Yatsen Holding Earnings Call Transcripts
Fiscal Year 2026
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Net revenue rose 5.1% year-over-year, led by 40.4% growth in skincare, now 71.5% of total revenue. Gross margin declined due to inventory provisions, and net loss widened. Q3 revenue is expected to decrease up to 10% year-over-year.
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Net revenues grew 22.5% year-over-year in Q1 2026, driven by a 68.5% surge in skincare brands, while gross margin hit a record 80.2%. Despite strong top-line growth, operating and net losses widened due to higher marketing and R&D investments.
Fiscal Year 2025
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Net revenue grew 26.7% year-over-year in 2025, led by skincare brands, with a return to non-GAAP profitability and improved margins. Q1 2026 guidance projects 15%-30% revenue growth, driven by continued focus on high-margin skincare and operational efficiency.
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Revenue grew 47.5% year-over-year in Q3 2025, led by an 83.2% surge in skincare, with net loss margin improving to 7%. Management expects continued revenue growth and profitability improvements, driven by a higher skincare mix and disciplined spending.
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Q2 2025 saw 36.8% revenue growth, led by skincare brands up 78.7% year-over-year, and a return to profitability on a non-GAAP basis. Guidance for Q3 projects 15%-30% revenue growth, with continued focus on R&D and margin improvement.
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Q1 2025 saw 7.8% revenue growth, driven by a 47.7% surge in skincare brands, improved gross margin, and a shift to non-GAAP net income. Operating expenses fell, and a new share repurchase program was announced. Q2 revenue is forecast to rise 2–12%.
Fiscal Year 2024
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Q4 net revenues rose 7.1% year-over-year, with gross margin and non-GAAP profitability improving despite a subdued Chinese beauty market. Skincare led stable growth, while color cosmetics rebounded strongly. Q1 2025 revenues are forecast to grow 2%-12%.
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Q3 2024 saw a 5.7% revenue decline, but gross margin rose to 75.9% and net loss margin improved to 7.9%. Skincare brands grew 3.6% year-over-year, and management expects up to 10% revenue growth in Q4, driven by innovation and disciplined cost control.
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Q2 2024 net revenues fell 7.5% year-over-year amid a sluggish beauty market, but gross margin improved and net loss narrowed. Skincare was stable, color cosmetics grew, and new product launches and R&D investments continued.