HeartCore shares fall 20.11% intraday after reporting steep Q3 revenue and profit declines post-divestiture, cash constraints, and strategic pivot to Go IPO consulting.

HeartCore Enterprises (HTCR) fell 20.11% intraday following its earnings report and strategic shift. The company announced the divestiture of its software subsidiary, HeartCore Japan, reclassifying it as discontinued operations under U.S. GAAP. Q3 2025 revenue plummeted to $3.0 million from $16.2 million year-over-year, driven by the absence of a prior-period $13 million warrant revenue and reduced gross profit from its core Go IPO services. Despite cost-cutting and a one-time shareholder distribution, nine-month net income turned to a $1.7 million loss, and adjusted EBITDA turned negative. The pivot to IPO consulting, while highlighted by 16 Go IPO contracts, has not yet offset revenue declines or concerns over liquidity, with cash balances falling to $1.5 million. The market likely priced in weak financials, strategic uncertainty, and limited visibility on future revenue streams.