Yatsen Q2 net revenue up 36.8% to $151.7mln, skincare business grows 78.7%.

• Yatsen Holding reported Q2 2025 total net revenues of RMB1.09bn ($151.7m), up 36.8% YoY. • Skincare Brands revenue increased 78.7% YoY to RMB581.3m ($81.1m). • Gross margin rose to 78.3% from 76.7% YoY. • Net loss not disclosed in the press release.

Yatsen Holding Limited (NYSE: YSG), a leading China-based beauty group, has reported robust financial performance for the second quarter of 2025. The company announced its unaudited financial results, which highlighted significant growth in key revenue streams and improvements in operational efficiency.

The total net revenues for the second quarter of 2025 increased by 36.8% to RMB1.09 billion (US$151.7 million) from RMB794.5 million for the prior year period [1]. This growth was primarily driven by a 78.7% year-over-year increase in net revenues from Skincare Brands, which reached RMB581.3 million (US$81.1 million) [1]. This strong performance in the skincare segment was complemented by an 8.8% year-over-year increase in net revenues from Color Cosmetics Brands [1].

Notably, the gross margin for the second quarter of 2025 increased to 78.3% from 76.7% for the prior year period [1]. This improvement was primarily driven by an increase in sales of higher-gross-margin products. Additionally, the company reported a 77.2% narrowing of its net loss to RMB19.5 million (US$2.7 million) from RMB85.5 million for the prior year period [1].

Operating expenses for the second quarter of 2025 increased by 21.7% to RMB905.9 million (US$126.5 million) from RMB744.6 million for the prior year period [1]. However, as a percentage of total net revenues, operating expenses decreased to 83.4% from 93.7% for the prior year period, indicating improved operational efficiency [1].

The company's management expressed confidence in its strategy, stating that they remained focused on executing a R&D-driven approach to deliver high-quality products and build strong brand equity. Key products such as Galénic's Brightening Micro Mask, DR.WU's Purifying Renewal Essence Toner, and Perfect Diary's Translucent Blurring Setting Powder contributed to the continued growth momentum [1].

For the third quarter of 2025, Yatsen Holding expects its total net revenues to be between RMB778.6 million and RMB880.1 million, representing a year-over-year increase of approximately 15% to 30% [1]. This outlook reflects the company's current and preliminary views on the market and operational conditions.

Yatsen Holding's financial results underscore its commitment to innovation and operational excellence, positioning the company for continued growth in the competitive beauty industry. The company's management will hold a conference call on Thursday, August 21, 2025, at 7:30 A.M. U.S. Eastern Time or 7:30 P.M. Beijing Time to discuss its financial results and operating performance for the second quarter of 2025 [1].

References:
[1] https://finance.yahoo.com/news/yatsen-announces-second-quarter-2025-090000448.html