Yatsen Reports 22.5% Revenue Growth to RMB1.02 Billion in Q1 2026
YSG•Yatsen’s Q1 2026 net revenues rose 22.5% to RMB1.02 billion (US$148 million), driven by a 58.5% surge in skincare net revenues to RMB574.2 million (56.2% of sales). Despite gross margin expanding to 80.2%, the company reported a net loss of RMB61.9 million and closed US$120 million in convertible notes.
1. First Quarter 2026 Financial Highlights
Total net revenues for Q1 2026 increased by 22.5% to RMB1.02 billion (US$148 million) from RMB833.5 million a year earlier. Gross profit rose 24.3% to RMB819.2 million, lifting gross margin to 80.2% from 79.1%, while net loss widened to RMB61.9 million (US$9.0 million) and non-GAAP net loss reached RMB57.3 million.
2. Segment and Brand Performance
Skincare brands drove the top-line, with net revenues up 58.5% to RMB574.2 million, representing 56.2% of total revenues versus 43.5% a year ago. Premium and clinical skincare labels Galénic, DR.WU and Eve Lom collectively grew 61.4%, partially offset by a 5.0% decline in color cosmetics revenues.
3. Financing and Strategic Initiatives
On May 21, Yatsen completed the first closing of a private placement of convertible notes and warrants totaling US$120 million, with backing from Trustar Capital, Hillhouse and the CEO. Management emphasized continued R&D-led innovation, scaling of hero products and cost optimization to drive future margin improvement.
