Yatsen Holding Ltd reported second-quarter 2026 net revenue of RMB 1.14 billion, a 5.1% increase from the prior-year period, as skincare brands drove a significant shift in its revenue mix. Skincare sales rose 40.4% to RMB 816.1 million, representing 71.5% of total revenue compared with 53.5% a year earlier. Color cosmetics revenue, by contrast, declined 35.8% year-over-year.
The company’s gross margin contracted to 73.9%, down 4.4 percentage points from the prior year, reflecting higher operating costs. Operating expenses rose to 85.4% of revenue, up from 83.4% in Q2 2025, driven by increased selling and marketing spend, which reached 70.7% of revenue versus 66.5% a year earlier. General and administrative expenses remained stable at 3.3% of revenue.
Yatsen posted a GAAP net loss of RMB 90.8 million, widening from a RMB 19.5 million loss in the prior-year quarter. The non-GAAP net loss deepened to RMB 99.4 million, or an 8.7% margin, compared with a non-GAAP net income of RMB 11.5 million in Q2 2025. Operating cash used totaled RMB 78.0 million, an improvement from RMB 90.0 million in the first quarter of 2026.
As of June 30, 2026, Yatsen held RMB 1.06 billion in cash, restricted cash, and short-term investments, with net inventories at RMB 554.6 million and an inventory turnover of 201 days. The company maintained R&D investment at 3.3% of revenue.
For the third quarter of 2026, Yatsen guided revenue to RMB 898.6 million to RMB 998.4 million, implying flat to down 10% growth at the midpoint. The stock traded around $2.77 in premarket activity on September 2, 2026, up 4.14%, following a prior close of $2.66, which had fallen 3.27%.
