ZEPP

This article first appeared on GuruFocus. Revenue: $63.5 million in Q2 2026, representing year-over-year growth of 6.9%. Gross Margin: 37.4%, an improvement of 120 basis points year-over-year. Adjusted Operating Expenses: $34.8 million in Q2 2026, compared with $26.4 million in Q2 2025. Adjusted R&D Expenses: $10.8 million in Q2 2026, compared with $10.3 million in Q2 2025. Adjusted Selling and Marketing Expenses: $18.2 million in Q2 2026, compared with $12 million in Q2 2025. Adjusted G&A Expenses: $5.8 million in Q2 2026, compared with $4.1 million in Q2 2025. Adjusted Operating Loss: $11.1 million in Q2 2026, compared with a loss of $4.9 million in Q2 2025. Net Loss (First Half 2026): $31 million, compared with $27.5 million in the first half of 2025. Inventory: $62.4 million in Q2 2026, flat compared with Q1 2026 and down $17.5 million year-over-year. Cash and Cash Equivalents: $106.3 million as of Q2 2026, up $11 million year-over-year and $3 million sequentially. Debt: Long-term and short-term debt increased by $6.2 million in Q2 compared with Q1 2026; converted $13.3 million of short-term debt into long-term obligations during the quarter. Share Repurchases: Repurchased $17.6 million under the $20 million authorization as of Q2 2026. Q3 2026 Revenue Guidance: Expected to be between $68 million and $73 million, representing a year-over-year decline of approximately 4%-10%. Warning! GuruFocus has detected 3 Warning Signs with ZEPP. Is ZEPP fairly valued? Test your thesis with our free DCF calculator. Release Date: September 02, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Zepp Health Corp (NYSE:ZEPP) reported a 6.9% year-over-year revenue increase to $63.5 million in Q2 2026, returning to growth despite supply chain challenges. Gross margin improved by 120 basis points year-over-year to 37.4%, driven by a successful shift towards higher-value products like the T-Rex, Active, and Balance families. The company's premiumization strategy is gaining traction, with higher-priced models (e.g., Active 3 Premium, Balance 3) accounting for a growing share of family activations, indicating strong consumer acceptance. Zepp Health Corp (NYSE:ZEPP) is building a differentiated position in the hybrid training niche through strategic partnerships (e.g., HYROX) and athlete endorsements, which is enhancing brand credibility and product demand. The company maintains a solid balance sheet with $106.3 million in cash, improved working capital efficiency, and a disciplined approach to debt management, providing ample runway for future investments. Zepp Health Corp (NYSE:ZEPP) is proactively managing cost headwinds, such as higher memory prices, through supply chain diversification and engineering optimizations, while also benefiting from a favorable tariff refund. The company is expanding into the screen-free wearable category with the Helio Strap, a market validated by Google's recent entry, positioning it for future growth as supply constraints ease. Zepp Health Corp (NYSE:ZEPP) faces significant supply constraints for key products like the Bip series and Helio Strap, which limited Q2 revenue and will continue to impact Q3 performance. The company's Q3 2026 revenue guidance of $68-$73 million implies a year-over-year decline of 4%-10%, reflecting a tough comparison base and ongoing macroeconomic pressures on consumer spending. Higher memory and component costs are putting downward pressure on profitability, particularly for entry-level products, partially offsetting the benefits of an improved product mix. Adjusted operating loss widened to $11.1 million in Q2 2026 from $4.9 million in the prior year, driven by a significant increase in selling and marketing expenses for new product launches. The company's net loss for the first half of 2026 increased to $31 million, impacted by approximately $4.5 million in foreign exchange headwinds due to the appreciation of the RMB. Zepp Health Corp (NYSE:ZEPP) is experiencing production ramp-up difficulties for its new Balance 3 series, limiting its initial financial contribution despite strong early demand. The company faces a challenging macroeconomic environment with inflation squeezing consumer discretionary income, which is dampening overall demand for consumer electronics. Q: Can you walk us through the main reasons for the expected revenue decline in Q3 2026, and how do profitability and cash flow look against current guidance?A: Cheng Deng (CFO) explained that the Q3 guidance incorporates several factors: macroeconomic pressures on consumer discretionary income, ongoing supply constraints for products like Helio Strap, Balance 3, and the Bip series, and the timing of new product launch windows and channel deployment. He noted that the Q3 2025 comparison base was exceptionally high at $75.8 million (78.5% YoY growth). He emphasized that the company is aiming to return to a growth trajectory in Q4 and expects full-year 2026 to still show top-line growth. Q: Selling expenses increased significantly in Q2. Where do you see the biggest opportunities to reduce OpEx, and should we expect selling expenses to remain at similar levels in Q3?A: Cheng Deng (CFO) stated that the increase was primarily due to launch campaigns for the roughly six to seven new products introduced in Q2, compared to only one or two in the prior year. He confirmed that the company is nearly done with major product launches for the year, with only one or two minor launches expected in the second half. Therefore, he expects selling expenses to moderate as launch activity slows. Q: On the supply bottlenecks affecting Bip and Helio Strap, when do you expect these issues to be fully resolved, and how confident are you that supply will be sufficient to meet Q4 demand?A: Cheng Deng (CFO) confirmed that restrictions on Bip supply have been almost entirely removed. For Helio Strap, the company is gradually working to fully restore supply. While Q3 will still see some impact from the supply constraint (already reflected in guidance), the company expects Helio Strap to be in full supply by Q4. Q: For the longer-term period, do you have any long-term strategy to get the business back to growing year-over-year?A: Cheng Deng (CFO) highlighted that the first half of 2026 still grew by more than 17%-18% year-over-year. He reiterated that the company is aiming to deliver growth or return to a growth trajectory in Q4, which would result in a full-year growth trajectory for the top line despite the temporary Q3 slowdown. Q: Regarding the market performance of Balance 3, do you have plans to develop a subscription model for the business?A: Cheng Deng (CFO) explained that while the Zepp App currently has a subscription functionality focused on sleep quality and stress management, the company's strategy is to provide professional functionalities for free as a key competitive edge. He confirmed that there are no short-term plans to introduce subscription charges for Balance 3. Q: In total, how many products were launched this year, to be exact?A: Cheng Deng (CFO) stated that the company has launched approximately nine to ten products so far in 2026, with one to two more in the pipeline, bringing the total to roughly 10-12 products for the year. Q: Can you elaborate on the impact of higher memory costs and how the company plans to mitigate these headwinds on gross margin?A: Cheng Deng (CFO) acknowledged that the semiconductor industry's transition to DDR5 and high-bandwidth memory, driven by AI and data center demand, is tightening supply and increasing costs. He noted that the global operations team has been securing supply through multiple channels since 2025 and leveraging engineering expertise to optimize memory requirements. He also mentioned that a refund of prior duties paid related to tariffs could serve as another meaningful offset to the higher memory costs. Q: Can you provide more detail on the product mix shift towards higher-value products and its impact on the company's strategy?A: Wang Huang (CEO) detailed that the T-Rex family maintains a mature higher-end structure with models like T-Rex 3 Pro and T-Rex Ultra 2 accounting for ~50% of activations. The Active family's $169 price tier grew from 22% of activations in Q1 to ~57% by late August. The Balance family, with new higher-priced models (Balance 3 at $369.99 and Balance Ultra at $599.99), saw its new generation grow from 3% of activations in Q2 to ~30% by late August. He emphasized this demonstrates durable consumer acceptance of higher price points and validates the hybrid training strategy. Q: What is the company's strategy regarding the Bip family, and why are you announcing price increases?A: Wang Huang (CEO) explained that Bip serves as the entry-level foundation, anchored by Bip 6 at $79.99. Following the recovery in supply and sustained strong demand, the company announced it will increase prices across the entire Bip family beginning in January 2027. This decision is supported by enduring consumer demand and aims to preserve the product's value proposition while supporting healthier and more sustainable unit economics, particularly given the pressure from higher memory and component costs on entry-level product profitability. Q: How is the company's cash position and debt profile evolving?A: Cheng Deng (CFO) reported that cash and cash equivalents stood at $106.3 million as of Q2 2026, an increase of $11 million year-over-year and $3 million sequentially, driven by enhanced working capital efficiency. Long-term and short-term debt levels increased by $6.2 million sequentially, entirely due to converting $13.3 million of short-term debt into long-term obligations. Since the beginning of 2023, the company has cumulatively retired $40.2 million of debt and remains committed to maintaining a healthy balance sheet. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Zepp Health Corporation Sponsored ADR? Here are five stocks we like better. Q2 revenue rose 6.9% to $63.5 million, while gross margin improved to 37.4% as new launches and a premium product mix supported growth despite higher component costs. Zepp is seeing stronger adoption of higher-priced devices, including premium T-Rex, Active and Balance models, but supply constraints continue to affect Bip, Helio Strap and some newer products. The company plans to raise Bip prices beginning in January 2027. Profitability weakened as marketing investment increased: adjusted operating expenses climbed to $34.8 million and the adjusted operating loss widened to $11.1 million. Zepp expects third-quarter revenue of $68 million to $73 million, down year over year, with management targeting a stronger fourth quarter as supply improves. Zepp Health (NYSE:ZEPP) reported second-quarter 2026 revenue of $63.5 million, up 6.9% from a year earlier, as new product launches and a higher-priced product mix supported growth. Gross margin improved to 37.4% from 36.2% a year earlier despite higher memory and component costs, according to management. Founder and Chief Executive Officer Wang Huang said the company’s results reflected “measured rather than explosive growth,” but said the improvement in revenue and gross margin demonstrated progress before newer products had fully ramped in production and distribution channels. → AST SpaceMobile Is Down 54%—Can FCC Progress and BlueBirds Reverse the Slide? The company expects third-quarter revenue of $68 million to $73 million, which would represent a year-over-year decline of approximately 4% to 10% from a comparatively high base of $75.8 million in the prior-year quarter. Zepp said last year’s third-quarter revenue had risen 78.5% year over year. Huang said Zepp’s product portfolio is increasingly shifting toward higher-value devices. Within its T-Rex line, the T-Rex Break Pro and T-Rex Orca Two, with U.S. suggested retail prices of about $399 and $549, respectively, represented about 50% of recent global T-Rex family activations. → Palo Alto’s Rally Has One Big Problem Ahead of Earnings The company also cited adoption of higher-priced Active products. Active 3 Premium and Active Max, both priced at $169 in the U.S., accounted for about 40% of global Active family activations in the second quarter, up from roughly 22% in the first quarter. Their contribution reached approximately 49% in July and 57% through Aug. 25, Huang said. Zepp said total monthly activations for the Active family were broadly comparable with those of the Bip family in July and August, even as Bip supply recovered. The company characterized that comparison as evidence that products largely priced between $100 and $200 can reach a similar activation scale to the entry-level Bip line. → Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season The Balance family is central to Zepp’s strategy in hybrid training, targeting athletes combining strength, endurance and recovery activities. Balance 3 starts at $369.99 in the U.S., while Balance 3 Titanium is priced at $499.99 and Balance Ultra at $599.99. Balance 3 and Balance Ultra represented about 26% of global Balance activations in July and about 30% through Aug. 25, compared with about 3% in the second quarter. Huang said total global Balance activations in July increased by more than one-third from the second-quarter monthly average, while activations of older Balance models remained relatively stable. However, he said the newer Balance products had not yet reached their anticipated scale or financial contribution. Supply constraints affected the Bip family and Helio Strap during the quarter. Huang said demand for the sub-$100 Bip 6 remained strong after supply recovered, while Bip Max recently accounted for about one-third of global Bip family activations. Beginning in January 2027, Zepp plans to raise prices across the Bip family. Huang said the move is intended to maintain the family’s consumer value proposition while improving unit economics over a longer product life cycle, particularly as higher memory and component prices pressure profitability for entry-level products. Chief Financial Officer Leon Deng said Bip supply restrictions had been “almost” fully removed. Helio Strap supply is expected to improve partially in the third quarter and be fully restored in the fourth quarter. The screen-free Helio Strap experienced demand that exceeded available supply in the second quarter, according to the company. Zepp also said it is building product credibility in professional running through its Cheetah line and in hybrid training through Helio Strap Pro. Huang highlighted performances by athletes using Amazfit products, while noting that credit for those results belonged to the athletes. Adjusted operating expenses totaled $34.8 million, compared with $26.4 million in the second quarter of 2025 and $35.7 million in the first quarter. The year-over-year increase included approximately $2.7 million in foreign-currency effects and $5.7 million primarily related to higher selling and marketing spending. Adjusted selling and marketing expense rose to $18.2 million from $12 million a year earlier. Deng said the increase included $2.9 million for new-product launch campaigns, $1.6 million in e-commerce platform fees, $700,000 in athlete sponsorships, $500,000 related to the company’s HYROX partnership, and $500,000 for physical retail and event activations. Deng said selling expense should moderate as launch activity slows. The company has launched approximately nine to 10 products so far this year and expects only one or two additional, relatively minor launches in the second half, he said. Adjusted research and development expense was $10.8 million, compared with $10.3 million a year earlier. The company said it continues to invest selectively in products, emerging technologies and artificial intelligence while seeking to improve R&D efficiency. Zepp posted an adjusted operating loss of $11.1 million, compared with a $4.9 million loss in the year-earlier period. First-half net loss was $31 million, versus $27.5 million a year earlier, including about $4.5 million in foreign-exchange headwinds associated primarily with the appreciation of the renminbi against the U.S. dollar. Inventory was $62.4 million at the end of the second quarter, flat sequentially and down $17.5 million from a year earlier. Cash and cash equivalents totaled $106.3 million, up $3 million from the first quarter and $11 million from the year-earlier period. The company said it converted $13.3 million of short-term debt into long-term obligations during the quarter. Since the start of 2023, Zepp has retired $40.2 million of debt, Deng said. It had repurchased $17.6 million of stock under its $20 million repurchase authorization as of the end of the quarter. In discussing the third-quarter outlook, Deng cited macroeconomic pressure on consumer discretionary spending, supply constraints affecting Helio Strap, Balance 3 and Bip products, and the timing of product launches and channel sell-through. He said Zepp expects a more favorable fourth quarter as product supply improves and management aims to return to revenue growth. Zepp Health Corp is a technology company specializing in the design, development and sale of smart wearable devices and health management solutions. Through its flagship Amazfit brand and the Zepp software ecosystem, the company offers a range of products—including smartwatches, fitness bands, smart scales and health-oriented mobile applications—designed to track key biometric data such as heart rate, sleep patterns, blood oxygen levels and activity metrics. Zepp Health's integrated platform enables users to monitor wellness and fitness goals while leveraging cloud-based analytics for personalized insights. At the core of Zepp Health's offering is its Zepp cloud platform, which aggregates and analyzes data collected from its hardware lineup. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Zepp Health Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

This article first appeared on GuruFocus. Revenue: USD 51.5 million, up 33.8% year over year. Gross Margin: 37.7%, an expansion of 0.4% compared to Q1 2025. Gross Profit: Increased 35.3% to USD 19.4 million. Operating Loss: Narrowed to USD 6.3 million from USD 17.2 million in Q1 2025. Adjusted Net Loss: USD 17.9 million or 34.8% of sales, compared to USD 18.1 million or 41% of sales in Q1 2025. Inventory: USD 62.8 million, down from USD 72.8 million as of Q4 2025. Cash and Cash Equivalents: USD 103.2 million, nearly flat compared to USD 103.8 million a year ago. Debt Retirement: Cumulatively retired USD 46.7 million of debt since the beginning of 2023. Share Repurchase Program: USD 17 million repurchased out of the USD 20 million authorized program as of March 31, 2026. Q2 2026 Revenue Outlook: Expected to be in the range of USD 63 million to USD 68 million, representing year-over-year growth of approximately 6% to 14%. Warning! GuruFocus has detected 2 Warning Signs with ZEPP. Is ZEPP fairly valued? Test your thesis with our free DCF calculator. Release Date: June 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Amazfit branded revenue grew 33.8% year over year, showcasing strong performance in a traditionally slow quarter. Successful launches of new products like Amazfit Active Max Active 3 Premium and T-Rex Ultra 2 drove revenue growth. Partnership with HYROX enhances the brand's position in the hybrid training market, offering exclusive smart wearable categories. Average selling price increased by more than 20% year over year, indicating successful premiumization strategy. Zepp Health Corp (NYSE:ZEPP) achieved sequential value share expansion across EMEA, the US, and Asia Pacific. Gross margin was impacted by higher memory component costs and unfavorable foreign currency exchange fluctuations. Operating loss was $6.3 million, although it narrowed compared to the previous year. Adjusted net loss was $17.9 million, representing 34.8% of sales. Higher operating costs and unfavorable foreign exchange translation differences affected financial performance. R&D and marketing expenses increased due to new product launches and branding activities, impacting cost management. Q: Congratulations on the strong Q1 revenue growth. In the last earnings call, Leon, you guided to potentially nine product launches this year, the same as last year with four announced so far, should we expect about five more this year? Am I in the correct ballpark? A: Yeah. I think in the end, we probably would have more than nine, but yes, there are many new product launches are still underway. - Cheng Deng, Chief Financial Officer Q: Where do you see opportunities to reduce cost? Because it seems like it's difficult to cut R&D or marketing or branding expenses at this point? A: R&D expenses have increased due to new product launches, but they should trend towards the norm starting from the second half of the year. Marketing expenses are front-loaded in Q1 and Q2 due to events like the Balance 3 product release in HYROX, New York. G&A expenses should also step down in Q2 and beyond. - Cheng Deng, Chief Financial Officer Q: Is there other industry players raising product prices to offset some of these higher memory costs? A: Yes, some competitors are raising prices, including Garmin. Our pricing is still relatively low compared to competitors, giving us room to raise prices. However, our focus remains on delivering the best product with the best user experience at the best price. - Cheng Deng, Chief Financial Officer Q: Congratulations on the first quarter performance. My first question would be around the Q2 revenue guidance. And if you can talk more about that and how do you view the profitability outlook for the full year? A: For Q2, we expect revenue between $63 million to $68 million, accounting for normal shipment timing and product launch phasing. We aim for profitable growth over 2025, supported by demand across our product portfolio. - Cheng Deng, Chief Financial Officer Q: How do you plan to leverage the new three-year global HYROX partnership to drive long-term monetization? A: We aim to establish authority in hybrid training through HYROX, deepening our relationship and enhancing features for HYROX athletes. This will position us as the user's choice when they consider serious sports, helping us capture users transitioning to more serious training. - Cheng Deng, Chief Financial Officer For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Zepp Health Corporation Sponsored ADR? Here are five stocks we like better. Zepp Health posted a strong Q1, with total revenue rising 33.8% year over year to $51.5 million and Amazfit branded revenue also up 33.8%, driven by new product launches and a richer product mix. Premium positioning is boosting pricing power: the company said average selling price rose more than 20% year over year, while higher-end T-Rex models made up nearly half of family unit sales in March and April. Hybrid training and HYROX remain central to strategy, as Zepp expands partnerships and launches products aimed at runners, outdoor athletes and entry-level users, while forecasting second-quarter revenue of $63 million to $68 million. Zepp Health (NYSE:ZEPP) reported a stronger start to 2026, with management pointing to new Amazfit product launches, a higher-end product mix and expanding positioning in hybrid training as the main drivers of first-quarter growth. On the company’s earnings call, Founder and Chief Executive Officer Wang Huang said Amazfit branded revenue rose 33.8% year over year in the first quarter, despite the period being a traditionally softer season for consumer electronics. Chief Financial Officer Leon Deng said total revenue for the quarter was $51.5 million, also up 33.8% from a year earlier and in line with the company’s guidance range. → Meta Unveils Subscriptions: A New Offering With Real Growth Potential Management attributed the growth primarily to launches including the Amazfit Active Max, Active 3 Premium and T-Rex Ultra 2. Huang said the quarter reflected “early validation” of the company’s efforts to improve its premium product mix, pricing power and positioning in performance-oriented training. Huang said Zepp Health is seeing evidence that customers are moving up the price ladder within certain product families. In March and April, he said premium T-Rex models priced at $399 and $549 accounted for nearly 50% of total T-Rex family unit sales. → Planet Labs: Coming Back Down to Earth He added that the company’s average selling price increased more than 20% year over year in the first quarter. The T-Rex Ultra 2, made with grade 5 titanium, raised Amazfit’s price ceiling to $550, which Huang said was the highest in the brand’s history. Deng said gross margin was 37.7% in the first quarter, up 0.4 percentage points from the prior-year period but down from a record 40.4% in the fourth quarter of 2025. He said the sequential decline reflected the usual first-quarter refresh of entry-level products, which carry lower margins, as well as higher memory component costs and unfavorable foreign currency movements. → The Energy Trade Is Bigger Than Oil Prices: 3 Stocks to Buy and 2 to Sell Gross profit increased 35.3% year over year to $19.4 million. Deng said the margin expansion from a year earlier showed the resilience of the company’s operating model and continued improvement in brand positioning. Huang said Zepp Health is working to build a global leadership position in hybrid training, integrating endurance, strength and recovery through hardware, artificial intelligence-driven training intelligence, software and data. A key part of that effort is an expanded exclusive three-year global partnership with HYROX, the hybrid endurance sports organization. Huang said the partnership will cover categories including smartwatches, smart rings, smart cameras, smart glasses and smart straps, along with connected app experiences, HYROX-specific training modes and performance data integrations. “This partnership represents more than a sponsorship,” Huang said, describing it as a way for Zepp Health to participate in and help shape the emerging hybrid training category. During the question-and-answer session, Deng said the HYROX partnership is intended to help Amazfit become a preferred brand when users move from casual tracking to more serious sports training. He said Zepp Health wants to strengthen features that help HYROX athletes track and improve their race performance. Management highlighted several products intended to broaden the Amazfit portfolio. Huang said the Balance 3 and Balance Ultra were introduced at the HYROX event in New York, with features designed for users balancing strength, endurance, recovery, work stress and daily life. He said those products are powered by Hybrid Charge Energy Intelligence in the Zepp App, which combines Bio Charge, life load and training load into a single view of personal capacity. The company also recently launched the Cheetah 2 lineup, including the Cheetah 2 Pro for marathon training and the Cheetah 2 Ultra for mountain and trail environments. Huang said both integrate with Zepp Coach and include running metrics, personalized training plans, recovery insights and third-party training platform integrations. At the value end of the portfolio, Huang cited Active Max and Active 3 Premium, positioned around $169, as products reaching everyday fitness users and entry-level runners. He also noted the launch of Bip Max, the latest addition to the company’s entry-level series. According to Huang, Amazfit gained sequential value share in EMEA, the U.S. and Asia-Pacific during the quarter. He cited third-party data showing Amazfit ranked among the top six smartwatch brands in both the United States and Europe by value share. Total adjusted operating expenses were $35.7 million in the first quarter, compared with $31.5 million a year earlier and $37.1 million in the fourth quarter. Deng said the year-over-year increase included foreign currency translation effects, e-commerce platform charges tied to sales growth and front-loaded marketing and branding investments, including CES and HYROX. Adjusted research and development expenses were $11.9 million, up from $11.5 million a year earlier, reflecting investment in upcoming product launches and new technologies, including AI. Adjusted selling and marketing expenses rose to $16.4 million from $13.8 million. Adjusted general and administrative expenses were $7.4 million, compared with $6.2 million a year earlier. Zepp Health’s operating loss narrowed to $6.3 million from $17.2 million in the prior-year quarter. Adjusted net loss was $17.9 million, or 34.8% of sales, compared with $18.1 million, or 41% of sales, in the first quarter of 2025. Deng said higher memory costs are expected to pressure gross margins in the near term, citing the industry transition from DDR4 to DDR5 and high-bandwidth memory, as well as AI and data center demand tightening supply. He said the company has prepared through diversified sourcing and engineering efforts to optimize memory requirements. For the second quarter of 2026, Zepp Health expects revenue of $63 million to $68 million, representing year-over-year growth of about 6% to 14%. Management said the outlook reflects product demand, normal shipment timing and product launch phasing. In response to an analyst question, Deng said the company could launch more than nine products this year, exceeding the number previously discussed. He also said R&D and marketing expenses were more heavily weighted toward the first half of the year because of the product launch schedule and events, and that expenses should move closer to a roughly $30 million quarterly run rate, or lower, later in the year. Zepp Health ended the quarter with $103.2 million in cash and cash equivalents, nearly flat with $103.8 million a year earlier and down from $112.9 million at the end of 2025. Inventory declined to $62.8 million from $72.8 million at the end of the fourth quarter. Deng said total debt remained broadly stable, and the company has retired $46.7 million of debt since the beginning of 2023. He also said Zepp Health had repurchased $17 million under its $20 million authorized share repurchase program as of March 31, 2026. Zepp Health Corp is a technology company specializing in the design, development and sale of smart wearable devices and health management solutions. Through its flagship Amazfit brand and the Zepp software ecosystem, the company offers a range of products—including smartwatches, fitness bands, smart scales and health-oriented mobile applications—designed to track key biometric data such as heart rate, sleep patterns, blood oxygen levels and activity metrics. Zepp Health's integrated platform enables users to monitor wellness and fitness goals while leveraging cloud-based analytics for personalized insights. At the core of Zepp Health's offering is its Zepp cloud platform, which aggregates and analyzes data collected from its hardware lineup. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Zepp Health Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

MILPITAS, Calif., June 8, 2026 /PRNewswire/ -- Zepp Health Corporation ("Zepp" or the "Company") (NYSE: ZEPP) today announced its unaudited financial results for the first quarter of 2026. First Quarter of 2026 Financial and Operating Highlights: Revenue reached US$51.5 million, representing 33.8% year-over-year growth, in line with our guidance range. Gross margin was 37.7%, an expansion of 0.4 percentage points compared with the first quarter of 2025. We typically refresh entry-level product lines in the first quarter; these offerings carry lower gross profitability. In addition, elevated memory component costs pressured the gross margin performance. As of March 31, 2026, cash and cash equivalents and restricted cash were US$103.2 million, nearly flat compared with US$103.8 million as of March 31, 2025. The cash balance decreased by US$9.7 million compared with US$112.9 million as of December 31, 2025, primarily driven by net operating losses and seasonality, as the first quarter is traditionally a low season for consumer electronics business. Despite strategic risk purchases of key components for the future, our inventory balance decreased to US$62.8 million compared with US$72.8 million as of December 31, 2025. This reflects ongoing improvements in inventory management. For the second quarter of 2026, management currently expects net revenues to be between US$63.0 million and US$68.0 million, which would represent a year-over-year increase of approximately 6% to 14%. This outlook reflects continued year-over-year growth, supported by demand across our product portfolio, while also accounting for normal shipment timing and product launch phasing during the quarter. More importantly, we will continue to focus on the quality of growth-product mix, pricing power, gross margin structure, and user engagement. New products debut: Extension for HYROX partnership: In April 2026, we further deepened our collaboration with HYROX through a new exclusive three-year global partnership, securing our position as its exclusive wearable technology partner. This landmark deal expands our prior regional cooperation to a full global footprint, marking a substantial upgrade in the depth and reach of our alliance. Further expansion of our Amazfit Athletes team: Welcome Rory Linkletter, an Olympian and one of Canada's top distance runners, holding the national record in the half marathon, to our growing athletes' family. Mr. Wang "Wayne" Huang, Founder, Chairman and CEO of Zepp Health, commented, "We began 2026 with another quarter in line with our guidance, as Amazfit-branded revenue grew 33.8% year-over-year, even though the first quarter is traditionally a softer season for consumer electronics. This growth reflects the continued success of our multi-year transformation from a volume-driven wearable brand into a premium-focused global brand built around Hybrid Training. Our ambition for 2026 is to build a leadership position in Hybrid Training. This quarter, we extended that strategy across running and hybrid training with the launch of the Cheetah 2 lineup and, most recently, Balance 3 and Balance Ultra, products designed to support users across endurance, strength, recovery, and daily life. Growth was broad-based across both premium and entry tiers, from T-Rex Ultra 2 to Active and Bip products. In March and April, our premium T-Rex models such as T-Rex Pro and T-Rex Ultra accounted for nearly 50% of total T-Rex family unit sales, an early sign that users are moving up the value ladder within the Amazfit ecosystem. Beyond hardware, we continued strengthening our ecosystem through Zepp OS, with Zepp Coach, HybridCharge, and our growing library of Hybrid Training and HYROX modes deepening engagement and retention. Our ecosystem strategy is designed to meet users at the moment they move from casual tracking to more serious training, when training value begins to matter more than the phone ecosystem alone. We further deepened our collaboration with HYROX through a new exclusive three-year global partnership, expanding our role across smart wearables, connected app experiences, HYROX-specific training modes, and selected performance data integrations. Importantly, HYROX gives us access not only to race participants, but also to a global network of gyms, coaches, and highly engaged training communities. We are entering the next phase of growth with stronger product mix, clearer brand positioning, and a continued focus on long-term shareholder value." Mr. Leon Deng, Zepp's Chief Financial Officer, added, "We delivered a strong start to 2026, with first-quarter revenue increasing 33.8% year over year to US$51.5 million, driven by successful new product launches including Active Max, Active 3 Premium, and T-Rex Ultra 2. Our gross margin for the first quarter was 37.7%, up from 37.3% in the first quarter of 2025. The slight sequential moderation from our record 40.4% margin in the fourth quarter of 2025 was due to our standard first-quarter refresh of our lower-margin entry-level lines as well as elevated memory component costs and the impact of RMB appreciation. Despite normal seasonality and near-term cost pressures, gross margin expanded year over year to 37.7%, while gross profit increased 35.3% to US$19.4 million, underscoring the resilience of our operating model and the continued improvement in our brand positioning. We remain disciplined in managing operating expenses while continuing to invest in the areas that support long-term competitiveness, including R&D, marketing, branding, and AI-enabled product innovation. Although foreign-exchange translation and growth-related channel costs impacted expenses in the quarter, our adjusted operating loss narrowed year over year, and adjusted net loss as a percentage of sales improved, reflecting better operating leverage as revenue scales. Thanks to higher revenue and improved gross margins, our adjusted operating loss[1] narrowed to US$16.3 million, compared with US$17.2 million in the first quarter of 2025. As of March 31, 2026, we ended the quarter with US$103.2 million in cash and cash equivalents and restricted cash, compared with US$112.9 million as of December 31, 2025 and US$103.8 million as of March 31, 2025. Our inventory balance stood at US$62.8 million including the strategic risk purchases of key components for the future, a reduction from US$72.8 million as of December 31, 2025, reflecting our continued discipline in inventory management. Looking forward, we continue to manage inventory, cash, debt maturity, and capital allocation prudently. While the mix between short-term and long-term debt may fluctuate from quarter to quarter due to accounting classification and maturity timing, our total debt level remained broadly stable both sequentially and year over year. Since the beginning of 2023, we have cumulatively retired US$46.4 million of debt, demonstrating our continued commitment to optimizing the capital structure, managing financing costs, and maintaining financial flexibility. In addition, we remain committed to our share-repurchase program, which we view as an effective use of capital to support long-term shareholder value. For the second quarter of 2026, we expect revenue in the range of US$63.0 million to US$68.0 million, representing an increase of approximately 6% to 14% year-over-year. This outlook reflects continued year-over-year growth while maintaining our focus on premiumization, product mix improvement, pricing power, and long-term profitability." First Quarter of 2026 Financial Results Revenues Revenues for the first quarter of 2026 reached US$51.5 million, an increase by 33.8% from the first quarter of 2025. The year-over-year sales increase was mainly driven by new products launches in the first quarter of 2026, including Active Max, Active 3 Premium and T-Rex Ultra 2. The first quarter is traditionally a low season for consumer electronics business. Gross Margin Gross margin in the first quarter of 2026 was 37.7%, an increase from 37.3% in the same period of 2025. Several headwinds affected this quarter's results. Gross margin moderated from 40.4% in the fourth quarter of 2025, as we typically refresh entry-level product lines in the first quarter, and these offerings carry lower gross profitability. In addition, elevated memory component costs and RMB appreciation pressured the gross margin performance. Research and Development Expenses Research and development expenses in the first quarter of 2026 were US$13.1 million, compared with US$12.4 million and US$11.0 million in the same period of 2025 and fourth quarter of 2025. Out of the year-over-year and quarter-over-quarter increase of US$0.7 million and US$2.1 million, around US$0.6 million and US$0.3 million were attributable to the foreign currency headwinds, mainly due to appreciation of certain foreign currencies against the U.S. Dollar. The remaining US$1.8 million of quarter-over-quarter increase was due to investment in new products that will be launched in the upcoming quarters. We continued to invest in a series of cutting-edge products as well as new technologies, including AI, to maintain our competitive edge against our peers. At the same time, we focused on refined research and development approaches, consistently evaluating resource efficiency to optimize return on investment and productivity. Selling and Marketing Expenses Selling and marketing expenses in the first quarter of 2026 were US$16.6 million, compared with US$13.8 million in the same period of 2025. Out of the year-over-year increase of US$2.8 million, around US$0.8 million was attributable to foreign currency headwinds, mainly due to appreciation of certain foreign currencies against the U.S. Dollar. US$1.4 million is directly attributable to certain e-commerce platform charges, which are proportional sales-channel fees incurred to drive revenue growth. The remaining US$0.6 million was primarily due to frontloaded investments in marketing and branding activities, such as CES and HYROX. Selling and marketing expenses increased by US$0.7 million compared to the fourth quarter of 2025, out of which around US$0.4 million were attributable to the appreciation of certain foreign currencies against the U.S. Dollar, and the remaining US$0.3 million was mainly due to frontloaded investments in marketing and branding activities, such as CES and HYROX. We continued to invest in selling and marketing activities and expand our Amazfit Athletes team to build brand recognition. At the same time, we consistently pushed on retail profitability and channel mix improvement, including through meticulous refinement of our retail channels and strategic staffing arrangements across sales regions. General and Administrative Expenses General and administrative expenses were US$7.4 million in the first quarter of 2026, compared with US$6.5 million in the same period of 2025. Out of the year-over-year increase of US$0.9 million, around US$0.3 million was attributable to foreign currency headwinds, mainly due to the appreciation of certain foreign currencies against the U.S. Dollar. US$0.2 million was related to certain brand and IP protection activities. Excluding the US$6.2 million provisions related to historical business transformation, general and administrative expenses were US$5.2 million in the fourth quarter of 2025. The quarter-over-quarter increase of US$2.2 million was mainly attributable to around US$1.1 million of foreign exchange impact, as well as US$0.2 million severance cost as part of targeted initiatives to enhance organizational efficiency. We continued to streamline overhead, maintaining disciplined cost control while improving operating efficiency. Operating Expenses GAAP and adjusted operating expenses[2] for the first quarter of 2026 were US$37.1 million and US$35.7 million, compared with US$32.7 million and US$31.5 million in the same period of 2025. Out of the year-over-year increase of US$4.2 million of adjusted operating expenses, there were foreign currency headwinds of approximately US$1.8 million on operating expenses in the first quarter of 2026, as the majority of the Company's operating expenses are denominated in RMB. When the RMB appreciates against the U.S. dollar, these RMB-denominated expenses were translated into higher U.S. dollar equivalents. US$1.4 million is directly attributable to certain e-commerce platform charges, which are proportional sales-channel fees incurred to drive revenue growth. The remaining US$0.6 million was primarily due to frontloaded investments in marketing and branding activities, such as CES and HYROX. GAAP and adjusted operating expenses in the fourth quarter of 2025 were US$38.3 million and US$37.1 million, excluding the US$6.2 million provisions related to historical business transformation. The quarter-over-quarter increase of US$5.0 million was primarily driven by around US$1.8 million foreign exchange impact, a US$1.8 million increase in R&D investment to support new product launches in upcoming quarters, US$0.3 million of front-loaded marketing and branding investments, and US$0.2 million in severance costs related to targeted initiatives to enhance organizational efficiency. We will maintain our cost-conscious approach and remain committed to investing in R&D and marketing activities to ensure our long-term competitiveness. Operating Income/(Loss) GAAP and adjusted operating results were loss of US$17.7 million and US$16.3 million, compared with loss of US$18.4 million and US$17.2 million in the same quarter of 2025. Higher revenue and improved gross margin were offset by foreign currency headwinds resulting from the appreciation of certain foreign currencies against the U.S. dollar, as well as increased investment in research and development initiatives and marketing and branding activities. As a result, the Company recorded an operating loss for the period, but the operating loss was narrowed compared with the first quarter of 2025. Net Income/(Loss) GAAP and adjusted net loss[3] attributable to Zepp Health Corporation for the first quarter of 2026 was US$19.6 million and US$17.9 million, compared to GAAP and adjusted net loss of US$19.7 million and US$18.1 million in the same quarter of 2025. Higher revenue and improved gross margin were offset by foreign currency headwinds resulting from the appreciation of certain foreign currencies against the U.S. dollar, together with increased investment in research and development, as well as marketing and brand-building initiatives. As a result, the Company recorded a net loss for the period, but the loss was narrowed compared with the first quarter of 2025. Liquidity and Capital Resources As of March 31, 2026, the Company had cash balance (including restricted cash) totaling US$103.2 million, nearly flat compared with US$103.8 million as of March 31, 2025. The cash balance decreased by US$9.7 million compared with US$112.9 million as of December 31, 2025 and was primarily driven by net operating losses, partially offset by improved working capital management. This cash position provides ample runway for the Company to invest and seize potential market opportunities. The Company recorded inventory of US$62.8 million as of March 31, 2026, which was lower than US$72.8 million as of December 31, 2025. We will continue to manage the inventory level tightly. The Company improved its management of accounts receivable collections and accounts payable payment terms. The Company will continue to manage working capital closely. Long-term and short-term debt levels increased by US$11.8 million as of March 31, 2026 compared with December 31, 2025 due to timing differences. The change in the mix between short-term and long-term debt in the first quarter of 2026 was primarily driven by accounting classification, as certain borrowings originally maturing in late 2026 or 2027 were reclassified from long-term debt to short-term debt due to their remaining maturity profile. We continue to actively manage our debt maturity profile and financing costs. As debt approaches maturity, we evaluate prevailing market interest rates and available credit capacity to refinance or extend the duration of our borrowings where appropriate. While the classification between short-term and long-term debt may fluctuate from quarter to quarter, our longer-term focus remains on maintaining disciplined control over total debt levels and optimizing our debt duration and interest expense over time. Since the beginning of 2023, the Company has cumulatively retired US$46.4 million of debt, and will continue to optimize the capital structure for the Company. Share Repurchase Program Update The Company announced in its third quarter 2021 earnings release that the board had authorized a share repurchase program of up to US$20 million through November 2022. On November 21, 2022, the board authorized a 12-month extension of the Company's share repurchase program. On November 20, 2023, the board further authorized the Company to extend its share repurchase program for another 12 months. On November 18, 2024, the board further authorized the Company to extend its share repurchase program for another 24 months. Pursuant to the extended share repurchase program, the Company may repurchase its shares in the form of ADSs and/or ordinary shares through November 2026 with an aggregate value equal to the remaining balance under the share repurchase program. As of March 31, 2026, the Company had used US$17.0 million to repurchase approximately 2.3 million ADSs. The Company expects to fund the repurchases under the extended share repurchase program out of its existing cash balance. Outlook For the second quarter of 2026, the Company's management currently expects net revenues to be between US$63.0 million and US$68.0 million, which would represent an increase by approximately 6% to 14% from US$59.4 million in the second quarter of 2025. This outlook is based on current market conditions and reflects the Company's current and preliminary estimates of market, operating conditions and customer demand, which are all subject to change. Conference Call The Company's management team will hold a conference call at 9:30 p.m. Eastern Time on Monday, June 8, 2026 to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing: Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for "Zepp Health Corporation". Additionally, a live and archived webcast of the conference call will be available at http://ir.zepp.com. A telephone replay will be available one hour after the call until June 15, 2026 by dialing: About Zepp Health Corporation Zepp Health Corporation (NYSE: ZEPP) is a global leader in smart wearables and health technology, empowering users to live their healthiest lives by optimizing their health, fitness, and wellness journeys through its leading consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. Powered by its proprietary Zepp Digital Management Platform, which includes Zepp OS, AI chips, biometric sensors, and data algorithms, Zepp delivers cloud-based 24/7 actionable insights and guidance to help users attain their wellness goals. To date, Zepp has shipped over 200 million units and served more than 53 million users, and its products are available in more than 150 countries and regions. Zepp Health has team members and offices across the globe, especially in Europe and the United States. Use of Non-GAAP Measures We use adjusted net income/(loss), a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted operating expenses represent operating expenses excluding (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Adjusted operating income/(loss) represents operating income/(loss) excluding: (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Adjusted EBIT represents net income/(loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, (vi) income tax (benefit)/expense, and (vii) interest income and interest expense. Adjusted net income/(loss) attributable to Zepp Health Corporation is a non-GAAP measure, which excludes (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of the above non-GAAP adjustments, and is used as the numerator in computation of adjusted net income/(loss) per share and per ADS attributable to Zepp Health Corporation. We believe that adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in net income/(loss) and net income/(loss) attributable to Zepp Health Corporation. We believe adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation, should not be considered in isolation or construed as an alternative to net income/(loss), basic and diluted net income/(loss) per share and per ADS attributable to Zepp Health Corporation or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBIT and adjusted net income/(loss) attributable to ordinary shareholders, presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the recognition of the Company's Amazfit-branded products; the Company's growth strategies; trends and competition in global wearable technology market; changes in the Company's revenues and certain cost or expense accounting policies; governmental policies relating to the Company's industry and general economic conditions around the globe. Further information regarding these and other risks is included in the Company's filings with the United States Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China:Zepp Health CorporationGrace Yujia ZhangEmail: [email protected] Piacente Financial CommunicationsTel: +86-10-6508-0677Email: [email protected] View original content:https://www.prnewswire.com/news-releases/zepp-health-corporation-reports-first-quarter-of-2026-unaudited-financial-results-302794576.html

This article first appeared on GuruFocus. Q4 2025 Revenue: $85.2 million, up 43% year-over-year. Full Year 2025 Revenue: $259 million, a 41.8% increase from 2024. Q4 2025 Gross Margin: 40.4%, an expansion of 3.6 percentage points from Q4 2024. Full Year 2025 Gross Margin: 38.3%. Q4 2025 Amazfit Branded Product Sales: Increased by 45.4% year-over-year. Q4 2025 Adjusted Net Loss: $6.4 million, compared to $22.5 million in Q4 2024. Full Year 2025 Adjusted Net Loss: $31.5 million, compared to $56.7 million in 2024. Q4 2025 Cash and Cash Equivalents: $113 million. Q4 2025 Inventory: $72.8 million, down from $87.7 million in Q3 2025. Q4 2025 Total Non-GAAP Operating Expenses: $37.1 million. Q4 2025 Adjusted R&D Expenses: $10.2 million. Q4 2025 Adjusted Selling and Marketing Expenses: $15.6 million. Q4 2025 Adjusted G&A Expenses: $11.3 million. 2026 Q1 Revenue Guidance: $50 million to $55 million, representing 30% to 43% year-over-year growth. Warning! GuruFocus has detected 4 Warning Signs with ZEPP. Is ZEPP fairly valued? Test your thesis with our free DCF calculator. Release Date: March 16, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Amazfit branded product revenue grew 51% year-over-year for the full year 2025. Fourth-quarter gross margin reached a record level of 40.3%, indicating strong pricing power and brand recognition. Zepp Health Corp (NYSE:ZEPP) launched several new products, including the Amazfit Active MAX and T-Rex Ultra 2, expanding their product portfolio. The company formed strategic partnerships with elite athletes and organizations like HYROX, enhancing brand credibility and visibility. Zepp Health Corp (NYSE:ZEPP) reported a positive operating cash flow, strengthening their liquidity position. The company reported an adjusted net loss of USD6.4 million in Q4 2025. Operating expenses increased by approximately $8 million year-over-year, driven by marketing and branding investments. Zepp Health Corp (NYSE:ZEPP) faced headwinds from FX fluctuations and memory chip cost increases. Despite revenue growth, the company still experienced a full-year adjusted net loss of USD31.5 million. Inventory management challenges were noted, with strategic risk purchases impacting inventory balances. Q: How many new products are you planning to launch this year compared to last year? A: Leon Cheng Deng, Chief Financial Officer, mentioned that the number of new product launches this year will be similar to last year, possibly slightly more. Q: How are you preparing for the recent spike in the US dollar? A: Leon Cheng Deng, Chief Financial Officer, stated that the company is not significantly exposed to currency fluctuations due to diversified production in Asia and strong markets in Western Europe and the US. The stronger dollar is providing some tailwind. Q: Regarding operating expenses, which specific areas do you think there is room for further reductions? A: Leon Cheng Deng, Chief Financial Officer, highlighted that selling and marketing expenses could normalize over time, G&A costs have room for improvement, and R&D efficiency could be enhanced through AI. Q: Can you provide more color on the sales performance of the Adventure series? A: Leon Cheng Deng, Chief Financial Officer, explained that the Adventure series, including the T-Rex 3 Pro and T-Rex Ultra 2, has elevated the product mix and improved average selling prices. It will continue to play an important role in 2026. Q: What are the plans for the Amazfit Strap and Ring for this year? A: Leon Cheng Deng, Chief Financial Officer, noted that the Helio Strap performed well in 2025 but faced supply chain issues. The company plans to increase manufacturing in 2026 and is working on the next generation of these products. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

MILPITAS, Calif., March 15, 2026 /PRNewswire/ -- Zepp Health Corporation ("Zepp" or the "Company") (NYSE: ZEPP) today announced its unaudited financial results for the fourth quarter and full year of 2025. Fourth Quarter 2025 Financial and Operating Highlights: Revenue reached US$85.2 million, representing 43.0% year-over-year growth, meeting the upper end of our guidance range. Gross margin achieved a company-record level of 40.4%, an impressive expansion of 3.6 percentage points and 2.2 percentage points compared with same period of 2024 and third quarter of 2025. The strong gross margin, driven by our product mix, more than offset the headwinds from foreign currency fluctuations, memory chip cost increases and tariffs amid macroeconomic uncertainties. GAAP and adjusted net loss[1] was US$11.0 million and US$6.4 million, narrowing by 70.2% and 71.6% compared with the fourth quarter of 2024. As of December 31, 2025, cash and cash equivalents and restricted cash was US$112.9 million, compared with US$102.6 million of cash balance as of September 30, 2025 and US$110.7 million as of December 31, 2024. The cash balance increase was driven primarily by strong operating performance and tight working capital management. Despite strategic risk purchases of key components for the future, our inventory balance decreased to US$72.8 million compared with US$87.7 million as of September 30, 2025. This reflects ongoing improvements in inventory management. For the first quarter of 2026, management currently expects net revenues to be between US$50.0 million and US$55.0 million, which would represent a year-over-year increase of approximately 30% to 43%. New product debut: - Amazfit Active Max: Positioned as a premium all–round smartwatch, it delivers long battery life, large display, and advanced health and fitness tracking for daily and structured training use. - Amazfit T–Rex Ultra 2: As an ultra–rugged outdoor flagship watch, it features military–grade durability, professional positioning, and robust performance for extreme outdoor environments. - Amazfit Active 3 Premium: Designed for new and entry-level runners, it offers structured guidance with built-in running workouts, Zepp Coach™ Training Plans, advanced running metrics, and long battery life to help users build strength, consistency, and confidence for long-term progress toward personal milestones. Further expansion of our Amazfit Athletes team: We are pleased to announce the expansion of HYROX athlete roster, including the return of Hunter McIntyre (USA) for another season. And welcome Amanal Petros, Germany's fastest marathon runner and one of Europe's leading long-distance athletes, as well as Josh Kerr, a two-time Olympic Medalist and World Champion middle-distance runner, to our growing athletes' family. Full Year 2025 Financial and Operating Highlights: Revenue reached US$258.9 million, representing 41.8% year-over-year growth compared with US$182.6 million in the full year of 2024. Gross margin in the full year 2025 was 38.3%. We remain on track with our margin-expansion strategy initiated in the second half of 2023 and expect the trend to continue into 2026 as we further optimize our product mix and supply chain efficiency. GAAP and adjusted net loss was US$40.1 million and US$31.5 million, compared with GAAP and adjusted net loss of US$75.7 million and US$56.7 million in 2024. GAAP and adjusted operating loss[2] as percentage of sales was 11.3% and 9.4% in 2025, representing significant improvement compared with 25.9% and 22.0% in 2024. As of December 31, 2025, cash and cash equivalents and restricted cash was US$112.9 million, compared with US$110.7 million of cash balance as of December 31, 2024. "2025 marked a pivotal year for Zepp Health as our branded products delivered over 50% year-over-year revenue growth and recorded margin expansion," commented Wayne Huang, Founder, Chairman and CEO of Zepp Health. "These results reflect the success of our multi-year transformation as we evolve from a volume-driven wearable brand into a premium-focused global brand built around Hybrid Training. Through our expanding product portfolio—from the $169 Active series to the $550 T-Rex Ultra flagship—together with growing pricing power and deeper engagement with performance communities such as HYROX, Amazfit is increasingly becoming part of how athletes train, compete, and share their performance." Mr. Leon Deng, Zepp's Chief Financial Officer, added, "In the fourth quarter of 2025, we delivered robust revenue growth, with total revenue reaching US$85.2 million, a 43.0% increase compared to the fourth quarter of 2024. This performance was driven by strong sales of our Amazfit-branded products during the Black Friday and Christmas sales seasons. We are confident in our ability to maintain this growth momentum into 2026. Our gross margin for the fourth quarter reached a record high of 40.4%, a significant 3.6% improvement compared to the fourth quarter of 2024 and a 2.2% increase over the third quarter of 2025. This exceptional margin expansion was driven by a more favourable product mix and our ability to sustain pricing power during promotional periods. We remain on track with the margin enhancement efforts that began in late 2023, and we expect this trend to continue into the new year as we optimize our product mix and improve supply chain efficiencies. Total GAAP operating expenses for the quarter amounted to US$38.3 million, while adjusted operating expenses[3] were US$37.1 million, adjusted operating expenses as a percentage of sales improved by 5.7%, compared to the fourth quarter of 2024. Although we experienced an increase in operating expenses due to strategic investments in brand and marketing activities, the majority of this increase was attributable to US$5.2 million specially identified provisions for sales channel optimization and brand and intellectual property protection. We expect these costs to normalize in 2026. Thanks to strong revenue growth, improved gross margins, and effective cost control, our adjusted operating loss for the fourth quarter was significantly reduced to US$2.7 million, compared with US$7.4 million in the fourth quarter of 2024. As of December 31, 2025, we ended the quarter with US$112.9 million in cash and cash equivalents, compared with US$102.6 million as of September 30, 2025 and US$110.7 million as of December 31, 2024. The cash balance increase was driven primarily by strong operating performance and tight working capital management. Our inventory balance stood at US$72.8 million, a reduction from US$87.7 million as of September 30, 2025, reflecting our ongoing improvements in inventory management and preparation for upcoming product launches. Since the beginning of 2023, we have proactively reduced our short and long-term debt, lowering our total loan balance by US$58.2 million. We remain focused on optimizing our capital structure going forward. Moreover, our share repurchase program will proceed in 2026, underscoring our confidence in Zepp Health's long-term growth and our commitment to delivering shareholder value. For the first quarter of 2026, we expect revenue in the range of US$50.0 million to US$55.0 million, representing an increase of 30% to 43% year-over-year. This forecast reflects our strong execution, resilient operations, and continued profitability improvement as we enter the next phase of Zepp Health's growth journey." Fourth Quarter of 2025 Financial Results Revenues Revenues for the fourth quarter of 2025 reached US$85.2 million, an increase by 43.0% and 12.4% from the fourth quarter of 2024 and the third quarter of 2025, respectively. The year-over-year sales increase was driven by growth of all the product lines, including sports, balance and youth lines. The quarter-over-quarter sales growth was mainly driven by the Black Friday and Christmas sales season, as well as the new product launches. Gross Margin Gross margin in the fourth quarter of 2025 was 40.4%, compared to 36.8% in the fourth quarter of 2024. The company-record high gross margin was primarily driven by favourable product mix and higher portion of new product sales. The shift away from lower-margin legacy products toward newer, higher-value SKUs naturally elevated our margin profile. At the same time, we maintained price integrity even during highly promotional periods like Black Friday, further boosting margins. The strong gross margin, driven by our product mix, more than offset the headwinds from foreign exchange fluctuations, memory chip cost increases and tariffs amid macroeconomic uncertainties. Research and Development Expenses Research and development expenses in the fourth quarter of 2025 were US$11.0 million, which remained relatively stable compared with US$11.1 million and US$10.8 million in the same period of 2024 and third quarter of 2025.We continued to invest in a series of cutting-edge products as well as new technologies, including AI, to maintain our competitive edge against our peers. At the same time, we focused on refined research and development approaches, consistently evaluating resource efficiency to optimize return on investment and productivity. Selling and Marketing Expenses Selling and marketing expenses in the fourth quarter of 2025 were US$15.9 million, compared with US$13.3 million and US$12.0 million in the same period of 2024 and the third quarter of 2025. Out of the year over year increase of US$2.6 million, US$1.0 million is directly attributable to certain e-commerce platform charges, which was a kind of fixed-ratio sale channel charges, to drive revenue growth, the remaining US$1.6 million was primarily due to frontloaded investments in marketing and branding activities that fuelled the adoption of new products including Active Max and T-Rex 3 Pro. We continued to invest in selling and marketing activities and expand our Amazfit Athletes team to build brand recognition. At the same time, we consistently pushed on retail profitability and channel mix improvement, including through meticulous refinement of our retail channels and strategic staffing arrangements across sales regions. General and Administrative Expenses General and administrative expenses were US$11.4 million in the fourth quarter of 2025, compared with US$6.6 million and US$7.0 million in the same period of 2024 and the third quarter of 2025. The year over year increase is due to US$4.7 million specially identified provision as a result of the termination old business model and sales channel, and another US$0.5 million related to certain brand and IP protection activities. We continued to streamline overhead, maintaining disciplined cost control while improving operating efficiency. Operating Expenses Total operating expenses for the fourth quarter of 2025 were US$38.3 million, compared with US$30.9 million and US$29.8 million in the same period of 2024 and the third quarter of 2025. The increase is directly attributable to certain US$1.0 million e-commerce platform charges to drive revenue growth, and US$1.6 million frontloaded of some marketing and branding investments that fuelled the adoption of new products, as well as US$4.7 million specially identified provision for optimizing sales channels and business models, along with US$0.5 million expenditures for brand and intellectual property protections. We will maintain our cost-conscious approach and remain committed to investing in R&D and marketing activities to ensure our long-term competitiveness. Operating Income/(Loss) GAAP and adjusted operating results were loss of US$3.9 million and US$2.7 million, compared with loss of US$8.9 million and US$7.4 million in the fourth quarter of 2024. The operating losses included US$4.7 million specially identified provision for bad debt and business model optimization, and US$0.8 million patent fee and branding protection expenditure, both are occasionally not happening regularly. Net Income/(Loss) Net loss attributable to Zepp Health Corporation for the fourth quarter of 2025 was US$11.0 million, compared to net loss of US$36.9 million in the fourth quarter of 2024. The net loss for the fourth quarter of 2025 included operating loss of US$3.9 million, among which US$5.5 million was specially identified provisions for sales channel optimization and brand and intellectual property protection, as well as income tax impacts of US$2.1 million (primarily resulting from valuation allowance for deferred tax assets) and net investment results of US$3.5 million (including impairment loss from investments, loss from equity method investments, and loss from fair value change of long-term investment), both of which are non-cash in nature. Adjusted net loss attributable to Zepp Health Corporation was US$6.4 million, compared to adjusted net loss of US$22.5 million in the fourth quarter of 2024. Liquidity and Capital Resources As of December 31, 2025, the Company had cash balance (including restricted cash) increased sequentially, and end of balance as of US$112.9 million, compared with US$102.6 million of cash balance as of September 30, 2025. This cash position provides ample runway for the Company to invest and seize potential market opportunities. The Company recorded inventory of US$72.8 million as of December 31, 2025, which was lower than US$87.7 million as of September 30, 2025. We will continue to manage the inventory level tightly. The Company improved its management of accounts receivable collections and accounts payable payment terms. The Company will continue to manage working capital closely. Long-term and short-term debt levels increased as of December 31, 2025 compared with September 30, 2025 due to timing differences. We manage the overall debt levels to remain stable and optimize debt structure, capitalizing on favourable rates to minimize interest payments. We will take on some debt depends on one quarter and retire some in the other. Since the beginning of 2023, the Company has cumulatively retired US$58.2 million of debt, and will continue to optimize the capital structure for the Company. Share Repurchase Program Update The Company announced in its third quarter 2021 earnings release that the board had authorized a share repurchase program of up to US$20 million through November 2022. On November 21, 2022, the board authorized a 12-month extension of the Company's share repurchase program. On November 20, 2023, the board further authorized the Company to extend its share repurchase program for another 12 months. On November 18, 2024, the board further authorized the Company to extend its share repurchase program for another 24 months. Pursuant to the extended share repurchase program, the Company may repurchase its shares in the form of ADSs and/or ordinary shares through November 2026 with an aggregate value equal to the remaining balance under the share repurchase program. As of December 31, 2025, the Company had used US$16.2 million to repurchase approximately 2.2 million ADSs. The Company expects to fund the repurchases under the extended share repurchase program out of its existing cash balance. Full Year 2025 Revenues Total revenues of 2025 reached US$258.9 million, an increase of 41.8% from the full year of 2024. In 2025, Amazfit-branded products accounted for 100% of our total revenues, compared with 94.0% in 2024. Sales of our Amazfit-branded product increased by 50.9% as compared with 2024. The year over year sales increase was driven by growth of all the product lines, including sports, balance and youth lines. Gross Margin Gross margin in the full year 2025 was 38.3%, compared with 38.5% in the full year of 2024. We remain on track with our margin-expansion strategy initiated in the second half of 2023 and expect the trend to continue into 2026 as we further optimize our product mix and supply chain efficiency. Research and Development Expenses Research and development expenses for the full year 2025 were US$45.3 million, decreased by 1.8% compared to full year of 2024. We continued to invest in a series of cutting-edge products set to launch as well as new technologies, including AI, to maintain our competitive edge against our peers. At the same time, we focused on refined research and development approaches, consistently evaluating resource efficiency to optimize return on investment and productivity. Selling and Marketing Expenses Selling and marketing expenses for the full year 2025 were US$53.8 million, an increase of 15.8% year-over-year. Out of the year over year increase of US$7.4 million, US$2.6 million is directly attributable to certain e-commerce platform charges to drive revenue growth, the remaining US$4.8 million was primarily due to frontloaded some investments in marketing and branding activities that fuelled the adoption of new products. At the same time, we consistently pushed on retail profitability and channel mix improvement, which included meticulous refinement of our retail channels and strategic staffing arrangements across sales regions. We are committed to investing efficiently in marketing and branding to ensure our sustainable growth. General and Administrative Expenses General and administrative expenses were US$29.3 million in the full year 2025, an increase from US$24.9 million in the full year of 2024.The year over year increase is due to US$5.7 million specially identified provision as a result of the termination old business model and sales channel and US$1.2 million expense related to certain brand and IP protection activities. Excluding those, general and administrative expenses decreased compared with full year of 2024. We continued to streamline overhead, maintaining disciplined cost control while improving operating efficiency. Operating Expenses Total operating expenses for the full year 2025 were US$128.4 million, an increase of 9.3% year-over-year. Adjusted operating expenses, were US$123.6 million, compared with US$110.4 million for the full year 2024. The increase is directly attributable to certain e-commerce platform charges to drive revenue growth, and frontloading of some marketing and branding investments that fuelled the adoption of new products, as well as certain specially identified provisions. The aggregate impact associated with those items is US$14.3 million. We will maintain our cost-conscious approach and remain committed to investing in R&D and marketing activities to ensure our long-term competitiveness. Net Income/(Loss) Net loss attributable to Zepp Health Corporation for the full year of 2025 was US$40.1 million, compared with US$75.7 million in net loss in 2024. The net loss for the full year of 2025 included operating loss of US$29.2 million, among which US$7.2 million was specially identified provisions for sales channel optimization and brand and intellectual property protection, as well as income tax impacts of US$2.5 million (primarily resulting from valuation allowance for deferred tax assets) and net investment results of US$4.2 million (including impairment loss from investments, loss from equity method investments, and gain from fair value change of long-term investment), both of which are non-cash in nature. Adjusted net loss attributable to Zepp Health Corporation was US$31.5 million, compared to adjusted net loss of US$56.7 million in the fourth quarter of 2024. Outlook The first quarter is typically a seasonally low quarter for our industry. For the first quarter of 2026, the Company's management currently expects net revenues to be between US$50.0 million and US$55.0 million, which would represent an increase of approximately 30% to 43% from US$38.5 million in the first quarter of 2025. This outlook is based on current market conditions and reflects the Company's current and preliminary estimates of market, operating conditions and customer demand, which are all subject to change. Conference Call The Company's management team will hold a conference call at 9:30 p.m. Eastern Time on Sunday, March 15, 2026 to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing: Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for "Zepp Health Corporation". Additionally, a live and archived webcast of the conference call will be available at http://ir.zepp.com. A telephone replay will be available one hour after the call until March 22, 2026 by dialing: About Zepp Health Corporation Zepp Health Corporation (NYSE: ZEPP) is a global smart wearable and health technology leader, empowering users to live their healthiest lives by optimizing their health, fitness, and wellness journeys through its leading consumer brands, Amazfit, Zepp Clarity and Zepp Aura. Powered by its proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, biometric sensors and data algorithms, Zepp delivers cloud-based 24/7 actionable insights and guidance to help users attain their wellness goals. To date, Zepp has shipped over 200 million units, and its products are available in more than 90 countries and regions. Founded in 2013 as Huami Corp., the Company changed its name to Zepp Health Corporation in February 2021 to emphasize its health focus with a name that resonates across languages and cultures globally. Zepp has team members and offices across globe, especially in Europe and USA regions. Use of Non-GAAP Measures We use adjusted net income/(loss), a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted operating expenses represent operating expenses excluding (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Adjusted operating income/(loss) represents operating income/(loss) excluding: (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Adjusted EBIT represents net income/(loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, (vi) income tax (benefit)/expense, and (vii) interest income and interest expense. Adjusted net income/(loss) attributable to Zepp Health Corporation is a non-GAAP measure, which excludes (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of the above non-GAAP adjustments, and is used as the numerator in computation of adjusted net income/(loss) per share and per ADS attributable to Zepp Health Corporation. We believe that adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in net income/(loss) and net income/(loss) attributable to Zepp Health Corporation. We believe adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making. Adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation, should not be considered in isolation or construed as an alternative to net income/(loss), basic and diluted net income/(loss) per share and per ADS attributable to Zepp Health Corporation or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBIT and adjusted net income/(loss) attributable to ordinary shareholders, presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure. Safe Harbor Statement This announcement contains forward-looking statements. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "confident" and similar statements. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the recognition of the Company's Amazfit-branded products; the Company's growth strategies; trends and competition in global wearable technology market; changes in the Company's revenues and certain cost or expense accounting policies; governmental policies relating to the Company's industry and general economic conditions around the globe. Further information regarding these and other risks is included in the Company's filings with the United States Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: Zepp Health Corporation Grace Yujia Zhang Email: [email protected] Piacente Financial Communications Tel: +86-10-6508-0677 Email: [email protected] View original content:https://www.prnewswire.com/news-releases/zepp-health-corporation-reports-fourth-quarter-and-full-year-2025-unaudited-financial-results-302714084.html

Zepp is repositioning from a volume-driven wearable maker into a "hybrid training platform," moving upmarket with new premium devices (e.g., T‑Rex Ultra 2 at roughly $550) and expanding software features like Zepp Coach and BioCharge to drive retention and pricing power. Financial momentum was strong: Q4 revenue was $85.2 million (+43% YoY), full-year revenue rose ~42%, Q4 gross margin hit a record ~40.4%, and management reaffirmed Q1 2026 revenue guidance of $50–55 million (about 30%–low‑40% YoY growth). Profitability and balance-sheet trends improved but remain mixed: adjusted 2025 net loss narrowed to $31.5 million and Q4 net loss was $6.4 million, cash totaled $113 million, inventory rose from strategic component buys, and management says most expense increases were one‑offs that should normalize in 2026. Interested in Zepp Health Corporation Sponsored ADR? Here are five stocks we like better. Zepp Health (NYSE:ZEPP) executives highlighted accelerating growth, expanding margins, and a continued shift toward higher-priced products during the company’s fourth quarter and full-year 2025 earnings call, while outlining expectations for another year of revenue expansion in early 2026. Founder and CEO Wang Huang said the company has been transforming from a traditional wearable hardware maker into what he described as a “hybrid training platform” that integrates endurance, strength, and recovery through devices, training intelligence, software, and data capabilities. He characterized 2025 as a “strong year,” emphasizing that growth was achieved without “heavy discounting” during the holiday season and that the company is moving from a volume-driven model toward a premium-focused global business. → Data Storage to Data Intelligence: Everpure's Big AI Era Rebrand Wang said Amazfit branded product revenue grew 51% year-over-year for the full year, and Amazfit branded product sales rose 45% year-over-year in the fourth quarter. He added that gross margin reached a record level of 40.3% in the quarter, pointing to improving pricing power as the company’s mix shifts toward higher-value segments. Executives described Q4 growth as broad-based across both entry-level and premium categories. Wang highlighted several recent launches and how they fit within the product lineup: Amazfit Active Max: Introduced at CES as part of the Active family, intended to sit between entry-level lifestyle watches and rugged outdoor models. Wang said it targets “everyday trainers” and includes an AMOLED display, battery life supporting extended use, 170+ workout modes, offline maps, and training guidance powered by Zepp Coach. Active 3 Premium: Positioned “specifically for runners” and cited as being around a $169 price tier, alongside Active Max, to support the company’s core volume segment while expanding reach into structured training. T-Rex Ultra 2: Launched in February as a flagship outdoor watch built with grade 5 titanium. Wang said it extends the top end of Zepp’s portfolio to roughly a $550 price level, which he called new for the company, and intended to reinforce the premium positioning of the Amazfit brand. → Eli Lilly’s Employer Push Could Unlock New GLP-1 Demand On software, Wang pointed to updates to Zepp OS, including BioCharge energy monitoring and Zepp Coach AI-driven training guidance. He said these features are reaching more devices and are helping retention and long-term user value, which he argued increases switching costs and contributes to a growing “defensive moat” around the ecosystem. Wang also discussed marketing initiatives aimed at credibility within performance sports communities. He noted a newly announced partnership with middle-distance runner Josh Kerr, and referenced other athletes including Grant Fisher, Tyler Andrews, and Ruth Croft. Wang said these athletes use Amazfit devices such as Balance 2, Helio Ring, and Helio Strap in training and recovery. → The S&P 500's 3 Best-Performing Stocks So Far in 2026 He additionally described the company’s collaboration with HYROX, calling it the fastest-growing hybrid endurance competition globally. Wang said HYROX provides “structure-level exposure” because finish times are displayed on an “official results screen” presented by Amazfit, which can then spread through athlete-generated social content. CFO Leon Deng reported fourth quarter 2025 revenue of $85.2 million, up 43% year-over-year and at the upper end of guidance. For full-year 2025, he said revenue increased 41.8% year-over-year. Deng attributed Q4 growth to strength across a diversified portfolio and said execution across Black Friday and Christmas contributed to increased visibility on major e-commerce channels. Deng said gross margin was 40.4% in Q4, an expansion of 3.6 percentage points versus the prior year period. He cited two primary drivers: a favorable mix shift toward premium products, particularly the Premium Adventure series within Amazfit branded products, and maintaining price integrity during promotional periods such as Black Friday. He noted that mix-driven margin gains more than offset headwinds from foreign exchange fluctuations, higher memory chip costs, tariffs, and macroeconomic uncertainty. For the full year, Deng said gross margin was 38.3% and that the company expects the trend to continue into 2026 with further product mix optimization and supply chain efficiency. On operating expenses, Deng said Zepp continued a cost program begun in 2020 to reduce overall operating costs while investing for growth. He said non-GAAP operating expenses rose in absolute dollars, and he attributed the increase primarily to: Higher selling-related costs that rise as units shipped and revenue increase $5 million in year-end provisions described as non-cash adjustments for potential bad debt and business model optimization Approximately $1 million in investments tied to patent fees and brand protection Roughly $1 million in front-loaded marketing initiatives, including upfront costs for elite athlete sponsorships and branding tied to new launches Deng said most of the increases were not structural and that the company expects operating costs to be lower relative to revenue in 2026 as one-off items normalize and additional efficiencies are realized. He reported adjusted R&D expense of $10.2 million, adjusted selling and marketing expense of $15.6 million, and adjusted G&A expense of $11.1 million, with the G&A increase primarily tied to the year-end provisions. Deng said net loss attributable to Zepp Health was $6.4 million, compared to an adjusted net loss of $22.5 million in the prior-year quarter, and attributed the Q4 loss mainly to a $2 million deferred tax asset provision and a $6 million provision. For 2025, he reported adjusted net loss attributable to the company of $31.5 million versus $56.7 million for 2024, citing deferred tax asset provision, one-time provisions, and operating loss from the first half of 2025. On working capital and liquidity, Deng said inventory increased to $72.8 million, reflecting strategic “risk purchases” of key components. Cash and cash equivalents were $113 million as of December 31, 2025, and Deng said the company delivered another quarter of positive operating cash flow. He also discussed refinancing activity that shifted some short-term debt into long-term debt to take advantage of favorable rates, and said the company has cumulatively retired $8 million of debt since the beginning of 2023. Deng said Zepp is reaffirming its commitment to its share repurchase program announced in 2020. In Q&A, management said it expects a similar number of product launches in 2026 as in 2025, with Wang estimating around nine products last year and “at the same quantity… slightly more” this year. Addressing currency, management said Zepp is not significantly affected by U.S. dollar fluctuations and suggested the dollar can be a tailwind given the company’s geographic mix and diversified production in Asia. Executives also discussed Helio Strap and ring plans. Management said Helio Strap performed strongly in 2025 but supply was insufficient during the Q3 and Q4 peak seasons; the company said it is working to resolve supply chain constraints in 2026 to increase manufacturing. Management also said it is working on the next generation of those products and suggested updates could come in the second half of the year. Looking ahead, both Wang and Deng reiterated revenue guidance for the first quarter of 2026 of $50 million to $55 million, representing roughly 30% to low-40% year-over-year growth, with Deng citing order book visibility and sell-through trends in key markets. Zepp Health Corp is a technology company specializing in the design, development and sale of smart wearable devices and health management solutions. Through its flagship Amazfit brand and the Zepp software ecosystem, the company offers a range of products—including smartwatches, fitness bands, smart scales and health-oriented mobile applications—designed to track key biometric data such as heart rate, sleep patterns, blood oxygen levels and activity metrics. Zepp Health's integrated platform enables users to monitor wellness and fitness goals while leveraging cloud-based analytics for personalized insights. At the core of Zepp Health's offering is its Zepp cloud platform, which aggregates and analyzes data collected from its hardware lineup. The article "Zepp Health Q4 Earnings Call Highlights" was originally published by MarketBeat.