Yatsen Holding (NYSE:YSG) opened 2026 with Q1 revenue of C¥1.0b and a basic EPS loss of C¥0.64, alongside trailing 12 month revenue of C¥4.5b and a trailing EPS loss of C¥1.45. Over the past reported quarters, revenue has ranged from C¥833.5m in Q1 2025 to C¥1.4b in Q4 2025, while quarterly basic EPS has moved between a loss of C¥3.98 and a profit of C¥0.09. This gives investors a clear view of how top line scale and per share results have shifted through the last year. With that backdrop, the latest print keeps the focus squarely on how quickly margins can stabilize and whether the path toward more sustainable profitability is starting to take shape.

See our full analysis for Yatsen Holding.

With the headline numbers in place, the next step is to see how this earnings profile lines up against the widely followed narratives around Yatsen's growth, profitability path, and risk reward trade off.

Losses Narrow On The Trailing 12 Months

• On a trailing 12 month basis, net income excluding extra items moved from a loss of C¥708.2 million in Q4 2024 to a loss of C¥136.1 million by Q1 2026, while revenue over the same window rose from C¥3.4b to C¥4.5b.
• Supporters of the bullish view point out that this combination of higher trailing revenue and a much smaller trailing loss lines up with the idea of earnings catching up, yet it also highlights that profitability is still not achieved.
  • Bullish assumptions of strong future earnings growth sit alongside the fact that trailing basic EPS over the last 12 months is still a loss of C¥1.45 per share, even after the improvement from earlier periods.
  • The bullish case leans on this loss reduction as evidence that the business model is scaling, while the latest Q1 2026 quarterly loss of C¥60.5 million shows that the path to consistently positive net income is not complete.

Bulls argue that shrinking losses and growing sales put Yatsen closer to their upbeat earnings path, and this earnings set is a good checkpoint to compare with the more optimistic narrative 🐂 Yatsen Holding Bull Case

Revenue Growth Outpaces The Cited Market

• Over the last 12 months, revenue growth of 13.4% per year is reported, compared with the referenced US market growth rate of 11.7% per year, and quarterly revenue over the recent fiscal year ranges from C¥833.5 million to C¥1.4b.
• Analysts' consensus narrative leans on this above market top line trend, but the earnings profile reminds you that growth alone has not yet translated into positive margins.
  • Trailing 12 month net income excluding extra items remains a loss of C¥136.1 million, so the business is still absorbing more costs than it brings in despite the higher revenue base.
  • The most recent Q1 2026 basic EPS loss of C¥0.64 per share follows a small profit in Q4 2025, which shows that quarter to quarter swings can be meaningful even when the longer term revenue trend looks healthy.

Low P/S Multiple Versus Peers

• The stock is described as trading on a P/S ratio of 0.4x, below both the cited peer average of 0.7x and the broader US Personal Products industry average of 0.8x, while trailing 12 month revenue is C¥4.5b.
• Critics in the bearish narrative argue that this discount multiple may simply reflect ongoing loss making results and competitive pressures, rather than a clear mispricing.
  • The company is still unprofitable over the trailing 12 months, and recent quarterly net income excluding extra items moved from a profit of C¥8.1 million in Q4 2025 back to a loss of C¥60.5 million in Q1 2026.
  • Against this backdrop, a lower P/S ratio can be read as the market pricing in the risk that high spending on R&D and marketing, together with industry competition, keeps margins under pressure for longer.

Skeptics see the low P/S ratio and ongoing losses as a caution flag, and this is where the more cautious narrative on Yatsen becomes especially relevant 🐻 Yatsen Holding Bear Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Yatsen Holding on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

If this mix of improving metrics and ongoing risks leaves you undecided, consider acting promptly and testing the figures against your own expectations by reviewing the 3 key rewards

See What Else Is Out There

Yatsen is still reporting losses despite higher trailing revenue, and the low P/S ratio sits alongside an unproven path to consistent profitability.

If you are uneasy about ongoing losses and quarter to quarter swings, it makes sense to review 65 resilient stocks with low risk scores so you can focus on companies with more stable profiles.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.