Zepp Health Posts 43% Q4 Revenue Growth to US$85.2M with 40.4% Margin
Zepp Health’s Q4 revenue rose 43% year-over-year to US$85.2 million, while full-year sales reached US$258.9 million, up 41.8% from 2024. Gross margin hit a company-record 40.4% in Q4 and net losses narrowed over 70% to US$11.0 million GAAP and US$6.4 million adjusted.
1. Q4 and Full Year 2025 Results
Zepp Health reported Q4 revenue of US$85.2 million, up 43.0% year-over-year, and full-year revenue of US$258.9 million, a 41.8% increase from 2024. Cash and cash equivalents stood at US$112.9 million at year-end, up from US$110.7 million in 2024. Inventory declined to US$72.8 million, reflecting improved working capital management.
2. Margin Expansion and Profitability
Gross margin reached a record 40.4% in Q4, expanding 3.6 percentage points year-over-year and 2.2 points sequentially. Full-year gross margin was 38.3%, supporting a reduction in GAAP net loss to US$11.0 million in Q4 and US$40.1 million for the year. Adjusted net losses narrowed 71.6% in Q4 to US$6.4 million and improved 44.5% year-over-year for the full year to US$31.5 million.
3. New Product Debuts and Athlete Partnerships
Zepp launched three new Amazfit smartwatches—the premium Active Max, the rugged T-Rex Ultra 2, and the entry-level Active 3 Premium—expanding its product portfolio across price tiers. The company also expanded its Amazfit Athletes roster, adding Olympic medalist Josh Kerr, marathon champion Amanal Petros, and HYROX’s Hunter McIntyre.
4. Q1 2026 Guidance
Management expects Q1 2026 net revenues between US$50.0 million and US$55.0 million, representing 30% to 43% year-over-year growth. This outlook underscores confidence in sustained demand and the ongoing margin-expansion strategy.