111, Inc. Reports Q4 and Fiscal Year 2025 Financial Performance Results

Overview of 2025 Financial Results

111, Inc. (NASDAQ: YI), a prominent tech-enabled healthcare organization, reported its unaudited financial outcomes for the fourth quarter and fiscal year ending December 31, 2025. The company's strategic transition towards a warehouse partnership model has been a key focus, aiming for enhanced efficiency in operations and a stronger financial foundation.

Financial Performance Highlights

In the fourth quarter of 2025, the company's net revenue stood at an impressive RMB 2.8 billion (approximately USD 403.3 million), marking a year-over-year decline of 26.7%. Despite this decrease, gross profit improved, showcasing the effectiveness of 111, Inc.'s strategic optimizations. The B2B gross profit margin reached 5.6%, a notable increase from 5.0% in the fourth quarter of 2024. This reflects the management’s commitment to optimizing operational costs while continuing to improve margins.

The total operating expenses were reduced to RMB 165.2 million (USD 23.6 million), down by 21.3% compared to RMB 209.8 million the previous year. This decline highlights the company's focus on rigorous cost control and operational efficiency. Notably, the company achieved a non-GAAP income from operations of RMB 0.2 million (USD 0.03 million), a significant turnaround from a loss of RMB 2.3 million in the same quarter last year.

Annual Performance Recap

For fiscal year 2025, the company reported net revenues of RMB 12.6 billion (USD 1.8 billion), which represents a 12.8% decrease from RMB 14.4 billion in 2024. The gross segment profit was RMB 723.4 million (USD 103.4 million), reflecting solid operational performance amidst ongoing strategic changes. Operating expenses decreased by 12.3%, emphasizing the effective cost management strategies in place.

A year-over-year non-GAAP income from operations was RMB 7.7 million (USD 1.1 million), compared to RMB 22.3 million in 2024. The reduction in revenue reflects the company's intentional scaling down of operations, aligning with their long-term growth strategy. 111, Inc. also reported net cash provided by operating activities of RMB 119.1 million (USD 17.0 million), signifying strong cash flow management.

Strategic Shifts and Future Outlook

2025 was a critical year of transformation for 111, Inc. As the company transitions to a warehouse partnership model, it has divested its equity interests in several subsidiaries, which now operate as fulfillment partners. This restructuring is essential for focusing resources on core business functions and enhancing overall liquidity.

The company noted that revenues from marketing-promoted products soared by 76.2%, driven by the effective use of their digital marketing platform.