In the fourth quarter of 2025, Yatsen reported net revenues of RMB1.38 billion, up 20.1% year-over-year, with skincare brands driving a 51.9% revenue surge and accounting for 61.1% of total sales. The company narrowed its operating loss to RMB12.7 million from RMB390.7 million and recorded a net income of RMB3.0 million, compared to a net loss a year earlier.

Gross profit rose 20.0% to RMB1.07 billion, with gross margin holding at 77.7%. Selling and marketing expenses increased to 64.8% of revenue due to higher traffic acquisition costs, while general and administrative expenses fell to 5.4% of revenue and R&D spend rose to 2.8%, reflecting increased headcount and product development efforts. There was no goodwill impairment for the full year.

For the full year, total net revenues climbed 26.7% to RMB4.3 billion, driven by a 63.5% jump in skincare and a 1.9% rise in color cosmetics. Yatsen narrowed its operating loss to RMB185.8 million from RMB824.9 million and reduced its net loss to RMB92.4 million, while achieving non-GAAP net income of RMB8.4 million.

Cash and short-term investments declined to RMB1.05 billion from RMB1.36 billion, and operating cash flow in Q4 used RMB69.4 million. Management guided for first-quarter 2026 revenue growth of approximately 15%–30% year-over-year, reflecting confidence in continued sales momentum.