So-Young International (NASDAQ:SY) Releases Quarterly Earnings Results, Beats Expectations By $0.55 EPS

So-Young International (NASDAQ:SY - Get Free Report) issued its earnings results on Wednesday. The company reported ($0.13) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.68) by $0.55, Zacks reports. So-Young International had a negative return on equity of 12.31% and a negative net margin of 15.97%.The business had revenue of $65.85 million during the quarter, compared to analysts' expectations of $442.62 million.

Here are the key takeaways from So-Young International's conference call:

• So-Young reported a record Q4 with total revenue of RMB 460.7–461 million (+≈25% YoY), driven by aesthetic centers whose revenue rose to RMB 248.1 million (+205% YoY) and became the largest segment.
• Rapid brick-and-mortar expansion — 49 clinics by year-end (now 50+), 25 centers profitable and 39 with positive operating cash flow — and a plan to open at least 35 new centers in 2026 while shifting toward balancing scale with profitability.
• The company remains loss-making and is using cash to fund expansion — net loss attributable to So-Young was RMB 108.8 million (improved from RMB 607.6M), non-GAAP loss was RMB 93.4 million, and cash resources fell to RMB 936.4 million from RMB 1,253.2 million year-over-year.
• Management emphasized quality and trust as a moat — the full-time physician team expanded to 211 doctors, implemented a six-pillar compliance framework and gained industry-first PIA certification, while core-member quarterly repurchase rate exceeds 80% with average annual spend ~RMB 16,500.
• Revenue concentration and headwinds in other segments — information/reservation services, product sales and other services declined materially (−26.8%, −19.9%, −40.7% YoY respectively), increasing reliance on the branded clinic rollout to sustain growth and margins.

So-Young International Trading Down 11.3%

Shares of So-Young International stock opened at $2.83 on Friday. The stock has a market capitalization of $285.40 million, a price-to-earnings ratio of -8.58 and a beta of 2.01. The firm's 50-day moving average price is $3.07 and its two-hundred day moving average price is $3.21. So-Young International has a 1-year low of $0.67 and a 1-year high of $6.28.

Analyst Upgrades and Downgrades

Several analysts recently commented on the company. Weiss Ratings reaffirmed a "sell (d)" rating on shares of So-Young International in a research note on Monday, December 29th. Wall Street Zen upgraded So-Young International from a "sell" rating to a "hold" rating in a research note on Saturday, December 20th. One investment analyst has rated the stock with a Buy rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $5.50.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of the business. HRT Financial LP bought a new stake in shares of So-Young International during the fourth quarter worth $32,000. Virtu Financial LLC bought a new position in So-Young International in the fourth quarter valued at about $33,000. Dimensional Fund Advisors LP bought a new position in So-Young International in the third quarter valued at about $63,000. Marshall Wace LLP acquired a new stake in So-Young International in the fourth quarter worth about $45,000. Finally, Jane Street Group LLC increased its position in So-Young International by 264.2% in the first quarter. Jane Street Group LLC now owns 36,419 shares of the company's stock worth $30,000 after purchasing an additional 26,419 shares during the period. 35.31% of the stock is owned by institutional investors and hedge funds.

About So-Young International

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.