Yatsen Rebounds on Skincare, Guides Double-Digit Q1 Growth

Overview

• Fourth-quarter 2025 revenue rose 20.1% to RMB 1.38 billion, lifting full-year revenue 26.7% to RMB 4.3 billion.
• Skincare led the recovery with sales up 51.9% and contributing 61.1% of fourth-quarter revenue, while color cosmetics declined 9.1%.
• Yatsen posted GAAP net income of RMB 3.0 million in the fourth quarter, maintained gross margin near 78%, and reported no goodwill impairment for 2025.
• Selling and marketing expense increased to 64.8% of revenue as traffic-acquisition costs climbed, and operating cash flow turned negative.
• Cash and short-term investments fell to RMB 1.05 billion from RMB 1.36 billion, as management projected first-quarter 2026 revenue growth of about 15% to 30% year over year and cited a recovering China beauty market.