Feb 11 | Preliminary FY 2025 | Positive | -1.7% | Outlined swing to net income for 2025 and revenue split by segment. |
| Nov 18 | Q3 2025 results | Positive | -18.7% | Disclosed Q3 profit, major revenue drop, and divestiture of software unit. |
| Aug 13 | Q2 2025 results | Positive | +8.1% | Showed revenue growth, margin expansion, and a return to profitability. |
| May 15 | Q1 2025 results | Negative | -17.6% | Reported revenue decline, wider net loss, and weaker cash position. |
Earnings releases have often been followed by downside moves, even when results highlight profitability or strategic progress; the average post-earnings move over five events is -11.22%.
Over the past year, HeartCore’s earnings reports have documented a transition from a software-focused model toward financial services and Go IPO consulting. Events on Feb 11, 2026 and Mar 31, 2026 highlighted a swing to profitability in 2025, the sale of HeartCore Japan, and the establishment of Higgs Field. Earlier 2025 quarters showed revenue volatility and strategic partnerships. Today’s Q1 2026 update fits into this pivot, with Go IPO still central but near-term financial metrics under pressure.
Historical Comparison
In the last five earnings releases, HTCR’s average next-day move was -11.22%, with several selloffs following otherwise constructive updates, underscoring historically cautious reactions to its earnings.
Recent earnings have traced HeartCore’s shift from a Japan-based software business to a niche Go IPO and capital markets advisory firm, with recurring emphasis on divesting HeartCore Japan, building Higgs Field, and expanding its roster of Go IPO clients.
Market Pulse Summary
This announcement details Q1 2026 results showing revenue of $1.2 million, gross profit of $74,000, and a narrowed net loss of $2.0 million, alongside an adjusted EBITDA loss of $1.6 million. Operationally, HeartCore reported 16 Go IPO clients, six in active preparation, and referenced its $2.0 million share repurchase authorization. Investors may track future earnings for revenue stabilization, margin improvement, cash trends from the $0.8 million base, and continued growth in the Go IPO pipeline.
Key Terms
adjusted EBITDA financial
Nasdaq $1.00 minimum bid price requirement regulatory
Type I Financial Instruments business license regulatory
AI-generated analysis. Not financial advice.
NEW YORK and TOKYO, May 15, 2026 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or the “Company”), an IPO consulting services company based in Tokyo, reported financial results for the first quarter ended March 31, 2026.
Recent Operational Highlights
- As of March 31, 2026, HeartCore was engaged with 16 Go IPO clients, including 6 clients currently in various stages of preparation for potential public registrations and U.S. exchange listings
- Regained Nasdaq
$1.00 m inimum bid price requirement - Authorized
$2.0 million share repurchase program
Management Commentary
HeartCore CEO Sumitaka Kanno commented: “During the first quarter of 2026, HeartCore continued to advance its strategic focus on financial services and capital markets-related services, with Go IPO remaining the key contributor for coming quarters. While the Nasdaq listing environment has become selective and increasingly focused on compliance, we continue to see interest from Japanese and other Asia-based companies seeking access to the U.S. capital markets. In light of these current market conditions, we are focused on expanding the number of engagements and enhancing the overall quality of our pipeline by prioritizing clients that we believe demonstrate stronger listing readiness and long-term financing potential.
“Through our subsidiary Higgs Field Co., Ltd., we are also taking steps to support potential expansion into additional financial services and sectors, including digital securities and capital markets advisory services. During the first quarter, we added experienced financial industry personnel and further developed our organizational structure as we prepare to seek a Type I Financial Instruments business license in Japan. We are also working with external professionals and industry organizations to further strengthen our internal management and compliance framework.
“Looking ahead, we remain focused on broadening our Go IPO client base that aligns with Nasdaq’s tightened requirements and diversifying our revenue base as we further develop and advance our financial services business.”
First Quarter 2026 Financial Results
Revenues were
Gross profit was
Operating expenses decreased to
Net loss was
Adjusted EBITDA was a loss of
As of March 31, 2026, the Company had cash and cash equivalents of
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/.
Non-GAAP Financial Measures
This document includes references to adjusted EBITDA, which is a non-GAAP financial measure. For the purposes of this presentation, adjusted EBITDA is calculated by adjusting net loss to exclude depreciation and amortization, changes in fair value of investments in marketable securities, changes in fair value of investment in warrants, interest income, and interest expenses.
This measure is presented as supplemental information and is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with accounting principles generally accepted in the U.S. (“GAAP”).
Management believes that adjusted EBITDA provides useful information to investors by highlighting the Company’s core operational performance, excluding non-cash and non-recurring items. However, non-GAAP financial measures have limitations and should not be considered in isolation or as a substitute for financial results prepared in accordance with GAAP.
| For the three months ended March 31, | ||
| Item | 2026 | 2025 |
| Net loss | ( | ( |
| (+) Depreciation | ||
| (+) Changes in fair value of investments in marketable securities | ||
| (+) Changes in fair value of investment in warrants | ||
| (+) Changes in fair value of derivative liability | ||
| (+) Interest income | ( | ( |
| (+) Interest expenses | ||
| (+) Other income | ( | ( |
| (+) Other expenses | ||
| Adjusted EBITDA | ( | ( |
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, or the Private Securities Litigation Reform Act of 1995. 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.
John Yi and Steven Shinmachi
HTCR@gateway-grp.com
(949) 574-3860
| HeartCore Enterprises, Inc. | ||||||
| Consolidated Balance Sheets | ||||||
| March 31, | December 31, | |||||
| 2026 | 2025 | |||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | $ | 774,033 | $ | 1,985,962 | ||
| Accounts receivable | 572,547 | 707,865 | ||||
| Investments in marketable securities | 3,394,190 | 3,690,187 | ||||
| Prepaid expenses | 222,818 | 182,077 | ||||
| Current portion of long-term note receivable | 100,000 | 100,000 | ||||
| Deferred offering costs | 250,000 | 250,000 | ||||
| Other current assets | 175,335 | 208,503 | ||||
| Proceeds receivable from sale of discontinued operations | 1,382,897 | 1,291,298 | ||||
| Total current assets | 6,871,820 | 8,415,892 | ||||
| Non-current assets: | ||||||
| Property and equipment, net | 279,185 | 291,589 | ||||
| Operating lease right-of-use assets | 506,456 | 29,449 | ||||
| Long-term investment in warrants | 273,859 | 280,924 | ||||
| Deferred tax assets | 22,633 | 23,121 | ||||
| Security deposits | 278,154 | 282,958 | ||||
| Other non-current assets | 241 | 549 | ||||
| Long-term proceeds receivable from sale of discontinued operations | 3,539,421 | 3,736,995 | ||||
| Total non-current assets | 4,899,949 | 4,645,585 | ||||
| Total assets | $ | 11,771,769 | $ | 13,061,477 | ||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Accounts payable and accrued expenses | $ | 1,230,686 | $ | 1,146,501 | ||
| Accounts payable and accrued expenses - related party | 96,333 | 124,618 | ||||
| Accrued payroll and other employee costs | 663,683 | 509,547 | ||||
| Due to related party | 401 | 285 | ||||
| Short-term debt - related party | 69,000 | 75,000 | ||||
| Current portion of long-term debts | 51,697 | 50,598 | ||||
| Insurance premium financing | 97,773 | 13,430 | ||||
| Factoring liability | 124,508 | 135,982 | ||||
| Operating lease liabilities, current | 308,119 | 32,793 | ||||
| Income tax payables | 1,847,411 | 1,857,386 | ||||
| Deferred revenue | 650,469 | 676,216 | ||||
| Derivative liability | 122,589 | 121,719 | ||||
| Other current liabilities | 598,602 | 586,175 | ||||
| Total current liabilities | 5,861,271 | 5,330,250 | ||||
| Non-current liabilities: | ||||||
| Long-term debts | 434,895 | 448,376 | ||||
| Operating lease liabilities, non-current | 211,544 | - | ||||
| Total non-current liabilities | 646,439 | 448,376 | ||||
| Total liabilities | 6,507,710 | 5,778,626 | ||||
| Shareholders' equity: | ||||||
| Preferred shares, | 691,858 | 691,858 | ||||
| Common shares, | 129 | 127 | ||||
| Additional paid-in capital | 21,876,230 | 21,902,169 | ||||
| Accumulated deficit | (15,627,241 | ) | (13,755,534 | ) | ||
| Accumulated other comprehensive loss | (66,099 | ) | (58,497 | ) | ||
| Total HeartCore Enterprises, Inc. shareholders' equity | 6,874,877 | 8,780,123 | ||||
| Non-controlling interests | (1,610,818 | ) | (1,497,272 | ) | ||
| Total shareholders' equity | 5,264,059 | 7,282,851 | ||||
| Total liabilities and shareholders' equity | $ | 11,771,769 | $ | 13,061,477 | ||
| HeartCore Enterprises, Inc. | |||||||
| Unaudited Consolidated Statements of Operations and Comprehensive Loss | |||||||
| For the Three Months | |||||||
| Ended March 31, | |||||||
| 2026 | 2025 | ||||||
| Revenues | $ | 1,245,844 | $ | 2,093,413 | |||
| Cost of revenues (including cost of revenues resulting from transactions with a related party of | 1,171,799 | 1,549,639 | |||||
| Gross profit | 74,045 | 543,774 | |||||
| Operating expenses: | |||||||
| Selling expenses | 42,812 | 152,922 | |||||
| General and administrative expenses (including general and administrative expenses resulting from transactions with a related party of nil and | 1,571,734 | 1,581,205 | |||||
| Total operating expenses | 1,614,546 | 1,734,127 | |||||
| Loss from continuing operations | (1,540,501 | ) | (1,190,353 | ) | |||
| Other income (expenses): | |||||||
| Changes in fair value of investments in marketable securities | (295,997 | ) | (1,781,664 | ) | |||
| Changes in fair value of investment in warrants | (7,065 | ) | (51,621 | ) | |||
| Changes in fair value of derivative liability | (870 | ) | - | ||||
| Interest income | 582 | 2,243 | |||||
| Interest expenses | (16,625 | ) | (17,794 | ) | |||
| Other income | 14,095 | 9,313 | |||||
| Other expenses | (112,865 | ) | (547 | ) | |||
| Total other expenses | (418,745 | ) | (1,840,070 | ) | |||
| Loss from continuing operations before income tax expense | (1,959,246 | ) | (3,030,423 | ) | |||
| Income tax expense | 17,469 | 39,608 | |||||
| Net loss from continuing operations | (1,976,715 | ) | (3,070,031 | ) | |||
| Loss from discontinued operations, net of income tax | - | (67,350 | ) | ||||
| Net loss | (1,976,715 | ) | (3,137,381 | ) | |||
| Less: net loss attributable to non-controlling interests | (105,008 | ) | (50,389 | ) | |||
| Net loss attributable to HeartCore Enterprises, Inc. | (1,871,707 | ) | (3,086,992 | ) | |||
| Dividends accrued on Series A convertible preferred shares | (27,968 | ) | - | ||||
| Net loss attributable to HeartCore Enterprises, Inc. common shareholders | $ | (1,899,675 | ) | $ | (3,086,992 | ) | |
| Other comprehensive loss: | |||||||
| Foreign currency translation adjustment | (16,140 | ) | (8,014 | ) | |||
| Total comprehensive loss | (1,992,855 | ) | (3,145,395 | ) | |||
| Less: comprehensive loss attributable to non-controlling interests | (113,546 | ) | (49,152 | ) | |||
| Comprehensive loss attributable to HeartCore Enterprises, Inc. | $ | (1,879,309 | ) | $ | (3,096,243 | ) | |
| Net loss from continuing operations attributable to HeartCore Enterprises, Inc. per common share* | |||||||
| Basic | $ | (1.49 | ) | $ | (2.74 | ) | |
| Diluted | $ | (1.49 | ) | $ | (2.74 | ) | |
| Loss from discontinued operations per common share* | |||||||
| Basic | $ | - | $ | (0.06 | ) | ||
| Diluted | $ | - | $ | (0.06 | ) | ||
| Net loss attributable to HeartCore Enterprises, Inc. per common share* | |||||||
| Basic | $ | (1.49 | ) | $ | (2.80 | ) | |
| Diluted | $ | (1.49 | ) | $ | (2.80 | ) | |
| Weighted average common shares outstanding* | |||||||
| Basic | 1,271,631 | 1,102,702 | |||||
| Diluted | 1,271,631 | 1,102,702 | |||||
| HeartCore Enterprises, Inc. | ||||||
| Unaudited Consolidated Statements of Cash Flows | ||||||
| For the Three Months | ||||||
| Ended March 31, | ||||||
| 2026 | 2025 | |||||
| Cash flows from operating activities of continuing operations: | ||||||
| Net loss | $ | (1,976,715 | ) | $ | (3,137,381 | ) |
| Loss from discontinued operations, net of income tax | - | (67,350 | ) | |||
| Net loss from continuing operations | (1,976,715 | ) | (3,070,031 | ) | ||
| Adjustments to reconcile net loss from continuing operations to net cash flows | ||||||
| used in operating activities of continuing operations: | ||||||
| Depreciation expense | 7,720 | 20,289 | ||||
| Loss on disposal of property and equipment | - | 116,981 | ||||
| Non-cash lease expense | 70,229 | 31,662 | ||||
| Gain on termination of lease | - | (9,059 | ) | |||
| Deferred income taxes | - | 27,515 | ||||
| Stock-based compensation | 2,031 | 32,280 | ||||
| Changes in fair value of investments in marketable securities | 295,997 | 1,781,664 | ||||
| Changes in fair value of investment in warrants | 7,065 | 51,621 | ||||
| Changes in fair value of derivative liability | 870 | - | ||||
| Gain on settlement of asset retirement obligations | - | (45,873 | ) | |||
| Changes in assets and liabilities: | ||||||
| Accounts receivable | 135,238 | (180,823 | ) | |||
| Prepaid expenses | 66,924 | 50,591 | ||||
| Other assets | 107,886 | (26,711 | ) | |||
| Accounts payable and accrued expenses | 85,404 | (97,118 | ) | |||
| Accounts payable and accrued expenses - related party | (28,338 | ) | (24,224 | ) | ||
| Accrued payroll and other employee costs | 154,736 | (23,483 | ) | |||
| Due to related party | 125 | (884 | ) | |||
| Operating lease liabilities | (60,127 | ) | (24,435 | ) | ||
| Income tax payables | (9,785 | ) | (80,196 | ) | ||
| Deferred revenue | (25,747 | ) | (233,911 | ) | ||
| Other liabilities | 12,897 | 12,686 | ||||
| Net cash flows used in operating activities of continuing operations | (1,153,590 | ) | (1,691,459 | ) | ||
| Cash flows from investing activities of continuing operations: | ||||||
| Purchases of property and equipment | (954 | ) | - | |||
| Proceeds from sale of marketable securities | - | 462,763 | ||||
| Net cash flows provided by (used in) investing activities of continuing operations | (954 | ) | 462,763 | |||
| Cash flows from financing activities of continuing operations: | ||||||
| Payments for finance lease | - | (4,071 | ) | |||
| Repayment of long-term debts | (12,382 | ) | (10,561 | ) | ||
| Repayment of related party debt | (6,000 | ) | - | |||
| Repayment of insurance premium financing | (23,657 | ) | (28,559 | ) | ||
| Net repayment of factoring arrangement | (11,474 | ) | (45,341 | ) | ||
| Proceeds from issuance of common shares related to at the market offering agreement | - | 30,445 | ||||
| Proceeds from collection of subscription receivable | - | 103,942 | ||||
| Proceeds from exercise of stock options | - | 117,000 | ||||
| Net cash flows provided by (used in) financing activities of continuing operations | (53,513 | ) | 162,855 | |||
| Cash flows from discontinued operations: | ||||||
| Net cash flows used in operating activities of discontinued operations | - | (309,332 | ) | |||
| Net cash flows provided by investing activities of discontinued operations | - | 10,298 | ||||
| Net cash flows used in financing activities of discontinued operations | - | (19,915 | ) | |||
| Net cash flows used in discontinued operations | - | (318,949 | ) | |||
| Effect of exchange rate changes | (3,872 | ) | 2,685 | |||
| Net change in cash and cash equivalents | (1,211,929 | ) | (1,382,105 | ) | ||
| Cash and cash equivalents - beginning of the period | 1,985,962 | 2,121,089 | ||||
| Cash and cash equivalents - end of the period | $ | 774,033 | $ | 738,984 | ||
| Supplemental cash flow disclosures: | ||||||
| Interest paid | $ | 16,625 | $ | 22,857 | ||
| Income taxes paid (received), net | $ | (4,574 | ) | $ | 93,586 | |
| Non-cash investing and financing transactions: | ||||||
| Insurance premium financing | $ | 108,000 | $ | 139,500 | ||
| Dividends accrued on Series A convertible preferred shares | $ | 27,968 | $ | - | ||
| Operating lease right-of-use assets obtained in exchange for operating lease liabilities | $ | 552,577 | $ | - | ||
