10-Q · May 15, 2026
HeartCore Enterprises, Inc. reported a significant drop in revenues for Q1 2026, generating $1.25 million, which is a decrease of 40.5% from $2.09 million in Q1 2025. The company also recorded a net loss of $1.98…
Earnings analysis · 10-Q
HTCR earnings analysis
Filed August 13, 2026 · Our reading of the company's report
The latest report
HeartCore reported second-quarter revenue of $321,000, up 71.6% year over year, but profitability remained weak, with a $70,000 gross loss, a $2.0 million net loss, and $(1.3) million of adjusted EBITDA. The Sigmaways…
Read full summary
HeartCore reported second-quarter revenue of $321,000, up 71.6% year over year, but profitability remained weak, with a $70,000 gross loss, a $2.0 million net loss, and $(1.3) million of adjusted EBITDA. The Sigmaways disposition and 16-client Go IPO pipeline are operational positives, but the sale increased customer concentration and provides only $1,000 of upfront cash with up to $649,000 of contingent earn-out consideration. Disclosure controls also remained ineffective as of June 30, 2026, and no quantitative guidance was provided.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Gross margin
- -21.8%
What stood out
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Revenue grew 71.6% year over year
Second-quarter revenue increased 71.6% year over year to $321,000, indicating growth despite the strategic disposition of Sigmaways on June 22, 2026.
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Go IPO pipeline reached 16 clients
Management identified a 16-client Go IPO pipeline, providing a potential source of future activity.
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Sigmaways disposition completed
The company completed the sale of its entire 51% majority interest in Sigmaways and its subsidiaries on June 22, 2026, simplifying the continuing-operations portfolio.
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Disposition includes earn-out potential
The transaction included $1,000 of upfront cash consideration and potential earn-out consideration of up to $649,000 over 12 months.
What to watch
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Disclosure controls remain ineffective
The company stated that disclosure controls and procedures were not effective as of June 30, 2026, for the same reason previously disclosed in the December 31, 2025 Form 10-K.
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Customer concentration increased
After selling its 51% Sigmaways interest on June 22, 2026, continuing-operations revenue became concentrated among a smaller number of customers. The filing warns that losing a key customer could cause a disproportionate decline in revenue and cash flow.
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Disposition proceeds are uncertain
The Sigmaways disposition provides only $1,000 of upfront cash and up to $649,000 of contingent earn-out consideration over 12 months; management stated there is no assurance that the earn-out will be realized.
Management's outlook
No quantitative revenue or EPS outlook was provided in the 10-Q. The filing does not state that prior guidance was raised, maintained, lowered, or withdrawn.
Earlier filings 4
10-K · March 31, 2026
The company completed a strategic pivot in 2025 from a Japan-based software business to a U.S.-facing Go IPO consulting model and closed the sale of HeartCore Japan for ¥1,800,418,650 (≈$12.0M) on October 31, 2025. The…
10-Q · November 18, 2025
HeartCore reported Q3 revenue of $2,990,329 (Q3 2024: $16,240,865) and GAAP diluted EPS of $0.02. Gross margin held at 49.1% while operating margin on continuing operations was slightly negative at -0.4%, with income…
10-Q · May 15, 2025
HeartCore reported Q1 revenue of $3,587,026 (Q1 2024: $5,046,732) and a net loss attributable to the company of $3,086,992 (Q1 2024: $1,333,350). Gross profit declined to $1,100,284 (gross margin ~30.7%) and the company…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.