HTCR · HeartCore Enterprises, Inc.

HeartCore Enterprises, Inc. (Nasdaq: HTCR) disclosed first quarter 2026 financial results via Exhibit 99.1, revealing a challenging period marked by revenue contraction to $1.2 million from $2.1 million in the prior year, primarily from declining customized software development amid intense U.S. competition. Gross profit margins eroded sharply to $74,000 due to elevated outsourcing fees, additional resources for Go IPO client experience enhancements, and higher subcontracting costs from rising software engineer salaries. Operating expenses edged down to $1.6 million from $1.7 million, driven by lower selling expenses, providing some relief. The net loss from continuing operations improved to $2.0 million from $3.1 million, aided by a smaller $0.3 million loss on fair value changes in marketable securities compared to $1.8 million last year. Adjusted EBITDA widened to a $1.6 million loss from $1.3 million, reflecting ongoing operational pressures. Balance sheet shows cash at $0.8 million as of March 31, 2026, down from year-end levels. CEO Sumitaka Kanno emphasized strategic focus on Go IPO services, with 16 clients engaged including 6 in listing preparation, amid selective Nasdaq environment. The company regained $1.00 bid price compliance and authorized a $2.0 million share repurchase, signaling confidence. Efforts via subsidiary Higgs Field include pursuing a Type I Financial Instruments license in Japan and expanding into digital securities advisory, aiming to diversify beyond software and bolster pipeline quality for U.S. listings.