Here Group Q3 revenue hits RMB165 m, margin improves to 34.5%
HERE•Here Group reported Q3 revenue of RMB165 million, topping guidance, driven by its Wakuku IP which contributed RMB102 million or 52.2% of sales, and boosted gross margin to 34.5%. However, revenue fell from RMB177.3 million last quarter as net loss widened to RMB34.1 million and S&M expenses rose to 35%.
1. Q3 Financial Highlights
Here Group delivered RMB165 million in Q3 revenue, exceeding its high-end guidance. Gross margin improved to 34.5% from 31.0%, while net loss widened to RMB34.1 million from RMB25.4 million a quarter earlier.
2. IP Revenue Breakdown
The Wakuku IP contributed RMB102 million, accounting for 52.2% of total revenue. The company’s portfolio now spans 20 IPs, including 12 proprietary and 8 licensed, underpinning long-term growth strategies.
3. Operational Expansion
During the quarter, Here Group opened seven direct-to-consumer brand stores and 15 RoboShops to enhance offline reach and user engagement, supporting its ecosystem approach.
4. Outlook and Challenges
Here Group trimmed its fiscal 2026 revenue guidance to RMB600–610 million, citing a cooling pop toy market and higher sales and marketing expenses, which rose to 35% of revenue from 29.6%.
