What factors drove the changes in Yatsen's revenue and profit?

What does Yatsen do and what are its main business segments?

What is the market's earnings forecast for Yatsen next quarter?

What guidance did Yatsen's management provide for the next earnings period?

What were the key takeaways from Yatsen’s earnings call?

Did Yatsen beat or miss consensus estimates last quarter?

What is Yatsen's gross profit margin?

What is the revenue and EPS growth rate for Yatsen year over year?

- **Revenue Growth Accelerates**: Q3 2025 net revenues up 47.5% YoY, driven by 83.2% skincare expansion and 49.2% skincare revenue mix.
- **Profitability Improves**: Net loss margin narrows to 7% (from 17.9%), gross margin expands to 78.2%.
- **Double 11 Success**: New SKUs outperform, with Galénic VB serum #2 in serum sales and DR. WU PDRN serum gaining traction.
- **2026 Outlook**: Q4 revenue guidance of 15-30% YoY growth, with focus on R&D investment and channel efficiency.
- **Competitive Edge**: Clinically validated innovation and regimen-based sales drive customer retention.


**【CEO Summary Section】**
- Total net revenues increased by 47.5% year-over-year to RMB 998.4 million, driven by 83.2% growth in skincare brands and 25.2% growth in color cosmetics.
- Skincare now accounts for 49.2% of total revenue, with Galénic and DR. WU leading the charge. Galénic's new VB serum ranked #2 in serum sales, while DR. WU's PDRN serum gained strong traction.
- Net loss narrowed to 7% of revenue (from 17.9% last year), reflecting gross margin improvement to 78.2% and optimized operating expenses.
- R&D investment increased, with 11 papers presented at the IFCC Congress, showcasing clinical innovation and technology translation.

**【CFO Financial Commentary】**
- Gross profit rose 51.9% to RMB 780.5 million, with gross margin expanding to 78.2% from 75.9%.
- Operating expenses decreased as a percentage of revenue (86.5% vs. 96.8% YoY), driven by cost control and higher revenue leverage.
- Q4 2025 revenue guidance: RMB 1.32-1.49 billion (15-30% YoY growth), supported by Double 11 investments and new product launches.
- Cash position remains strong at RMB 1.16 billion, with operating cash flow impacted by seasonal inventory builds.

**【Q&A Highlights】**
- Double 11 performance exceeded expectations, with new SKUs driving momentum despite intense competition from foreign luxury brands.
- Management prioritizes long-term profitability over short-term discounts, focusing on balanced promotions and CRM optimization.
- 2026 outlook: Continued investment in R&D and channel mix optimization to sustain growth while improving margins.
- Competitive advantage: Clinically validated innovation (e.g., DR. WU's PDRN serum) and regimen-based sales driving customer lifetime value.


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