111, Inc. (NASDAQ: YI) reported fourth‑quarter and full‑year 2025 financial results that show a narrowing of operating losses and a return to positive operating cash flow. Net revenues fell 12.8% YoY to RMB2.8 billion (US$403.3 million) in Q4 and to RMB12.6 billion (US$1.8 billion) for the year. The company posted a loss from operations of RMB0.3 million (US$0.05 million) in Q4 and a loss of RMB2.4 million (US$0.3 million) for the year, compared with operating income of RMB2.1 million in FY 2024. Non‑GAAP income from operations turned positive, with RMB0.2 million (US$0.03 million) in Q4 and RMB7.7 million (US$1.1 million) for the year, versus a non‑GAAP loss of RMB2.3 million in Q4 2024 and RMB22.3 million in FY 2024.
B2B gross‑profit margins expanded to 5.6% in Q4 2025 from 5.4% in Q4 2024, and to 5.5% for the year from 5.4% in FY 2024, reflecting the impact of the company’s warehouse‑partnership model. Revenue from marketing‑promoted products grew 76.2% YoY, driven by the flagship “Cravit” product, whose monthly sales rose from 20,000 boxes at launch to 290,000 boxes in November 2025. The company’s asset‑light strategy and divestiture of 100% equity interests in several subsidiaries have reduced capital and operational burdens, supporting the shift toward profitability.
Operating cash flow for Q4 2025 was RMB29.9 million, a positive figure but lower than the RMB263 million reported for FY 2024. For FY 2025, operating cash flow was RMB119.1 million. The company’s cash balance at the end of 2024 was RMB518.3 million; as of September 30 2025 it had risen to RMB557.5 million, indicating continued liquidity growth.
"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," said Junling Liu, Co‑Founder, Chairman and Chief Executive Officer. Liu added that the company had "proactively implemented strategic structural optimization by divesting 100% equity interests in several subsidiaries," and that "our strategic initiatives are yielding significant results. Promotional products are rapidly reaching pharmacies nationwide through the 111 digital marketing platform. Revenue from all marketing‑promoted products increased by 76.2% and gross profit rose 81.7% compared to the same quarter last year."
The earnings results reinforce the company’s transition to an asset‑light model, with the warehouse‑partnership network reducing fixed‑asset exposure and improving operating leverage. While the company remains in a GAAP loss position, the narrowing losses, positive non‑GAAP operating income, and expanding B2B margins suggest that the strategic shift is beginning to pay off. The company’s recent strategic cooperation with Eli Lilly, announced on January 28 2026, further expands its distribution capabilities and positions it to capture growth in the pharmaceutical market.
The results provide a clearer view of 111’s financial trajectory, highlighting the trade‑off between revenue scale and profitability as the company moves toward a more efficient, commission‑based business model. Investors will monitor how the company’s cost‑control initiatives and revenue‑growth tactics translate into sustained profitability in the coming quarters.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.