Yatsen (YSG) Reports Third Quarter 2025 Financial Earnings Results

Yatsen Holding Limited (YSG) today announced its financial results for the most recent quarter, revealing a revenue of $998.4 million. While this figure fell short of analysts’ expectations by approximately $64.9 million, the company managed to meet its earnings per share estimate. As Yatsen continues to navigate a competitive landscape, these results highlight both the challenges and opportunities ahead for the beauty and personal care brand.

Key Highlights:

• Total net revenues for Q3 2025 increased by 47.5% to RMB998.4 million (US$140.2 million).
• Revenues from Skincare Brands surged by 83.2% to RMB490.8 million (US$68.9 million), making up 49.2% of total revenues.
• Gross margin improved to 78.2% from 75.9% year-over-year.
• Net loss narrowed by 41.9% to RMB70.4 million (US$9.9 million).
• Non-GAAP net loss decreased by 32.8% to RMB51.5 million (US$7.2 million).
• The company expects Q4 2025 total net revenues to be between RMB1.32 billion and RMB1.49 billion, a year-over-year increase of approximately 15% to 30%.

In the third quarter of 2025, Yatsen Holding Limited reported significant financial growth, with total net revenues rising by 47.5% compared to the previous year, driven primarily by a remarkable 83.2% increase in revenues from its Skincare Brands. This growth reflects the company’s strategic focus on building a competitive brand portfolio, as highlighted by CEO Mr. Jinfeng Huang, who noted that the results demonstrate the effectiveness of their strategy and the strong performance of their skincare brands. The company also introduced new products, such as DR.WU’s PDRN Serum and Galénic’s No.3 VB Serum, which are expected to contribute positively to their upcoming sales during the Double 11 shopping festival.

CFO Mr. Donghao Yang emphasized that the revenue growth exceeded previous guidance, despite upfront investments in new product launches. He mentioned that ongoing efforts to enhance gross margins and optimize operational efficiency have led to a significant improvement in loss margins. Looking ahead, Yatsen is optimistic about its future growth, projecting a revenue increase of 15% to 30% for the fourth quarter of 2025, reflecting their confidence in market conditions and operational capabilities.

Yatsen Holding Limited (YSG) has experienced a rollercoaster ride in its stock price, with a notable 5.88% increase over the past week, suggesting a potential rebound after a challenging month where it fell by 9.76%. However, looking at the broader picture, the stock has plummeted 28% over the last three months, indicating significant volatility and investor uncertainty. Despite this recent uptick, the company’s fundamentals paint a concerning picture; it operates with a negative price-to-earnings ratio of -1.23 and a troubling net profit margin of -13.4%, reflecting ongoing struggles in profitability. The return on invested capital is also negative at -7.1%, raising questions about the efficiency of its capital allocation. On a more positive note, YSG has managed to achieve a revenue growth rate of 2.29% over the past two years, hinting at some resilience in its business model. However, the lack of free cash flow growth and the overall negative financial metrics suggest that investors should tread carefully. As the company navigates these turbulent waters, it remains to be seen whether the recent price increase is a sign of recovery or merely a temporary blip in a longer-term downward trend.

Yatsen Holding Limited, together with its subsidiaries, engages in the development and sale of beauty products under the Perfect Diary, Little Ondine, Pink Bear, Abby’s Choice, GalÃnic, DR.WU, Eve Lom, and EANTiM brands in the People’s Republic of China. It offers color cosmetics, eye makeup, lip makeup, face makeup, skincare, and nail products; and makeup tools and accessories, including brush sets, cotton cosmetic pads, mirrors, and makeup sponges. The company also provides kits; and other products, such as perfumes and cross-over products comprising beauty devices and colored contact lenses. It sells its products through stores and online channel. The company was formerly known as Mangrove Bay Ecommerce Holding (Cayman) and changed its name to Yatsen Holding Limited in January 2019. Yatsen Holding Limited was founded in 2016 and is headquartered in Guangzhou, China.