SY

This article first appeared on GuruFocus. Revenue: Total revenue reached RMB505.2 million, up 33% year over year, a quarterly record. Aesthetic Treatment Revenue: RMB331.4 million, up approximately 130% year over year, exceeding the upper end of guidance for the sixth consecutive quarter. Information and Reservation Services Revenue: RMB87.9 million, down 35% year over year. Sales of Medical Products and Maintenance Services Revenue: RMB73.9 million, down 2.8% year over year. Other Services Revenue: RMB12 million, down 48.2% year over year. Gross Margin (Aesthetic Treatment Business): Improved by approximately 3.8 percentage points year over year to 28.1%. Net Loss: Attributable to So-Young narrowed by 37% year over year to RMB22.7 million. Non-GAAP Net Loss: RMB21 million, compared with RMB30.5 million in the prior year period. Loss per ADS: Basic and diluted loss per ADS were both RMB0.22, compared with RMB0.35 in the prior year period. Same-Store Sales Growth: 52%, substantially improved from 14% in the prior year period. Store Locations: Operated 65 So-Young clinics across 18 cities as of June 30, 2026, a net addition of 11 centers during the quarter. Profit Centers: 47 centers were profitable, and 51 centers generated positive operating cash flow during the quarter. Cost of Revenues: RMB282.4 million, up 53% year over year. Total Operating Expenses: RMB266.5 million, up 10.4% year over year. Sales and Marketing Expenses: RMB153.5 million. G&A Expenses: RMB88.6 million, up 12.5% year over year. R&D Expenses: RMB24.4 million, down 21.7% year over year. Cash Position: Cash and cash equivalents, restricted cash, term deposits, and short-term investments totaled RMB848.2 million as of June 30, 2026. Warning! GuruFocus has detected 2 Warning Signs with SY. Is SY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 31, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. So-Young International Inc (NASDAQ:SY) achieved a quarterly record revenue of RMB505.2 million, up 33% year over year, with its aesthetic treatment business growing 130% to RMB330 million, beating guidance. The aesthetic treatment business delivered its 10th consecutive quarter of triple-digit revenue growth, with same-store sales up 52% year over year. Gross margin for the aesthetic treatment business improved by 3.8 percentage points year over year to 28.1%, driven by operational efficiency and supply chain leverage. Net loss narrowed by 37% year over year to RMB22.7 million, reflecting improved profitability and cost control. The company expanded its clinic network to 65 centers across 18 cities, with 47 centers profitable and 51 generating positive operating cash flow, and over 50% of new customers coming from referrals. So-Young International Inc (NASDAQ:SY) launched successful products like Miracle Collagen and WeMed CoPack, and is building a robust pipeline with upstream partners, enhancing its product portfolio and supply chain. Revenue from information and reservation services declined 35% year over year due to a decrease in subscribing medical service providers. Sales of medical products and maintenance services revenue fell 2.8% year over year due to lower order volume for medical equipment. Other services revenue dropped 48.2% year over year due to lower insurance brokerage revenue. The company still reported a net loss of RMB22.7 million, indicating ongoing challenges in achieving group-level profitability. The expansion of aesthetic centers led to a 53% increase in cost of revenues, and G&A expenses rose 12.5% year over year, pressuring margins. The company's guidance for Q3 2026 aesthetic treatment revenue growth of 91.7% to 97.2% implies a slowdown from the 130% growth in Q2, suggesting potential deceleration. Q: What are the core levers for the loss reduction this year, and how do you plan to move towards group-level profitability? A: CFO Shannon Shen stated that the core lever is "focus," concentrating on the main clinic business and profitable operations. The company is scaling back investment in other loss-making businesses through store closures and reduced capital allocation. The clinic business has maintained over 30% growth for 10 consecutive quarters, with rising gross margins and improving customer acquisition efficiency. Management expects substantial continued improvement in clinic gross margins in Q3 and Q4, and with operating leverage from scale effects plus the upcoming peak season, overall profitability for the clinic segment is a "very near and achievable target." Q: Could you elaborate on how AI is being applied in the business, where you see the biggest value, and the future direction? A: CEO Xing Jin explained that AI's core value lies in transforming experience-driven, hard-to-reproduce procedures into uniform, visible, and traceable offerings, helping distribute premium medical resources to lower-tier cities. Current focus areas include product authentication via QR code traceability, back-office quality control, and data foundations. AI is used to break down top physicians' experience into databases embedded into SOPs and case libraries, accelerating physician development and aligning quality across centers. The company plans to roll out its first generation of fully intelligent centers in Q4 2026, initiating widespread AI deployment across its network. Q: What have both parties liked and what are the benefits of the collaboration with Jinbo Biopharmaceuticals? A: CEO Xing Jin noted that the partnership with Jinbo is mutually beneficial as medical aesthetic demand moves towards natural restoration and tissue regeneration. The company is using real-world data to drive product and supply chain decisions, analyzing connections between user age, skin condition, treatment details, and repurchasing behavior. This helps optimize doctor training, procurement decisions, and inventory planning, reducing guesswork and excess inventory. The model is being extended to more quality partners, transforming the clinic network into "the industry's innovation infrastructure" to accelerate technology innovation and product integration. Q: What are the key drivers for the aesthetic center gross margin improvement, and what are the future plans for gross margin expansion? A: CFO Shannon Shen attributed the 3.8 percentage point year-over-year gross margin improvement to the "dual engine" of scale and efficiency. The company raised its bed capacity utilization benchmark by 50% (from 10 to 15 treatments per day), restructured service workflows to reduce wait times, and unlocked operating leverage. Mature centers now take a growing share of the footprint with shorter ramp-up periods. On the supply chain side, the expansive network provides more buying power, enabling price-competitive deals, exclusive OEM agreements, and tiered procurement contracts. A robust pipeline of new products over the next two years is expected to further improve gross margins. Q: The aesthetic treatment business exceeded RMB330 million in revenue with roughly 130% year-over-year growth. What drove this performance, and how sustainable is this growth trajectory? A: CFO Shannon Shen highlighted that this marked the 10th consecutive quarter of triple-digit year-over-year revenue growth for the aesthetic treatment business. The growth was driven by scaled capacity to deliver high-quality products and services, with a focus on digital natives who align with the company's consumption patterns and online purchasing habits. The company recently raised its capacity utilization benchmark by 50%, reflecting elevated expectations for per-store revenue, labor productivity, and sales per square meter. Going forward, the expansion strategy will be more disciplined and market-responsive, dynamically calibrating opening cadence based on regional utilization levels to strike an optimal balance between scale and profitability. Q: What is the current status of the So-Young Clinic expansion, and how is the company managing profitability across its centers? A: By the end of Q2 2026, So-Young Clinic expanded into 18 cities with 65 centers in total, a net addition of 11 centers during the quarter. Among them, 47 centers were profitable and 51 generated positive operating cash flow, reflecting net additions of six and three, respectively, from the previous quarter. The company achieved same-store sales growth of 52%, substantially improved from 14% in the prior year period. Verified visits exceeded 165,000 in Q2, up 145% year over year, and verified aesthetic treatments performed were above 362,000, up 134% year over year. Q: How is the company managing customer acquisition costs and user retention? A: CFO Shannon Shen noted that from the aesthetic treatment service perspective, the comprehensive customer acquisition cost remains at a healthy level, accounting for less than 10% of revenue. Referrals now account for over 50% of new customers, which lowers blended acquisition costs while building a loyal, high-quality user base. Active users reached over 255,000 by the end of June, with the number of Level 3 and core members exceeding 38,000. The quarterly retention rate of core members remained robust, reflecting high user regard for quality, positioning the company to boost user lifetime value and retention. Q: What is the company's revenue outlook for the third quarter of 2026? A: Based on current estimates, the company expects revenues from aesthetic treatment services to be between RMB352 million and RMB362 million, representing year-over-year growth of 91.7% to 97.2%. This guidance reflects continued strong momentum in the aesthetic treatment business, though it accounts for the 3 to 5 percentage point deferral between service delivery and recognized accounting revenue from the loyalty program and systematic treatment protocols. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in So-Young International Inc. Sponsored ADR? Here are five stocks we like better. Record revenue and narrower losses: Q2 revenue rose 33% year over year to approximately RMB510 million, while net loss narrowed 37% to RMB22.7 million. Aesthetic treatment services surged 130% to RMB331.4 million and delivered triple-digit growth for the 10th consecutive quarter. Clinic expansion is driving operating improvements: So-Young operated 65 clinics across 18 cities, with verified visits and treatments increasing 145% and 134%, respectively. Forty-seven centers were profitable, same-store sales rose 52%, and the segment’s gross margin improved to 28.1%. Management expects continued treatment growth: Q3 aesthetic-treatment revenue is projected at RMB352 million–RMB362 million, up 91.7%–97.2% year over year. The company plans to focus capital on clinics and profitable product operations, while launching its first fully intelligent centers in Q4. Symbotic's Q3 Profit Inflection Signals Underrated Growth Story So-Young International (NASDAQ:SY) reported record quarterly revenue for the second quarter of 2026, driven by continued rapid growth in its aesthetic treatment services business, while its net loss narrowed from a year earlier. Total revenue rose 33% year over year to about RMB510 million, according to Founder, Chairman and Chief Executive Officer Xing Jin. Revenue from aesthetic treatment services reached RMB331.4 million, up approximately 130% from the prior-year period and above the upper end of the company’s guidance. Chief Financial Officer Nan Shen said the segment has recorded triple-digit year-over-year revenue growth for 10 consecutive quarters. → Amazon’s Zoox Push Tests Tesla’s Robotaxi Premium as Waymo Widens Its Lead Symbotic’s Earnings Beat Reignites Upside Talk Net loss attributable to So-Young narrowed 37% to RMB22.7 million, from RMB36 million a year earlier. Non-GAAP net loss attributable to the company was RMB21 million, compared with RMB30.5 million in the prior-year period. Basic and diluted loss per ADS was RMB0.22, versus RMB0.35 a year earlier. So-Young continued to expand its So-Young Youth Clinic network during the quarter. As of June 30, the company operated 65 clinics in 18 cities, representing a net addition of 11 centers from the previous quarter. → Apple’s Foldable iPhone Could Be a Catalyst, But Not a Cure-All 3 Insider Moves You Shouldn’t Ignore Heading Into 2026 The expansion coincided with higher treatment activity and an expanding customer base. Verified visits exceeded 165,000 during the quarter, up 145% year over year, while verified aesthetic treatments performed topped 362,000, up 134%. Active users exceeded 250,000 at the end of June, including more than 78,000 level-three-and-above core members. Jin said more than half of new customers came through referrals, which the company said helped lower blended customer-acquisition costs. Shen said comprehensive customer-acquisition costs for aesthetic treatment services remained below 10% of revenue. → From SaaS-pocalypse to Perfect Storm: Workday’s AI Growth Story Strengthens The clinic network also showed improvement in unit-level profitability. Forty-seven centers were profitable during the quarter, while 51 generated positive operating cash flow. Same-store sales growth was 52%, compared with 14% in the prior-year period. Gross margin for the aesthetic treatment business increased about 3.8 percentage points year over year to 28.1%. Shen said the improvement reflected greater operating efficiency, a larger contribution from maturing centers and supply-chain benefits from the growing network. Management said it raised its capacity-utilization benchmark for aesthetic centers by 50%, with the goal of improving revenue per square meter, revenue per bed and labor productivity. Shen said the company is redesigning service workflows to reduce customer waiting periods and support higher throughput. Growth in aesthetic treatments was partly offset by declines in the company’s other business lines. Information and reservation services revenue fell 35% year over year to RMB87.9 million, primarily because fewer medical service providers subscribed to its information services. Sales of medical products and maintenance services revenue declined 2.8% to RMB73.9 million, mainly due to lower medical-equipment order volume. Other services revenue dropped 48.2% to RMB12 million, reflecting lower insurance brokerage revenue. Cost of revenue increased 53% to RMB282.4 million, primarily due to the expansion of branded aesthetic centers. Total operating expenses rose 10.4% to RMB266.5 million. Sales and marketing expenses totaled RMB153.5 million. General and administrative expenses increased 12.5% to RMB88.6 million as the clinic footprint grew, while research and development expenses declined 21.7% to RMB24.4 million, which Shen attributed to staff-efficiency improvements. As of June 30, the company had RMB848.2 million in cash and cash equivalents, restricted cash and term deposits, and short-term investments. Management highlighted its product collaboration with Jinbo Bio-Pharmaceutical. Miracle Collagen, a jointly developed product launched in late April, had sold more than 66,000 units to date, Jin said. The company also launched WeaveCol in June and introduced a Beauty version of Miracle PLLA. Jin said So-Young intends to expand its co-creation model with additional domestic and international medical-device and treatment partners. The approach includes consumer insights, product definition, indication development, physician training, treatment protocols, post-launch evaluation and ongoing product integration. The company had about 280 full-time physicians as of June 30. During the quarter, it held nine specialized training workshops with manufacturers including Allergan and Jinbo, along with 12 training sessions for newly onboarded physicians. So-Young is also investing in artificial intelligence tools for product authentication, quality control, data governance and clinical standardization. Jin said QR-code authentication is designed to verify the traceability of medicines and devices, while the company is building databases, standard operating procedures and case libraries based on physicians’ experience and treatment feedback. The company plans to roll out its first generation of fully intelligent centers in the fourth quarter, according to Jin. For the next quarter, So-Young expects aesthetic treatment services revenue of RMB352 million to RMB362 million, representing year-over-year growth of 91.7% to 97.2%. Shen said the company plans to calibrate clinic openings based on regional utilization levels, emphasizing what management described as sustainable growth rather than expansion solely for top-line growth. She said So-Young expects further clinic gross-margin improvement in the third and fourth quarters, supported by scale, operating leverage, supply-chain collaboration and the autumn and winter peak season. Management also said it is reducing investment in other loss-making businesses through store closures, disposals and lower capital allocations, while concentrating resources on the clinic business and its profitable POP and injectable sales operations. So-Young International Inc operates a leading digital marketplace and community platform focused on the medical aesthetic industry in China. Headquartered in Shanghai and founded in 2013, the company connects consumers seeking cosmetic treatments with a network of accredited clinics, licensed physicians and beauty service providers. Its online ecosystem offers a wealth of educational content, peer reviews and before-and-after galleries designed to help users make informed decisions about aesthetic procedures. The company's platform is accessible via web and mobile applications, where users can browse service packages, compare providers, read expert articles and schedule appointments directly through an integrated booking system. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "So-Young International Q2 Earnings Call Highlights" was originally published by MarketBeat. 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BEIJING, Aug. 31, 2026 /PRNewswire/ -- So-Young International Inc. (Nasdaq: SY) ("So-Young" or the "Company"), the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments, today announced its unaudited financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Financial Highlights Total revenues were RMB505.2 million (US$74.5 million[1]), an increase of 33.4% from RMB378.7 million in the corresponding period of 2025. The aesthetic treatment services revenues were RMB331.4 million (US$48.8 million), an increase of 129.5% from RMB144.4 million in the corresponding period of 2025, exceeding the high end of guidance. Net loss attributable to So-Young International Inc. was RMB22.7 million (US$3.3 million), compared with net loss attributable to So-Young International Inc. of RMB36.0 million in the same period of 2025. Non-GAAP net loss attributable to So-Young International Inc.[2] was RMB21.0 million (US$3.1 million), compared with non-GAAP net loss attributable to So-Young International Inc. of RMB30.5 million in the same period of 2025. Second Quarter 2026 Operational Highlights The number of verified treatment visits to the branded aesthetic centers for the quarter reached approximately 165,200, an increase of 145% from approximately 67,400 in the same period of 2025. The number of verified aesthetic treatments performed surpassed 362,300, an increase of 134% from approximately 154,500 in the same period of 2025. The number of active users, defined as those who visited branded aesthetic centers at least once during the 12-month period ended on June 30, 2026, exceeded 255,300, an increase of 154% from 100,400 users during the corresponding period in 2025. The number of core members[3] grew by over 15,000 during the quarter, representing a sequential increase of approximately 24%. These core members contributed over 80% of aesthetic treatment services revenues, with a quarterly repurchase rate of nearly 70%. As of June 30, 2026, So-Young had 65 fully operational branded aesthetic centers (63 directly-operated, 2 franchised) across eighteen major cities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, Wuhan, Chongqing, Ningbo, Changsha, Tianjin, Xi'an, Suzhou, Hefei, Kunming, Nanjing, Jinan, and Foshan. Among them, 47 centers achieved profitability* in the second quarter of 2026. In addition, 51 centers generated positive quarterly operating cash flow* in the second quarter of 2026. Same-store sales growth** in this quarter was 52%, compared to 14% in the same quarter of 2025. Management Commentary Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, "Our sustained focus on scale and efficiency yielded another strong quarter for our core aesthetic treatment business. Supported by enhanced medical capabilities, a robust standardized delivery system, and deeper AI integration, we scaled our business more efficiently. This solid execution is validated by a 129.5% year-over-year increase in second-quarter aesthetic treatment services revenues with a 3.8 percentage-point expansion in segment gross margin. Going forward, we will further strengthen our supply chain and accelerate AI-powered transformation to deliver more competitive products and services across our expanding network, laying a solid foundation for sustainable, high-quality growth." Ms. Shannon Shen, Chief Financial Officer of So-Young, added, "In the second quarter of 2026, our aesthetic treatment business exceeded RMB330 million in revenue, representing approximately 130% year-over-year growth and marking the tenth consecutive quarter of triple-digit expansion. This strong performance propelled our second-quarter total revenues to an all-time high of RMB505.2 million, up 33.4% year-over-year. While maintaining this rapid topline growth, we have remained highly focused on expansion quality and sustainability, striving for healthier unit economics and narrowing net loss attributable to the Company by 37.0% year-over-year. These results reaffirmed both our market insights and execution excellence, as we continued to enhance our medical service delivery, organizational capabilities, and supply chain management, while improving operational efficiency. Looking ahead, we see a clear path toward profitability as our industry leadership solidifies and economies of scale continue to unfold." Second Quarter 2026 Financial Results Revenues Total revenues were RMB505.2 million (US$74.5 million), an increase of 33.4% from RMB378.7 million in the same period of 2025. The increase was primarily due to business expansion of the branded aesthetic centers. Aesthetic treatment services revenues were RMB331.4 million (US$48.8 million), an increase of 129.5% from RMB144.4 million in the same period of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Information and reservation services revenues were RMB87.9 million (US$13.0 million), a decrease of 35.0% from RMB135.2 million in the same period of 2025. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young's platform. Sales of medical products and maintenance services revenues were RMB73.9 million (US$10.9 million), a decrease of 2.8% from RMB76.0 million in the same period of 2025, primarily due to a decrease in the order volume of medical equipment. Other services revenues were RMB12.0 million (US$1.8 million), a decrease of 48.2% from RMB23.2 million in the same period of 2025, primarily due to a decrease in revenues from insurance brokerage services. Cost of Revenues Cost of revenues was RMB282.4 million (US$41.6 million), an increase of 53.0% from RMB184.6 million in the second quarter of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Cost of aesthetic treatment services was RMB238.4 million (US$35.1 million), an increase of 118.0% from RMB109.4 million in the second quarter of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Cost of information and reservation services was RMB5.2 million (US$0.8 million), a decrease of 68.7% from RMB16.7 million in the second quarter of 2025. The decrease was in line with the decrease in revenue generated from information and reservation services. Cost of medical products sold and maintenance services was RMB29.9 million (US$4.4 million), a decrease of 24.3% from RMB39.5 million in the second quarter of 2025. The decrease was primarily due to a decrease in costs associated with the sales of medical equipment. Cost of other services was RMB8.9 million (US$1.3 million), a decrease of 53.2% from RMB19.0 million in the second quarter of 2025. The decrease was primarily due to a decrease in costs associated with insurance brokerage services. Operating Expenses Total operating expenses were RMB266.5 million (US$39.3 million), an increase of 10.4% from RMB241.3 million in the second quarter of 2025. Sales and marketing expenses were RMB153.5 million (US$22.6 million), an increase of 16.8% from RMB131.3 million in the second quarter of 2025. The increase was mainly due to higher branding and user acquisition activities expenses and increased payroll costs at the branded aesthetic centers. General and administrative expenses were RMB88.6 million (US$13.1 million), an increase of 12.5% from RMB78.8 million in the second quarter of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Research and development expenses were RMB24.4 million (US$3.6 million), a decrease of 21.7% from RMB31.2 million in the second quarter of 2025. The decrease was primarily attributable to improvements in staff efficiency. Income Tax Benefits/(Expenses) Income tax benefits were RMB2.5 million (US$0.4 million), compared with income tax expenses of RMB1.9 million in the same period of 2025. Net Loss Attributable to So-Young International Inc. Net loss attributable to So-Young International Inc. was RMB22.7 million (US$3.3 million), compared with a net loss attributable to So-Young International Inc. of RMB36.0 million in the second quarter of 2025. Non-GAAP Net Loss Attributable to So-Young International Inc. Non-GAAP net loss attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses, was RMB21.0 million (US$3.1 million), compared with RMB30.5 million non-GAAP net loss attributable to So-Young International Inc. in the same period of 2025. Basic and Diluted Loss per ADS Basic and diluted loss per ADS attributable to ordinary shareholders were RMB0.22 (US$0.03) and RMB0.22 (US$0.03), respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of RMB0.35 and RMB0.35, respectively, in the same period of 2025. Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments As of June 30, 2026, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB848.2 million (US$125.0 million), compared with RMB936.4 million as of December 31, 2025. Business Outlook For the third quarter of 2026, So-Young expects aesthetic treatment services revenues to be between RMB352.0 million (US$51.9 million) and RMB362.0 million (US$53.4 million), representing a 91.7% to 97.2% increase from the same period in 2025. The above outlook is based on the current market conditions and reflects the Company's preliminary estimates of market and operating conditions, as well as customer demand, which are all subject to change. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP loss from operations and non-GAAP net loss attributable to So-Young International Inc. by excluding share-based compensation expenses from loss from operations and net loss attributable to So-Young International Inc., respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses (i) that are not expected to result in cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses are non-cash in nature. All these are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company's results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release. Conference Call Information So-Young's management will hold an earnings conference call on Monday, August 31, 2026, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows: A telephone replay will be available two hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, September 7, 2026. The dial-in details are: Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com. About So-Young International Inc. So-Young International Inc. (Nasdaq: SY) ("So-Young" or the "Company") is the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments. The Company provides access to aesthetic treatments through its online platform and branded aesthetic centers, offering curated treatment information, facilitating online reservations, delivering high-quality treatments, and developing, producing and distributing optoelectronic medical equipment and injectable products. With its strong brand recognition, digital reach, affordable treatments and efficient supply chain, So-Young is well-positioned to serve its audience over the long term and grow along the medical aesthetic value chain. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young's strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about So-Young's beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: So-Young's strategies; So-Young's future business development, financial condition and results of operations; So-Young's ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law. For more information, please contact: So-Young Investor RelationsMs. Mona QiaoPhone: +86-10-8790-2012E-mail: [email protected] Christensen Ms. Joanna QuanPhone: +86-10-5900-1548E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/so-young-reports-unaudited-second-quarter-2026-financial-results-302864843.html

This article first appeared on GuruFocus. Release Date: May 22, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue for Q1 2026 reached 433 million RMB, marking a 46% year-over-year increase. Revenue from the aesthetic center business surged by 186% year-over-year, reaching 282 million RMB. The company expanded its clinic footprint, adding 10 new centers, bringing the total to 59 centers. Operational efficiency improved, with 41 centers becoming profitable and 48 centers generating positive cash flow. The company launched successful marketing campaigns, including partnerships with Disney and endorsements by popular actresses, enhancing brand visibility and customer engagement. Information and reservation services revenue decreased by 30% year-over-year. Other services revenue fell by 39.3% year-over-year, primarily due to lower insurance brokerage revenue. The company reported a net loss of 49.2 million RMB, compared to a loss of 33.1 million RMB in the prior year period. Cash and cash equivalents decreased from 936.4 million RMB at year-end 2025 to 880 million RMB as of March 31, 2026. Sales and marketing expenses increased by 33.7% year-over-year, driven by higher branding and user acquisition costs. Warning! GuruFocus has detected 2 Warning Signs with SY. Is SY fairly valued? Test your thesis with our free DCF calculator. Q: What are the development status and consumer characteristics in China's medical aesthetics industry given the slowdown and intensified competition? A: Unidentified_2: Despite the broader market cooling, structural opportunities remain. China's medical aesthetics market exceeded RMB317 billion in 2025, with live medical aesthetics capturing nearly 80% of the market. The industry is evolving with a focus on anti-aging rather than changing appearance. Consumers are more rational, willing to pay for better technologies, and there's rising popularity in second and third-tier cities. Soyang offers standardized, affordable, and premium services through a clinic chain, which is well-positioned to meet this new demand. Q: Is there still upside potential for high-value users' annual spending, and what blockbuster products can we expect? A: Unidentified_2: We aim to increase RPD by providing dedicated services for core members and expanding mid-to-high-end offerings. Popular treatments like Dermage and BBL are strong drivers, and new products with upstream partners are gaining traction. Our skin boosters and collagen products have shown strong market reception, enriching our mid to high-end product portfolio and driving user trust and ARPU. Q: How is the company ensuring the retention of high-quality doctors and what unique mechanisms are in place for talent retention? A: Unidentified_2: Soyang attracts high-quality doctors with rigorous hiring and training standards. We have about 230 full-time physicians who undergo comprehensive training. For retention, we offer competitive commissions, clear progression paths, and professional development opportunities. Our talent incentive system includes equity plans for core employees, aligning individual growth with company success. Q: What innovations has the company introduced in restructuring the traditional clinical service model? A: Unidentified_2: We are upgrading diagnosis and treatment systems and advancing a physician-led consultation policy. This involves categorizing skin types, creating treatment templates, and using AI for automatic recommendations. The physician-led policy involves doctors from the first visit, enhancing trust and conversion. We plan to expand this model to all new and returning customers. Q: What is the company's outlook for the medical aesthetics industry and its competitive positioning? A: Unidentified_2: The industry is entering a new phase with more device supply and mature competition. Soyang is positioned like a Sam's Club of medical aesthetics, known for consistency, affordability, and accessibility. We expect the market to exceed RMB600 billion by 2030, with opportunities in network expansion through uniform services. Soyang is confident in becoming a leading clinic chain brand. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BEIJING, May 22, 2026 /PRNewswire/ -- So-Young International Inc. (Nasdaq: SY) ("So-Young" or the "Company"), the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial Highlights Total revenues were RMB432.8 million (US$62.7 million[1]), compared with RMB297.3 million in the corresponding period of 2025. The aesthetic treatment services revenues were RMB282.4 million (US$40.9 million), compared with RMB98.8 million in the corresponding period of 2025, exceeding the high end of guidance. Net loss attributable to So-Young International Inc. was RMB49.2 million (US$7.1 million), compared with net loss attributable to So-Young International Inc. of RMB33.1 million in the same period of 2025. Non-GAAP net loss attributable to So-Young International Inc.[2] was RMB46.6 million (US$6.8 million), compared with non-GAAP net loss attributable to So-Young International Inc. of RMB31.5 million in the same period of 2025. First Quarter 2026 Operational Highlights The number of verified treatment visits to the branded aesthetic centers for the quarter reached approximately 148,000, compared with approximately 54,400 in the same period of 2025. The number of verified aesthetic treatments performed surpassed 325,800, compared with approximately 123,400 in the same period of 2025. The number of active users, defined as those who visited branded aesthetic centers at least once during the 12-month period ended on March 31, 2026, exceeded 213,000, compared with approximately 75,700 users during the corresponding period in 2025. The number of core members grew by over 11,700 during the quarter, representing an approximately 22% sequential increase. These core members contributed over 80% of aesthetic treatment services revenues, with a quarterly repurchase rate nearly 80%. As of March 31, 2026, So-Young had 54 fully operational branded aesthetic centers (53 directly-operated, 1 franchised) across sixteen major cities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, Wuhan, Chongqing, Ningbo, Changsha, Tianjin, Xi'an, Suzhou, Hefei, Kunming and Nanjing. Among them, 41 centers achieved profitability* in the first quarter of 2026. In addition, 48 centers generated positive quarterly operating cash flow* in the first quarter of 2026. The following table shows the revenues generated by So-Young aesthetic centers, categorized by their phase of development: Management Commentary Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, "Driven by our dual-engine strategy, which emphasizes scale and efficiency, our core aesthetic center business gained further traction with record-high quarterly segment revenue and improved profitability. As the medical aesthetics industry is increasingly shaped by demand for higher quality and broader accessibility, our competitive edge across the value chain positions us well to capitalize on these trends. We will continue to enhance our standardized medical delivery capabilities and expand our network at a measured pace, while reinforcing our supply chain advantages and improving operational efficiency. We are confident that these ongoing efforts will create lasting value for our users, partners, and shareholders." First Quarter 2026 Financial Results Revenues Total revenues were RMB432.8 million (US$62.7 million), an increase of 45.6% from RMB297.3 million in the same period of 2025. The increase was primarily due to business expansion of the branded aesthetic centers. Aesthetic treatment services revenues were RMB282.4 million (US$40.9 million), an increase of 185.8% from RMB98.8 million in the same period of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Information and reservation services[3] revenues were RMB80.3 million (US$11.6 million), a decrease of 34.0% from RMB121.6 million in the same period of 2025. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young's platform. Sales of medical products and maintenance services revenues were RMB57.1 million (US$8.3 million), an increase of 2.8% from RMB55.6 million in the same period of 2025, primarily due to an increase in the order volume of medical products. Other services revenues were RMB12.9 million (US$1.9 million), a decrease of 39.3% from RMB21.2 million in the same period of 2025, primarily due to a decrease in revenues from insurance brokerage services. Cost of Revenues Cost of revenues was RMB251.0 million (US$36.4 million), an increase of 65.8% from RMB151.4 million in the first quarter of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Cost of aesthetic treatment services were RMB205.8 million (US$29.8 million), an increase of 156.4% from RMB80.3 million in the first quarter of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Cost of information and reservation services[4] were RMB6.4 million (US$0.9 million), a decrease of 72.5% from RMB23.3 million in the first quarter of 2025. The decrease was in line with the decrease in revenue generated from information and reservation services. Cost of medical products sold and maintenance services were RMB30.4 million (US$4.4 million), a decrease of 0.1% from RMB30.4 million in the first quarter of 2025. The decrease was primarily due to a decrease in costs associated with the sales of medical equipment. Cost of other services was RMB8.4 million (US$1.2 million), a decrease of 51.6% from RMB17.4 million in the first quarter of 2025. The decrease was primarily due to a decrease in costs associated with insurance brokerage services. Operating Expenses Total operating expenses were RMB239.7 million (US$34.7 million), an increase of 26.6% from RMB189.3 million in the first quarter of 2025. Sales and marketing expenses were RMB130.8 million (US$19.0 million), an increase of 33.7% from RMB97.9 million in the first quarter of 2025. The increase was mainly due to the increases in expenses associated with branding and user acquisition activities and payroll costs for the branded aesthetic centers. General and administrative expenses were RMB84.5 million (US$12.3 million), an increase of 42.5% from RMB59.3 million in the first quarter of 2025. The increase was primarily due to the business expansion of the branded aesthetic centers. Research and development expenses were RMB24.3 million (US$3.5 million), a decrease of 24.2% from RMB32.1 million in the first quarter of 2025. The decrease was primarily attributable to improvements in staff efficiency. Income Tax Benefits Income tax benefits were RMB0.8 million (US$0.1 million), compared with income tax benefits of RMB1.6 million in the same period of 2025. Net Loss Attributable to So-Young International Inc. Net loss attributable to So-Young International Inc. was RMB49.2 million (US$7.1 million), compared with a net loss attributable to So-Young International Inc. of RMB33.1 million in the first quarter of 2025. Non-GAAP Net Loss Attributable to So-Young International Inc. Non-GAAP net loss attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses, was RMB46.6 million (US$6.8 million), compared with RMB31.5 million non-GAAP net loss attributable to So-Young International Inc. in the same period of 2025. Basic and Diluted Loss per ADS Basic and diluted loss per ADS attributable to ordinary shareholders were RMB0.48 (US$0.07) and RMB0.48 (US$0.07), respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of RMB0.32 and RMB0.32, respectively, in the same period of 2025. Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments As of March 31, 2026, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB880.0 million (US$127.6 million), compared with RMB936.4 million as of December 31, 2025. Business Outlook For the second quarter of 2026, So-Young expects aesthetic treatment services revenues to be between RMB307.0 million (US$44.5 million) and RMB317.0 million (US$46.0 million), representing an 112.6% to 119.5% increase from the same period in 2025. The above outlook is based on the current market conditions and reflects the Company's preliminary estimates of market and operating conditions, as well as customer demand, which are all subject to change. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP loss from operations and non-GAAP net loss attributable to So-Young International Inc. by excluding share-based compensation expenses and impairment of long-lived assets from loss from operations, and excluding share-based compensation expenses, impairment of long-lived assets, and tax effects on non-GAAP adjustments from net loss attributable to So-Young International Inc., respectively. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses (i) that are not expected to result in cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses and the impairment of long-lived assets are non-recurring in nature. All these are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company's results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses, impairment of long-lived assets, and tax effects on non-GAAP adjustments in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release. Conference Call Information So-Young's management will hold an earnings conference call on Friday, May 22, 2026, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows: A telephone replay will be available two hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, May 29, 2026. The dial-in details are: Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com. About So-Young International Inc. So-Young International Inc. (Nasdaq: SY) ("So-Young" or the "Company") is the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments. The Company provides access to aesthetic treatments through its online platform and branded aesthetic centers, offering curated treatment information, facilitating online reservations, delivering high-quality treatments, and developing, producing and distributing optoelectronic medical equipment and injectable products. With its strong brand recognition, digital reach, affordable treatments and efficient supply chain, So-Young is well-positioned to serve its audience over the long term and grow along the medical aesthetic value chain. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young's strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about So-Young's beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: So-Young's strategies; So-Young's future business development, financial condition and results of operations; So-Young's ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law. For more information, please contact: So-Young Investor RelationsMs. Mona QiaoPhone: +86-10-8790-2012E-mail: [email protected] Christensen Ms. Joanna QuanPhone: +86-10-5900-1548E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/so-young-reports-unaudited-first-quarter-2026-financial-results-302779989.html

Interested in So-Young International Inc. Sponsored ADR? Here are five stocks we like better. Revenue surged in Q1 as So-Young reported total revenue of RMB 432.8 million, up 45.6% year over year, driven mainly by aesthetic treatment services, which jumped 185.8% and made up more than 65% of revenue. Clinic expansion and scale are central to the strategy, with So-Young Clinic growing to 59 centers across 17 cities and management emphasizing standardized operations, faster ramp-ups, and stronger per-center productivity. Profitability improved at the clinic level even as overall losses widened, with 41 centers profitable and 48 generating positive operating cash flow; the company also guided second-quarter aesthetic treatment revenue to RMB 307 million to RMB 317 million, implying strong growth. Symbotic’s Earnings Beat Reignites Upside Talk So-Young International (NASDAQ:SY) reported sharply higher first-quarter 2026 revenue, driven by rapid growth in its branded aesthetic center business, while management said the company is continuing to expand its clinic footprint and invest in standardized medical delivery. Total revenue rose 45.6% year over year to RMB 432.8 million, according to Sha Zhang, vice president of finance. Revenue from aesthetic treatment services increased 185.8% year over year to RMB 282.4 million and accounted for more than 65% of total revenue in the quarter. → CAVA Group’s Stock Looks Delicious After Strong Earnings 3 Insider Moves You Shouldn’t Ignore Heading Into 2026 Chairman and Chief Executive Officer Xing Jin said China’s medical aesthetic industry is moving toward more routine demand and growing supply, making scale, standardized operations and consistent delivery increasingly important for leading companies. “Large-scale operational capabilities and a uniform delivery framework have become the key mode for top players to achieve high-quality growth,” Jin said. → SpaceX IPO: Opportunity? Or the Ultimate Hype Trade? 10X Gains? These 3 Robotics Stocks Could Explode by 2035 Jin said So-Young Clinic continued to lead China’s medical aesthetics chain market by center count, treatment volume and user base. As of the call, he said So-Young Clinic had expanded to 59 centers across 17 cities, a net addition of 10 centers from the end of 2025. Zhang, discussing results as of March 31, said the company operated 54 So-Young clinics across 16 major cities, reflecting a net addition of five centers during the quarter. She broke down aesthetic treatment service revenue by center maturity: 20 mature-phase centers generated RMB 150 million, or about RMB 7.5 million per center. 23 growth-phase centers contributed RMB 109.5 million, or about RMB 4.8 million per center. 11 ramp-up-phase centers contributed RMB 22.9 million, or about RMB 2.1 million per center. → 2 Software Stocks Turning AI Fears Into Fundamental Gains Zhang said average revenue per ramp-up center grew significantly both year over year and quarter over quarter, which she said validated the company’s increasingly standardized operations. In the quarter, verified treatment visits exceeded 148,000, up 172% year over year, while verified treatments performed were more than 325,000, up 164%, Jin said. The active user base reached more than 210,000 by the end of March, including more than 63,000 level 3 and above core members. Jin said referrals accounted for 52% of new customers in the first quarter, while customer acquisition costs remained “well under control.” He also cited marketing partnerships, including Disney co-branded pop-ups for the company’s Miracle Collagen product line, and endorsements from actress Fan Bingbing and Thai actress Mai. Management said operating efficiency improved across the clinic network. Jin said 41 centers were profitable in the quarter, while 48 centers generated positive operating cash flow. The aesthetic center business gross margin reached 27%. Zhang said the number of profitable centers increased by 15 from the prior quarter, and the number of centers with positive operating cash flow increased by nine. “Alongside our ongoing scale expansion and operational efficiency enhancement, we are confident in our ability to continue driving revenue growth and improving our profitability profile of this segment,” Zhang said. Jin said the company will continue expanding its footprint, with a focus on major Tier 1 cities, while maintaining a measured pace of expansion. He said scale effects, faster new-center ramp-ups and better operating efficiency should support higher per-center revenue and an improved financial model for the chain. Jin said So-Young is strengthening its physician team, treatment quality and service experience. By the end of March, the company had about 230 full-time physicians, up 9% from the end of 2025. In the first quarter, So-Young established its Phoenix Medical R&D and Training Center and National Command and Control Center. Jin said the R&D center includes in-house labs for energy-based devices, injectables, ex vivo testing and other evaluations, allowing the company to assess products based on clinical evidence rather than marketing claims. He said all physicians joining So-Young clinics must complete intensive training and pass assessments before practicing. The command and control center monitors safety, compliance, user experience and operating data across the clinic network. On the supply chain side, Jin highlighted an April strategic partnership with Jinbo Bio-Pharmaceutical. Through the partnership, So-Young obtained exclusive rights to Jinbo’s new WeMed CoPack product and launched its Miracle Collagen series. Jin said the product is So-Young’s 20th GREEN LABEL product, a system focused on compliance, traceability and price transparency. Revenue from “Blockbuster” products rose to 41% of first-quarter revenue, driven by products including BBL and Thermage, Jin said. Cost of revenue increased 65.8% year over year to RMB 251 million, primarily due to the expansion of branded aesthetic centers, Zhang said. Cost of aesthetic treatment services rose 156.4% to RMB 205.8 million. Total operating expenses increased 26.6% to RMB 239.7 million, growing at a slower pace than revenue. Sales and marketing expenses rose 33.7% to RMB 130.8 million, reflecting higher branding, user acquisition spending and payroll costs for branded aesthetic centers. General and administrative expenses increased 42.5% to RMB 84.5 million, while research and development expenses declined 24.2% to RMB 24.3 million due to improved staff efficiency. Net loss attributable to So-Young was RMB 49.2 million, compared with RMB 33.1 million in the prior-year period. Non-GAAP net loss attributable to So-Young was RMB 46.6 million, compared with RMB 31.5 million a year earlier. Basic and diluted loss per ADS was RMB 0.48, compared with RMB 0.32 in the prior-year period. As of March 31, cash and cash equivalents, restricted cash, term deposits and short-term investments totaled RMB 880 million, down from RMB 936.4 million at the end of 2025. Zhang said the decrease reflected strategic capital allocation to accelerate branded aesthetic center expansion. During the question-and-answer session, Jin said So-Young remains bullish on light medical aesthetics in China despite slower overall industry growth and intensified competition. He said light medical aesthetics represented nearly 80% of China’s medical aesthetics market as of 2025 and has become the mainstream category. Jin said consumers are increasingly focused on anti-aging rather than changing appearance, are more rational about paying for technology rather than marketing, and show rising adoption in lower-tier cities. He said So-Young Clinic is positioned as a “Sam’s Club of medical aesthetics,” emphasizing consistency, affordability and accessibility. For the second quarter, So-Young expects aesthetic treatment service revenue of RMB 307 million to RMB 317 million, representing year-over-year growth of 102.6% to 119.5%. So-Young International Inc operates a leading digital marketplace and community platform focused on the medical aesthetic industry in China. Headquartered in Shanghai and founded in 2013, the company connects consumers seeking cosmetic treatments with a network of accredited clinics, licensed physicians and beauty service providers. Its online ecosystem offers a wealth of educational content, peer reviews and before-and-after galleries designed to help users make informed decisions about aesthetic procedures. The company's platform is accessible via web and mobile applications, where users can browse service packages, compare providers, read expert articles and schedule appointments directly through an integrated booking system. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "So-Young International Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

This article first appeared on GuruFocus. Total Revenue: RMB460.7 million, up 24.8% year-over-year. Aesthetic Center Revenue: RMB248.1 million, up 205.3% year-over-year. Cash Position: RMB936.4 million as of year-end 2025. Number of Medical Aesthetic Centers: 49 centers by year-end 2025. Verified Treatment Visits: Over 125,000 in Q4, up 178% year-over-year. Net Loss: RMB108.8 million, compared with RMB607.6 million in the same period of 2024. Non-GAAP Net Loss: RMB93.4 million, compared with RMB53.2 million in the same period of 2024. Operating Expenses: RMB327.7 million, compared with RMB815.2 million in the same period of 2024. Sales and Marketing Expenses: RMB168.7 million, up 25.8% year-over-year. G&A Expenses: RMB101.9 million, up 3.5% year-over-year. R&D Expenses: RMB37.4 million, down 12.4% year-over-year. Guidance for Q4 2026 Aesthetic Treatment Services Revenue: Between RMB258 million and RMB278 million, representing growth of 171.2% to 181.3% year-over-year. Warning! GuruFocus has detected 5 Warning Signs with SY. Is SY fairly valued? Test your thesis with our free DCF calculator. Release Date: March 25, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Total revenue for Q4 2025 reached RMB451 million, marking a 25% year-over-year increase and a record high for quarterly revenue. Revenue from the aesthetic center business surged by over 205% year-over-year, becoming the largest revenue-contributing segment. The company opened 49 medical aesthetic centers by the end of 2025, ranking first nationwide by center count. Verified treatment visits and aesthetic treatments performed saw significant year-over-year increases of 178% and 168%, respectively. The company plans to open at least 35 new centers in 2026, focusing on core cities and expanding into second-tier cities, with a strategy to improve profitability while expanding. Information and reservation services revenues decreased by 26.8% year-over-year due to fewer medical service providers subscribing to the platform. Sales of medical products and maintenance services revenues fell by 19.9% year-over-year, attributed to a decrease in order volume for medical equipment. Other services revenues dropped by 40.7% year-over-year, primarily due to a decrease in revenues from So-Young Prime. The company reported a net loss of RMB108.8 million for Q4 2025, although this was an improvement from the previous year's loss. Cash and cash equivalents decreased from RMB1,253.2 million at the end of 2024 to RMB936.4 million at the end of 2025, reflecting accelerated investment in expansion. Q: Could you share more about the gross margin plan and sources for further margin expansion? A: Xing Jin, Chairman and CEO, explained that three core factors shape margin performance: the pace of center openings, consumable costs, and seasonal promotions. The company plans to optimize the pace of center openings, enhance consumable cost management through partnerships, and refine seasonal promotions to drive gross margin improvements. Q: How is the development of So-Young Clinic in second-tier cities, and has it met management's expectations? A: Xing Jin noted that centers in second-tier cities are performing well, with traffic and per customer treatment rising. Revenue per center is close to first-tier levels, and mature centers in these cities enjoy slightly higher margins due to lower costs. The company is confident in achieving stronger profitability and market competitiveness in second-tier cities. Q: Has the competitive advantage in customer acquisition costs been maintained amid continued expansion? A: Xing Jin confirmed that the company has preserved and strengthened its edge in customer acquisition costs, maintaining an average CAC below 10% of revenue. This is achieved through a customer referral model, optimizing acquisition channels, and co-branding initiatives with renowned IPs to enhance brand equity. Q: What measures will be taken to improve the LTV of core members? A: Xing Jin stated that the company will expand its product portfolio and optimize the membership system to enhance user value and loyalty. This includes offering comprehensive product offerings and differentiated benefits, which will improve center profitability and drive long-term growth. Q: What is the outlook for So-Young in 2026? A: Xing Jin highlighted that 2026 is a turning point for the company, shifting focus from scale to a balance of scale and efficiency. The aim is to prove the profitability of the model while expanding, with plans to open at least 35 new centers and improve profitability through mature operations. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BEIJING, March 25, 2026 /PRNewswire/ -- So-Young International Inc. (Nasdaq: SY) ("So-Young" or the "Company"), the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025. Fourth Quarter 2025 Financial Highlights Total revenues were RMB460.7 million (US$65.9 million[1]), compared with RMB369.2 million in the corresponding period of 2024. The aesthetic treatment services revenues were RMB248.1 million (US$35.5 million), compared with RMB81.3 million in the corresponding period of 2024, exceeding the high end of guidance. Net loss attributable to So-Young International Inc. was RMB108.8 million (US$15.6 million), compared with net loss attributable to So-Young International Inc. of RMB607.6 million in the same period of 2024. Non-GAAP net loss attributable to So-Young International Inc.[2] was RMB93.4 million (US$13.2 million), compared with non-GAAP net loss attributable to So-Young International Inc. of RMB53.2 million in the same period of 2024. Fourth Quarter 2025 Operational Highlights The number of verified treatment visits to the branded aesthetic centers for the quarter reached over 125,000, compared with approximately 45,000 in the same period of 2024. The number of verified aesthetic treatments performed surpassed 289,400, compared with approximately 107,900 in the same period of 2024. The number of active users, defined as those who visited branded aesthetic centers at least once during the 12-month period ended on December 31, 2025, exceeded 171,000, compared with approximately 52,700 users during the corresponding period in 2024. The number of core members grew by over 14,500 during the quarter, representing an approximately 39% sequential increase. Both the revenue contribution from core members to aesthetic treatment services and their quarterly repurchase rate exceeded 80%. As of December 31, 2025, So-Young had 49 fully operational branded aesthetic centers (48 directly-operated, 1 franchised) across fifteen major cities: Beijing, Shanghai, Guangzhou, Shenzhen, Hangzhou, Chengdu, Wuhan, Chongqing, Ningbo, Changsha, Tianjin, Xi'an, Suzhou, Hefei and Kunming. Among them, 25 centers achieved profitability* in the fourth quarter. In addition, 39 centers generated positive quarterly operating cash flow* in the fourth quarter. The following table shows the revenues generated by So-Young aesthetic centers, categorized by their phase of development: Fiscal Year 2025 Financial Highlights Total revenues were RMB1,523.4 million (US$217.8 million) in fiscal year 2025, compared with RMB1,466.7 million in the prior year. Net loss attributable to So-Young International Inc. was RMB242.3 million (US$34.6 million) in fiscal year 2025, compared with a net loss attributable to So-Young International Inc. of RMB589.5 million in the prior year. Non-GAAP net loss attributable to So-Young International Inc. was RMB217.1 million (US$31.0 million) in fiscal year 2025, compared with a non-GAAP net loss attributable to So-Young International Inc. of RMB4.7 million in the prior year. Extension of Share Repurchase Program The share repurchase program, initially approved on March 18, 2024, authorizing the repurchase of up to US$25 million in ADSs or ordinary shares, has been extended for an additional 12-month period through March 31, 2027. In 2024 and 2025, the Company repurchased approximately 4.8 million ADSs. All other terms remain unchanged. Mr. Xing Jin, Co-Founder and Chief Executive Officer of So-Young, commented, "In the fourth quarter, our aesthetic center business maintained its strong momentum, solidifying its role as a core growth engine for the Group. We have retained our position as China's leading light medical aesthetics chain by scale, which serves as a clear validation of our business model's strength and sustainability. Looking ahead, we will pursue steady store expansion while prioritizing operational excellence and industry-leading standards. Through strategic alliances with upstream manufacturers and a commitment to genuine product traceability, we are building competitive advantages rooted in both unit economics and trust. We are confident that this disciplined approach will drive sustainable value for our shareholders." Fourth Quarter 2025 Financial Results Revenues Total revenues were RMB460.7 million (US$65.9 million), an increase of 24.8% from RMB369.2 million in the same period of 2024. The increase was primarily due to business expansion of the branded aesthetic centers. Aesthetic treatment services revenues were RMB248.1 million (US$35.5 million), an increase of 205.3% from RMB81.3 million in the same period of 2024. The increase was primarily due to the business expansion of the branded aesthetic centers. Information and reservation services[3] revenues were RMB125.7 million (US$18.0 million), a decrease of 26.8% from RMB171.6 million in the same period of 2024. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young's platform. Sales of medical products and maintenance services revenues were RMB69.3 million (US$9.9 million), a decrease of 19.9% from RMB86.4 million in the same period of 2024, primarily due to a decrease in the order volume for medical equipment. Other services revenues were RMB17.7 million (US$2.5 million), a decrease of 40.7% from RMB29.9 million in the same period of 2024, primarily due to a decrease in revenues from So-Young Prime. Cost of Revenues Cost of revenues was RMB255.9 million (US$36.6 million), an increase of 67.2% from RMB153.1 million in the fourth quarter of 2024. The increase was primarily due to business expansion of the branded aesthetic centers. Cost of aesthetic treatment services was RMB189.0 million (US$27.0 million), an increase of 189.9% from RMB65.2 million in the fourth quarter of 2024. The increase was primarily due to the business expansion of the branded aesthetic centers. Cost of information and reservation services[4] was RMB10.1 million (US$1.4 million), a decrease of 50.6% from RMB20.4 million in the fourth quarter of 2024. The decrease was in line with the decrease in revenue generated from information and reservation services. Cost of medical products sold and maintenance services was RMB41.6 million (US$5.9 million), a decrease of 4.0% from RMB43.3 million in the fourth quarter of 2024. The decrease was primarily due to a decrease in costs associated with the sales of medical equipment. Cost of other services was RMB15.3 million (US$2.2 million), a decrease of 36.7% from RMB24.1 million in the fourth quarter of 2024. The decrease was primarily due to a decrease in costs associated with So-Young Prime. Operating Expenses Total operating expenses were RMB327.7 million (US$46.9 million), a decrease of 59.8% from RMB815.2 million in the fourth quarter of 2024. Sales and marketing expenses were RMB168.7 million (US$24.1 million), an increase of 25.8% from RMB134.0 million in the fourth quarter of 2024. The increase was primarily attributable to an increase in expenses associated with branding and user acquisition activities for the branded aesthetic centers. General and administrative expenses were RMB101.9 million (US$14.6 million), an increase of 3.5% from RMB98.4 million in the fourth quarter of 2024. The increase was primarily due to the business expansion of the branded aesthetic centers. Research and development expenses were RMB37.4 million (US$5.4 million), a decrease of 12.4% from RMB42.8 million in the fourth quarter of 2024. The decrease was primarily attributable to improvements in staff efficiency. Impairment of goodwill and long-lived assets was RMB19.7 million (US$2.8 million) in this quarter, representing the amount by which the carrying amount of certain asset exceeds their fair value, based on an annual long-lived assets impairment assessment. Impairment of goodwill was RMB540.0 million in the fourth quarter of 2024. Income Tax Benefits/(Expenses) Income tax benefits were RMB0.6 million (US$0.1 million), compared with income tax expenses of RMB2.1 million in the same period of 2024. Net Loss Attributable to So-Young International Inc. Net loss attributable to So-Young International Inc. was RMB108.8 million (US$15.6 million), compared with a net loss attributable to So-Young International Inc. of RMB607.6 million in the fourth quarter of 2024. Non-GAAP Net Loss Attributable to So-Young International Inc. Non-GAAP net loss attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses, impairment of goodwill and long-lived assets attributable to So-Young International Inc., impairment of long-term investment attributable to So-Young International Inc., allowance for credit loss from loans to investees attributable to So-Young International Inc., gain/(loss) on disposal of long-term investment and fair value change of long-term investment attributable to So-Young International Inc., and tax effects on non-GAAP adjustments, was RMB93.4 million (US$13.2 million), compared with RMB53.2 million non-GAAP net loss attributable to So-Young International Inc. in the same period of 2024. Basic and Diluted Loss per ADS Basic and diluted loss per ADS attributable to ordinary shareholders were RMB1.08 (US$0.15) and RMB1.08 (US$0.15), respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of RMB5.92 and RMB5.92, respectively, in the same period of 2024. Fiscal Year 2025 Financial Results Revenues Total revenues were RMB1,523.4 million (US$217.8 million), an increase of 3.9% from RMB1,466.7 million in fiscal year 2024. Aesthetic treatment services revenues were RMB674.9 million (US$96.5 million), an increase of 298.7% from RMB169.3 million in fiscal year 2024. The increase was primarily due to the business expansion of the branded aesthetic centers. Information and reservation services revenues were RMB499.7 million (US$71.5 million), a decrease of 32.2% from RMB736.6 million in fiscal year 2024. The decrease was primarily due to a decrease in the number of medical service providers subscribing to information services on So-Young's platform. Sales of medical products and maintenance services revenues were RMB267.8 million (US$38.3 million), a decrease of 27.2% from RMB368.0 million in fiscal year 2024, primarily due to a decrease in sales of medical equipment. Other services revenues were RMB81.0 million (US$11.6 million), a decrease of 58.0% from RMB192.8 million in the same period of 2024, primarily due to a decrease in revenues from So-Young Prime. Cost of Revenues Cost of revenues was RMB795.7 million (US$113.8 million), an increase of 40.2% from RMB567.6 million in fiscal year 2024. The increase was primarily due to the business expansion of the branded aesthetic centers. Cost of aesthetic treatment services was RMB518.7 million (US$74.2 million), an increase of 294.2% from RMB131.6 million in fiscal year 2024. The increase was primarily due to the business expansion of the branded aesthetic centers. Cost of information and reservation services was RMB63.0 million (US$9.0 million), a decrease of 41.1% from RMB107.0 million in fiscal year 2024. The decrease was in line with the decrease in revenue generated from information and reservation services. Cost of medical products sold and maintenance services was RMB147.1 million (US$21.0 million), a decrease of 19.7% from RMB183.2 million in fiscal year 2024. The decrease was primarily due to a decrease in costs associated with the sales of medical equipment. Cost of other services was RMB66.9 million (US$9.6 million), a decrease of 54.1% from RMB145.9 million in fiscal year of 2024. The decrease was primarily due to a decrease in costs associated with So-Young Prime. Operating Expenses Total operating expenses were RMB1,013.9 million (US$145.0 million), a decrease of 33.5% from RMB1,523.6 million in fiscal year 2024. Sales and marketing expenses were RMB528.6 million (US$75.6 million), an increase of 6.9% from RMB494.5 million in fiscal year 2024. The increase was primarily attributable to an increase in expenses associated with branding and user acquisition activities for the branded aesthetic centers. General and administrative expenses were RMB328.5 million (US$47.0 million), an increase of 1.4% from RMB324.1 million in fiscal year 2024. The increase was primarily due to the business expansion of the branded aesthetic centers. Research and development expenses were RMB137.0 million (US$19.6 million), a decrease of 17.0% from RMB165.0 million in fiscal year 2024. The decrease was primarily attributable to improvements in staff efficiency. Impairment of goodwill and long-lived assets was RMB19.7 million (US$2.8 million) in this year, representing the amount by which the carrying amount of certain asset exceeds their fair value, based on an annual long-lived assets impairment assessment. Impairment of goodwill was RMB540.0 million in fiscal year 2024. Income Tax (Expenses)/Benefits Income tax expenses were RMB0.8 million (US$0.1 million), compared with an income tax benefits of RMB0.9 million in fiscal year 2024. Net Loss Attributable to So-Young International Inc. Net loss attributable to So-Young International Inc. was RMB242.3 million (US$34.6 million), compared with a net loss attributable to So-Young International Inc. of RMB589.5 million in fiscal year 2024. Non-GAAP Net Loss Attributable to So-Young International Inc. Non-GAAP net loss attributable to So-Young International Inc., which excludes the impact of share-based compensation expenses, impairment of goodwill and long-lived assets attributable to So-Young International Inc., impairment of long-term investment attributable to So-Young International Inc., allowance for credit loss from loans to investees attributable to So-Young International Inc., gain/(loss) on disposal of long-term investment and fair value change of long-term investment attributable to So-Young International Inc., and tax effects on non-GAAP adjustments, was RMB217.1 million (US$31.0 million), compared with a non-GAAP net loss attributable to So-Young International Inc. of RMB4.7 million in fiscal year 2024. Basic and Diluted Loss per ADS Basic and diluted loss per ADS attributable to ordinary shareholders were RMB2.39 (US$0.34) and RMB2.39 (US$0.34), respectively, compared with basic and diluted loss per ADS attributable to ordinary shareholders of RMB5.72 and RMB5.72 in fiscal year 2024. Cash and Cash Equivalents, Restricted Cash and Term Deposits, Term Deposits and Short-Term Investments As of December 31, 2025, cash and cash equivalents, restricted cash and term deposits, term deposits and short-term investments were RMB936.4 million (US$133.9 million), compared with RMB1,253.2 million as of December 31, 2024, primarily due to an increase of investment in branded aesthetic centers. Business Outlook For the first quarter of 2026, So-Young expects aesthetic treatment services revenues to be between RMB268.0 million (US$38.3 million) and RMB278.0 million (US$39.8 million), representing a 171.2% to 181.3% increase from the same period in 2025. The above outlook is based on the current market conditions and reflects the Company's preliminary estimates of market and operating conditions, as well as customer demand, which are all subject to change. Non-GAAP Financial Measures To supplement the financial measures prepared in accordance with generally accepted accounting principles in the United States, or GAAP, this press release presents non-GAAP income/(loss) from operations and non-GAAP net income/(loss) attributable to So-Young International Inc. by excluding share-based compensation expenses and impairment of goodwill and long-lived assets from income/(loss) from operations, and excluding share-based compensation expenses, impairment of goodwill and long-lived assets, impairment of long-term investment, allowance for credit loss from loans to investees, gain/(loss) on disposal of long-term investment and fair value change of long-term investment and tax effects on non-GAAP adjustments from net income/(loss) attributable to So-Young International Inc., respectively. Starting from the fourth quarter of 2024, the Company newly included impairment of long-term investment, allowance for credit loss from loans to investees, gain/(loss) on disposal of long-term investment and fair value change of long-term investment and tax effects on non-GAAP adjustments as additional adjustments in its non-GAAP financial measures, which may result in differences from previously disclosed non-GAAP figures. The Company believes these non-GAAP financial measures are important to help investors understand the Company's operating and financial performance, compare business trends among different reporting periods on a consistent basis and assess the Company's core operating results, as they exclude certain expenses (i) that are not expected to result in cash payments or (ii) that are non-recurring in nature or may not be indicative of the Company's core operating results and business outlook. The use of the above non-GAAP financial measures has certain limitations. Share-based compensation expenses, the impairment of goodwill and long-lived assets, impairment of long-term investment and allowance for credit loss from loans to investees are non-cash in nature. Gain/(loss) on disposal of long-term investment and fair value change of long-term investment are non-recurring in nature. And, in substance, both impairment of long-term investment and allowance for credit loss from loans to investees are impairment of investment. All these are not reflected in the presentation of the non-GAAP financial measures, but should be considered in the overall evaluation of the Company's results. The Company compensates for these limitations by providing the relevant disclosure of its share-based compensation expenses, impairment of goodwill and long-lived assets, impairment of long-term investment, allowance for credit loss from loans to investees, gain/(loss) on disposal of long-term investment and fair value change of long-term investment and tax effects on non-GAAP adjustments in the reconciliations to the most directly comparable GAAP financial measures, which should be considered when evaluating the Company's performance. These non-GAAP financial measures should be considered in addition to financial measures prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, financial measures prepared in accordance with GAAP. Reconciliation of each of these non-GAAP financial measures to the most directly comparable GAAP financial measure is set forth at the end of this release. Conference Call Information So-Young's management will hold an earnings conference call on Wednesday, March 25, 2026, at 7:30 AM U.S. Eastern Time (7:30 PM on the same day, Beijing/Hong Kong Time). Dial-in details for the earnings conference call are as follows: A telephone replay will be available two hours after the conclusion of the conference call through 23:59 U.S. Eastern Time, April 1, 2026. The dial-in details are: Additionally, a live and archived webcast of this conference call will be available at http://ir.soyoung.com. About So-Young International Inc. So-Young International Inc. (Nasdaq: SY) ("So-Young" or the "Company") is the leading aesthetic treatment platform in China connecting consumers with online services and offline treatments. The Company provides access to aesthetic treatments through its online platform and branded aesthetic centers, offering curated treatment information, facilitating online reservations, delivering high-quality treatments, and developing, producing and distributing optoelectronic medical equipment and injectable products. With its strong brand recognition, digital reach, affordable treatments and efficient supply chain, So-Young is well-positioned to serve its audience over the long term and grow along the medical aesthetic value chain. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Among other things, the Financial Guidance and quotations from management in this announcement, as well as So-Young's strategic and operational plans, contain forward-looking statements. So-Young may also make written or oral forward-looking statements in its periodic reports to the U.S. Securities and Exchange Commission, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including but not limited to statements about So-Young's beliefs and expectations, are forward-looking statements. Forward looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: So-Young's strategies; So-Young's future business development, financial condition and results of operations; So-Young's ability to retain and increase the number of users and medical service providers, and expand its service offerings; competition in the online medical aesthetic service industry; changes in So-Young's revenues, costs or expenditures; Chinese governmental policies and regulations relating to the online medical aesthetic service industry, general economic and business conditions globally and in China; and assumptions underlying or related to any of the foregoing. Further information regarding these and other risks is included in the Company's filings with the Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of the press release, and So-Young undertakes no duty to update such information, except as required under applicable law. For more information, please contact: So-Young Investor Relations Ms. Mona Qiao Phone: +86-10-8790-2012 E-mail: [email protected] Christensen Ms. Charlie Chi Phone: +86-10-5900-1548 E-mail: [email protected] View original content:https://www.prnewswire.com/news-releases/so-young-reports-unaudited-fourth-quarter-and-fiscal-year-2025-financial-results-302724647.html