So-Young International (SY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached RMB 432.8 million, up 45.6% year-over-year, driven by strong growth in the branded aesthetic center business.

• Aesthetic center revenue rose 185.8% year-over-year to RMB 282.4 million, exceeding guidance for the fourth consecutive quarter.

• The company expanded to 59 centers in 17 cities, with verified treatment visits and active users more than doubling year-over-year.

• Operational efficiency improved, with 41 profitable centers and 48 generating positive operating cash flow.

• Net loss attributable was RMB 49.2 million, compared to RMB 33.1 million in Q1 2025; non-GAAP net loss was RMB 46.6 million.

Financial highlights

• Gross margin for the aesthetic center business reached 27%, up 8.4 percentage points year-over-year.

• Gross profit was RMB 181.8 million, with a gross margin of 42.0% on total revenue.

• Cash and equivalents stood at RMB 880 million as of March 31, 2026, down from RMB 936.4 million at year-end 2025 due to strategic expansion investments.

• Cost of revenue increased 65.8% year-over-year to RMB 251 million, mainly from center expansion.

• Operating expenses rose 26.6% year-over-year to RMB 239.7 million, with sales and marketing up 33.7%.

Outlook and guidance

• Q2 2026 aesthetic treatment service revenue expected between RMB 307 million and RMB 317 million, representing 102.6% to 119.5% year-over-year growth.

• Continued focus on supply chain optimization, medical delivery excellence, and operational efficiency to drive sustainable growth and profitability.

• Guidance reflects current market and operating conditions, subject to change.