Yatsen Holding (NYSE:YSG) reported fourth-quarter and full-year 2025 results on Monday, marking a definitive turning point in its multi-year transition from a mass-market cosmetics player to a premium, skincare-led beauty group.
The Guangzhou-based company recorded a 20.1% increase in fourth-quarter revenue to RMB1.38 billion, while full-year revenues rose 26.7% to RMB4.30 billion.
The primary driver of the growth was the skincare segment, which surged 63.5% for the full year.
Skincare now accounts for 53% of Yatsen’s total annual revenue, up from approximately 41% in 2024.
This portfolio rebalancing toward higher-priced, "clinical" beauty products pushed full-year gross margins to 78.2%, a significant improvement that allowed the company to achieve a non-GAAP net income of RMB8.4 million for 2025—its first profitable year on an adjusted basis.
Despite the adjusted profit, the company reported a statutory GAAP net loss of RMB92.4 million for the year, though this was a substantial narrowing from the RMB750 million loss recorded in 2023.
Operating expenses remained high as the company front-loaded marketing investments for the "Double Eleven" shopping festival and expanded its R&D headcount to support its "Biotec" technology platform.