Zepp Health (ZEPP) Q3 2025 earnings summary

Executive summary

• Revenue for Q3 2025 reached $75.8 million, up 78.5% year-over-year, meeting the upper end of guidance and driven by strong product launches and effective brand strategy.

• Adjusted operating income reached breakeven at $0.4 million, a significant improvement from an $11.3 million loss in Q3 2024; adjusted net loss attributable to shareholders narrowed to $0.7 million.

• Cash and equivalents grew to $103 million as of September 30, 2025, up from $95 million in Q2 2025.

• Launched flagship Amazfit T-Rex 3 Pro, receiving strong market and athlete validation, and expanded athlete partnerships.

• Units shipped increased to 0.8 million, up from 0.7 million in Q3 2024, with Amazfit-branded products driving growth.

Financial highlights

• Q3 2025 revenue reached $75.8 million, up 78.5% year-over-year, meeting the upper end of guidance.

• 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 (37.7% of sales), stable year-over-year and down from 67.3% in Q3 2024.

• Adjusted EBIT for Q3 2025 was $0.7 million, compared to a loss of $11.4 million in Q3 2024.

• Cash and cash equivalents stood at $102.6 million as of September 30, 2025.

Outlook and guidance

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

• Margin expansion expected to continue, supported by premium product launches and selective discounting.

• Continued investment in R&D and marketing, with marketing expenses expected to remain around $10–$11 million per quarter.

• Product pipeline remains robust, with several 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.