China's Yatsen Q1 net loss widens on higher operating expenses

Yatsen Holding

26/05/2026 10:11

Overview

China beauty group's Q1 revenue rose 22.5% yr/yr, led by skincare brands

Company posted wider net and non-GAAP net losses as operating expenses increased by 32.5%

Yatsen completed US$120 mln private placement of convertible notes and warrants

Outlook

Yatsen expects Q2 2026 net revenues between RMB1.20 bln and RMB1.30 bln

Yatsen remains focused on cost optimization to support future margin improvement

Result Drivers

SKINCARE BRANDS - Revenue growth was driven by a 58.5% yr/yr increase in skincare brands, especially premium and clinical brands Galénic, DR.WU, and Eve Lom

HIGHER MARKETING AND R&D SPEND - Operating expenses increased to RMB 737.2 mln from RMB 553.8 mln due to investments in marketing to build brand equity and higher R&D headcount

IMPROVED LOGISTICS EFFICIENCY - Fulfillment expenses rose to RMB 61.1 mln from RMB 51.8 mln, but declined as a percentage of revenue due to better logistics efficiency

Company press release: ID:nPn62l2vwa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
RMB 1.02 bln
Q1 Adjusted Net Income
-RMB 57.30 mln
Q1 Net Income
-RMB 61.90 mln
Q1 Gross Margin
80.20%
Q1 Gross Profit
RMB 819.20 mln


Analyst Coverage

The one available analyst rating on the shares is "buy"

The average consensus recommendation for the personal products peer group is "buy"

Wall Street's median 12-month price target for Yatsen Holding Ltd is $5.80, about 123.9% above its May 22 closing price of $2.59

The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)