Zepp Health (ZEPP) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue reached $75.8 million, up 78.5% year-over-year, at the upper end of guidance, driven by strong product launches and brand evolution.

• Achieved operating break-even, with adjusted operating income at $0.4 million and net loss attributable to shareholders narrowing to $0.7 million.

• Cash and equivalents increased to $103 million as of September 30, 2025, supporting a strong liquidity position.

• Maintained steady sales across all product tiers, with premium and entry-level lines both performing well.

• Expanded global brand presence through athlete partnerships, community engagement, and new product launches.

Financial highlights

• Gross margin for Q3 2025 was 38.2% (39.4% excluding tariffs), down from 40.6% in Q3 2024 but up 2% sequentially.

• Adjusted operating expenses were $28.6 million, stable year-over-year and representing 37.7% of sales, down from 67.3% in Q3 2024.

• Adjusted net loss per ADS improved to -$0.04 in Q3 2025 from -$0.10 in Q3 2024.

• Cash balance increased to $103 million as of September 30, 2025.

• Inventory increased to $87.7 million to support product launches and peak season.

Outlook and guidance

• Q4 2025 revenue expected between $82 million and $86 million, representing 38%–45% year-over-year growth.

• Continued margin expansion anticipated, with selective discounting and targeted marketing investments.

• Product pipeline remains robust, with new launches planned for Q4 and a similar cadence expected in 2026.

• Strategic focus includes international expansion, new product releases, and growing value-added service revenue.