Here Group’s Q2 Revenue Surges 39.4% to RMB177.3M; Adjusted Loss Narrows to RMB16.1M
Here Group reported Q2 FY2026 revenue of RMB177.3 million, up 39.4% sequentially, while narrowing adjusted net loss to RMB16.1 million. The pop toy company’s offline channel expansion compressed gross margin and it forecasts Q3 sales of RMB140–150 million and full-year revenue of RMB750–800 million.
1. Financial Results
Here Group recorded Q2 FY2026 revenue of RMB177.3 million (US$25.3 million), a 39.4% increase from Q1, with net loss from continuing operations narrowing slightly to RMB25.4 million (US$3.6 million) and adjusted net loss improving to RMB16.1 million (US$2.3 million). Basic and diluted loss per share stood at RMB0.16 and RMB0.10, respectively.
2. Costs and Expenses
Cost of revenues reached RMB122.3 million (US$17.5 million), driven by pop toy production and lower margins from newly added offline channels. Sales and marketing expenses were RMB52.8 million, R&D spending was RMB9.1 million, and general and administrative costs totaled RMB31.3 million. Other net income, primarily from support service fees and investment returns, contributed RMB9.6 million.
3. IP Strategy
The company holds 18 IPs—11 proprietary, 5 exclusive licensed and 2 non-exclusive licensed—as of year-end. Management emphasized its asset-light, IP-centric model, focusing on product iteration, organizational refinement and diversified sales channels to strengthen user engagement and loyalty through physical retail experiences.
4. Financial Outlook
For Q3 FY2026, the company expects revenue between RMB140.0 million and RMB150.0 million, and full-year FY2026 revenue guidance is set at RMB750.0 million to RMB800.0 million, reflecting continued execution of its core IP operation strategy and optimized revenue mix.