What is the trend in the number of active users and average revenue per user (ARPU) compared with previous quarters?

Trend Overview

So‑Young’s Q2‑2025 unaudited results show a continued expansion of its consumer base. The number of active users rose quarter‑over‑quarter, indicating that the platform’s acquisition and engagement initiatives are still gaining traction in the highly competitive Chinese aesthetic‑treatment market. By contrast, the average revenue per user (ARPU) moved slightly lower versus the prior quarter, suggesting that while more customers are joining the ecosystem, the incremental spend per customer is under pressure—likely a mix of pricing discounts, promotional activity and a maturing user mix that includes a higher proportion of first‑time or lower‑spending patrons.

Trading Implications

The divergence between user growth and ARPU signals a classic “top‑line‑growth‑ahead‑of‑profitability” phase. For momentum traders, the uptick in active users can be a bullish catalyst, especially if the stock is trading above its 20‑day moving average and holds support near recent lows (around $X). However, the softening ARPU warrants caution; it could erode margin expansion and cap earnings upside over the next 6‑12 months. A prudent approach is to look for a break above the recent resistance level accompanied by positive forward‑looking guidance on monetization (e.g., higher‑margin services, upsell of premium packages). If the price respects that breakout and the company signals improving ARPU trends, a long‑position could be justified. Conversely, a failure to lift ARPU or a dip back below the 20‑day MA may present a short‑covering rally risk, making a partial‑sell or defensive stop‑loss advisable for those already long.