Full Press Release Details
Zepp Health Corporation Reports Third Quarter
2025 Unaudited Financial Results
MILPITAS, Calif., November 4th, 2025 /PRNewswire/
-- Zepp Health Corporation ("Zepp" or the "Company") (NYSE: ZEPP) today announced its unaudited financial results
for the third quarter of 2025.
Third Quarter 2025 Financial and Operating Highlights:
Mr. Wang "Wayne" Huang, Chairman and CEO of Zepp Health,
commented, "We are pleased to report another exceptional performance for the third quarter of 2025, a result that underscores the
ongoing effectiveness of our strategic brand and product evolution.
Our diversified product portfolio saw strong demand, driving a 78.5%
year-over-year revenue increase. In addition to this progress, we achieved GAAP operating loss significantly narrowed and adjusted operating
income breakeven in the quarter. This quarter's strong results were further fuelled by our well-executed, multi-tier product strategy,
which drove consistent gross margin growth quarter-over-quarter.
1 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. See "Reconciliation of GAAP and non-GAAP results" at the end of this press release.
The flagship Amazfit T-Rex 3 Pro, lunched in September, was well received
by users and the endurance-outdoor community, with enhanced durability, advanced navigation and outdoor safety features setting new premium
outdoor benchmarks. Our previously-launched Balance 2 and Helio Strap continued performing well, offering advanced analytics and improved
usability for daily training. Entry-level lines maintained steady sales across key global channels, underscoring Amazfit's strong
positioning across consumer segments.
Beyond hardware, we continued strengthening our software ecosystem.
Building on Zepp OS 5.0, we enhanced AI-driven training insights, expanded integration with Strava, TrainingPeaks and more, and advanced
women's health offerings by integrating Wild.AI's core assets-a pioneering wellness platform using hormone-based analytics
to optimize performance, recovery and nutrition. These enable Amazfit to deliver more personalized, physiology-aware coaching while remaining
compatible with leading third-party wearables.
We also further developed our Amazfit Athletes team and global community
presence. During the quarter, we welcomed, among others, elite trail runners Ruth Croft, recent UTMB champion and Rosa Lara Feliu to our
brand ambassador team, along with marathoner Ota Aoi, our first Japanese brand ambassador. They bring authentic athlete perspectives to
our product development and serve as powerful voices in connecting Amazfit with sports communities worldwide. Our ongoing collaborations
with HYROX continued to elevate brand visibility, most recently through Amazfit's participation at HYROX Beijing, further strengthening
engagement with local fitness communities. We've also expanded our Amazfit Hyrox Athletes -beyond Hunter Mclntyre, we've
also added Rich Ryan, Joanna Wietrzyk, Emilie Dahmen, and Linda Meier to the team.
We are excited to enter the fourth quarter of 2025 with strong momentum
and clear growth drivers across our diverse product lines. We stay focused on long-term shareholder value and empowering users'
well-being through sports technology."
Mr. Leon Deng, Zepp's Chief Financial Officer, added, "In
addition to the strong revenue growth, our gross margin expanded to 38.2%, a 2.0% improvement compared to the second quarter of 2025.
This growth was fueled by a more favorable product mix and the success of our new product launches in the second and third quarters. While
partially offset by the discounting during the Amazon Prime Day event, we remain on track with our margin-enhancement efforts that began
Our total GAAP operating expenses amounted to US$29.8 million, while
adjusted operating expenses2 stood at US$28.6 million, which represents 37.7% sales,
compared to 67.3% in the third quarter of 2024 and 44.4% in the second quarter of 2025. We continued to manage costs effectively while
making key investments in R&D and sales and marketing to support innovation and enhance brand visibility.
As a result of higher sales, improved gross margins, and disciplined
cost control, GAAP operating loss narrowed significantly and was US$0.9 million in the third quarter of 2025, compared with US$12.5 million
in the same period of 2024. We reached adjusted operating income breakeven during the quarter, compared to adjusted operating loss of
US$11.3 million in the same period of last year and adjusted operating loss of US$4.9 million in the second quarter of 2025-a significant
step toward achieving sustained profitability.
In addition, we ended the quarter with US$102.6 million in cash and
with a stable capital structure. Cash balance (including restricted cash) increased by US$7.2 million, compared with US$95.3 million at
the end of second quarter of 2025, and we expect such trend to continue into the fourth quarter. Inventory levels increased slightly during
the quarter as the company strategically built up stock in key product lines to prepare for upcoming product launches and the fourth quarter
consumer electronics peak season. Since the beginning of 2023, we have proactively reduced our short and long-term debt, lowering our
total loan balance by US$64.5 million as of the end of third quarter of 2025. As our operating cash flow continues to strengthen, we remain
committed to further optimizing the capital structure. 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 fourth quarter of 2025, we expect revenue in the range of US$82.0
million to US$86.0 million, representing an increase of 38% to 45% 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."
2 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. See "Reconciliation of GAAP and non-GAAP results" at the end of this press release.
Third Quarter of 2025 Financial Results
Revenues for the third quarter of 2025 reached
US$75.8 million, an increase by 78.5% and 27.6% from the third quarter of 2024 and second quarter of 2025, respectively. The revenue growth
was mainly driven by new product launches, especially the T-Rex 3 pro in the third quarter of 2025, and was further supported by product
launches in the second quarter of 2025, such as Amazfit Balance 2 and Amazfit Helio Strap, as well as the popularity of our entry-level
products, such as Amazfit Bip 6 and Active 2 ranges. Revenue increase was partially offset by some supply constraints on Amazfit Helio
Strap, as well as an end-of-quarter typhoon, which delayed some of the product sales in the third quarter of 2025.
Gross margin in the third quarter of 2025 was
38.2%, representing a 2.4% decrease compared to 40.6% in the third quarter of 2024. The year-over-year decline was primarily due to lower
gross margins related to our entry-level products. However, the T-Rex product line showed strong margin performance, as the launch of
the T-Rex 3 Pro in September helped to offset the impact of Prime Day discounts on the T-Rex 3. Sequentially, gross margin improved
by 2.0% compared to the second quarter of 2025, driven by a higher contribution from new products and a more favourable product mix. This
was partially offset by promotions on entry-level models, as well as the impact of front-loaded shipments ahead of U.S. tariffs on China-manufactured
goods. We remain on track with our margin-expansion strategy initiated in the second half of 2023 and expect further progress as new product
launches gain scale.
Research and Development Expenses
Research and development expenses in the third
quarter of 2025 were US$10.8 million, which remained stable compared with US$10.9 million in the same period of 2024, and decreased by
3.2% compared with US$11.2 million in the second quarter of 2025. We continued to invest in new technologies, including AI, to maintain
our competitive edge against our peers. Furthermore, our pipeline is robust with a series of cutting-edge products set to launch. At the
same time, we focused on refined research and development approaches, as we consistently evaluated resource efficiency to optimize return
on investment and productivity.
Selling and Marketing Expenses
Selling and marketing expenses in the third quarter
of 2025 were US$12.0 million, an increase by 0.9% year-over-year, and remained flat compared with US$12.1 million in the second quarter
of 2025. The year-over-year increase was primarily due to front loading of certain expenses to build brand recognition and acquire market
share. 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, 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$7.0 million in the third
quarter of 2025, flat year-over-year, and with a modest sequential increase of $2.6 million from the second quarter of 2025, primarily
reflecting normal foreign exchange fluctuations. Excluding these effects, general and administrative expenses have remained stable or
slightly lower over the past three quarters as we continued to streamline overhead, maintaining disciplined cost control while improving
operating efficiency.
Total operating expenses for the third quarter