So-Young International Inc.

In Q2 2026, aesthetic treatment revenue was RMB 331.4 million, up approximately 130% year over year, and group revenue was RMB 505.2 million, up 33% year over year. Gross margin for the aesthetic treatment business improved to 28.1%, up 3.8 percentage points year over year and 1 percentage point quarter over quarter. Net loss attributable to So-Young narrowed to RMB 22.7 million from RMB 36 million a year ago; non-GAAP net loss was RMB 21 million versus RMB 30.5 million last year, and basic/diluted loss per ADS was RMB 0.22 versus RMB 0.35. Cash, restricted cash, term deposits, and short-term investments totaled RMB 848.2 million as of June 30, 2026. For Q3, management guided aesthetic treatment services revenue to RMB 352 million to RMB 362 million, implying 91.7% to 97.2% year-over-year growth.

The CEO framed the quarter as evidence that So-Young’s “dual engine” model is working, with scale, efficiency, medical capability, and AI adoption supporting faster growth and better operations. He emphasized transparency, uniform delivery, and accessibility, and said the company is building a premium medical service framework that should keep improving operating efficiency and margins. He was also notably optimistic about expanding the product portfolio and turning the clinic network into an industry innovation platform through data-driven collaboration with upstream partners.

The CFO focused on growth, efficiency, and organizational discipline. She highlighted RMB 331.4 million in aesthetic treatment revenue, 47 profitable centers, 51 centers with positive operating cash flow, and cash and investments of RMB 848.2 million. She also said cost controls and operating leverage helped lower the net loss to RMB 22.7 million, while Q3 aesthetic treatment services revenue is expected to be RMB 352 million to RMB 362 million. On capital allocation, she said the company is scaling back investment in loss-making businesses and concentrating resources on the clinic business and profitable operations.

Analysts asked about the Jinbo collaboration, AI use cases, gross margin improvement, and the path to group profitability. Management said the Jinbo partnership is aimed at long-term growth through co-creation, real-world data feedback, and better product, procurement, and inventory decisions, reducing guesswork and excess inventory. On AI, management said it is being used for product authentication, back-office quality control, SOP standardization, and data governance, with fully intelligent centers planned for rollout in Q4. On profitability, management said loss reduction will come from focusing on the clinic business, improving clinic margins, reducing investment in loss-making segments, and using referrals, operating leverage, and AI-enabled efficiency to move toward group profitability.