Zepp Health announced the launch of the Amazfit Active Max, a new smartwatch that expands the brand’s lineup with a 1.5‑inch AMOLED display, 25‑day battery life, and more than 170 sport modes. Priced at $169, the device is positioned to attract athletes and fitness enthusiasts who demand advanced training tools, BioCharge readiness insights, and adaptive coaching. The launch is part of the company’s strategy to shift its product mix toward higher‑tier devices in pursuit of a 40%+ gross‑margin target.
In its Q3 2025 earnings, Zepp Health reported revenue of $75.8 million, up 78.5% year‑over‑year, driven almost entirely by Amazfit product sales. The company’s gross margin expanded to 38.2% from 40.6% in Q3 2024, a sequential improvement from 36.2% in Q2 2025, reflecting a more favorable mix of premium devices and tighter cost control. Adjusted operating income reached breakeven, marking a key milestone in the company’s turnaround from prior losses.
Management highlighted that the Active Max launch will accelerate the shift toward higher‑margin products. Chief Financial Officer Leon Deng noted that the margin expansion was “primarily due to a favorable product mix and successful new product launches,” while Chairman and CEO Wayne Huang emphasized the company’s confidence in sustaining growth through continued innovation and AI integration. Zepp Health is also rolling out GPT‑4o‑powered features in Zepp OS 4 to enhance user experience and differentiate its ecosystem.
The company guided for Q4 2025 revenue of $82 million to $86 million, representing 38%–45% year‑over‑year growth, and maintained its 40%+ gross‑margin objective. Cash balances rose to $102.6 million, providing liquidity for future product development and debt retirement. Analysts noted that the stock fell 3.65% after the earnings announcement, a reaction attributed to broader market caution rather than company fundamentals.
Zepp Health’s product strategy, which balances entry‑level volume with premium‑margin devices, positions it to compete with Garmin, Apple, and Samsung in the $200–$500 smartwatch segment. The Active Max’s feature set and price point, combined with the company’s AI‑driven ecosystem, are expected to strengthen its competitive positioning and support the company’s long‑term growth trajectory.
The launch of the Amazfit Active Max, coupled with strong Q3 2025 financials, signals Zepp Health’s continued momentum and its ability to scale production while improving profitability. The company’s focus on AI integration and a subscription‑free ecosystem underscores its commitment to delivering differentiated value to consumers and sustaining its turnaround.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.