So-Young International Q2 Earnings Call Highlights
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.
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.
Aesthetic Clinic Network Expands
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.
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.
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.
Other Segments Decline
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.
Products, Supply Chain and AI Initiatives
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.
Outlook
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.
About So-Young International (NASDAQ:SY)
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.
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