Youlife (YOUL) Q2 2025 earnings summary

Executive summary

• Revenues for the first half of 2025 rose 16.2% year-over-year to RMB913.3 million, driven by strong growth in employee management services.

• Operating income surged 93.3% year-over-year to RMB45.8 million, and net profit reached RMB37.7 million, a 37-fold increase from the prior year period.

• The company completed its Nasdaq listing, enhancing capital access and global visibility.

• Announced plans to acquire four companies in recruitment, software, AI, HR, and vocational training, and established a joint venture with Galbot for robotics-driven vocational education.

Financial highlights

• Gross profit increased to RMB128.5 million, with gross margin slightly up to 14.1% from 14.0% year-over-year.

• Total operating expenses decreased 4.2% to RMB82.7 million, with notable reductions in sales and marketing and R&D expenses.

• Cash and cash equivalents stood at RMB162.2 million as of June 30, 2025.

• Adjusted EBITDA for the period was RMB63.7 million, up from RMB41.0 million in the prior year.

Outlook and guidance

• Management expects continued growth through acquisitions and integration in blue-collar vocational training and recruitment.

• Plans to streamline and enhance service lines and profit matrix, leveraging new technology and expanded customer base.