Yatsen Holding Ltd. ( (YSG) ) has released its Q3 earnings. Here is a breakdown of the information Yatsen Holding Ltd. presented to its investors.
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Yatsen Holding Limited, a prominent China-based beauty group, is known for its diverse range of color cosmetics and skincare brands, including Perfect Diary and DR.WU. The company operates primarily in the beauty industry, engaging customers through both online and offline platforms.
In the third quarter of 2025, Yatsen reported a significant increase in total net revenues, which rose by 47.5% compared to the same period last year. The company’s skincare brands were a major contributor to this growth, with an 83.2% increase in net revenues. Despite the rise in operating expenses, Yatsen managed to narrow its net loss by 41.9% year-over-year.
Key financial metrics revealed that Yatsen’s gross margin improved to 78.2%, driven by higher sales of premium products. Operating expenses increased by 31.9%, but as a percentage of total net revenues, they decreased, indicating improved operational efficiency. The company also reported a reduction in fulfillment and marketing expenses as a percentage of revenues, highlighting cost optimization efforts.
Looking ahead, Yatsen’s management remains optimistic about future growth, focusing on brand and product innovation. The company expects continued revenue growth in the fourth quarter of 2025, with projected net revenues increasing by 15% to 30% year-over-year, reflecting confidence in their strategic initiatives and market conditions.