Yatsen Holding Stock Earnings Reports

Yatsen reported solid top-line growth in Q1 2026 with total net revenues up 22.5% year‑over‑year to RMB1.02 billion, driven primarily by strong skincare performance (skincare revenues +58.5% YoY) while cosmetics declined ~5% YoY. Gross profit rose 24.3% to RMB819.2 million and gross margin improved year‑over‑year (reported at 80.2%). However, operating expenses increased materially: total operating expenses rose 32.5% (to RMB918.1 million), with selling & marketing spending jumping to 72.2% of revenues as the company invests in brand building and traffic acquisition. R&D investment increased to 3.9% of revenues, reflecting a push on science‑led innovation and new product launches. The company reported an operating loss of RMB99.0 million and a net loss of RMB61.9 million (non‑GAAP net loss RMB57.3 million). Cash, restricted cash and short‑term investments were RMB934.2 million at quarter end. Management completed the first tranche of a private placement of convertible notes and warrants (closed May 21) and highlighted investor support. For Q2 2026, management guided revenues of RMB1.2–1.3 billion (≈+10% to +20% YoY). Key investor considerations: (1) strong skincare momentum and product/R&D pipeline that support mid/long‑term growth; (2) materially higher marketing spend compressing near‑term profitability; (3) completed financing that provides capital runway; and (4) FY cash headroom down from year‑end but still substantial vs near‑term losses.