So-Young Q2 Earnings: Aesthetic Treatment Service Revenue Up 426%, Net Loss of RMB 30.5 Million

So-Young, a NASDAQ-listed aesthetic company, reported Q2 2025 results with aesthetic treatment service revenue growing 426.1% YoY to RMB 144.4 million. The company operates 29 aesthetic centers, with 13 centers profitable and 19 generating positive cash flow in June. So-Young expects to reach 50 branded centers by year-end, with over 10 centers opening in H2 2025. The company's business model is shifting towards a multi-year transition, with the aesthetic center segment overtaking other revenue streams.

So-Young International Inc. (Nasdaq: SY), a leading aesthetic treatment platform, reported its Q2 2025 financial results, showcasing mixed performance. Total revenues decreased by 7.0% to RMB378.7 million (US$52.9 million) compared to the same period in 2024. The company reported a net loss of RMB36.0 million (US$5.0 million), contrasting with a net income of RMB18.9 million in Q2 2024 [1].

Notably, aesthetic treatment services revenues surged 426.1% to RMB144.4 million, becoming the largest revenue contributor for the first time. The company now operates 29 branded aesthetic centers across nine major Chinese cities, with 25 centers achieving positive monthly operating cash flow. The number of verified treatment visits reached 67,400, with over 154,500 verified paid aesthetic treatments performed [1].

For Q3 2025, So-Young expects aesthetic treatment services revenues between RMB150.0-170.0 million, representing 230.5-274.6% year-over-year growth [1].

Despite the revenue transformation, profitability has suffered in this transition period. The company reported a net loss of RMB36.0 million compared to a net income of RMB18.9 million in Q2 2024. This shift to losses stems from substantial investments in expansion, with cost of revenues increasing 19.0% to RMB184.6 million, primarily driven by a 405.5% increase in aesthetic treatment services costs [1].

The company's cash position remains substantial at RMB998.6 million, though down from RMB1,253.2 million at year-end 2024, reflecting the ongoing investment in growth. Management has signaled continued aggressive expansion with plans to operate 50 centers by year-end and projected Q3 aesthetic treatment services revenue growth of 230.5% to 274.6% [1].

This vertical integration strategy marks a fundamental business model shift from a platform connecting consumers with treatment providers to becoming a direct provider of standardized aesthetic services. The transition is proving successful in scaling operations but requires significant investment that will continue to pressure near-term profitability as the company focuses on long-term market leadership [1].

References:
[1] https://www.stocktitan.net/news/SY/so-young-reports-unaudited-second-quarter-2025-financial-m80i8oh8owij.html