Investors might want to bet on HeartCore Enterprises, Inc. (HTCR) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following ...

NEW YORK and TOKYO, Aug. 18, 2025 (GLOBE NEWSWIRE) -- HeartCore Enterprises, Inc. (Nasdaq: HTCR) (“HeartCore” or the “Company”), a leading enterprise software and consulting services company based in Tokyo, announced its Go IPO client, rYojbaba Co., Ltd. (“rYojbaba”), has successfully commenced trading under the symbol “RYOJ” on the Nasdaq Capital Market. HeartCore was compensated through an aggregate $500,000 in initial fees and warrants to acquire 3% of rYojbaba’s common stock, on a fully diluted basis, w ...

HeartCore Enterprises, Inc. (HTCR) came out with quarterly earnings of $0.04 per share, beating the Zacks Consensus Estimate of a loss of $0.08 per share. This compares to a loss of $0.09 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +150.00%. A quarter ago, it was expected that this company would post a loss of $0.01 per share when it actually produced a loss of $0.06, delivering a surprise of -500%.Over the last four quart ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______, 20___, to _____, 20___. Commission File Number 001-41272 HeartCore Enterprises, Inc. (Exact Name of Registrant as Specified in its Charter) Delaware 87-0913420 (State ...

[Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) [Management Commentary](index=1&type=section&id=Management%20Commentary) The company returned to profitability in the second quarter, driven by a significant software deal, and anticipates further growth from its 'Go IPO' business - The company **returned to profitability in Q2 2025**, a result attributed to the resilience of the software business and a significant deal with a major infrastructure company[3](index=3&type=chunk) - An existing **'Go IPO' client is expected to list on the Nasdaq Stock Market** in the near-term, which is anticipated to strengthen Q3 2025 financial results[3](index=3&type=chunk) - The company signed its **15th and 16th 'Go IPO' contracts** and plans to host an event in Korea to expand its presence in that market[3](index=3&type=chunk) [Second Quarter 2025 Financial & Operational Results](index=1&type=section&id=Second%20Quarter%202025%20Financial%20%26%20Operational%20Results) The company achieved a significant turnaround in Q2 2025, returning to profitability with strong revenue and gross profit growth while regaining Nasdaq compliance Q2 2025 Financial Performance vs. Q2 2024 | Metric | Q2 2025 | Q2 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $4.7 million | $4.1 million | +16.7% | | Gross Profit | $2.2 million | $0.8 million | +175.2% | | Operating Expenses | $2.1 million | $2.3 million | -8.7% | | Net Income (Loss) | $1.1 million | ($2.2 million) | N/A | | Adjusted EBITDA | $0.1 million | ($1.2 million) | N/A | - Revenue growth was primarily driven by increased sales of **on-premise CMS licenses** and expansion of the traditional SaaS business in Japan[4](index=4&type=chunk) - **Gross profit margin expanded significantly** due to high-margin, independently developed software sales and reduced outsourcing costs in the customized software segment[6](index=6&type=chunk) - As of June 30, 2025, total shareholders' equity was **$3.5 million**, satisfying the Nasdaq's **$2.5 million minimum requirement**[5](index=5&type=chunk) - Key operational achievements include signing **two new 'Go IPO' contracts** and forming strategic partnerships with Silver Egg Technology and NEC Solutions Innovators[5](index=5&type=chunk) [Six Months Ended June 30, 2025 Financial Results](index=2&type=section&id=Six%20Months%20Ended%20June%2030%2C%202025%20Financial%20Results) For the first half of 2025, revenues declined, but gross profit increased and the net loss narrowed due to improved cost management and a strategic shift Six Months 2025 Financial Performance vs. Six Months 2024 | Metric | H1 2025 | H1 2024 | Change | | :--- | :--- | :--- | :--- | | Revenues | $8.3 million | $9.1 million | -8.8% | | Gross Profit | $3.3 million | $2.8 million | +16.9% | | Operating Expenses | $4.4 million | $5.0 million | -12.0% | | Net Loss | ($2.1 million) | ($3.7 million) | +43.2% | | Adjusted EBITDA | ($1.1 million) | ($1.6 million) | +31.3% | - The revenue decline was primarily caused by a slowdown in the **Sigmaways customized software business** and decreased Go IPO consulting services revenue[10](index=10&type=chunk) - Gross profit increased due to a strategic focus on **higher-margin on-premise software** and cost reductions from ending cooperation with costly vendors[11](index=11&type=chunk) [Non-GAAP Financial Measures](index=3&type=section&id=Non-GAAP%20Financial%20Measures) [Reconciliation of Net Loss to Adjusted EBITDA](index=3&type=section&id=Reconciliation%20of%20Net%20Loss%20to%20Adjusted%20EBITDA) The company's Adjusted EBITDA showed significant improvement for both the second quarter and the first six months of 2025 compared to the prior year Q2 Adjusted EBITDA Reconciliation (in millions) | Item | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Net income (loss) | $1.1 | ($2.2) | | Adjustments | ($1.0) | $1.0 | | **Adjusted EBITDA** | **$0.1** | **($1.2)** | Six Months Adjusted EBITDA Reconciliation (in millions) | Item | H1 2025 | H1 2024 | | :--- | :--- | :--- | | Net loss | ($2.1) | ($3.7) | | Adjustments | $1.0 | $2.1 | | **Adjusted EBITDA** | **($1.1)** | **($1.6)** | [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) The company's balance sheet as of June 30, 2025, shows total assets of $13.5 million and an increase in shareholders' equity Key Balance Sheet Items | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and cash equivalents | $2,347,622 | $2,121,089 | | Total Assets | $13,525,320 | $13,965,034 | | Total Liabilities | $9,966,303 | $10,503,019 | | Total Shareholders' Equity | $3,559,017 | $3,462,015 | [Consolidated Statements of Operations and Comprehensive Loss](index=7&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Loss) For the first six months of 2025, the company reported an improved net loss per share compared to the prior-year period Six Months Statement of Operations Highlights | Metric | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenues | $8,331,272 | $9,113,120 | | Gross Profit | $3,317,879 | $2,838,070 | | Loss from operations | ($1,136,692) | ($2,190,159) | | Net loss attributable to common shareholders | ($1,987,701) | ($3,284,450) | | Net loss per share (Basic & Diluted) | ($0.09) | ($0.16) | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) The company experienced a net increase in cash for the first six months of 2025, driven by investing and financing activities Six Months Cash Flow Summary | Cash Flow Activity | Six Months Ended June 30, 2025 | | :--- | :--- | | Net cash used in operating activities | ($2,674,892) | | Net cash provided by investing activities | $1,091,636 | | Net cash provided by financing activities | $1,770,767 | | **Net change in cash and cash equivalents** | **$226,533** | | **Cash and cash equivalents - end of period** | **$2,347,622** | [About the Company & Other Information](index=3&type=section&id=About%20the%20Company%20%26%20Other%20Information) [About HeartCore Enterprises, Inc.](index=3&type=section&id=About%20HeartCore%20Enterprises%2C%20Inc.) HeartCore Enterprises is a Tokyo-based software and consulting firm specializing in SaaS, CXM, and 'GO IPO' services for Japanese companies - Offers **SaaS solutions, a CXM Platform, and data analytics services** to enterprise customers[14](index=14&type=chunk) - Operates a digital transformation business utilizing **robotics process automation (RPA)**[14](index=14&type=chunk) - Provides **'GO IPO' consulting services** to help Japanese companies go public in the U.S[14](index=14&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The press release contains forward-looking statements that are subject to risks and uncertainties and are not guarantees of future performance - The report includes **forward-looking statements** subject to risks, uncertainties, and other factors that could cause actual results to differ materially[20](index=20&type=chunk) - Investors are cautioned **not to place undue reliance** on these statements as they are based on current views and are not a guarantee of future performance[20](index=20&type=chunk)

Core Insights - HeartCore Enterprises, Inc. reported a strong second quarter in 2025, returning to profitability with significant revenue growth and operational improvements [3][4][6] Financial Performance - Revenues for the second quarter increased by 16.7% to $4.7 million, up from $4.1 million in the same period last year, driven by higher sales of on-premise software and increased SaaS revenue [4] - Gross profit surged by 175.2% to $2.2 million, compared to $0.8 million in the same period last year, attributed to increased sales of on-premise software and reduced outsourcing costs [5] - Operating expenses decreased to $2.1 million from $2.3 million year-over-year, primarily due to lower general and administrative expenses [6] - The company achieved a net income of $1.1 million, a significant improvement from a net loss of $2.2 million in the same period last year [6] - Adjusted EBITDA for the second quarter was $0.1 million, compared to a loss of $1.2 million in the same period last year [6] Strategic Developments - HeartCore signed contracts for its 15th and 16th Go IPO clients, with expectations of one client successfully listing on the Nasdaq soon, which is anticipated to enhance third-quarter results [3][4] - The company is focusing on expanding its presence in the APAC region, particularly with an upcoming Go IPO Korea event [3] - A strategic partnership with NEC Solutions Innovators, Ltd. was announced to improve the CMS implementation process [7] Balance Sheet Highlights - As of June 30, 2025, total shareholders' equity was reported at $3.5 million, indicating compliance with Nasdaq's minimum stockholders' equity requirement [7] - Cash and cash equivalents increased to $2.3 million from $2.1 million at the end of 2024 [8] Six-Month Financial Overview - For the six months ended June 30, 2025, revenues totaled $8.3 million, down from $9.1 million in the same period last year, primarily due to decreased customized software development revenue [9] - Gross profit for the six months increased by 16.9% to $3.3 million, compared to $2.8 million in the same period last year [10] - The net loss improved to $2.1 million from a loss of $3.7 million in the same period last year, reflecting the positive impact of increased gross profit [11]

Core Insights - HeartCore Enterprises, Inc. has signed a Consulting Agreement with Cipher Core Co., Ltd. for its Go IPO consulting services, marking its 16th such contract [1][3] - Cipher Core will compensate HeartCore with $500,000 in fees and a warrant for 3% of its capital stock, with additional hourly compensation if the agreement extends beyond 12 months [2] Company Overview - HeartCore is a leading enterprise software and IPO consulting services company based in Tokyo, with additional offices in New York and San Francisco [5] - The company offers Software as a Service (SaaS) solutions and data analytics services to enhance customer experiences for enterprise clients [5][6] Go IPO Consulting Service - HeartCore's Go IPO consulting service assists Japanese companies in going public in the U.S., including support in hiring underwriters, auditors, and legal firms, as well as preparing necessary documentation [3][7] - The service also includes converting accounting data from Japanese standards to U.S. GAAP and preparing S-1 or F-1 filings [3] Cipher Core Overview - Cipher Core is an information security technology company focused on AI and quantum computing, known for its advanced encryption technology [4] - The company addresses next-generation information threats and meets stringent security requirements for government agencies and critical infrastructure [4]

Core Insights - HeartCore Enterprises, Inc. has entered into a Securities Purchase Agreement and an Equity Purchase Agreement with Crom Structured Opportunities Fund I, LP to enhance its financial flexibility and support its growth initiatives [1][2][3] Financing Details - Under the Securities Purchase Agreement, HeartCore may issue up to 2,000 shares of Series A Convertible Preferred Stock at $1,000 per share, generating gross proceeds of $2.0 million, with each share having a stated value of $1,100 [2] - The Equity Purchase Agreement allows HeartCore to sell up to $25.0 million of its common stock over time to Crom, with proceeds aimed at supporting M&A strategies and meeting Nasdaq's equity compliance requirements [3] Strategic Focus - The company emphasizes that M&A is central to its strategy, targeting firms with recurring revenue, complementary technologies, and strong AI capabilities to unlock value through cross-sell and upsell opportunities to its customer base of over 1,000 software clients [2]

Core Insights - HeartCore Enterprises, Inc. has entered into an OEM sales agreement with Silver Egg Technology to enhance its CMS platform with AI-driven recommendation capabilities [1][2] - The integration of Silver Egg's Aigent Recommender is expected to position HeartCore as an early adopter in the automated recommendation solutions market [1][3] - HeartCore aims to convert 30% of new CMS customers from the free version to paid plans within the first year of launching the new service [2] Company Strategy - HeartCore has evolved its CMS business model to drive recurring revenue growth and improve customer satisfaction [2][7] - The partnership with Silver Egg is part of a broader strategy to enhance platform features and address customer needs proactively [2][7] - The newly formed Business Development team will play a crucial role in upselling and cross-selling the new recommendation feature [2][7] Market Opportunity - The partnership aims to bridge the gap in recommendation technology adoption across various industries, particularly in B2B and manufacturing sectors [3][4] - Aigent Recommender is designed to deliver personalized content across a wider range of industries, addressing underutilization of recommendation engines [3][4] - The strategic partnership is expected to unlock new growth opportunities by maximizing the value of content assets for businesses [3][4] Product Features - Aigent Recommender will launch on August 25, 2025, and is designed to provide real-time, personalized recommendations based on user behavior [4][5] - Key features include low-code integration, automated analysis of customer behavior, and enhanced operational efficiency [5][6] - The product aims to improve customer experience and sales efficiency through AI-driven personalization [5][6] Company Overview - HeartCore is headquartered in Tokyo and offers SaaS solutions and data analytics services to enterprise customers globally [8] - The company's customer experience management platform includes various tools to enhance customer engagement and drive digital transformation [9]

Core Insights - HeartCore Enterprises, Inc. has signed a Consulting Agreement with tmsuk Co. Ltd. for its 15th Go IPO consulting service win [1][2] - tmsuk will compensate HeartCore with $500,000 in fees and a warrant to acquire 3% of tmsuk's capital stock, subject to shareholder approval [2] - HeartCore's CEO expressed optimism about the demand for Go IPO services from Japanese growth companies despite market uncertainties [3] Company Overview - HeartCore is a leading enterprise software and data consulting services company headquartered in Tokyo, with additional offices in New York and San Francisco [4] - The company offers Software as a Service (SaaS) solutions and data analytics services to enhance customer experiences for enterprise clients [5] - HeartCore's Go IPOSM consulting services assist Japanese companies in going public in the U.S. [6]