So‑Young International Inc. reported third‑quarter 2025 revenue of RMB386.7 million (US$54.3 million), a 4.0 % year‑over‑year increase from RMB371.8 million in Q3 2024. The company posted a net loss attributable to shareholders of RMB64.3 million (US$9.0 million), compared with a net income of RMB20.3 million in the same period last year. The widening loss reflects a 43.4 % rise in cost of revenues driven by capital expenditures on new branded aesthetic centers, which have expanded the company’s footprint to 39 locations by the end of September.
Aesthetic treatment services revenue, the company’s core growth engine, surged 304.6 % YoY to RMB186.5 million, largely due to the rapid expansion of its owned and operated centers. In contrast, revenue from information and reservation services fell 12.3 % to RMB45.2 million, and product sales declined 8.7 % to RMB12.4 million. The sharp growth in the treatment segment offsets the declines in legacy segments, but the higher operating costs associated with opening new centers have compressed overall margins.
Management guided for Q4 2025 aesthetic‑treatment‑services revenue of RMB216.0 million to RMB226.0 million, a 165.8 % to 178.1 % increase YoY. The guidance signals strong demand for the fast‑casual clinic model and confidence that the expanded network will continue to generate high‑margin revenue. Cash and cash equivalents stood at RMB942.8 million (US$132.4 million) as of September 30, down from RMB1,253.2 million at the end of 2024, reflecting the company’s investment focus.
Investors reacted to the results with a 2.45 % decline in pre‑market trading, driven by the revenue miss relative to analyst estimates and the wider‑than‑expected net loss. The market’s focus on profitability concerns underscores the tension between growth investments and short‑term earnings performance.
CEO Xing Jin emphasized that the company’s “trust‑driven” model and commitment to transparency are key competitive advantages. He noted that the rapid expansion of the aesthetic‑center network is a strategic priority, and that operational efficiencies are improving as more centers reach profitability. The company remains focused on converting the network’s scale into sustainable profitability while maintaining high service quality.
Analysts noted that the company missed revenue estimates by roughly RMB12 million and that the non‑GAAP EPS was a loss of US$0.64 versus an estimated loss of US$0.34. The larger-than‑expected loss reflects the impact of higher capital expenditures and operating costs associated with the new centers, which have not yet fully offset the revenue gains from the treatment segment.
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