Zepp Health Corporation, the Netherlands-based parent of the Amazfit brand of fitness and healthcare wearables, reported sales jumped 43 percent in the fourth quarter to $85.2 million, meeting the upper end of its guidance range.
Gross margin for the quarter reached a record high of 40.4 percent, a significant 3.6 percent improvement compared to the fourth quarter of 2024 and a 2.2 percent increase over the third quarter of 2025. This margin expansion was driven by a more favorable product mix and Zepp Health’s ability to sustain pricing power during promotional periods. Zepp said it remains on track with the margin-enhancement efforts that began in late 2023 and expects this trend to continue as it optimizes its product mix and improves supply chain efficiency.
Total GAAP operating expenses for the quarter amounted to $38.3 million, while adjusted operating expenses were $37.1 million. Adjusted operating expenses as a percentage of sales improved by 5.7 percent, compared to the fourth quarter of 2024. Zepp Health said that although operating expenses increased due to strategic investments in brand and marketing activities, the majority of this increase was attributable to $5.2 million specifically identified provisions for sales channel optimization and brand and intellectual property protection. These costs are expected to normalize in 2026.
Thanks to strong revenue growth, improved gross margins, and effective cost control, Zepp Health’s adjusted operating loss for the fourth quarter was significantly reduced to $2.7 million, compared with $7.4 million in the fourth quarter of 2024.
Net loss attributable was $11.0 million, compared to net loss of $36.9 million in the fourth quarter of 2024. The net loss for the fourth quarter of 2025 included operating loss of $3.9 million, among which $5.5 million was specially identified provisions for sales channel optimization and brand and intellectual property protection, as well as income tax impacts of $2.1 million (primarily resulting from valuation allowance for deferred tax assets) and net investment results of $3.5 million (including impairment loss from investments, loss from equity method investments, and loss from fair value change of long-term investment), both of which are non-cash in nature.
Adjusted net loss attributable to Zepp Health was $6.4 million, compared to adjusted net loss of $22.5 million in the fourth quarter of 2024.
Zepp Health’s full-year revenue status for 2025
For the full year, revenue reached $258.9 million, representing 41.8 percent year-over-year growth from $182.6 million in 2024. Net loss attributable was $40.1 million, compared with $75.7 million in net loss in 2024. Adjusted net loss was $31.5 million, compared to adjusted net loss of $56.7 million in 2024.
“2025 marked a pivotal year for Zepp Health as our branded products delivered over 50 percent year-over-year revenue growth and recorded margin expansion,” commented Wayne Huang, founder, chairman and CEO of Zepp Health.
He added, “These results reflect the success of our multi-year transformation as we evolve from a volume-driven wearable brand into a premium-focused global brand built around Hybrid Training. Through our expanding product portfolio—from the $169 Active series to the $550 T-Rex Ultra flagship—together with growing pricing power and deeper engagement with performance communities such as HYROX, Amazfit is increasingly becoming part of how athletes train, compete, and share their performance.”
Leon Deng, Zepp Health’s CFO, added, “In the fourth quarter of 2025, we delivered robust revenue growth, with total revenue reaching US$85.2 million, a 43.0 percent increase compared to the fourth quarter of 2024. This performance was driven by strong sales of our Amazfit-branded products during the Black Friday and Christmas sales seasons. We are confident in our ability to maintain this growth momentum into 2026.
Outlook
The first quarter is typically a seasonally low quarter. For the first quarter of 2026, the company’s management currently expects net revenues to be between $50.0 million and $55.0 million, representing an increase of approximately 30 percent to 43 percent from $38.5 million in the first quarter of 2025.
Zepp Health Official Report Acquisition: Zepp Health Corporation Reports Fourth Quarter and Full Year 2025 Unaudited Financial Results
Infomation Source: SGB Media
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