Cosmetics retailer Yatsen Holding Ltd. (YSG.US) announced on Monday that its revenue rose 26.7% last year to 4.3 billion yuan ($614.6 million), up from 3.39 billion yuan in 2024. Its net loss for the year narrowed 87% to 92.4 million yuan from 710.2 million yuan a year earlier, with its net margin of negative 2.2% representing an 18.8 percentage point improvement year-over-year.
The company said its strategic shift toward premium skincare brands was a key factor behind its improving performance. Its full-year revenues from skincare products surged 63.5% year over year to 2.28 billion yuan, accounting for 53% of total revenue, up from 41.1% the prior year.
In the fourth quarter alone, the company’s net revenue increased 20.1% year-over-year to 1.38 billion yuan. Revenues from skincare products rose 51.9% to 842.8 million yuan, representing 61.1% of total quarterly revenues. The company recorded net income of 3 million yuan for the quarter, compared with a net loss of 378.8 million yuan in the same period last year, marking a return to quarterly profitability.
Management said it focused on R&D-driven product innovation, strengthening brand equity across its multi-brand portfolio, and improving overall profitability. The higher contribution from high-margin products helped lift Yatsen’s full-year gross margin to 78.2% from 77.1% in 2024.
For the first quarter of 2026, the company expects revenues to range between 958.6 million yuan and 1.08 billion yuan, representing year-over-year growth of approximately 15% to 30%.
Yatsen’s stock fell 9% to close at $4.05 on Monday in New York. The stock has dropped about 58% over the past six months.
By Lee Shih Ta
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