MILPITAS, Calif. – August 3, 2025 – Zepp Health (ZEPP), a global leader in smart wearables and health technology, just dropped its Q2 2025 earnings report, and the numbers are telling a compelling comeback story.
By the Numbers: A Quarter of Gains
- Revenue Surge: Zepp Health reported a US$59.4 million in revenue, a significant 46.2% jump year-over-year. This figure wasn’t just impressive; it blew past the company’s own high-end guidance.
- Losses Narrowing: While still in the red, both GAAP and adjusted net losses shrank considerably. GAAP net loss landed at US$7.7 million, while adjusted net loss came in at US$6.16 million – improvements of 28.6% and 30.2% respectively, compared to Q2 2024.
- Future Outlook: The company anticipates net revenues between US$72 million and US$76 million for Q3 2025, projecting a stunning 70% to 79% year-over-year increase.
- Product Pipeline: Debuted the Amazfit Balance 2 and Amazfit Helio Strap.
- Athlete Endorsements: The company added NFL star Derrick Henry and ultra-runner Rod Farvard to its roster of brand ambassadors.
Amazfit’s on the Rise
Zepp Health CEO Wayne Huang emphasized the strategic shift toward the Amazfit brand, stating, “Our 46.2% year-over-year revenue growth, driven entirely by Amazfit products, marks our first overall revenue growth since 2021.” He credited this success to increased global brand awareness and a diversified supply chain that mitigated tariff risks, adding volume growth and cost efficiencies helped to offset headwinds.
Product Strategy Pays Off
Huang elaborated on Amazfit’s multi-tiered product strategy, which seems to be hitting the sweet spot with diverse consumer groups. The rugged T-Rex 3 continues to dominate the premium outdoor category, while the new Balance 2 smartwatch and Helio Strap are gaining traction with their advanced accuracy and training insights. Even the entry-level Bip 6 and lifestyle-focused Active 2 series are showing steady growth, thanks to strong partnerships in retail and e-commerce. Zepp OS 5.0, powered by AI, is also a game changer, which includes voice activated workouts and integration with fitness platforms such as strava.
Marketing Ecosystem
Derrick Henry joins the brand’s star-studded roster of athlete ambassadors and will work closely with the brand on product testing. The company is fostering a strong athlete team and using marketing across YouTube, TikTok, and Instagram which has formed a powerful marketing ecosystem. Huang highlighted the success of their marketing ecosystem during Amazon Prime Day, where Amazfit saw significant sales surges in both the U.S. and EMEA regions.
CFO’s Perspective: Strength in a Soft Market
Leon Deng, Zepp’s CFO, highlighted the standout performance of the Amazfit Bip 6, Active 2, and T-Rex 3 models, along with the positive contributions from the June launches of the Helio Strap and Balance 2, all despite the macro environment. Deng stated that they positioning themself for a solid second half in the marketplace.
Financial Housekeeping
Gross margin held steady at 36.2%, consistent with the previous quarter. Operating expenses are down with investing in R&D and marketing activities. With the company ending the quarter with US$95.3 million in cash and are strategically prepare for upcoming product launches.
Looking Ahead
Zepp Health projects substantial revenue growth for Q3 2025, signaling strong confidence in its product lineup and market strategy. The company’s share repurchase program remains active, further underscoring its positive long-term outlook.
Financial Results
Revenues for Q2 2025, reached US$59.4 million, and an increase of 46.2% from the second quarter of 2024 and 54.2% from the first quarter of 2025. This increase was primarily driven by the popularity of the Amazfit Bip 6, the Active 2 and the T-Rex 3 and the new Amazfit Helio strap and Balance 2 that were launched in June. With the positive growth the company is expecting the Amazfit-branded sales to continue to climb.
The gross margin for the second quarter of 2025 was 36.2%, consistent with the previous quarter, however worse than the second quarter of 2024. This yearly decline is due to the lower-margin entry level products sold, the Bip 6 and Active 2 and the clearance of older mid-range Balance 1 products at reduced prices for the launch of the Balance 2 range launch. As the company enters the third quarter of 2025, it is expected that the positive trend in gross margin will continue.
Q2 research and development expenses were US$11.2 million, and increase of 3.1% yearly, due to the company’s investment in new technologies, including AI. Selling and marking increased by 14.2% year-over-year and decreased by 12.9% quarter-over-quarter; they are focused on building brand recognition, retail profitability and channel improvement.
General and administrative expenses decreased by 9.7% year-over-year. Operating loss for Q2 was US$6.1 million a drop of 38.2% compared with Q2 2024. The net loss attributable to Zepp Health Corporation for Q2 2025, was US$7.7 million, over Q2 2024.
The company had US$95.3 million in cash and cash equivalents at the end of Q2 2025, compared with US$103.8 million at the end of Q1 2025, with the expectation to grow in the next quarter. As of June 30, 2025, the company had US$79.9 million in inventory.
The company has initiated the retirement of short/long-term debt and has retired a total of US$68 million of debt since 2023.
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)
|
As of December 31, |
As of June 30, |
|||
|
2024 |
2025 |
|||
|
US$ |
US$ |
|||
|
Assets |
||||
|
Current assets: |
||||
|
Cash and cash equivalents |
91,069 |
55,445 |
||
|
Restricted cash |
19,666 |
39,875 |
||
|
Accounts receivable, net |
62,965 |
70,916 |
||
|
Amounts due from related parties |
2,663 |
3,661 |
||
|
Inventories, net |
56,789 |
79,911 |
||
|
Short-term investments |
997 |
1,015 |
||
|
Prepaid expenses and other current assets |
17,415 |
21,615 |
||
|
Total current assets |
251,564 |
272,438 |
||
|
Property, plant and equipment, net |
6,898 |
6,161 |
||
|
Intangible asset, net |
7,091 |
14,352 |
||
|
Goodwill |
9,581 |
9,581 |
||
|
Long-term investments |
225,910 |
218,970 |
||
|
Deferred tax assets |
17,465 |
17,666 |
||
|
Amount due from related parties, non-current |
2,019 |
2,051 |
||
|
Other non-current assets |
4,607 |
4,693 |
||
|
Operating lease right-of-use assets |
3,458 |
3,059 |
||
|
Total assets |
528,593 |
548,971 |
|
Zepp Health Corporation |
||||
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS – CONTINUED |
||||
|
(Amounts in thousands of U.S. dollars (“US$”) |
||||
|
except for number of shares and per share data, or otherwise noted) |
||||
|
As of December 31, |
As of June 30, |
|||
|
2024 |
2025 |
|||
|
US$ |
US$ |
|||
|
Liabilities |
||||
|
Current liabilities: |
||||
|
Accounts payable |
51,077 |
86,517 |
||
|
Advance from customers |
197 |
250 |
||
|
Amount due to related parties |
2,477 |
531 |
||
|
Accrued expenses and other current liabilities |
37,576 |
38,847 |
||
|
Income tax payables |
508 |
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