HeartCore shares fall 15.95% intraday as Q3 revenue plunges 84% year-on-year amid software subsidiary divestiture and lack of recurring IPO revenue.

HeartCore Enterprises Inc. fell 15.95% intraday following the release of its Q3 2025 financial results, which revealed a sharp decline in revenue and profitability after divesting its software subsidiary, HeartCore Japan. The company reported $3.0 million in revenue (vs. $16.2 million in the prior-year period) and net income of $0.4 million (vs. $10.8 million), driven by the absence of a $13 million one-time warrant revenue from a prior large IPO deal. The divestiture reclassified the software business as discontinued operations, while a one-time shareholder distribution and reduced operating cash balances ($1.5 million as of September 30, $2.5 million pro forma post-distribution) raised concerns about liquidity and near-term growth prospects. Management’s pivot to its Go IPO consulting business, though highlighted as strategic, was accompanied by steep declines in adjusted EBITDA and gross profit, underscoring operational challenges.