So-Young Intl reported a 33% year-over-year revenue increase to RMB 510 million for Q2FY26. The aesthetic treatment segment drove growth with RMB 330 million in revenue, up 130% YoY.

Net loss attributable to the company narrowed by 37% to RMB 22.7 million, reflecting improved operational efficiency across its expanding clinic network.

Financial Performance

The company’s total revenue reached a quarterly record. While the aesthetic treatment business expanded rapidly, other segments contracted. Information and reservation services revenue fell 35% YoY to RMB 87.9 million. Sales of medical products and maintenance services declined 2.8% to RMB 73.9 million.

Cost of revenues rose 53% YoY to RMB 282.4 million, driven by the expansion of branded aesthetic centers. Total operating expenses increased 10.4% to RMB 266.5 million. Sales and marketing expenses were RMB 153.5 million, while general and administrative expenses rose 12.5% to RMB 88.6 million. R&D expenses fell 21.7% to RMB 24.4 million due to improved staff efficiency.

Operational Expansion

As of June 30, 2026, So-Young Intl operated 65 clinics across 18 cities, a net addition of 11 centers in the quarter. Of these, 47 centers achieved profitability, and 51 centers generated positive operating cash flow. Same-store sales growth reached 52%, up from 14% in the prior-year period.

Verified visits exceeded 165,000, up 145% YoY. Verified aesthetic treatments performed surpassed 362,000, up 134% YoY. The active user base grew to over 250,000, with more than 78,000 classified as level three or above core members. Over 50% of new customers came from referrals, lowering blended acquisition costs.

What the Numbers Show

The aesthetic treatment business gross margin improved by approximately 3.8 percentage points YoY to 28.1%. This margin expansion occurred despite the addition of 11 new centers in the quarter, indicating that economies of scale and operational efficiencies are offsetting the typical ramp-up costs associated with new store openings. The divergence between the 53% rise in cost of revenues and the 130% surge in aesthetic treatment revenue highlights strong top-line leverage relative to variable costs.

Strategic Initiatives

Management highlighted AI integration and strategic partnerships as key growth drivers. The joint product Miracle Collagen with Jingbo Biopharmaceutical sold over 66,000 units since its April launch. In June, the company rolled out Wavecom, using soft crosslinking technology for eye and mid-face treatments.

The physician team expanded to around 280 full-time physicians. Training workshops with partners like Allergan and Jingbo enhanced clinical skills. AI applications now include product authentication via QR codes and real-time treatment SOP displays on dual screens to boost user trust and quality control.

Outlook

So-Young Intl forecasts aesthetic treatment services revenue for the following quarter to be between RMB 362 million and RMB 362 million, representing year-over-year growth of 91.7% to 97.2%. As of June 30, 2026, cash and cash equivalents, restricted cash, term deposits, and short-term investments totaled RMB 848.2 million.

So-Young International (NASDAQ: SY) reported a 41% surge in quarterly sales to $74.461 million, significantly outpacing the narrowing of its per-share losses.

The company’s adjusted earnings per share (EPS) loss improved to $(0.03) from $(0.05) in the same period last year, marking a 40% reduction in the deficit per share.

Financial Performance

Revenue growth was the primary driver of the quarter’s results, with sales climbing from $52.871 million to $74.461 million. This top-line expansion occurred alongside a contraction in the bottom-line loss.

What the Numbers Show

The divergence between revenue growth and loss reduction highlights operational leverage. While sales grew by approximately 41%, the EPS loss narrowed by 40%. This indicates that the incremental revenue generated did not fully offset fixed costs or operating expenses on a per-share basis, yet it substantially reduced the overall deficit compared to the prior year period.