Yatsen (YSG) Q4 2025 earnings summary

Executive summary

• Achieved 20.1% year-over-year net revenue growth in Q4 2025 and 26.7% for the full year, led by skincare brands, with a return to profitability on both GAAP and non-GAAP bases in Q4.

• Full-year net loss narrowed to RMB 92.4 million from RMB 710.2 million prior year; non-GAAP net income margin reached 0.2%.

• Strategic focus on R&D-led product innovation, premium skincare expansion, and operational efficiency.

• Notable turnaround to GAAP net income in Q4 2025 and significant narrowing of full-year net loss margin.

• Continued investment in R&D and expansion of premium skincare brands, with new product launches and industry recognition.

Financial highlights

• Q4 2025 net revenues: RMB 1.38 billion, up 20.1% year-over-year; full year: RMB 4.30 billion, up 26.7%.

• Q4 gross margin: 77.7% (flat year-over-year); full year: 78.2% (up from 77.1%).

• Q4 net income: RMB 3 million (margin 0.2%) vs. net loss of RMB 378.8 million prior year; full-year net loss: RMB 92.4 million.

• Q4 non-GAAP net income: RMB 41.2 million; full-year non-GAAP net income: RMB 8.4 million.

• Net cash used in operating activities for full year: RMB 94.7 million, improved from RMB 243.7 million prior year.

Outlook and guidance

• Q1 2026 net revenues expected between RMB 958.6 million and RMB 1.08 billion, representing 15%-30% year-over-year growth.

• Management remains confident in sustainable growth, focusing on R&D, premium skincare, and operational leverage.

• Industry trends indicate continued growth in China’s beauty and consumer goods retail sales.