Revenue stagnation persists with a 11.4% year-over-year decline observed in 2022Q1, while SG&A expenses of $625.5M continue to exceed gross profit, driving net losses to $97.3M in 2023Q1.
| Sales/Revenue | 2.06B | 2.73B | 3.8B | 3.08B | 2.87B | 1.76B | 1.76B |
| Revenue Growth % | - | -28.19% | 23.17% | 7.44% | 62.96% | - | - |
| Cost of Goods Sold | 236.21M | 503.73M | 550.31M | 391.5M | 408.76M | 178.93M | 178.93M |
| COGS % of Revenue | - | 18.48% | 14.5% | 12.71% | 14.25% | 10.17% | 10.17% |
| Gross Profit | 1.83B | 2.22B | 3.25B | 2.69B | 2.46B | 1.58B | 1.58B |
| Gross Margin % | 88.55% | 81.52% | 85.5% | 87.29% | 85.75% | 89.83% | 89.83% |
| Gross Profit Growth % | - | -31.53% | 20.64% | 9.38% | 55.55% | - | - |
| Operating Expenses | 2.1B | 1.82B | 2.87B | 2.8B | 2.69B | 1.91B | 1.91B |
| OpEx % of Revenue | - | 66.96% | 75.56% | 90.98% | 93.95% | 108.61% | 108.61% |
| Selling, General & Admin | 1.95B | 1.73B | 2.71B | 2.58B | 2.42B | 1.8B | 1.8B |
| SG&A % of Revenue | - | 63.34% | 71.48% | 83.85% | 84.42% | 102.01% | 102.01% |
| Research & Development | 111.09M | 98.53M | 144.87M | 219.78M | 273.48M | 116.27M | 116.27M |
| R&D % of Revenue | - | 3.61% | 3.82% | 7.13% | 9.54% | 6.61% | 6.61% |
| Other Operating Expenses | 1000K | 0 | 10.04M | 0 | 0 | 0 | 0 |
| Operating Income | -271.39M | 396.9M | 377.37M | -113.61M | -235.38M | -330.53M | -330.53M |
| Operating Margin % | -13.16% | 14.56% | 9.94% | -3.69% | -8.21% | -18.78% | -18.78% |
| Operating Income Growth % | - | 5.18% | 432.17% | 51.73% | 28.79% | - | - |
| EBITDA | -269.29M | 405.45M | 382.38M | -109.89M | -224.78M | -323.11M | -323.11M |
| EBITDA Margin % | -13.05% | 14.88% | 10.08% | -3.57% | -7.84% | -18.36% | -18.36% |
| EBITDA Growth % | - | 6.03% | 447.96% | 51.11% | 30.43% | - | - |
| D&A (Non-Cash Add-back) | 2.1M | 8.55M | 5.01M | 3.71M | 10.6M | 7.42M | 7.42M |
| EBIT | -264.75M | 469.49M | 387.41M | -86.97M | -215.08M | -315M | -327.52M |
| Net Interest Income | 59.12K | 692.77K | 10.52M | 5.33M | 387K | 441K | 441K |
| Interest Income | 59.12K | 692.77K | 10.52M | 5.33M | 387K | 441K | 441K |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 19.33M | 72.59M | 39.48M | 26.64M | 20.3M | 15.53M | 15.53M |
| Pretax Income | -185.94M | 469.49M | 416.86M | -86.97M | -215.08M | -315M | -315M |
| Pretax Margin % | -9.01% | 17.23% | 10.98% | -2.82% | -7.5% | -17.9% | -17.9% |
| Income Tax | 20.67M | 112.92M | 31.33M | 21.68M | 18.35M | 1.04M | 1.04M |
| Effective Tax Rate % | -11.11% | 24.05% | 7.52% | -24.93% | -8.53% | -0.33% | -0.33% |
| Net Income | -123.52M | 358.73M | 385.53M | -108.54M | -233.43M | -316.04M | -316.04M |
| Net Margin % | -5.99% | 13.16% | 10.16% | -3.52% | -8.14% | -17.96% | -17.96% |
| Net Income Growth % | - | -6.95% | 455.2% | 53.5% | 26.14% | - | - |
| Net Income (Continuing) | -272.48M | 356.57M | 385.53M | -108.65M | -233.43M | -316.04M | -316.04M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 123.97M | 0 | 2.13M | 0 | 0 | 0 |
| EPS (Diluted) | - | 6.51 | 6.81 | -2.37 | -4.70 | -9.64 | -9.64 |
| EPS Growth % | - | -4.41% | 387.34% | 49.57% | 51.24% | - | - |
| EPS (Basic) | - | 6.67 | 7.02 | -2.37 | -4.70 | -9.64 | -9.64 |
| Diluted Shares Outstanding | 55.08M | 55.07M | 56.68M | 55.21M | 55.08M | 55.08M | 55.08M |
| Basic Shares Outstanding | 55.08M | 53.76M | 55M | 55.21M | 55.08M | 55.08M | 55.08M |
| Dividend Payout Ratio | - | 3.02% | - | - | - | - | - |
Persistent Operating Losses
According to the provided financial data, HERE experienced a revenue decline of 11.4% year-over-year in 2022Q1, reflecting a challenging demand environment that has persisted into 2023Q1, where revenue remained flat at $659.4M, suggesting significant hurdles in achieving top-line growth within the current leisure market landscape.
The lack of meaningful revenue expansion over the observed three-year period indicates that the company may be struggling to capture market share or adapt to shifting consumer preferences. Investors should monitor whether this stagnation is a result of structural industry headwinds or specific competitive disadvantages that limit the firm's ability to scale.
As reported in the company's financial statements, HERE maintains a robust gross margin of 88.6%, yet this high-margin profile fails to translate into bottom-line profitability, highlighting a disconnect between the company's pricing power and its ability to manage the underlying cost structure effectively.
While an 88.6% gross margin is impressive relative to broader consumer cyclical peers, the inability to convert this into positive operating income suggests that the cost of delivering services is not the primary issue. The focus should shift toward the disproportionately high SG&A expenses that continue to erode the value generated at the gross profit level.
Based on the income statement figures, SG&A expenses consistently exceed gross profit, with 2023Q1 SG&A reaching $625.5M against a gross profit of $584.3M, which indicates that the company's current operating model is fundamentally misaligned with its revenue generation capacity and requires immediate structural adjustment.
The persistent reliance on high overhead spending appears to be the primary driver of the company's recurring net losses. Without a clear strategy to rationalize these operating expenses, the firm may continue to face significant pressure on its cash reserves and overall financial viability.
Analysis of the income statement reveals that net losses widened significantly from $14.2M in 2022Q1 to $97.3M in 2023Q1, suggesting that the company's current trajectory is increasingly unsustainable and may necessitate a fundamental reassessment of its long-term operational strategy by potential investors and stakeholders.
Short-sellers would likely focus on the rapid deterioration of net income despite stable gross margins, which points to an inability to control fixed costs. This trend warrants further investigation into whether the company possesses the necessary liquidity to sustain these losses without resorting to dilutive financing or asset liquidation.
Quick answers to the most common questions about buying HERE stock.
For fiscal year 2025, Here Group Limited (HERE) reported total revenue of $2.73B. This represents a 54.9% increase compared to $1.76B in 2020.
Here Group Limited (HERE) is profitable, generating $358.7M in net income for the fiscal year ending 2025 with a net profit margin of 13.2%.
Here Group Limited (HERE) reported an operating income of $396.9M, resulting in an operating profit margin of 14.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Here Group Limited (HERE) generated $2.22B in gross profit for the year, representing a gross profit margin of 81.5%. This demonstrates the company's core pricing power and production efficiency.