So-Young International Inc.

Q1 2026 total revenue was RMB 432.8 million, up 45.6% year over year. Aesthetic treatment service revenue was RMB 282.4 million, up 185.8% year over year and above the high end of guidance for the fourth consecutive quarter. Information and reservation services revenue was RMB 8.3 million, down 34% year over year; medical products and maintenance service revenue was RMB 57.1 million, up 2.8%; and other services revenue was RMB 2.9 million, down 39.3%. Cost of revenue was RMB 251 million, up 65.8%, total operating expenses were RMB 239.7 million, up 26.6%, net loss attributable to So-Young was RMB 49.2 million versus RMB 33.1 million a year ago, and non-GAAP net loss was RMB 46.6 million versus RMB 31.5 million. Basic and diluted loss per ADS was RMB 0.48 versus RMB 0.02 last year. Cash, restricted cash, term deposits and short-term investments totaled RMB 880 million as of March 31, 2026, down from RMB 936.4 million at year-end 2025. For Q2, management expects aesthetic treatment service revenue of RMB 307 million to RMB 317 million, representing 112.6% to 119.5% year-over-year growth.

Xing Jin emphasized that China’s medical aesthetics market is becoming more standardized and rational, with consumers favoring anti-aging, safer products, and chain operators that can deliver consistent service. He said So-Young is leaning into that shift through a dual-engine strategy of scale and efficiency, expanding centers while improving per-center economics and supply chain depth. His tone was confident and expansionary, repeatedly pointing to the company’s goal of reaching 1,000 centers over time.

Zhang Sha focused on the numbers behind the growth story: RMB 432.8 million in Q1 revenue, with aesthetic treatment service revenue up 185.8% to RMB 282.4 million and gross margin expanding by 8.4 percentage points year over year and 3.3 points quarter over quarter. She noted 54 So-Young Clinics across 16 major cities as of March 31, with 41 profitable centers and 48 generating positive operating cash flow, while cash and investments declined to RMB 880 million from RMB 936.4 million because of strategic capital allocation to accelerate branded clinic expansion. On expenses, she highlighted RMB 251 million of cost of revenue, RMB 239.7 million of operating expenses, and a net loss of RMB 49.2 million, then framed the Q2 revenue outlook as continued confidence in the branded aesthetic center business.

Analysts pressed management on industry slowdown, competition, ARPU upside, talent retention, and service model innovation. Management said the broader market is slower but still attractive, with light medical aesthetics now nearly 80% of China’s medical aesthetics market and demand shifting toward standardized, affordable chain services; it also said weaker players should continue to exit. On growth drivers, So-Young pointed to more high-value member services, higher-end bundled offerings, blockbuster products like Thermage and BBL, and new products from partners such as Jinbo Biopharmaceutical. Management also described a physician-led consultation model, new training and R&D centers, and a retention system built on incentives, promotion ladders, and equity plans.