Yatsen (YSG) Q3 2025 earnings summary

Executive summary

• Achieved fourth consecutive quarter of revenue growth, with Q3 2025 net revenues up 47.5% year-over-year to RMB 998.4 million, driven by strong skincare and color cosmetics performance.

• Skincare brands grew 83.2% year-over-year, now comprising 49.2% of total revenue, supporting a margin-accretive portfolio shift.

• Gross margin improved to 78.2% from 75.9% year-over-year, reflecting a shift to higher-margin products.

• Net loss margin improved to 7% from 17.9% in the prior year; non-GAAP net loss margin narrowed to 5.2%.

• Focus remains on R&D, innovation, and disciplined capital allocation to drive sustainable long-term growth.

Financial highlights

• Total net revenues for Q3 2025 were RMB 998.4 million, up 47.5% year-over-year.

• Gross profit increased 51.9% to RMB 780.5 million; gross margin rose to 78.2% from 75.9%.

• Net loss narrowed to RMB 70.4 million (net loss margin 7%), compared to RMB 121.1 million (17.9%) a year ago.

• Non-GAAP net loss was RMB 51.5 million (margin 5.2%), down from RMB 76.6 million (11.3%).

• Cash, restricted cash, and short-term investments stood at RMB 1.16 billion as of September 30, 2025.

Outlook and guidance

• Q4 2025 net revenues expected between RMB 1.32 billion and RMB 1.49 billion, a 15%–30% year-over-year increase.

• Management expects continued improvement in profitability, driven by higher skincare mix, marketing efficiency, and cost structure optimization.

• Forward-looking statements are subject to risks and uncertainties, including market and operational factors.