Yatsen revenue grows to RMB1.14 billion in latest quarter

• Yatsen reported second-quarter 2026 net revenues of RMB1.14 billion, up 5.1% year over year.
• The company’s net loss widened to RMB90.8 million as costs increased and color cosmetics declined.
• Yatsen expects third-quarter 2026 revenue of RMB898.6–998.4 million as skincare growth continues.

Yatsen (NYSE:YSG) reported second-quarter 2026 net revenues of RMB1.14 billion, up 5.1% year over year, as skincare sales growth offset a decline in color cosmetics.

Skincare revenue increased 40.4% to RMB816.1 million and represented 71.5% of total revenue, while color cosmetics revenue declined 35.8% during the quarter.

Yatsen reported gross margin of 73.9%, down from 78.3% a year earlier due to higher inventory provisions related to color cosmetics portfolio optimization, while operating expenses increased 7.7% to RMB975.7 million, resulting in an operating loss of RMB131.9 million.

The company guided third-quarter 2026 net revenues to RMB898.6–998.4 million, representing a potential 0–10% year-over-year decline.

Yatsen operates beauty brands focused on skincare and color cosmetics products, with its skincare segment becoming a larger portion of total revenue during the second quarter.

The company reported cash, restricted cash, and short-term investments of RMB1.06 billion at June 30, 2026, and appointed Li Wang as Co-Chief Financial Officer effective September 2, 2026, with an expected transition to CFO after the 2026 annual report.