Zepp Health (ZEPP) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $85.2 million, up 43% year-over-year, at the upper end of guidance, with 0.9 million units shipped.

• Full-year 2025 revenue was $258.9 million, up 41.8% year-over-year, with Amazfit-branded products accounting for all sales and 3.0 million units shipped.

• Gross margin hit a record 40.4% in Q4 2025 and 38.3% for the full year, reflecting a favorable product mix and pricing power.

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

• Cash and equivalents at year-end were $112.9 million, with positive operating cash flow and improved working capital management.

Financial highlights

• Q4 gross margin was 40.4%, up 3.6 percentage points year-over-year and sequentially; full-year gross margin was 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.

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

• Q4 2025 adjusted earnings per ADS (basic): -$0.40; FY25: -$1.97.

• Share repurchase program totaled $16.2 million through December 31, 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 higher-margin categories scale.

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

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