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Highlights
- Revenue rises 78.5% YoY to USD 75.8M, meeting upper end of guidance.
- GAAP operating loss narrows to USD 0.9M and adjusted operating income reaches breakeven.
- Cash and cash equivalents increase to USD 102.6M, up from USD 95.3M in Q2 2025.
Zepp Health Corporation (NYSE:ZEPP) reported its unaudited financial results for Q3 2025, with revenues reaching USD 75.8M, a 78.5% increase compared to Q3 2024 and 27.6% higher than Q2 2025. The revenue growth was primarily driven by new product launches, including the Amazfit T-Rex 3 Pro, as well as continued demand for previously launched products like Amazfit Balance 2, Helio Strap, and entry-level Amazfit Bip 6 and Active 2 ranges. Supply constraints on the Helio Strap, and a late-quarter typhoon partially offset revenue growth.
Gross margin for the quarter was 38.2%, down 2.4% YoY from 40.6% in Q3 2024, mainly due to lower margins on entry-level products. Sequentially, gross margin improved 2.0% from Q2 2025, supported by a favorable product mix and new product contributions.
Operating Performance
GAAP operating loss narrowed significantly to USD 0.9M, compared with a loss of USD 12.5M in Q3 2024. Adjusted operating income reached USD 0.4M, marking breakeven. Total operating expenses were USD 29.8M, with adjusted operating expenses at USD 28.6M, representing 37.7% of sales, down from 67.3% in the same period last year.
Net Income and Cash Position
Net loss attributable to Zepp Health was USD 1.6M, compared with a USD 13.3M loss in Q3 2024. Adjusted net loss was USD 0.7M, an improvement from USD 11.8M a year earlier. Cash and cash equivalents, including restricted cash, increased to USD 102.6M, up from USD 95.3M at the end of Q2 2025, providing liquidity for upcoming operations and product launches. The inventory stood at USD 87.7M, reflecting preparation for the fourth-quarter consumer electronics season.
Management Commentary
Mr. Wang "Wayne" Huang, Chairman and CEO, stated: "We are pleased to report another exceptional performance for the third quarter of 2025, a result that underscores the ongoing effectiveness of our strategic brand and product evolution. Our diversified product portfolio saw strong demand, driving a 78.5% year-over-year revenue increase… We stay focused on long-term shareholder value and empowering users' well-being through sports technology."
Mr. Leon Deng, CFO, added: "In addition to the strong revenue growth, our gross margin expanded to 38.2%, a 2.0% improvement compared to the second quarter of 2025… We continued to manage costs effectively while making key investments in R&D and sales and marketing to support innovation and enhance brand visibility."
Outlook
For Q4 2025, Zepp Health expects net revenues between USD 82.0M and USD 86.0M, representing a 38% to 45% increase YoY.
