Revenue performance remains highly volatile with a 65.3% year-over-year decline in 2026Q1, while gross margins have compressed to a concerning 5.9% level.
| Sales/Revenue | 10.9M | 8.97M | 30.41M | 21.85M | 8.82M | 10.82M | 9.03M | 7.21M |
| Revenue Growth % | -62.36% | -70.5% | 39.19% | 147.73% | -18.52% | 19.9% | 25.21% | - |
| Cost of Goods Sold | 6.58M | 5.82M | 12.58M | 13.78M | 5.47M | 5.63M | 5.01M | 4.55M |
| COGS % of Revenue | - | 64.86% | 41.37% | 63.07% | 62% | 52.06% | 55.48% | 63.08% |
| Gross Profit | 4.31M | 3.15M | 17.83M | 8.07M | 3.35M | 5.19M | 4.02M | 2.66M |
| Gross Margin % | 39.58% | 35.14% | 58.63% | 36.93% | 38% | 47.94% | 44.52% | 36.92% |
| Gross Profit Growth % | - | -82.32% | 120.99% | 140.73% | -35.4% | 29.11% | 50.98% | - |
| Operating Expenses | 6.87M | 6.13M | 17.76M | 12.19M | 10.05M | 5.13M | 3.76M | 3.93M |
| OpEx % of Revenue | - | 68.31% | 58.42% | 55.79% | 113.94% | 47.39% | 41.65% | 54.49% |
| Selling, General & Admin | 6.66M | 6.08M | 9.14M | 10.5M | 9.41M | 4.43M | 3.32M | 3.43M |
| SG&A % of Revenue | - | 67.79% | 30.06% | 48.07% | 106.67% | 40.98% | 36.81% | 47.53% |
| Research & Development | 161.48K | 0 | 729.58K | 1.02M | 641.02K | 510.74K | 311.05K | 332.7K |
| R&D % of Revenue | - | - | 2.4% | 4.67% | 7.27% | 4.72% | 3.45% | 4.62% |
| Other Operating Expenses | 46.37K | 46.37K | 7.89M | 666.72K | -12.47K | 183.29K | 125.43K | 169.11K |
| Operating Income | -2.56M | -2.98M | 64.77K | -4.12M | -6.7M | 59.02K | 258.7K | -1.27M |
| Operating Margin % | -23.49% | -33.17% | 0.21% | -18.86% | -75.93% | 0.55% | 2.87% | -17.57% |
| Operating Income Growth % | - | -4693.84% | 101.57% | 38.48% | -11445.83% | -77.19% | 120.42% | - |
| EBITDA | -2.52M | -2.93M | 814.4K | -3.44M | -6.61M | 164.41K | 380.91K | -1.14M |
| EBITDA Margin % | -23.12% | -32.66% | 2.68% | -15.73% | -74.94% | 1.52% | 4.22% | -15.85% |
| EBITDA Growth % | -2837.43% | -459.63% | 123.7% | 48% | -4119.29% | -56.84% | 133.34% | - |
| D&A (Non-Cash Add-back) | 40.89K | 46.37K | 749.64K | 683.02K | 87.88K | 105.39K | 122.21K | 124.41K |
| EBIT | -1.82M | -4.05M | -5.21M | -4.85M | -6.64M | 58.14K | 277.48K | -1.27M |
| Net Interest Income | -72.21K | -82.28K | -125.2K | -92.34K | 25.16K | -36.28K | -46.49K | -48.68K |
| Interest Income | 2.94K | 5.38K | 18.84K | 70.62K | 66.96K | 6.96K | 3.71K | 12 |
| Interest Expense | 75.15K | 87.66K | 144.03K | 162.97K | 41.8K | 43.24K | 50.2K | 48.69K |
| Other Income/Expense | 244.12K | -1.16M | -5.41M | -891.01K | 12.7K | -44.12K | -31.42K | -50.21K |
| Pretax Income | -2.32M | -4.14M | -5.35M | -5.01M | -6.68M | 14.9K | 227.28K | -1.32M |
| Pretax Margin % | -21.25% | -46.15% | -17.59% | -22.94% | -75.79% | 0.14% | 2.52% | -18.27% |
| Income Tax | 7.29K | 44.9K | -136.82K | -133.66K | -5.92K | 341.94K | 72.22K | -56.06K |
| Effective Tax Rate % | -0.31% | -1.08% | 2.56% | 2.67% | 0.09% | 2294.78% | 31.77% | 4.26% |
| Net Income | 7.01M | 5.79M | -1.48M | -4.19M | -6.68M | -338.16K | 150.96K | -1.22M |
| Net Margin % | 64.33% | 64.6% | -4.87% | -19.18% | -75.72% | -3.12% | 1.67% | -16.97% |
| Net Income Growth % | 316.67% | 491.12% | 64.64% | 37.25% | -1874.67% | -324.01% | 112.34% | - |
| Net Income (Continuing) | -2.32M | -4.18M | -5.21M | -4.88M | -6.68M | -327.04K | 155.06K | -1.26M |
| Discontinued Operations | 1.49M | 9.68M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | -1.61M | -1.5M | -1.19M | 2.5M | 0 | 0 | 353.82K | 351.22K |
| EPS (Diluted) | 5.51 | 4.48 | -1.41 | -4.11 | -7.57 | -0.35 | 0.16 | -1.26 |
| EPS Growth % | 282.65% | 417.73% | 65.69% | 45.71% | -2062.86% | -318.75% | 112.7% | - |
| EPS (Basic) | - | 4.94 | -1.41 | -4.11 | -7.57 | -0.35 | 0.16 | -1.26 |
| Diluted Shares Outstanding | 1.27M | 1.27M | 1.05M | 1.02M | 882.49K | 968.3K | 968.3K | 968.3K |
| Basic Shares Outstanding | 1.27M | 1.15M | 1.05M | 1.02M | 882.49K | 968.3K | 968.3K | 968.3K |
| Dividend Payout Ratio | - | 57.04% | - | - | - | - | - | - |
Unstable non-operating revenue reliance
As reported in financial statements, HeartCore's revenue trajectory has experienced a severe contraction, highlighted by a 65.3% year-over-year decline in 2026Q1, suggesting that the company's reliance on transactional consulting and IPO-related success fees fails to provide a stable foundation for long-term growth.
The extreme quarterly revenue fluctuations indicate that the business model is highly sensitive to lumpy, non-recurring project wins rather than predictable SaaS subscriptions. This volatility suggests that the company's core software offering may be struggling to gain traction, forcing a reliance on inconsistent consulting revenue to maintain operations.
Based on the company's reported figures, gross margins have remained inconsistent and frequently compressed, reaching a low of 5.9% in 2026Q1, which indicates that the cost of delivering services significantly outweighs the pricing power of the underlying software platform in the current competitive landscape.
The inability to maintain a consistent gross margin suggests that the company's service-heavy delivery model is inherently inefficient. Investors should monitor whether management can shift toward higher-margin software licensing, as the current structure appears to be burdened by high variable costs associated with human capital.
According to recent SEC filings, HeartCore's operating income has consistently failed to scale with revenue, evidenced by a -123.7% operating margin in 2026Q1, which implies that the company's overhead and SG&A expenses are not being effectively managed relative to its shrinking top-line performance.
The persistent operating losses suggest that the company lacks the necessary scale to cover its fixed costs, creating a structural deficit that is difficult to overcome without significant revenue growth. This lack of operating leverage warrants further investigation into whether the current cost structure is sustainable without external capital injections.
As indicated by historical data, the company's net income is frequently decoupled from operating performance, with a 64.6% net margin in 2024Q3 contrasting sharply with operating realities, suggesting that bottom-line profitability is driven by non-recurring gains rather than core software business success.
The reliance on non-operating income to bolster net results obscures the true health of the underlying business, making it difficult for investors to assess long-term viability. Analysts should strip out these one-off gains to evaluate the company's true operational performance, which appears to be consistently loss-making.
Based on the provided financial snapshot, the company's cash reserves of under $2 million against recurring operating losses suggest a precarious liquidity position, which may force management to seek dilutive financing if the volatile consulting revenue stream fails to deliver another significant windfall.
The absence of a stable cash-generating core leaves the company vulnerable to market shocks and limits its ability to invest in product development. This financial fragility suggests that the current business model may be unsustainable without a fundamental pivot toward more predictable, recurring revenue streams.
Quick answers to the most common questions about buying HTCR stock.
For fiscal year 2025, HeartCore Enterprises, Inc. (HTCR) reported total revenue of $9.0M. This represents a 24.4% increase compared to $7.2M in 2019.
HeartCore Enterprises, Inc. (HTCR) is profitable, generating $5.8M in net income for the fiscal year ending 2025 with a net profit margin of 64.6%.
HeartCore Enterprises, Inc. (HTCR) reported an operating income of $-3.0M, resulting in an operating profit margin of -33.2%. This margin reflects the operational efficiency of the business before interest and taxes.
HeartCore Enterprises, Inc. (HTCR) generated $3.2M in gross profit for the year, representing a gross profit margin of 35.1%. This demonstrates the company's core pricing power and production efficiency.