Q2 2026 Here Group Ltd Earnings Call Transcript
Key Points
- Here Group Ltd (HERE) reported a 39.4% quarter-over-quarter revenue growth, reaching RMB177.3 million, exceeding the high end of their guidance.
- The company's flagship IP, Makuku, contributed significantly to revenue, accounting for 73% of Q2 revenue.
- Here Group Ltd (HERE) expanded its sales contribution from offline distributor channels, enhancing user experience and brand interaction.
- The company opened five offline D2C stores, which serve as dedicated venues for brand-user interaction, validating their offline experiential approach.
- Here Group Ltd (HERE) has a diversified IP portfolio with 18 IPs, including proprietary and licensed IPs, forming a strong foundation for their IP ecosystem.
- Gross margin decreased from 41% in the previous quarter to 31% this quarter due to strategic expansion of offline channels, which have lower per unit margins.
- The company reported an adjusted net loss from continuing operations of RMB16.1 million, although it narrowed from the previous quarter.
- Sales and marketing expenses increased as a percentage of total revenue, reflecting higher costs for advertising and promotion.
- Research and development expenses decreased as a percentage of total revenue, which may impact future product development.
- Revenue guidance for the third quarter suggests a quarter-over-quarter decline of about 15% to 20%, attributed to seasonality and product launch schedules.
Good morning and good evening, ladies and gentlemen. Thank you for standing by, and welcome to HERE's earnings conference call. (Operator Instructions) Please note that today's event is being recorded.
I will now turn the conference over to Ms. Tina Teng, the company's Manager of Investor Relations. Please go ahead, ma'am.
Thank you. Hello, everyone, and welcome to HERE's earnings call for the second quarter of fiscal year 2026. With us today are Mr. Peng Li, our Founder, Chairman, and CEO, and Mr. Tim Xie, our CFO. Mr. Li will provide a business overview for the quarter, then Tim will discuss the financials in more details. Following their prepared remarks, Mr. Li and Tim will be available for the Q&A session. I will translate for Mr. Li. You can refer to our quarterly financial results on our IR website at ir.heregroup.com. You can also access a replay of this call on our IR website when it becomes available a few hours after its conclusion. Before we continue, I would like to refer you to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
