111 (YI) Q1 2026 earnings summary

Executive summary

• Net revenue for Q1 2026 was RMB2.4 billion ($342.4 million), down 33.1% year-over-year due to a strategic shift to an asset-light model and divestiture of underperforming subsidiaries.

• Marketplace service revenue grew 24.7% year-over-year, reflecting a successful transition to higher-quality, scalable revenue streams.

• Promotional products revenue surged 70.2% year-over-year, with gross profit up 75.0%, driven by expanded partnerships and flagship product growth.

Financial highlights

• Gross segment profit was RMB126.0 million ($18.3 million), down 35.4% year-over-year.

• Operating costs and expenses decreased 32.5% year-over-year to RMB2.4 billion ($345.3 million).

• Net loss was RMB26.8 million ($3.9 million), compared to RMB7.3 million in the prior-year quarter.

• Non-GAAP net loss was RMB25.7 million ($3.7 million), up from RMB3.2 million year-over-year.

• Cash and equivalents, restricted cash, and short-term investments totaled RMB396.6 million ($57.5 million) as of March 31, 2026.

Outlook and guidance

• Management expects continued margin expansion and profitability improvement through AI-enabled operational enhancements and a leaner, technology-driven business model.

• Focus remains on expanding margins, lifting profitability, and delivering long-term stakeholder value.