Youlife Group Inc. Reports Strong First Half 2026 Revenue Growth and Expands AI-Enabled Blue-Collar Workforce Platform

Revenue more than doubled, but lower gross margin and higher operating expenses accompanied a decline in operating income.

Rhea-AI Summary

Youlife (NASDAQ: YOUL) reported first-half 2026 revenue of RMB1,961.9 million, as employee management services drove growth across its expanded workforce platform. Revenue rose 114.8% year over year, while gross profit increased 31.7% to RMB169.2 million. Gross margin fell to 8.6% from 14.1%, and net profit declined to RMB30.3 million from RMB37.7 million. Basic and diluted earnings per share fell to RMB0.38 from RMB0.54.

The company completed its YouheHR share-exchange acquisition on January 31, 2026, and signed a three-year nationwide outsourcing agreement with a domestic new-retail group. Employee management revenue increased 122.3% to RMB1,884.2 million. Youlife attributed margin pressure primarily to the greater contribution of lower-margin employee management services following the acquisition. New education partnerships and an AI development cooperation with an initial term of at least ten years accompanied the expansion.

17 points · 1 major

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0 major · 15 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major pointFirst-half 2026 revenue increased 114.8% year over year to RMB1,961.9 million.
• Moderate pointFirst-half 2026 gross profit increased 31.7% year over year to RMB169.2 million.
• Moderate pointYouheHR became a wholly owned subsidiary through the share exchange completed January 31, 2026.
• Moderate pointNationwide outsourcing cooperation with a domestic new-retail group provides a three-year service agreement.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Ji'an framework agreement targets an industry-education integration platform, including vocational education and embodied robotics opportunities.
• Moderate pointTotal assets increased 18.4% to RMB1,471.4 million at June 30, 2026, from December 31, 2025.

11 minor points

• Minor pointEmployee management revenue rose 122.3% to RMB1,884.2 million in first-half 2026.
• Minor pointVocational education revenue increased 33.1% to RMB22.9 million in first-half 2026.
• Minor pointHR recruitment revenue increased 93.7% to RMB17.7 million in first-half 2026.
• Minor point. Forward-looking: it has not happened yet and may not happen.Thingo cooperation targets AI recruitment and intelligent agents over an initial term of no less than ten years.
• Minor point. Forward-looking: it has not happened yet and may not happen.Dazhou Technician College agreement establishes ten-year school-running cooperation, including training and employment placement.
• Minor pointBole Chepinwang joint venture was established in January 2026 to expand automotive education cooperation.
• Minor pointXinhui Technician College agreement expanded vocational education cooperation in the Guangdong-Hong Kong-Macao Greater Bay Area.
• Minor point. Forward-looking: it has not happened yet and may not happen.VCI Global cooperation is exploring a robotics-enabled workforce-as-a-service platform.
• Minor pointOther non-operating income, net increased to RMB4.6 million from RMB3.8 million in first-half 2025.
• Minor pointShareholders' equity increased 11.6% to RMB840.9 million at June 30, 2026, from year-end 2025.
• Minor pointInvesting activities generated RMB23.7 million in first-half 2026, primarily reflecting cash acquired with YouheHR.

Negative

• Moderate pointFirst-half 2026 gross margin fell to 8.6% from 14.1% in first-half 2025.
• Moderate pointFirst-half 2026 net profit declined to RMB30.3 million from RMB37.7 million a year earlier.
• Moderate pointWeighted-average shares rose to 80.2 million from 70.0 million, primarily following YouheHR acquisition share issuance.
• Moderate pointFirst-half 2026 operating income declined to RMB30.4 million from RMB45.8 million a year earlier.
• Moderate pointSales and marketing expenses rose to RMB69.1 million from RMB24.7 million in first-half 2026.
• Moderate pointTotal liabilities increased 28.8% to RMB630.5 million at June 30, 2026, from December 31, 2025.
• Moderate pointOperating cash flow fell to RMB9.1 million from RMB13.7 million in first-half 2026 versus the prior-year period.
• Moderate pointFinancing activities used RMB47.0 million in first-half 2026, primarily for repayments and listing expenses.
• Moderate pointJi'an industry-education platform cooperation remains a framework agreement.

6 minor points

• Minor pointBasic and diluted EPS fell to RMB0.38 from RMB0.54 in first-half 2026 versus first-half 2025.
• Minor pointCosts of revenues increased 128.4% to RMB1,792.7 million in first-half 2026.
• Minor pointGeneral and administrative expenses rose to RMB61.5 million from RMB56.4 million in first-half 2026.
• Minor pointResearch and development expenses rose to RMB8.3 million from RMB1.6 million in first-half 2026.
• Minor pointMarketing services revenue decreased 5.4% to RMB37.1 million in first-half 2026.
• Minor pointCash and cash equivalents decreased RMB14.2 million to RMB130.0 million during first-half 2026.

News Explained

At June 30, 2026, cash and cash equivalents were RMB130.0 million, after falling RMB14.2 million during the half-year.

Youlife reports in its unaudited first-half results that the YouheHR share exchange was completed in January 2026, with shares issued in connection with the acquisition.

The weighted-average share count was 80.2 million versus 70.0 million in first-half 2025, which the company attributes primarily to that issuance; issuing additional shares increases the total share count and reduces existing holders’ percentage ownership absent offsetting changes.

Cash and cash equivalents were RMB130.0 million at June 30, 2026, down from RMB144.2 million at December 31, 2025.

Operating activities generated RMB9.1 million in cash, while financing activities used RMB47.0 million during the first half.

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Details

Market move: YOUL +19.22% vs previous close. 1H26 earnings report

+9.3% Peak Tracked

-33.7% Trough Tracked

$0.30 – $0.40 Day Range

$28.95M Market Cap

On Oct 15, the day this news came out, the latest delayed price for YOUL is 19.22% above the previous close. Argus tracked a peak move of +9.3% during the session. Argus tracked a trough of -33.7% from its starting point during tracking. Our momentum scanner has recorded 23 alerts for this stock so far that day. The latest delayed price is $0.36. Relative volume is exceptionally heavy at 937.3x the average.

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Key Figures

Total revenue: RMB1,961.9 million; up 114.8% YoY Employee management services revenue: RMB1,884.2 million; up 122.3% Gross profit: RMB169.2 million; up 31.7% YoY +5 more

Total revenue

RMB1,961.9 million; up 114.8% YoY

Six months ended June 30, 2026

Employee management services revenue

RMB1,884.2 million; up 122.3%

Six months ended June 30, 2026

Gross profit

RMB169.2 million; up 31.7% YoY

First half of 2026

Gross margin

8.6% vs. 14.1%

First half of 2026 vs. prior-year period

Net profit

RMB30.3 million vs. RMB37.7 million

First half of 2026 vs. prior-year period

Earnings per share

RMB0.38 vs. RMB0.54

First half of 2026 vs. prior-year period

Cash and cash equivalents

RMB130.0 million

As of June 30, 2026

Operating cash flow

RMB9.1 million vs. RMB13.7 million

First half of 2026 vs. prior-year period

Historical Context

1 past event · Latest: Jun 23

1 event

1. Jun 23

   AI partnership

   24h Move

   -1.4%

   Prior Thingo deal covered AI recruitment; article now states term of at least ten years.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

gross margin, joint venture, earnings per share, weighted average number of shares outstanding

4 terms

gross margin financial

"gross margin was 8.6%, compared with 14.1% in the prior-year period"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

joint venture financial

"established a joint venture with Bole Chepinwang Information Technology"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

earnings per share financial

"Basic and diluted earnings per share were RMB0.38"

Earnings per share represent the amount of profit a company makes for each share of its stock, similar to how a pie’s total size can be divided into slices for each person. It helps investors understand how profitable the company is on a per-share basis, making it easier to compare its performance over time or against other companies. Higher earnings per share generally indicate better profitability and can influence a company's stock value.

View in glossary

weighted average number of shares outstanding financial

"increase in the weighted average number of shares outstanding to 80.2 million"

The weighted average number of shares outstanding is the average count of a company's shares available during a reporting period, adjusted for any issues, buybacks, or other changes so each day’s share count is weighted by how long it applied. Investors use it to calculate per-share measures like earnings per share, because it ensures profits or losses are divided by a fair, time-adjusted share base — like averaging how many people occupied a room across a meeting to get a per-person cost.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Revenues up 114.8% YoY to RMB1,961.9 million
• Gross profit increased 31.7% YoY to RMB169.2 million
• Net profit of RMB30.3 million, with profitability maintained during platform expansion and investment

SHANGHAI, Oct. 15, 2026 /PRNewswire/ -- Youlife Group Inc. ("Youlife" or the "Company") (NASDAQ: YOUL), a leading blue-collar lifetime service provider in China, today announced its unaudited financial results for the six months ended June 30, 2026.

Operational and Financial Highlights for the First Half of 2026

• Total revenues were RMB1,961.9 million (US$288.1 million), up 114.8% YoY.
• Gross profit was RMB169.2 million (US$24.8 million), up 31.7% YoY.
• Net profit was RMB30.3 million (US$4.5 million), with profitability maintained while the Company continued to invest in its expanded platform and growth initiatives.

Recent Developments

• In January 2026, the Company's subsidiary Shanghai Youerlan Information Technology Co., Ltd., entered into a three-year nationwide outsourcing service cooperation with a major domestic new-retail group. The agreement covers production operations and business support for stores and large-scale warehouses nationwide and is expected to expand the Company's employee management services platform and enterprise customer base.
• In January 2026, the Company's subsidiary, Wuhan Tiankun Diyun Education Technology Co., Ltd., established a joint venture with Bole Chepinwang Information Technology (Suzhou) Co., Ltd., to expand automotive school-enterprise cooperation, curriculum development and talent cultivation.
• In January 2026, the Company completed the previously announced share exchange transaction and YouheHR Group Inc. became a wholly owned subsidiary of Youlife, strengthening the Company's nationwide blue-collar service network and employee management delivery capabilities.
• In April 2026, the Company reached a cooperation with Xinhui Technician College: the Company's subsidiary signed a cooperation agreement with Xinhui Technician College, further expanding the Company's vocational education cooperation network in the Guangdong-Hong Kong-Macao Greater Bay Area and building a talent reservoir for the extension of its business into Hong Kong and Macao.
• On June 18, 2026, the Company entered into a long-term strategic cooperation with Anhui Thingo Intelligent Technology Co., Ltd. to jointly develop intelligent agent services and AI recruitment products, and build an AI industry academy and related AI capabilities. The cooperation has an initial term of no less than ten years.
• In July 2026, the Company's vocational education brand Tiankun Education entered into a ten-year school-running cooperation agreement with Dazhou Technician College covering enrollment, curriculum co-development, industry-oriented training, faculty development, internships, employment placement and operational management.
• In August 2026, the Company's subsidiary Jiangxi Youlan Sci-Tech Industry Development Co., Ltd., entered into a strategic cooperation framework agreement with Ji'an Industry-Education Integration Technology Co., Ltd. to develop an industry-education integration platform anchored on the High-Speed Rail New District Digital Economy Industrial Park, including opportunities involving vocational education, embodied robotics and related technology industries.
• In August and September 2026, the Company held ecosystem partner summits in Chengdu and Wuhan as part of its "Thousand Cities, Ten Thousand Enterprises" initiative. The program is designed to expand Youlife's county-level partner network and advance collaboration across AI talent cultivation, industry-education integration, technology-enabled talent services and international employment, supporting the Company's broader platform strategy.

Management Remarks

Yunlei Wang, founder, chief executive officer and chairman of Youlife, said, "The first half of 2026 marked an important phase in Youlife's evolution from a primarily organic-growth business into a broader, technology-enabled blue-collar workforce platform. Revenue increased 114.8% year over year to RMB1.96 billion, supported by continued growth from enterprise customers and the rapid expansion of our employee management services business. The completion of YouheHR acquisition strengthened our nationwide service network and delivery capabilities, while our three-year nationwide outsourcing agreement with a leading domestic new-retail group provides an additional platform for recurring employee management services growth. At the same time, our partnerships in automotive services, vocational education and international talent development are expanding the industries, geographies and customer relationships we can serve."

"We are also accelerating the technology and ecosystem investments that we believe can support the next phase of growth. Our long-term strategic cooperation with Thingo Technology is focused on developing AI-enabled recruitment and intelligent agent solutions, with the objective of improving job matching, workforce delivery and workforce management. Our vocational education partnerships, including the Dazhou Technician College cooperation and the Ji'an industry-education integration initiative, are designed to strengthen our talent pipeline while creating new application scenarios for AI, robotics and intelligent manufacturing. Together with our Sealand joint venture and our cooperation with VCI Global to explore a robotics-enabled workforce-as-a-service platform, these initiatives broaden our addressable market and reinforce our strategy of building an integrated blue-collar talent ecosystem. We remain focused on disciplined execution, selective partnerships and acquisitions, and the use of technology to improve operating efficiency and create sustainable long-term value for shareholders," Yunlei Wang concluded.

Haijun Zhang, acting chief financial officer of Youlife, commented, "We delivered substantial top-line growth in the first half of 2026, with revenue increasing 114.8% year over year to RMB1,961.9 million (US$288.1 million), primarily driven by a 122.3% increase in employee management services revenue. Gross profit increased 31.7% to RMB169.2 million (US$24.8 million), while gross margin was 8.6%, compared with 14.1% in the prior-year period. The change in gross margin primarily reflects the greater contribution of employee management services following the acquisition of YouheHR, which operates at a lower gross margin than certain of our other businesses. We also increased investment in sales and marketing, integration and research and development as we scaled the platform and expanded our technology capabilities. Net profit remained positive at RMB30.3 million (US$4.5 million), and cash and cash equivalents were RMB130.0 million (US$19.1 million) as of June 30, 2026. Going forward, we will maintain capital discipline while focusing on integration, operating efficiency, gross-margin improvement and selective investment in businesses and technologies that can support sustainable growth." 

Unaudited Financial Results for the First Half of 2026

Total revenues were RMB1,961.9 million (US$288.1 million), representing an increase of 114.8% from RMB913.3 million in the first half of 2025. Growth was primarily driven by employee management services, while HR recruitment and vocational education services also recorded strong year-over-year growth.

• Vocational education services. Revenues generated from vocational education services increased by 33.1% from RMB17.2 million for the six months ended June 30, 2025 to RMB22.9 million (US$3.4 million) for the six months ended June 30, 2026, primarily due to growth in our smart campus services.
• Employee management services. Revenues generated from employee management services increased by 122.3% from RMB847.8 million for the six months ended June 30, 2025 to RMB1,884.2 million (US$276.7 million) for the six months ended June 30, 2026, primarily due to (i) an increase in the number of corporate customers and growing demand for blue-collar labor, attributable to comprehensive adjustments and enhancements to our business controls and development strategy and the full utilization of our blended business model across the blue-collar worker lifecycle value chain; (ii) a greater focus on target customers in new-economy industries that offer high customer value and require large-scale outsourcing services; and (iii) revenue generated from YouheHR following its acquisition on January 31, 2026.
• HR recruitment services. Revenues generated from HR recruitment services increased by 93.7% from RMB9.1 million in the six months ended June 30, 2025 to RMB17.7 million (US$2.6 million) for the six months ended June 30, 2026, primarily due to increased recruitment demand from clients.
• Marketing services and solutions. Revenues generated from marketing services and solutions decreased by 5.4% from RMB39.2 million for the six months ended June 30, 2025 to RMB37.1 million (US$5.4 million) for the six months ended June 30, 2026, primarily due to a reduction in the scale of retail goods sold through online retail platforms.

Costs of revenues were RMB1,792.7 million (US$263.2 million), representing an increase of 128.4% from RMB784.8 million in the first half of 2025, primarily reflecting higher labor costs and service fees associated with the expansion of employee management services.

Gross profit and gross margin

Gross profit was RMB169.2 million (US$24.8 million), compared with RMB128.5 million in the first half of 2025, representing an increase of 31.7%, primarily due to higher revenues from employee management services.

Gross margin was 8.6%, compared with 14.1% in the first half of 2025. The decrease primarily reflected the larger contribution from employee management services following the acquisition of YouheHR, which has a lower gross margin than certain of the Company's other businesses.

Total operating expenses were RMB138.8 million (US$20.4 million), compared with RMB82.7 million in the first half of 2025, representing an increase of 67.9%, primarily reflecting higher sales and marketing, and administrative expenses following the acquisition of YouheHR, as well as increased research and development investment.

• Sales and marketing expenses were RMB69.1 million (US$10.1 million), compared with RMB24.7 million in the first half of 2025. The year-over-year increase was mainly attributable to expenses incurred by YouheHR following its acquisition.
• General and administrative expenses were RMB61.5 million (US$9.0 million), compared with RMB56.4 million in the first half of 2025. The year-over-year increase was mainly attributable to expenses incurred by YouheHR following its acquisition.
• Research and development expenses were RMB8.3 million (US$1.2 million), compared with RMB1.6 million in the first half of 2025. The year-over-year increase was mainly attributable to increased expenditures on research and development projects.

Operating income was RMB30.4 million (US$4.5 million), compared with RMB45.8 million in the first half of 2025, primarily reflecting the lower gross margin and higher operating expenses associated with the Company's expanded business scale and investment in growth initiatives.

Other non-operating income, net was RMB4.6 million (US$0.7 million), compared with RMB3.8 million in the first half of 2025, primarily due to lower exchange losses for the six months ended June 30, 2026.

Net profit was RMB30.3 million (US$4.5 million), compared with RMB37.7 million in the first half of 2025. The Company remained profitable while continuing to invest in its expanded operating platform, strategic initiatives and technology capabilities.

Basic and diluted earnings per share were RMB0.38 (US$0.06), compared with RMB0.54 in the first half of 2025, reflecting the increase in the weighted average number of shares outstanding to 80.2 million from 70.0 million, primarily following the issuance of shares in connection with the YouheHR acquisition.

Financial Position and Liquidity

Total assets as of June 30, 2026, were RMB1,471.4 million (US$216.0 million), compared with RMB1,242.9 million as of December 31, 2025, an increase of 18.4%. The increase primarily reflected higher accounts receivable and prepayments and other receivables associated with the expansion of the Company's business, as well as the recognition of intangible assets and goodwill related to the YouheHR acquisition.

Total liabilities as of June 30, 2026, increased 28.8% to RMB630.5 million from RMB489.6 million, primarily reflecting higher other payables and accruals and an increase in short-term borrowings.

Total shareholders' equity increased 11.6% to RMB840.9 million, compared with RMB753.2 million at year-end 2025, supported by the increase in additional paid-in capital associated with the YouheHR acquisition and the Company's continued profitability.

Net cash generated from operating activities was RMB9.1 million (US$1.3 million) in the first half of 2026, compared with RMB13.7 million in the prior-year period. Operating cash flow remained positive despite the significant expansion in the Company's business, with the primary use of operating cash related to the increase in trade receivables as revenue scaled.

Net cash generated from investing activities was RMB23.7 million (US$3.5 million), primarily reflecting RMB24.0 million of cash acquired in connection with the YouheHR business combination, partially offset by purchases of property and equipment. Net cash used in financing activities was RMB47.0 million (US$6.9 million), primarily reflecting repayments of borrowings, advances from third parties and listing expenses, partially offset by new bank and other borrowings.

Cash and cash equivalents decreased by RMB14.2 million during the first half of 2026, from RMB144.2 million at December 31, 2025 to RMB130.0 million (US$19.1 million) at June 30, 2026. The Company continues to focus on working-capital management and disciplined capital allocation while investing in the integration of YouheHR, technology capabilities and initiatives designed to support longer-term growth.

About Youlife Group Inc.

Youlife is a leading blue-collar lifetime service provider in China, dedicated to modernizing blue-collar employment through data, training, and technology-driven workforce solutions. In the talent services sector, Youlife operates 180 domestic branches and more than 10 overseas offices. By partnering with more than 10,000 renowned enterprises worldwide, Youlife provides stable and future-ready workforce infrastructure at scale. Under its "School-Enterprise Cooperation" model, Youlife maintains a nationwide network of vocational schools, including 37 schools and 146 curriculum development programs, covering 37 cities and counties across 16 provinces in China. For more information, please visit https://ir.youlife.cn/.

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "estimate," "plan," "project," "forecast," "intend," "will," "expect," "anticipate," "believe," "seek," "target" or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements also include, but are not limited to, statements regarding future events and the future results of Youlife, and Youlife's current expectations, estimates, forecasts, and projections about the industry in which Youlife operates, as well as the beliefs and assumptions of Youlife's management. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of Youlife's management and are not predictions of actual performance. These statements involve risks, uncertainties and other factors that may cause Youlife's actual results, levels of activity, performance, or achievements to be materially different from those expressed or implied by these forward-looking statements.

View original content:https://www.prnewswire.com/news-releases/youlife-group-inc-reports-strong-first-half-2026-revenue-growth-and-expands-ai-enabled-blue-collar-workforce-platform-302909702.html

SOURCE Youlife Group Inc.

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

How much did Youlife revenue grow in the first half of 2026?

Youlife revenue increased 114.8% year over year to RMB1,961.9 million in the six months ended June 30, 2026. Employee management services were the primary growth driver, with revenue rising 122.3% to RMB1,884.2 million.

Why did Youlife's gross margin fall in the first half of 2026?

Youlife attributed the decline primarily to the larger contribution of employee management services following the YouheHR acquisition, which operates at a lower gross margin than certain other businesses. Gross margin fell to 8.6% from 14.1% in first-half 2025.

How did Youlife's cash position change in the first half of 2026?

Cash and cash equivalents decreased by RMB14.2 million, from RMB144.2 million at December 31, 2025, to RMB130.0 million at June 30, 2026. Operating activities generated RMB9.1 million, investing activities generated RMB23.7 million, and financing activities used RMB47.0 million.