So-Young International Inc. (SY) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call highlights strong financial performance with significant revenue growth, an optimistic guidance, and improved operational metrics. Despite a decrease in cash position due to investments, the overall outlook remains positive with strategic expansion plans and effective cost management. The Q&A section further supports a positive sentiment, with management addressing margin expansion and customer acquisition strategies effectively. The focus on new centers and customer lifetime value enhancement suggests continued growth potential. Thus, the stock price is likely to see a positive movement in the short term.
Key Financial Performance
Total Revenue (Q4 2025) RMB 461 million, up around 25% year-over-year. The increase was driven by the expansion of the branded aesthetic center business.
Revenue from Aesthetic Center Business (Q4 2025) RMB 248 million, up over 205% year-over-year. This growth was attributed to network expansion and improved per center economics.
Verified Treatment Visits (Q4 2025) Exceeded 125,000, up 178% year-over-year. This growth reflects increased market demand and consumer recognition.
Verified Aesthetic Treatments Performed (Q4 2025) Exceeded 289,400, up 168% year-over-year. This growth validates the market demand and consumer recognition.
Total Active Users (as of December 2025) Surpassed 170,000. This growth reflects increased user engagement and market demand.
Cash Position (as of December 2025) RMB 936.4 million, decreased from RMB 1,253.2 million as of December 2024. The decrease was due to accelerated investment in branded aesthetic center expansion.
Cost of Revenues (Q4 2025) RMB 255.9 million, up 67.2% year-over-year. The increase was primarily driven by the expansion of branded aesthetic centers.
Sales and Marketing Expenses (Q4 2025) RMB 168.7 million, up 25.8% year-over-year. The increase was driven by branding and user acquisition investments supporting branded aesthetic center growth.
G&A Expenses (Q4 2025) RMB 101.9 million, up 3.5% year-over-year. The increase was due to the business expansion of branded aesthetic centers.
R&D Expenses (Q4 2025) RMB 37.4 million, down 12.4% year-over-year. The decrease was due to improved staff efficiency.
Net Loss Attributable to So-Young (Q4 2025) RMB 108.8 million, improved from RMB 607.6 million in the same period of 2024. The improvement reflects better operational performance.
Non-GAAP Net Loss Attributable to So-Young (Q4 2025) RMB 93.4 million, compared with RMB 53.2 million in the same period of 2024. The increase reflects ongoing investments in branded aesthetic center expansion.
Basic and Diluted Loss Per ADS (Q4 2025) RMB 1.08, improved from RMB 5.92 in the same period of 2024. The improvement reflects better operational performance.
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Operating Highlights
New Product Launches: Launched a lighter version Miracle PLLA version 3 to lower customer barriers. Became the exclusive distributor of Xihong Biopharma HA solution in China. Improved brand influence and conversion for BBL treatment through campaigns and co-branding.
Market Expansion: Opened 49 medical aesthetic centers by year-end 2025, ranking first nationwide. Plans to open at least 35 new centers in 2026, focusing on core cities and second-tier cities. Established presence in high-end shopping malls to reach target customer groups.
Operational Efficiencies: Achieved profitability in 25 centers and positive operating cash flow in 39 centers. Enhanced medical service delivery through physician team expansion, compliance framework, and data security. Improved per center economics as centers mature.
Strategic Shifts: Shifted focus from pure network expansion to balancing growth with profitability improvement in 2026. Aims to create a dual engine of scale and efficiency, leveraging systematic capabilities to lower access barriers and deliver sustainable returns.
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Risk or Challenges
Market Conditions: China's medical aesthetic industry is undergoing structural adjustments, with upstream capacity expansion and a shift towards value-driven consumer behavior. This creates challenges for institutions to adapt to the changing market dynamics.
Operational Efficiency: While 25 centers achieved profitability and 39 centers generated positive operating cash flow, the company faces challenges in maintaining profitability as it scales operations and expands its network.
Regulatory Compliance: The company has established a 6-pillar compliance framework and regular inspection mechanisms, but maintaining compliance in a highly regulated industry remains a challenge.
Data Security: Although So-Young has obtained TIA certification, ensuring ongoing data security and protecting user information is a critical challenge in the digital age.
Supply Chain Management: The company relies on partnerships with top-tier suppliers and a volume price linkage mechanism. However, managing supply chain risks and ensuring consistent procurement costs remain challenges.
Financial Sustainability: The company reported a net loss of RMB 108.8 million for Q4 2025, reflecting the financial strain of rapid expansion and investment in branded aesthetic centers.
Revenue Diversification: Revenues from information and reservation services, medical products, and other services have declined year-over-year, indicating challenges in diversifying revenue streams beyond aesthetic treatment services.
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Guidance & Outlook
Expansion of Aesthetic Centers: In 2026, the company plans to open at least 35 new centers, focusing on deepening density in core cities such as Beijing, Shanghai, Guangzhou, and Shenzhen, while also expanding into second-tier cities. The company aims to balance growth with profitability improvement.
Revenue Guidance for Q4 2026: The company expects aesthetic treatment services revenue to be between RMB 268 million and RMB 278 million, representing year-over-year growth of 171.2% to 181.3%.
Profitability and Efficiency Goals: The company aims to improve center profitability and drive overall profitability at an early date by leveraging expanding scale, improving gross margins, and driving efficiency gains across the network.
Physician Recruitment and Productivity: In 2026, the company will launch a new physician initiative to accelerate recruitment and build a talent pipeline. This program aims to enhance physician productivity and profitability through systematic training and career development.
Supply Chain Enhancements: The company plans to continue building its supply chain capabilities, enhancing value delivery, and seizing market opportunities. This includes leveraging partnerships with top-tier suppliers and expanding the product portfolio.
Market Position and Strategic Focus: The company aims to transition from a scale-first approach to a dual focus on scale and efficiency, creating a sustainable and inclusive service model while delivering long-term shareholder returns.
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Shareholder Return Plan
The selected topic was not discussed during the call.
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Key Q&A
Q:What are the gross margin prospects and sources of further margin expansion?
A:Management identified three core factors shaping margin performance: the pace of center openings, consumable costs, and seasonal promotions. They plan to optimize the pace of center openings, improve ramp-up efficiency, and reduce margin dilution by focusing on mature centers. They aim to strengthen bargaining power with upstream partners and optimize consumable costs. Seasonal promotions will be refined to target repeat purchases and improve customer lifetime value (LTV).
Q:What is the development status of So-Young Clinic in second-tier cities, and has it met management's expectations?
A:Management stated that centers in second-tier cities are performing well, with traffic and per customer treatment rising. Mature centers like Wuhan Tiandi and Changsha generated RMB 7,000 per square meter monthly. New centers like Ningbo Raffles and Suzhou Suyue Plaza showed robust growth, with Suzhou achieving RMB 1 million in monthly revenue within three months. Second-tier centers have slightly higher margins due to lower payroll and rental costs. Management is confident in achieving stronger profitability and competitiveness through process improvements and economies of scale.
Q:Has the competitive advantage in customer acquisition costs been maintained, and what is the customer acquisition strategy for 2026?
A:Management confirmed that their competitive edge in customer acquisition costs (CAC) has been preserved, with average CAC below 10% of revenue. They plan to continue leveraging their customer referral model, optimizing public and private domain acquisition channels, and enhancing customer LTV. Co-branding initiatives with renowned IPs like The Little Prince and Disney are also part of their strategy to amplify brand equity and reduce CAC.
Q:What measures will be taken to improve the lifetime value (LTV) of core members?
A:Management plans to expand their product portfolio with standardized, science-backed treatments and mid- to high-end services. They will optimize the membership system by offering differentiated benefits and tiered user segmentation. These measures aim to enhance core members' perception of brand value, boost loyalty, and improve center profitability.
Q:Review of Unclear Management Responses
A:Management avoided directly answering the question about the development of So-Young Clinic in second-tier cities initially due to a disconnection in the call. However, they later provided a detailed response upon reconnection.
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Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
BBL
Beijing
Full Conference
Guangzhou
IP
RedNote
VP Finance
Young Full
barrier
blockbuster
brand influence
campaign
capability term
center profitability
certification
compliance framework
consumer service
conversion
count
date
delivery capability
end center
engine
layout
measure
mechanism
opportunity
path
physician
price
security
service delivery
shopping mall
supplier
term trust
treatment volume
trust mode
user trust
version
SY Transcript
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So-Young International Inc. (SY) Q4 2025 Earnings Call Transcript
Positive3-25
The earnings call highlights strong financial performance with significant revenue growth, an optimistic guidance, and improved operational metrics. Despite a decrease in cash position due to investments, the overall outlook remains positive with strategic expansion plans and effective cost management. The Q&A section further supports a positive sentiment, with management addressing margin expansion and customer acquisition strategies effectively. The focus on new centers and customer lifetime value enhancement suggests continued growth potential. Thus, the stock price is likely to see a positive movement in the short term.
So-Young International Inc. (SY) Q3 2025 Earnings Call Transcript
Positive11-17
The earnings call reveals a strong revenue projection for Q3 2025, a strategic expansion plan, and operational efficiency improvements. Despite a net loss, the company shows potential with increased core members and repeat customer revenue. The Q&A section confirmed strategic focus on growth and profitability, with a positive reception to new product launches and compliance measures. The strong revenue growth and optimistic guidance, alongside strategic expansion into high-demand areas, suggest a positive sentiment towards future stock performance.
So-Young International Inc. (SY) Q2 2025 Earnings Call Transcript
Positive8-15
The earnings call summary shows strong financial metrics, particularly in revenue growth expectations, and a strategic focus on expansion and vertical integration. While there are net losses, management provides optimistic guidance with plans for significant expansion and market share capture. The Q&A highlights management's confidence in market potential and effective cost strategies, with clear responses to analysts' questions. The partnership with SkinCeuticals and focus on proprietary product development further enhance the positive outlook. Despite the lack of market cap data, the overall sentiment suggests a positive stock price movement.
SY Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
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Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
