Yatsen Reports 22.5% Revenue Growth in Q1 2026
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 48 minutes ago
0mins
Source: Yahoo Finance
- Significant Revenue Growth: Yatsen Holding Ltd reported a 22.5% year-over-year increase in total net revenues for Q1 2026, reaching RMB1.02 billion, primarily driven by a 58.5% surge in skincare brand revenues, indicating strong performance in the rapidly growing skincare market.
- Gross Margin Improvement: The gross margin improved to 80.2%, up from 79.1% in the previous year, reflecting successful cost control and pricing strategies that enhance the company's competitive position in the industry.
- Rising Operating Expenses: Total operating expenses increased by 32.5% year-over-year to RMB918.1 million, accounting for 89.9% of total net revenues, which pressures profitability and resulted in a net loss of RMB61.9 million, highlighting the need for optimization in high-investment market strategies.
- Deteriorating Cash Flow: As of March 31, 2026, the company's cash, restricted cash, and short-term investments decreased to RMB934.2 million from RMB1.05 billion at the end of the previous year, with net cash used in operating activities reaching RMB90 million, reflecting financial strain in operational activities.
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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.
Yatsen Holding Reports Q1 Earnings Highlights
- Financial Performance: Yatsen Holding reported a non-GAAP EPS of -$0.09 for Q1, despite a 22.5% year-over-year revenue increase to $148 million, indicating resilience and growth potential in the market.
- Gross Margin Improvement: The gross margin for Q1 2026 rose to 80.2% from 79.1% in the prior year, reflecting significant progress in cost control and pricing strategies, thereby enhancing profitability.
- Cash Flow Status: As of March 31, 2026, the company had cash and short-term investments totaling RMB 934.2 million (approximately $135.4 million), down from RMB 1.05 billion as of December 31, 2025, highlighting pressure on operating cash flow.
- Future Outlook: The company expects total net revenues for Q2 2026 to range between RMB 1.20 billion and RMB 1.30 billion, representing a year-over-year increase of approximately 10% to 20%, suggesting management's optimistic view on future growth, which may attract more investor interest.
See More
Yatsen Reports 22.5% Revenue Growth in Q1 2026
- Significant Revenue Growth: Yatsen Holding Ltd reported a 22.5% year-over-year increase in total net revenues for Q1 2026, reaching RMB1.02 billion, primarily driven by a 58.5% surge in skincare brand revenues, indicating strong performance in the rapidly growing skincare market.
- Gross Margin Improvement: The gross margin improved to 80.2%, up from 79.1% in the previous year, reflecting successful cost control and pricing strategies that enhance the company's competitive position in the industry.
- Rising Operating Expenses: Total operating expenses increased by 32.5% year-over-year to RMB918.1 million, accounting for 89.9% of total net revenues, which pressures profitability and resulted in a net loss of RMB61.9 million, highlighting the need for optimization in high-investment market strategies.
- Deteriorating Cash Flow: As of March 31, 2026, the company's cash, restricted cash, and short-term investments decreased to RMB934.2 million from RMB1.05 billion at the end of the previous year, with net cash used in operating activities reaching RMB90 million, reflecting financial strain in operational activities.
See More
Yatsen Reports Q1 2026 Financial Results with Strong Skincare Growth
- Significant Revenue Growth: In Q1 2026, Yatsen's total net revenues increased by 22.5% year-over-year to RMB 1.02 billion (approximately USD 148 million), primarily driven by a 58.5% year-over-year rise in skincare brand revenues, demonstrating the resilience of its multi-brand strategy.
- Gross Margin Improvement: The gross profit for Q1 reached RMB 819.2 million (approximately USD 118.8 million), with a gross margin of 80.2%, up from 79.1% in the prior year, reflecting the structural health of the company's business model.
- Rising Operating Expenses: Total operating expenses rose by 32.5% year-over-year to RMB 918.1 million (approximately USD 133.1 million), accounting for 89.9% of total net revenues; however, the company remains committed to long-term profitability optimization to ensure that revenue growth translates effectively into future margin improvements.
- Optimistic Outlook: Yatsen expects total net revenues for Q2 2026 to be between RMB 1.20 billion and RMB 1.30 billion, representing a year-over-year increase of approximately 10% to 20%, indicating a positive outlook based on current market and operational conditions.
See More
Yatsen Completes Financing Transaction with Hillhouse
- Transaction Completion: Yatsen Holding Limited announced the completion of the first tranche of its private placement of RMB-denominated convertible senior notes and warrants, totaling approximately $120 million, indicating strong investor confidence and support.
- Investor Expansion: The transaction attracted co-investment from Hillhouse, Trustar Capital, and founder Jinfeng Huang, reflecting robust trust in Yatsen's long-term value and strategic direction, thereby enhancing the company's capital base.
- Clear Use of Proceeds: Yatsen intends to utilize the net proceeds from the transaction for product research and development, global supply chain integration, and overseas market expansion, aiming to drive sustained growth and enhance market competitiveness.
- Positive Future Outlook: With the completion of the first tranche, Yatsen expects to issue the second tranche of notes later this year, further solidifying its market position in the beauty industry and creating long-term value.
See More
Yatsen Completes First Tranche of Convertible Notes Financing
- Expanded Investor Participation: Yatsen announced Hillhouse's involvement in its RMB-denominated private placement of convertible notes and warrants, with the first tranche closing on May 21, 2026, demonstrating investor confidence and support for the company.
- Stable Financing Amount: The total aggregate principal amount for the two equal tranches of notes remains at approximately $120 million, with proceeds intended for product research and development, global supply chain integration, and overseas market expansion, enhancing the company's competitive position.
- Strategic Investor Confidence: Hillhouse, a significant shareholder since 2018, reflects strong trust in Yatsen's long-term value and strategic direction through its participation in this financing, aiding the company in executing its growth strategy.
- Future Financing Plans: The second tranche of notes is expected to be issued later this year, allowing Yatsen to continue leveraging the proceeds to drive strategic initiatives and create long-term value for shareholders.
See More
Yatsen Holding to Release Q1 2026 Financial Results
- Earnings Release Schedule: Yatsen Holding will announce its unaudited financial results for Q1 2026 on May 26, 2026, before the U.S. market opens, reflecting the company's commitment to transparency and investor communication.
- Conference Call Timing: The management will hold a conference call on the same day at 7:30 A.M. U.S. Eastern Time to discuss the financial results, aiming to enhance investor understanding and confidence in the company's performance.
- Access Numbers: Investors can join the call via toll-free numbers from various countries, including the U.S., international lines, and mainland China, ensuring global participation and highlighting the company's focus on international investors.
- Brand Strategy Positioning: Since its founding in 2016, Yatsen Holding has launched multiple color cosmetics and skincare brands, catering to a wide range of consumer demographics from mass market to prestige clinical segments, showcasing its innovation and market adaptability in the beauty industry.
See More
Yatsen Holding Reports Q1 Earnings Highlights
- Financial Performance: Yatsen Holding reported a non-GAAP EPS of -$0.09 for Q1, despite a 22.5% year-over-year revenue increase to $148 million, indicating resilience and growth potential in the market.
- Gross Margin Improvement: The gross margin for Q1 2026 rose to 80.2% from 79.1% in the prior year, reflecting significant progress in cost control and pricing strategies, thereby enhancing profitability.
- Cash Flow Status: As of March 31, 2026, the company had cash and short-term investments totaling RMB 934.2 million (approximately $135.4 million), down from RMB 1.05 billion as of December 31, 2025, highlighting pressure on operating cash flow.
- Future Outlook: The company expects total net revenues for Q2 2026 to range between RMB 1.20 billion and RMB 1.30 billion, representing a year-over-year increase of approximately 10% to 20%, suggesting management's optimistic view on future growth, which may attract more investor interest.
See More
Yatsen Reports 22.5% Revenue Growth in Q1 2026
- Significant Revenue Growth: Yatsen Holding Ltd reported a 22.5% year-over-year increase in total net revenues for Q1 2026, reaching RMB1.02 billion, primarily driven by a 58.5% surge in skincare brand revenues, indicating strong performance in the rapidly growing skincare market.
- Gross Margin Improvement: The gross margin improved to 80.2%, up from 79.1% in the previous year, reflecting successful cost control and pricing strategies that enhance the company's competitive position in the industry.
- Rising Operating Expenses: Total operating expenses increased by 32.5% year-over-year to RMB918.1 million, accounting for 89.9% of total net revenues, which pressures profitability and resulted in a net loss of RMB61.9 million, highlighting the need for optimization in high-investment market strategies.
- Deteriorating Cash Flow: As of March 31, 2026, the company's cash, restricted cash, and short-term investments decreased to RMB934.2 million from RMB1.05 billion at the end of the previous year, with net cash used in operating activities reaching RMB90 million, reflecting financial strain in operational activities.
See More
Yatsen Reports Q1 2026 Financial Results with Strong Skincare Growth
- Significant Revenue Growth: In Q1 2026, Yatsen's total net revenues increased by 22.5% year-over-year to RMB 1.02 billion (approximately USD 148 million), primarily driven by a 58.5% year-over-year rise in skincare brand revenues, demonstrating the resilience of its multi-brand strategy.
- Gross Margin Improvement: The gross profit for Q1 reached RMB 819.2 million (approximately USD 118.8 million), with a gross margin of 80.2%, up from 79.1% in the prior year, reflecting the structural health of the company's business model.
- Rising Operating Expenses: Total operating expenses rose by 32.5% year-over-year to RMB 918.1 million (approximately USD 133.1 million), accounting for 89.9% of total net revenues; however, the company remains committed to long-term profitability optimization to ensure that revenue growth translates effectively into future margin improvements.
- Optimistic Outlook: Yatsen expects total net revenues for Q2 2026 to be between RMB 1.20 billion and RMB 1.30 billion, representing a year-over-year increase of approximately 10% to 20%, indicating a positive outlook based on current market and operational conditions.
See More
Yatsen Completes Financing Transaction with Hillhouse
- Transaction Completion: Yatsen Holding Limited announced the completion of the first tranche of its private placement of RMB-denominated convertible senior notes and warrants, totaling approximately $120 million, indicating strong investor confidence and support.
- Investor Expansion: The transaction attracted co-investment from Hillhouse, Trustar Capital, and founder Jinfeng Huang, reflecting robust trust in Yatsen's long-term value and strategic direction, thereby enhancing the company's capital base.
- Clear Use of Proceeds: Yatsen intends to utilize the net proceeds from the transaction for product research and development, global supply chain integration, and overseas market expansion, aiming to drive sustained growth and enhance market competitiveness.
- Positive Future Outlook: With the completion of the first tranche, Yatsen expects to issue the second tranche of notes later this year, further solidifying its market position in the beauty industry and creating long-term value.
See More
Yatsen Completes First Tranche of Convertible Notes Financing
- Expanded Investor Participation: Yatsen announced Hillhouse's involvement in its RMB-denominated private placement of convertible notes and warrants, with the first tranche closing on May 21, 2026, demonstrating investor confidence and support for the company.
- Stable Financing Amount: The total aggregate principal amount for the two equal tranches of notes remains at approximately $120 million, with proceeds intended for product research and development, global supply chain integration, and overseas market expansion, enhancing the company's competitive position.
- Strategic Investor Confidence: Hillhouse, a significant shareholder since 2018, reflects strong trust in Yatsen's long-term value and strategic direction through its participation in this financing, aiding the company in executing its growth strategy.
- Future Financing Plans: The second tranche of notes is expected to be issued later this year, allowing Yatsen to continue leveraging the proceeds to drive strategic initiatives and create long-term value for shareholders.
See More
Yatsen Holding to Release Q1 2026 Financial Results
- Earnings Release Schedule: Yatsen Holding will announce its unaudited financial results for Q1 2026 on May 26, 2026, before the U.S. market opens, reflecting the company's commitment to transparency and investor communication.
- Conference Call Timing: The management will hold a conference call on the same day at 7:30 A.M. U.S. Eastern Time to discuss the financial results, aiming to enhance investor understanding and confidence in the company's performance.
- Access Numbers: Investors can join the call via toll-free numbers from various countries, including the U.S., international lines, and mainland China, ensuring global participation and highlighting the company's focus on international investors.
- Brand Strategy Positioning: Since its founding in 2016, Yatsen Holding has launched multiple color cosmetics and skincare brands, catering to a wide range of consumer demographics from mass market to prestige clinical segments, showcasing its innovation and market adaptability in the beauty industry.
See More
