HeartCore Enterprises, Inc. reported significant financial changes in its latest 10-Q filing for the third quarter of 2025, revealing a substantial decline in revenue and profitability compared to the same period in 2024. For the three months ended September 30, 2025, the company generated revenues of $2.99 million, a decrease of approximately 82% from $16.24 million in the prior year. The net loss attributable to HeartCore for the quarter was $377,850, contrasting sharply with a net income of $11.06 million in Q3 2024. For the nine months ending September 30, 2025, total revenues were $7.05 million, down from $21.27 million in the same period last year, with a net loss of $1.72 million compared to a net income of $7.13 million in 2024.
The filing highlights several strategic developments, including the completion of the sale of HeartCore Japan, which was classified as a discontinued operation. This sale, finalized on October 31, 2025, is expected to have a significant impact on the company's future operations and financial results. Additionally, HeartCore has expanded its operations by establishing a new subsidiary, Higgs Field Co., Ltd., in Japan, which will focus on business and management consulting services. The company also reported a 6% increase in its common shares outstanding, rising to 23.31 million shares as of September 30, 2025.
Operationally, HeartCore's customer engagement metrics have shifted dramatically. The company reported a decline in its customer base, with revenues from consulting services dropping from $13.88 million in Q3 2024 to $1.24 million in Q3 2025. The company’s investments in marketable securities also saw a significant decrease, falling to $2.90 million from $4.50 million at the end of 2024. The total assets of HeartCore decreased to $13.34 million from $13.97 million at the end of the previous fiscal year, primarily due to the divestiture of HeartCore Japan.
The company attributed its financial downturn to several factors, including a strategic shift in focus and the impact of market conditions on its consulting services. The loss from continuing operations before income tax for the nine months ended September 30, 2025, was $2.86 million, compared to a profit of $6.81 million in the same period last year. HeartCore's management indicated that the restructuring and divestiture efforts are aimed at streamlining operations and enhancing long-term profitability.
Looking ahead, HeartCore Enterprises, Inc. is focused on leveraging its new subsidiary and optimizing its remaining operations to stabilize its financial performance. The company anticipates that the strategic sale of HeartCore Japan will allow it to concentrate on its core competencies and improve its market position. However, the outlook remains cautious as the company navigates the challenges posed by its recent operational changes and the broader market environment.
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.
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