So-Young Aesthetic Sales Up 426 Percent
So-Young(NASDAQ:SY) reported second quarter 2025 results on August 15, 2025, highlighting aesthetic treatment service revenue grew 426.1% year-over-year to RMB 144.4 million, reaching its highest segment contribution. Despite this growth, the company posted a non-GAAP net loss of RMB 30.5 million as it accelerated aesthetic center expansion and deepened investment in proprietary product development. The summary below analyzes the most material long-term strategic implications arising from the earnings call.
The company operated 29 aesthetic centers as of June 2025, with 13 centers achieving monthly profitability and 19 generating positive operating cash flow in June. Branded centers are expected to reach 50 by year-end, with over 10 slated to open in the second half of the year. Management signaled a historic shift in the business model as this segment overtook other revenue streams for the first time, indicating a multi-year transition inflection point.
This milestone underscores a high-growth, asset-driven model but entails short-term margin compression as the company front-loads center rollout and absorbs upfront operating losses from new sites.
Source Fool.com
