Zepp Health (ZEPP) Q2 2025 earnings summary

Executive summary

• Revenue grew 46.2% year-over-year to $59.4 million in Q2 2025, surpassing guidance and marking the first YoY increase since 2021, driven entirely by Amazfit-branded products and new launches like Balance 2 and Helio Strap.

• Adjusted net loss narrowed to $6.16 million, with GAAP net loss at $7.7 million, both improving significantly year-over-year.

• Gross margin was reported at 36.2%, stable sequentially but lower YoY due to higher sales of entry-level products and clearance of older models.

• Expanded product portfolio and enhanced global brand recognition through athlete partnerships, influencer campaigns, and strong retail collaborations.

• All shipments in Q2 2025 were Amazfit-branded, with Xiaomi-branded shipments at zero.

Financial highlights

• Q2 2025 revenue reached $59.4 million, up 46.2% year-over-year and 54.2% sequentially, exceeding guidance.

• Gross margin was 36.2% in Q2 2025, flat sequentially but down from prior year; Amazfit-branded products had a gross margin of 43.6%.

• Adjusted operating loss narrowed to $4.9 million, a 42% improvement YoY; operating loss was $6.1 million.

• Cash and cash equivalents stood at $95.3 million as of June 30, 2025, with inventories up to support new launches and mitigate tariff risks.

• Adjusted operating expenses rose to $26.4 million, up from $24.8 million YoY.

Outlook and guidance

• Q3 2025 revenue is expected between $72 million and $76 million, representing 70%–79% YoY growth.

• Gross margin is anticipated to expand in the second half of the year due to a favorable product mix and new launches.

• Focus areas include international expansion, new product releases, and strict cost control.

• Continued investment in R&D and marketing to support long-term competitiveness.

• Multiple new product launches planned for Q3 and Q4, expected to match or exceed prior periods.