Yatsen Holding Reports 2025 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5 hours ago
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Should l Buy YSG?
Source: Yahoo Finance
- Significant Revenue Growth: Total net revenues for Q4 2025 increased by 20.1% year-over-year to RMB 1.38 billion (approximately USD 197.3 million), demonstrating the company's strong market performance, particularly driven by skincare brands.
- Skincare Brand Success: Net revenues from skincare brands surged by 51.9% year-over-year to RMB 842.8 million (approximately USD 120.5 million) in Q4 2025, accounting for 61.1% of total net revenues, indicating a successful transformation towards higher-margin products.
- Profitability Turnaround: The company achieved a net income of RMB 3.0 million (approximately USD 0.4 million) in Q4 2025, a significant improvement from a net loss of RMB 378.8 million (approximately USD 54 million) in the same period last year, showcasing enhanced profitability.
- Operational Efficiency Improvement: The full year 2025 net loss decreased by 87% to RMB 92.4 million (approximately USD 13.2 million), while non-GAAP net income turned positive at RMB 8.4 million (approximately USD 1.2 million), reflecting ongoing improvements in operational efficiency and financial stability.
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Analyst Views on YSG
About YSG
Yatsen Holding Ltd is a holding company primarily engaged in the development, manufacturing and sales of beauty products. The Company operates three segments. The Color Cosmetics Brands segment is primarily engaged in the provision of color cosmetics including lip, eye and face products through the brands such as Perfect Diary, Little Ondine and Pink Bear. The Skincare Brands segment is primarily engaged in the provision of skincare products including face serums, face creams, makeup removers, masks, toners, eye creams and cleansers through the brands such as Galenic, DR.WU, Eve Lom and EANTiM. The Others segment is primarily engaged in the provision of products such as beauty tools and kits, sun screen and beauty devices.
About the author

Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
- Significant Revenue Growth: Total net revenues for Q4 2025 increased by 20.1% year-over-year to RMB 1.38 billion (approximately USD 197.3 million), demonstrating the company's strong market performance, particularly driven by skincare brands.
- Skincare Brand Success: Net revenues from skincare brands surged by 51.9% year-over-year to RMB 842.8 million (approximately USD 120.5 million) in Q4 2025, accounting for 61.1% of total net revenues, indicating a successful transformation towards higher-margin products.
- Profitability Turnaround: The company achieved a net income of RMB 3.0 million (approximately USD 0.4 million) in Q4 2025, a significant improvement from a net loss of RMB 378.8 million (approximately USD 54 million) in the same period last year, showcasing enhanced profitability.
- Operational Efficiency Improvement: The full year 2025 net loss decreased by 87% to RMB 92.4 million (approximately USD 13.2 million), while non-GAAP net income turned positive at RMB 8.4 million (approximately USD 1.2 million), reflecting ongoing improvements in operational efficiency and financial stability.
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- Earnings Decline: Yatsen Holding Ltd reported adjusted earnings of 7 cents per share for Q4, down from 14 cents in the previous year, indicating a significant decline in profitability that could undermine investor confidence.
- Sales Growth: Despite the drop in earnings, Yatsen's sales increased from $157.347 million to $197.258 million, suggesting that the company still has growth potential in market demand, which may lay the groundwork for future recovery.
- Stock Price Volatility: Yatsen's shares fell 10.1% to $4.00 in pre-market trading, reflecting a negative market reaction to its earnings report, which could lead to increased selling pressure from investors in the short term.
- Market Trends: U.S. stock futures were generally lower, with Dow futures falling around 1%, indicating a broader market sentiment that may have a ripple effect on Yatsen and other stocks' performance.
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- Profit Turnaround: Yatsen Holding reported a net income of RMB 3.0 million in Q4, a significant turnaround from a net loss of RMB 378.8 million in the same period last year, indicating improved profitability and boosting investor confidence.
- Earnings Per Share Recovery: The diluted ADS net income was RMB 0.08, a substantial recovery from last year's net loss of RMB 3.98, demonstrating the company's success in cost control and market strategy.
- Non-GAAP Income Decline: Although the Q4 non-GAAP net income was RMB 41.2 million, down from RMB 107.0 million year-over-year, it still reflects a degree of stability in the company's adjusted profitability.
- Optimistic Future Outlook: The company expects total net revenues for Q1 2026 to range between RMB 958.6 million and RMB 1.08 billion, representing a year-over-year increase of approximately 15% to 30%, indicating a positive outlook on future market demand.
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- Significant Revenue Growth: Yatsen's total net revenue for 2025 reached RMB 4.3 billion (approximately USD 614.6 million), marking a 26.7% year-over-year increase, primarily driven by a 63.5% rise in skincare brand revenues, showcasing the company's strong market performance and brand strength.
- Stable Gross Margin: In Q4 2025, gross profit amounted to RMB 1.07 billion (approximately USD 153.2 million) with a gross margin of 77.7%, remaining largely unchanged from the previous year, indicating effective strategies in cost control and product mix optimization.
- Substantial Reduction in Operating Loss: The operating loss for Q4 2025 was only RMB 12.7 million (approximately USD 1.8 million), a significant improvement from RMB 390.7 million in the same period last year, reflecting the company's success in operational efficiency and cost management.
- Optimistic Future Outlook: The company anticipates total revenues for Q1 2026 to be between RMB 958.6 million and RMB 1.08 billion, representing a year-over-year increase of approximately 15% to 30%, demonstrating confidence in market demand and potential for sustained growth.
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- Revenue Growth: Total net revenues for Q4 2025 increased by 20.1% to RMB 1.38 billion (approximately $197.3 million), reflecting strong market performance and likely boosting investor confidence moving forward.
- Skincare Brand Performance: Net revenues from Skincare Brands surged by 51.9% in Q4, reaching RMB 842.8 million (approximately $120.5 million), accounting for 61.1% of total revenues, indicating a successful strategy in high-margin product lines.
- Profitability Turnaround: The company achieved a net income of RMB 3.0 million (approximately $0.4 million) in Q4 2025, a significant turnaround from a net loss of RMB 378.8 million in the prior year, enhancing confidence in sustainable growth prospects.
- Operational Efficiency Improvement: Operating expenses for the full year 2025 decreased by 15.6% to RMB 1.08 billion (approximately $155 million), demonstrating significant progress in cost control and operational efficiency, which will contribute to overall profitability enhancement.
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- Financial Highlights: Yatsen Holding reported a Q4 2025 non-GAAP EPS of $0.07 with revenues of $197.3 million, reflecting a 20.1% year-over-year growth, indicating the company's robust growth trajectory in the market.
- Cash Position: As of December 31, 2025, the company had cash, restricted cash, and short-term investments totaling RMB 1.05 billion (approximately $150.7 million), down from RMB 1.36 billion in 2024, highlighting challenges in cash management.
- Operating Cash Flow: The net cash used in operating activities for Q4 2025 was RMB 69.4 million (about $9.9 million), suggesting that while the company is expanding, it is also facing cash flow pressures.
- Future Outlook: The company anticipates total net revenues for Q1 2026 to be between RMB 958.6 million and RMB 1.08 billion, representing a year-over-year increase of approximately 15% to 30%, reflecting a positive outlook for future performance.
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