Zepp Health Corporation announced its unaudited financial results for the second quarter of 2025, reporting revenues of US$59.4 million. This represents a significant 46.2% year-over-year increase from US$40.6 million in Q2 2024 and a 54.2% increase quarter-over-quarter from Q1 2025. This marks the company's first overall revenue growth since Q2 2021, driven entirely by Amazfit products, underscoring the success of its strategic pivot.
The gross margin for Q2 2025 was 36.2%, consistent with the prior quarter but lower than Q2 2024, primarily due to a higher proportion of lower-margin entry-level products and clearance sales of older Balance 1 models. Management anticipates gross margin expansion in the second half of 2025 with a more favorable product mix. Operating loss narrowed to US$6.1 million, a 38.2% improvement year-over-year, and adjusted operating expenses decreased to US$26.4 million, aligning with the quarterly run rate target.
Net loss attributable to Zepp Health Corporation was US$7.7 million, compared to US$10.8 million in Q2 2024. As of June 30, 2025, the company's cash balance stood at US$95.3 million, with expectations for it to grow in Q3 2025. Zepp Health has cumulatively retired US$68.0 million of debt since early 2023, and its share repurchase program remains active, with US$16.0 million used to repurchase approximately 2.2 million ADSs.
Product performance was strong, with demand for the Bip 6, Active 2, and T-Rex 3. Helio Strap and Balance 2 (launched June 2025) contributed positively. Zepp OS 5.0 was launched, powered by AI-driven features like Zepp Flow 2.0. Marketing efforts proved effective, with Amazfit ranking as the second most improved wearables brand in the U.S. on Amazon Prime Day, and EMEA sales surging 60%.
The company provided a robust outlook for the third quarter of 2025, projecting net revenues between US$72.0 million and US$76.0 million. This forecast represents a substantial 70% to 79% year-over-year growth compared to US$42.5 million in Q3 2024, reflecting strong execution and sustained product momentum.
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