HeartCore Enterprises, Inc. reported a significant decline in revenue for the fiscal year ending December 31, 2025, generating $8.97 million compared to $22.69 million in 2024, marking a decrease of 60.5%. The company also reported a net loss from continuing operations of $4.18 million, a slight improvement from the previous year's loss of $5.15 million. The decrease in revenue was primarily attributed to a substantial drop in consulting service revenues, which fell by 87% due to the absence of large noncash consideration deals that had previously inflated earnings. Despite the revenue decline, the company reported a net income of $5.49 million, largely due to income from discontinued operations related to the sale of HeartCore Japan.
In terms of operational changes, HeartCore Enterprises made a strategic pivot in 2025 by selling its software business assets in Japan to focus on its GO IPO consulting services. The sale of HeartCore Japan was finalized on October 31, 2025, for approximately $12 million. This decision reflects the company's shift towards assisting Japanese companies in navigating the IPO process in the U.S. market, with 16 consulting agreements currently in place. The company also established a new subsidiary, Higgs Field Co., Ltd., to expand its consulting services related to digital securities.
The company's operational metrics indicate a challenging environment, with total costs of revenue decreasing by 27% to $5.82 million, primarily due to reduced costs in customized software development. However, the gross profit margin fell significantly from 64.9% in 2024 to 35.1% in 2025, reflecting the impact of lower revenues. HeartCore's employee headcount stood at 44 as of December 31, 2025, and the company continues to focus on maintaining a strong company culture while navigating a competitive hiring environment.
Looking ahead, HeartCore Enterprises is focused on regaining compliance with Nasdaq's minimum bid price requirement, having received a notice of noncompliance in May 2025. The company has until May 1, 2026, to meet the requirement or face potential delisting. Management is considering various strategies, including a possible reverse stock split, to address this issue. The company remains optimistic about its future, emphasizing its commitment to supporting Japanese companies in their IPO endeavors and expanding its consulting services in the financial sector.
About HeartCore Enterprises, Inc.
HeartCore Enterprises is a Japan-based software company specializing in customer experience management and digital transformation solutions. Its core offerings include a CXM platform for marketing, sales, and customer service, and automation software leveraging AI, RPA, process mining, and task mining to optimize enterprise workflows. Serving mid-market and large organizations globally, it enables digital innovation, operational efficiency, and employee empowerment through scalable, open, and secure cloud-based technologies.
About 10-K Filings
A 10-K form is a comprehensive annual report that public companies in the United States must file with the SEC, providing a detailed overview of the company's financial condition, performance, and business strategies.
Key points about the 10-K:
- Frequency: Filed annually, typically within 60 to 90 days after the end of the company's fiscal year.
-
Content: It includes:
- Detailed financial statements audited by an independent accounting firm
- Management's Discussion and Analysis (MD&A) of financial condition and results
- Description of the company's business, properties, and legal proceedings
- Risk factors and market risks
- Executive compensation and corporate governance information
- Importance: Considered the most comprehensive and important document a public company files with the SEC.
- Length: Often exceeds 100 pages due to its extensive and detailed nature.
Our Methodology
AssetRoom is committed to providing timely summaries of news from public companies. We use AI to generate these summaries quickly, but they are not reviewed by human experts.
Our method:
- Data Collection: We continuously monitor for new filings (currently limited to US-listed stocks).
- AI-Powered Analysis: Our advanced AI system processes each filing, identifying key information and extracting relevant data.
- Summary Generation: The AI creates a concise, easy-to-understand summary of the filing, highlighting the most important points.
- Publication: The summary is immediately published on our platform, allowing users instant access to the latest information.
- Email users: We distribute round-up emails according to our users preferences, keeping them in the loop with the companies they follow.
Feedback & Corrections
Spot an error or have a suggestion? Contact us.