111, Inc. reported Q4 2025 net revenues of $403.3M (RMB 2.8B), down 26.7% year-over-year, with a GAAP loss per ADS of -$0.20 and Non-GAAP loss per ADS of -$1.80 (FY). The company achieved a pivotal Non-GAAP operating profitability turnaround. After-hours movement showed the stock declining approximately 1.08% on the day of the announcement.
About 111, Inc.
111, Inc.(NASDAQ: YI) is a leading tech-enabled healthcare platform company headquartered in Shanghai, China, founded in 2010 and listed on NASDAQ in 2018 as the first Chinese internet health company to do so. The company is dedicated to reshaping the value chain of the healthcare industry by digitally empowering the upstream and downstream healthcare ecosystem in China.
It operates through two primary segments: B2C (direct-to-consumer via its online retail pharmacy, 1 Pharmacy) and B2B (business-to-business wholesale via its 1 Medicine platform). The company also operates 1 Clinic, an internet hospital offering online consultations and electronic prescriptions. As of April 2026, 111, Inc. holds a market cap of approximately $57 million with shares outstanding of 8.67 million, trading on NASDAQ under the ticker YI. The company carries no dividend yield and trades with a 52-week range of $2.48 to $11.17, reflecting substantial volatility in its transition period.
Top Financial Highlights
- Q4 2025 Net Revenues were RMB 2.8 billion (US$403.3 million), representing a decrease of 26.7% from RMB 3.8 billion in Q4 2024
- Full-Year 2025 Net Revenues were RMB 12.6 billion (US$1.8 billion), representing a decrease of 12.8% from RMB 14.4 billion in FY2024
- B2B Segment Gross Profit Margin expanded to 5.6% in Q4 2025, up 60 basis points from 5.0% in Q4 2024; full-year B2B margin reached 5.5%, up 10 basis points year-over-year
- B2C Segment Gross Profit Margin was 18.0% in Q4 2025, down from 20.4% in Q4 2024
- Total Operating Expenses in Q4 2025 were RMB 165.2 million (US$23.6M), a decrease of 21.3% year-over-year from RMB 209.8 million
- Q4 GAAP Loss from Operations narrowed 95.6% to RMB 0.3 million, compared to a loss of RMB 7.3 million in Q4 2024
- Q4 Non-GAAP Income from Operations was RMB 0.2 million (US$0.03M), marking a year-over-year turnaround from a Non-GAAP operating loss of RMB 2.3 million
- Q4 Net Loss was RMB 6.5 million (US$0.9M), an improvement of 48.3% from RMB 12.5 million in Q4 2024
- FY2025 Operating Cash Flow was RMB 119.1 million (US$17.0M), positive for the second consecutive year
- Cash and cash equivalents, restricted cash and short-term investments totaled RMB 611.3 million (US$87.4M) as of December 31, 2025, an increase of 17.9% from year-end 2024
- Revenue from marketing-promoted products surged 76.2% YoY in Q4, with flagship product “Cravit” growing monthly sales volume from 20,000 boxes at launch to 290,000 boxes by November 2025
- FY2025 Net Loss attributable to ordinary shareholders was RMB 66.4 million (US$9.5M), compared to RMB 64.7 million in FY2024
- FY2025 Loss per ADS (basic and diluted) was RMB 7.60 (US$1.00), consistent with FY2024’s RMB 7.60
Beat or Miss?
The company does not provide formal guidance, and no consensus analyst estimates were available for Q4 2025. The table below compares reported figures to the prior-year period and to internally stated strategic milestones.
| Metric | Q4 2025 Reported | Prior Expectation / Context | Difference / Analysis |
| Net Revenue | RMB 2.8B (US$403.3M) | RMB 3.8B (Q4 2024) | -26.7% YoY; intentional due to asset-light transition |
| Non-GAAP Operating Income | RMB 0.2M (US$0.03M) | Non-GAAP loss of RMB 2.3M in Q4 2024 | Beat – turnaround from loss to profit |
| GAAP Net Loss | RMB 6.5M (US$0.9M) | RMB 12.5M loss in Q4 2024 | Beat – 48.3% improvement YoY |
| B2B Gross Profit Margin | 5.60% | 5.0% (Q4 2024) | Beat – 60 bps expansion |
| Operating Cash Flow | +RMB 29.9M (US$4.3M) | Negative in Q4 2024 | Beat – positive turnaround |
| Loss per ADS (Q4) | RMB 1.80 (US$0.20) | RMB 2.20 in Q4 2024 | Beat – improved by RMB 0.40 |
| FY Net Revenue | RMB 12.6B (US$1.8B) | RMB 14.4B (FY2024) | -12.8% YoY; driven by subsidiary divestitures |
| FY Cash Position | RMB 611.3M (US$87.4M) | RMB 518.3M (FY2024) | Beat – 17.9% increase |
What Leadership Is Saying?
“2025 marked a pivotal year for 111, as we steadily advanced our transition to a warehouse partnership model and achieved a key profitability milestone. We delivered non-GAAP operating profitability and positive operating cash flow for both the quarter and the full year. These results underscore the strength of our platform and validate the strategic direction we have set for the Company.” – Mr. Junling Liu, Co-Founder, Chairman, and CEO, 111, Inc.
“In 2025, we proactively implemented strategic structural optimization by divesting 100% equity interests in several subsidiaries. Through the divestiture of these entities and our transition to a warehouse partnership model – where we generate recurring commission income rather than bearing operational and capital burdens – we achieved sustained gross margin expansion for the B2B business. We believe this initiative reinforces our focus on pursuing asset-light, profitable growth, strengthening our ability to scale the warehouse partnership network efficiently while maintaining a healthier financial structure.” – Mr. Junling Liu, Co-Founder, Chairman, and CEO (on Financial Strategy), 111, Inc.
Historical Performance
Year-Over-Year Comparison (Q4 2025 vs Q4 2024)
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Net Revenue | RMB 2,820M (US$403.3M) | RMB 3,848M | -26.7% |
| B2B Revenue | RMB 2,764M | RMB 3,782M | -26.9% |
| B2C Revenue | RMB 56M | RMB 66M | -15.4% |
| GAAP Net Loss | RMB 6.5M | RMB 12.5M | +48.3% (improvement) |
| Non-GAAP Operating Income/(Loss) | RMB 0.2M income | RMB 2.3M loss | Turnaround |
| Total Operating Expenses | RMB 165.2M | RMB 209.8M | -21.3% |
| Operating Cash Flow | +RMB 29.9M | -RMB 48.5M | Positive turnaround |
| B2B Gross Profit Margin | 5.60% | 5.00% | +60 bps |
| Loss Per ADS (basic/diluted) | RMB 1.80 (US$0.20) | RMB 2.20 | -18.20% |
Year-Over-Year Comparison (FY2025 vs FY2024)
| Category | FY2025 | FY2024 | Change (%) |
| Net Revenue | RMB 12,556M (US$1.8B) | RMB 14,401M | -12.80% |
| B2B Revenue | RMB 12,321M | RMB 14,123M | -12.8% |
| B2C Revenue | RMB 235M | RMB 278M | -15.6% |
| GAAP Net Loss | RMB 22.5M | RMB 20.8M | -8.2% (wider loss) |
| Non-GAAP Operating Income | RMB 7.7M | RMB 22.3M | -65.5% |
| Total Operating Expenses | RMB 725.8M | RMB 827.1M | -12.3% |
| Operating Cash Flow | +RMB 119.1M | +RMB 263.0M | -54.7% |
| B2B Gross Profit Margin | 5.50% | 5.40% | +10 bps |
| Cash and Short-Term Investments | RMB 611.3M | RMB 518.3M | 17.90% |
Competitor Historical Performance
The competitive landscape for 111, Inc. is dominated by JD Health (HKEX: 6618) and Alibaba Health (HKEX: 0241), both backed by China’s largest technology conglomerates. JD Health holds approximately 40% of China’s online healthcare e-commerce market. The following table compares key YoY results for 111, Inc. versus its two major peers.
| Category | 111, Inc. (YI) FY2025 | 111, Inc. (YI) FY2024 | Change (%) |
| Revenue | RMB 12.6B (US$1.8B) | RMB 14.4B | -12.8% |
| Net Loss | RMB 22.5M | RMB 20.8M | -8.2% (wider) |
| Gross Profit Margin (B2B) | 5.50% | 5.40% | +10 bps |
The disparity in scale and trajectory is stark. While 111, Inc. is undergoing a deliberate revenue contraction to rebuild its cost structure around an asset-light model, both JD Health and Alibaba Health are scaling aggressively with strong profitability improvements. JD Health’s FY2025 revenue of RMB 73.44 billion is nearly 6 times 111’s total, and pharmaceutical sales across these top online platforms grew 20-30%, far outpacing the national pharmaceutical market growth of approximately 2%.
How the Market Reacted?
On the day 111, Inc. released its Q4 and fiscal year 2025 results on April 9, 2026, shares of YI declined approximately 1.08%, removing roughly $650,000 from the company’s market capitalization and bringing it to approximately $59.55 million at that time. However, in subsequent trading sessions, the stock recovered and gained approximately 4.18%, outperforming its healthcare distribution peers, which were mostly flat to down on the same day. This divergence pointed to a stock-specific reaction driven by the earnings release rather than any broader sector trend.
Historically, YI’s earnings releases have moved the stock an average of 7.92% over the five prior earnings events, making the eventual 4.18% move within the typical range of the stock’s earnings sensitivity. The overall sentiment from the release leans cautiously bullish: the company’s Non-GAAP operating profitability and positive cash flow milestones signal improving business quality, but the steep 26.7% Q4 revenue decline continues to weigh on near-term investor confidence.
