Yatsen (YSG) Q1 2026 earnings summary

Executive summary

• Net revenues reached RMB 1.02 billion in Q1 2026, up 22.5% year-over-year, driven by strong skincare brand performance.

• Gross margin hit a record 80.2%, up from 79.1% a year ago, reflecting a higher contribution from premium products.

• Skincare brands drove growth, with revenue up 58.5% year-over-year, while color cosmetics declined 5%.

• Net loss widened to RMB 61.9 million (margin -6.1%), and non-GAAP net loss was RMB 57.3 million (margin -5.6%).

• Net cash used in operating activities was RMB 90.0 million in Q1 2026.

Financial highlights

• Gross profit was RMB 819.2 million, up 24.3% year-over-year.

• Operating loss was RMB 99 million (margin -9.7%), compared to RMB 34.1 million loss (margin -4.1%) last year.

• Operating expenses rose 32.5% to RMB 918.1 million, with selling and marketing expenses up 33.2% year-over-year.

• R&D expenses increased to RMB 39.4 million (3.9% of net revenues), up from 2.7% year-over-year.

• Cash, restricted cash, and short-term investments totaled RMB 934.2 million as of March 31, 2026.

Outlook and guidance

• Q2 2026 net revenues expected between RMB 1.2 billion and RMB 1.3 billion, up 10%–20% year-over-year.

• Continued investment in brand equity, consumer awareness, and premium skincare innovation.