Zepp Health (ZEPP) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue was $38.5 million, meeting guidance, with 0.5 million units shipped, all from Amazfit-branded products, as Xiaomi-branded shipments dropped to zero.

• Amazfit-branded sales grew 10.2% year-over-year, marking the first growth after a two-year transformation period.

• Adjusted net loss attributable was $18.1 million for the quarter, with net loss widening from Q1 2024.

• Strong sales momentum was driven by new product launches, especially Amazfit Active 2 and Bip 6, and expanded athlete partnerships.

• Expanded global presence and brand recognition through partnerships, athlete endorsements, and event sponsorships.

Financial highlights

• Q1 2025 revenue: $38.5 million (down 3.6% year-over-year); Amazfit-branded sales up 10.2% year-over-year.

• Gross margin reached 37.3%, up from both Q4 2024 and Q1 2024; would have been 38.4% excluding tariff impact.

• Adjusted operating loss was $17.2 million, compared to $13.1 million in Q1 2024.

• Adjusted operating expenses were $31.5 million (up from $27.8 million in Q1 2024).

• Cash and equivalents stood at $104 million as of March 31, 2025, after repaying $11.5 million in short-term debt.

Outlook and guidance

• Q2 2025 revenue expected between $50 million and $55 million, representing 23%-35% year-over-year growth.

• Full-year 2025 operating expenses projected at or below 2024 levels.

• Multiple new product launches planned for 2025 and 2026 to drive growth.

• Gross margin expansion expected to continue through 2025.

• Management anticipates first year-over-year overall sales growth since 2021 as new products scale and partnerships expand.