Yatsen Announces First Quarter 2026 Financial Results
Rhea-AI Summary
Yatsen (NYSE:YSG) reported unaudited Q1 2026 results with total net revenues up 22.5% to RMB1.02 billion, driven by a 58.5% increase in Skincare Brands to RMB574.2 million (56.2% of revenue). Gross margin rose to 80.2%, but net loss widened to RMB61.9 million and non-GAAP results turned to a loss. Operating expenses rose 32.5%, mainly from higher selling and marketing and R&D spending. Cash, restricted cash and short-term investments declined to RMB934.2 million, with RMB90.0 million operating cash outflow. The company completed a first closing of a ~US$120 million private placement of convertible notes and warrants and guided Q2 2026 revenue to RMB1.20–1.30 billion, implying 10%–20% year-over-year growth.
Positive
- Q1 2026 net revenues up 22.5% year over year to RMB1.02 billion
- Skincare Brands revenue up 58.5% to RMB574.2 million, 56.2% of total
- Gross margin increased to 80.2% from 79.1% year over year
- Combined Galénic, DR.WU and Eve Lom revenues up 61.4% year over year
- Q2 2026 revenue guidance RMB1.20–1.30 billion, +10%–20% YoY
- First closing of ~US$120 million convertible notes and warrants private placement
Negative
- Q1 2026 net loss widened to RMB61.9 million; net loss margin 6.1%
- Non-GAAP result shifted to RMB57.3 million net loss from prior-year income
- Total operating expenses rose 32.5% to RMB918.1 million, 89.9% of revenue
- Selling and marketing expenses increased to RMB737.2 million, 72.2% of revenue
- Net cash used in operating activities was RMB90.0 million versus prior-year inflow
- Cash, restricted cash and short-term investments fell to RMB934.2 million from RMB1.05 billion
News Market Reaction – YSG
In the May 26 session, YSG gained 3.86%, reflecting a moderate positive market reaction. Argus tracked a peak move of +21.5% during that session. Argus tracked a trough of -2.9% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 02 | FY 2025 earnings | Positive | -9.0% | Reported 2025 revenue growth, margin gains and sharply narrowed net loss. |
| Nov 17 | Q3 2025 earnings | Positive | -20.3% | Strong Q3 2025 revenue and skincare growth with improved gross margin. |
| Aug 21 | Q2 2025 earnings | Positive | +0.6% | Q2 2025 delivered 36.8% revenue growth and a swing to non-GAAP profit. |
| Feb 25 | FY 2024 earnings | Neutral | -4.6% | Mixed FY 2024 with margin gains but goodwill impairment-driven net loss. |
| Nov 20 | Q3 2024 earnings | Neutral | +11.4% | Q3 2024 revenue decline but improved gross margin and narrowed net loss. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases often brought volatility, with several prior quarters seeing share price declines despite revenue growth and margin improvement.
Over recent earnings cycles, Yatsen reported consistent revenue growth and expanding gross margins, led by Skincare Brands becoming a larger share of sales. However, prior earnings on Nov 17, 2025 and Mar 2, 2026 saw negative price reactions of -20.32% and -8.99% despite operational progress. Earlier quarters showed narrowing net losses and occasional non-GAAP profitability. Today’s Q1 2026 results continue the topline growth and margin gains theme but with a widened loss, against a backdrop of historically mixed market responses.
Key Terms
non-gaap financial
convertible notes financial
warrants financial
ads financial
private placement financial
net income margin financial
operating loss margin financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Conference Call to Be Held at 7:30 A.M.
First Quarter 2026 Highlights
- Total net revenues for the first quarter of 2026 increased by
22.5% toRMB1.02 billion (US ) from$148.0 million RMB833.5 million for the prior year period. - Total net revenues from Skincare Brands[1] for the first quarter increased by
58.5% toRMB574.2 million (US ) from$83.2 million RMB362.4 million for the prior year period. As a percentage of total net revenues, total net revenues from Skincare Brands for the first quarter of 2026 were56.2% , as compared with43.5% for the prior year period. - Gross margin for the first quarter of 2026 increased to
80.2% from79.1% for the prior year period. - Net loss for the first quarter of 2026 was
RMB61.9 million (US ), as compared with$9.0 million RMB5.6 million for the prior year period. Non-GAAP net loss[2] for the first quarter of 2026 wasRMB57.3 million (US ), as compared with non-GAAP net income of$8.3 million RMB7.1 million for the prior year period.
Mr. Jinfeng Huang, Founder, Chairman and Chief Executive Officer of Yatsen, stated, "For the first quarter of 2026, we delivered top-line growth that met our previous guidance and demonstrated the ongoing resilience of our multi-brand strategy. Our growth this quarter was primarily propelled by the sustained upward momentum of our Skincare Brands, which experienced substantial year-over-year growth of
Mr. Donghao Yang, Director and Chief Financial Officer of Yatsen, commented, "Our financial results for the first quarter of 2026 reflect encouraging progress in the expansion of our core brands. Total net revenues from our Skincare Brands delivered robust growth, while the combined net revenues of our three major premium and clinical skincare brands, Galénic, DR.WU and Eve Lom, grew by
First Quarter 2026 Financial Results
Net Revenues
Total net revenues for the first quarter of 2026 increased by
Gross Profit and Gross Margin
Gross profit for the first quarter of 2026 increased by
Operating Expenses
Total operating expenses for the first quarter of 2026 increased by
- Fulfillment Expenses. Fulfillment expenses for the first quarter of 2026 were
RMB61.1 million (US ), as compared with$8.9 million RMB51.8 million for the prior year period. As a percentage of total net revenues, fulfillment expenses for the first quarter of 2026 decreased to6.0% from6.2% for the prior year period. The decrease was primarily due to further improvements in logistics efficiency. - Selling and Marketing Expenses. Selling and marketing expenses for the first quarter of 2026 were
RMB737.2 million (US ), as compared with$106.9 million RMB553.8 million for the prior year period. As a percentage of total net revenues, selling and marketing expenses for the first quarter of 2026 increased to72.2% from66.4% for the prior year period. The increase was primarily driven by investments in broadening consumer awareness and building long-term brand equity of our core brands, coupled with higher traffic acquisition costs on the Douyin platform. - General and Administrative Expenses. General and administrative expenses for the first quarter of 2026 were
RMB80.3 million (US ), as compared with$11.6 million RMB64.9 million for the prior year period. As a percentage of total net revenues, general and administrative expenses for the first quarter of 2026 were7.9% as compared with7.8% for the prior year period, remaining largely flat. - Research and Development Expenses. Research and development expenses for the first quarter of 2026 were
RMB39.4 million (US ), as compared with$5.7 million RMB22.6 million for the prior year period. As a percentage of total net revenues, research and development expenses for the first quarter of 2026 increased to3.9% from2.7% for the prior year period. The increase was primarily driven by higher payroll expenses resulting from a rise in research and development headcount.
Loss / Income from Operations
Loss from operations for the first quarter of 2026 was
Non-GAAP loss from operations[4] for the first quarter of 2026 was
Net Loss / Income
Net loss for the first quarter of 2026 was
Non-GAAP net loss for the first quarter of 2026 was
Balance Sheet and Cash Flow
As of March 31, 2026, the Company had cash, restricted cash and short-term investments of
Net cash used in operating activities for the first quarter of 2026 was
Business Outlook
For the second quarter of 2026, the Company expects its total net revenues to be between
Exchange Rate
This announcement contains translations of certain Renminbi ("RMB") amounts into
[1] Include net revenues from Galénic, DR.WU (its mainland |
[2] Non-GAAP net income (loss) is a non-GAAP financial measure. Non-GAAP net income (loss) is defined as net income (loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments and (vi) tax effects on non-GAAP adjustments. |
[3] Include Perfect Diary, Little Ondine, Pink Bear and other color cosmetics brands of the Company. |
[4] Non-GAAP income (loss) from operations is a non-GAAP financial measure. Non-GAAP income (loss) from operations is defined as income (loss) from operations excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions and (iii) impairment of goodwill. |
[5] Non-GAAP operating income (loss) margin is a non-GAAP financial measure, which is defined as non-GAAP net income (loss) from operations as a percentage of total net revenues. |
[6] ADS refers to American depositary shares, each of which represents twenty Class A ordinary shares. |
[7] Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is a non-GAAP financial measure. Non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS is defined as non-GAAP net income (loss) attributable to ordinary shareholders divided by the weighted average number of diluted ADS outstanding for computing diluted earnings per ADS. Non-GAAP net income (loss) attributable to ordinary shareholders is defined as net income (loss) attributable to ordinary shareholders excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from assets and business acquisitions, (iii) revaluation of investments on the share of equity method investments, (iv) impairment of goodwill, (v) impairment of investments, (vi) tax effects on non-GAAP adjustments and (vii) accretion to redeemable non-controlling interests. |
Conference Call Information
The Company's management will hold a conference call on Tuesday, May 26, 2026, at 7:30 A.M.
+1-888-346-8982 | |
International: | +1-412-902-4272 |
Mainland | 400-120-1203 |
800-905-945 | |
+852-3018-4992 |
The replay will be accessible through Tuesday, June 2, by dialing the following numbers:
+1-855-669-9658 | ||||||
International: | +1-412-317-0088 | |||||
Replay Access Code: | 4359154 |
A live and archived webcast of the conference call will also be available on the Company's investor relations website at http://ir.yatsenglobal.com.
About Yatsen Holding Limited
Yatsen Holding Limited (NYSE: YSG) is a leading
For more information, please visit http://ir.yatsenglobal.com.
Use of Non-GAAP Financial Measures
The Company uses non-GAAP income (loss) from operations, non-GAAP operating income (loss) margin, non-GAAP net income (loss), non-GAAP net income (loss) margin, non-GAAP net income (loss) attributable to ordinary shareholders and non-GAAP net income (loss) attributable to ordinary shareholders per diluted ADS, each a non-GAAP financial measure, in reviewing and assessing its operating performance. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with
However, the non-GAAP financial measures have limitations as analytical tools as the non-GAAP financial measures are not presented in accordance with
Safe Harbor Statement
This announcement contains statements that may constitute "forward-looking" statements which are made pursuant to the "safe harbor" provisions of the
For investor and media inquiries, please contact:
Yatsen Holding Limited
Investor Relations
E-mail: ir@yatsenglobal.com
YATSEN HOLDING LIMITED | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||||
(All amounts in thousands, except for share, per share data or otherwise noted) | |||||||||||
December 31, | March 31, | March 31, | |||||||||
2025 | 2026 | 2026 | |||||||||
RMB'000 | RMB'000 | USD'000 | |||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | 765,379 | 876,144 | 127,014 | ||||||||
Restricted Cash | 42,117 | 58,036 | 8,413 | ||||||||
Short-term investments | 246,008 | - | - | ||||||||
Accounts receivable, net | 220,870 | 183,701 | 26,631 | ||||||||
Inventories, net | 508,730 | 573,339 | 83,117 | ||||||||
Prepayments and other current assets | 450,970 | 440,103 | 63,802 | ||||||||
Amounts due from related parties | 114 | 53 | 8 | ||||||||
Total current assets | 2,234,188 | 2,131,376 | 308,985 | ||||||||
Non-current assets | |||||||||||
Investments | 653,560 | 667,995 | 96,839 | ||||||||
Property and equipment, net | 77,014 | 71,982 | 10,435 | ||||||||
Goodwill, net | 155,029 | 155,029 | 22,474 | ||||||||
Intangible assets, net | 537,509 | 509,249 | 73,826 | ||||||||
Deferred tax assets | 1,435 | 1,040 | 151 | ||||||||
Right-of-use assets, net | 173,915 | 158,718 | 23,009 | ||||||||
Other non-current assets | 14,332 | 22,151 | 3,211 | ||||||||
Total non-current assets | 1,612,794 | 1,586,164 | 229,945 | ||||||||
Total assets | 3,846,982 | 3,717,540 | 538,930 | ||||||||
Liabilities, redeemable non-controlling interests and shareholders' | |||||||||||
Current liabilities | |||||||||||
Accounts and notes payable | 149,371 | 154,805 | 22,442 | ||||||||
Advances from customers | 28,821 | 29,480 | 4,274 | ||||||||
Accrued expenses and other liabilities | 348,700 | 322,994 | 46,824 | ||||||||
Amounts due to related parties | 21,262 | 19,412 | 2,814 | ||||||||
Income tax payables | 13,690 | 13,778 | 1,997 | ||||||||
Lease liabilities due within one year | 53,435 | 53,039 | 7,689 | ||||||||
Total current liabilities | 615,279 | 593,508 | 86,040 | ||||||||
Non-current liabilities | |||||||||||
Deferred tax liabilities | 107,906 | 106,052 | 15,374 | ||||||||
Lease liabilities | 123,157 | 110,184 | 15,973 | ||||||||
Total non-current liabilities | 231,063 | 216,236 | 31,347 | ||||||||
Total liabilities | 846,342 | 809,744 | 117,387 | ||||||||
Redeemable non-controlling interests | 1,337 | 1,337 | 194 | ||||||||
Shareholders' equity | |||||||||||
Ordinary Shares ( | 173 | 173 | 25 | ||||||||
Treasury shares | (1,250,678) | (1,253,378) | (181,702) | ||||||||
Additional paid-in capital | 12,296,367 | 12,297,001 | 1,782,691 | ||||||||
Statutory reserve | 31,527 | 31,527 | 4,570 | ||||||||
Accumulated deficit | (8,141,545) | (8,202,059) | (1,189,049) | ||||||||
Accumulated other comprehensive income | 74,760 | 45,910 | 6,657 | ||||||||
Total Yatsen Holding Limited shareholders' equity | 3,010,604 | 2,919,174 | 423,192 | ||||||||
Non-controlling interests | (11,301) | (12,715) | (1,843) | ||||||||
Total shareholders' equity | 2,999,303 | 2,906,459 | 421,349 | ||||||||
Total liabilities, redeemable non-controlling interests and | 3,846,982 | 3,717,540 | 538,930 | ||||||||
YATSEN HOLDING LIMITED | |||||||||||
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
(All amounts in thousands, except for share, per share data or otherwise noted) | |||||||||||
For the Three Months Ended March 31, | |||||||||||
2025 | 2026 | 2026 | |||||||||
RMB'000 | RMB'000 | USD'000 | |||||||||
Total net revenues | 833,533 | 1,020,986 | 148,012 | ||||||||
Total cost of revenues | (174,406) | (201,797) | (29,254) | ||||||||
Gross profit | 659,127 | 819,189 | 118,758 | ||||||||
Operating expenses: | |||||||||||
Fulfilment expenses | (51,843) | (61,138) | (8,863) | ||||||||
Selling and marketing expenses | (553,815) | (737,236) | (106,877) | ||||||||
General and administrative expenses | (64,883) | (80,326) | (11,645) | ||||||||
Research and development expenses | (22,637) | (39,440) | (5,718) | ||||||||
Total operating expenses | (693,178) | (918,140) | (133,103) | ||||||||
Loss from operations | (34,051) | (98,951) | (14,345) | ||||||||
Financial income | 10,606 | 10,741 | 1,557 | ||||||||
Foreign currency exchange gain (loss) | 10,664 | (3,198) | (464) | ||||||||
Income from equity method investments, net | 2,505 | 12,389 | 1,796 | ||||||||
Other income, net | 4,242 | 18,466 | 2,677 | ||||||||
Loss before income tax expenses | (6,034) | (60,553) | (8,779) | ||||||||
Income tax benefits (expenses) | 433 | (1,375) | (199) | ||||||||
Net loss | (5,601) | (61,928) | (8,978) | ||||||||
Net loss attributable to non-controlling interests and redeemable non- | 298 | 1,414 | 205 | ||||||||
Net loss attributable to Yatsen's shareholders | (5,303) | (60,514) | (8,773) | ||||||||
Shares used in calculating loss per share (1): | |||||||||||
Weighted average number of Class A and Class B ordinary shares: | |||||||||||
Basic | 1,837,466,068 | 1,876,901,662 | 1,876,901,662 | ||||||||
Diluted | 1,837,466,068 | 1,876,901,662 | 1,876,901,662 | ||||||||
Net loss per Class A and Class B ordinary share | |||||||||||
Basic | (0.00) | (0.03) | (0.00) | ||||||||
Diluted | (0.00) | (0.03) | (0.00) | ||||||||
Net loss per ADS (20 ordinary shares equal to 1 ADS) (2) | |||||||||||
Basic | (0.06) | (0.64) | (0.09) | ||||||||
Diluted | (0.06) | (0.64) | (0.09) | ||||||||
For the Three Months Ended March 31, | |||||||||||
2025 | 2026 | 2026 | |||||||||
Share-based compensation expenses are included in the | RMB'000 | RMB'000 | USD'000 | ||||||||
Fulfilment expenses | 98 | 249 | 36 | ||||||||
Selling and marketing expenses | 757 | 148 | 21 | ||||||||
General and administrative expenses | 7,731 | 2,003 | 290 | ||||||||
Research and development expenses | 40 | 1,159 | 168 | ||||||||
Total | 8,626 | 3,559 | 515 | ||||||||
(1) Authorized share capital is re-classified and re-designated into Class A ordinary shares and Class B ordinary shares, with each | |||||||||||
YATSEN HOLDING LIMITED | |||||||||||
UNAUDITED RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | |||||||||||
(All amounts in thousands, except for share, per share data or otherwise noted) | |||||||||||
For the Three Months Ended March 31, | |||||||||||
2025 | 2026 | 2026 | |||||||||
RMB'000 | RMB'000 | USD'000 | |||||||||
Loss from operations | (34,051) | (98,951) | (14,345) | ||||||||
Share-based compensation expenses | 8,626 | 3,559 | 515 | ||||||||
Amortization of intangible assets resulting from assets and business | 10,561 | 10,759 | 1,560 | ||||||||
Non-GAAP loss from operations | (14,864) | (84,633) | (12,270) | ||||||||
Net loss | (5,601) | (61,928) | (8,978) | ||||||||
Share-based compensation expenses | 8,626 | 3,559 | 515 | ||||||||
Amortization of intangible assets resulting from assets and business | 10,561 | 10,759 | 1,560 | ||||||||
Revaluation of investments on the share of equity method | (6,010) | (10,469) | (1,518) | ||||||||
Tax effects on non-GAAP adjustments | (433) | 829 | 120 | ||||||||
Non-GAAP net income (loss) | 7,143 | (57,250) | (8,301) | ||||||||
Net loss attributable to Yatsen's shareholders | (5,303) | (60,514) | (8,773) | ||||||||
Share-based compensation expenses | 8,626 | 3,559 | 515 | ||||||||
Amortization of intangible assets resulting from assets and business | 10,179 | 10,473 | 1,518 | ||||||||
Revaluation of investments on the share of equity method | (6,010) | (10,469) | (1,518) | ||||||||
Tax effects on non-GAAP adjustments | (405) | 829 | 120 | ||||||||
Non-GAAP net income (loss) attributable to Yatsen's | 7,087 | (56,122) | (8,138) | ||||||||
Shares used in calculating loss per share: | |||||||||||
Weighted average number of Class A and Class B ordinary shares: | |||||||||||
Basic | 1,837,466,068 | 1,876,901,662 | 1,876,901,662 | ||||||||
Diluted | 1,953,491,427 | 1,876,901,662 | 1,876,901,662 | ||||||||
Non-GAAP net income (loss) attributable to ordinary | |||||||||||
Basic | 0.00 | (0.03) | (0.00) | ||||||||
Diluted | 0.00 | (0.03) | (0.00) | ||||||||
Non-GAAP net income (loss) attributable to ordinary | |||||||||||
Basic | 0.08 | (0.60) | (0.09) | ||||||||
Diluted | 0.07 | (0.60) | (0.09) | ||||||||
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SOURCE Yatsen Holding Limited