Zepp Health (ZEPP) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue rose 43% year-over-year to $85.2 million, reaching the upper end of guidance, with full-year revenue up 41.8% to $259.4 million, driven by Amazfit-branded product sales and premiumization strategy.

• Gross margin hit a record 40.4% in Q4, up 3.6 percentage points year-over-year, with full-year gross margin at 38.3%, reflecting a favorable product mix and pricing power.

• Net loss for Q4 was $6.4 million (adjusted), a significant improvement from $22.5 million in Q4 2024; full-year adjusted net loss was $31.5 million, down from $56.7 million in 2024.

• The company continued its transformation into a hybrid training platform, expanding its product ecosystem and brand partnerships with elite athletes.

• Cash and equivalents at year-end rose to $113 million, driven by strong operations and working capital management.

Financial highlights

• Q4 2025 revenue: $85.2 million, up 43% year-over-year; full-year 2025 revenue: $259.4 million, up 41.8%.

• Q4 gross margin: 40.4%, up 3.6 percentage points year-over-year; full-year gross margin: 38.3%.

• Q4 adjusted operating loss was $2.7 million, down from $7.4 million in Q4 2024; full-year adjusted operating loss was $24.4 million, down from $40.2 million.

• Adjusted operating expenses for 2025: $123 million, up from $110 million in 2024, with one-off costs for provisions and marketing.

• Inventory at year-end: $72.8 million, down from $87.7 million in Q3 2025.

Outlook and guidance

• Q1 2026 revenue expected between $50 million and $55 million, representing 30%-43% year-over-year growth.

• Margin profile expected to strengthen as premium mix expands and cost efficiencies are realized.

• Operating costs expected to normalize in 2026 as one-off expenses subside.

• Focus areas include international expansion, new product releases, value-added service revenue, and strict cost control.