Zepp Health Corporation (ZEPP)
NYSE:ZEPP
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Zepp Health
(NYSE:ZEPP)
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Rating:49Neutral
Price Target:
$6.50
▼(-61.22% Downside)
Action:Reiterated
Date:06/02/26
The score is held back primarily by weak financial performance (continued losses, negative free cash flow, and rising leverage) and bearish technicals (price far below key moving averages with negative MACD). These are partially offset by a more positive earnings-call outlook featuring strong near-term revenue guidance and ongoing gross-margin improvement.
Positive Factors
Revenue growth momentum
A sustained return to high single-digit/low double-digit growth that culminated in 41.8% FY and 43% Q4 indicates regained product-market fit and improving demand across channels. Durable top-line expansion supports scale economics, investment capacity for R&D/marketing, and reduces reliance on external financing over the next several quarters.
Negative Factors
Negative and inconsistent cash generation
Repeated negative operating and free cash flow in recent years signals the business is not yet self-funding growth and operations. Persisting cash burn increases dependency on external financing or equity actions, which can constrain strategic flexibility and slow investment or share buybacks if losses persist over multiple quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth momentum
A sustained return to high single-digit/low double-digit growth that culminated in 41.8% FY and 43% Q4 indicates regained product-market fit and improving demand across channels. Durable top-line expansion supports scale economics, investment capacity for R&D/marketing, and reduces reliance on external financing over the next several quarters.
Read all positive factors
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$99.83M
Dividend YieldN/A
Average Volume (3M)113.64K
Price to Earnings (P/E)―
Beta (1Y)0.86
Revenue Growth42.35%
EPS Growth46.12%
CountryUS
Employees765
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-90.67
Shares Outstanding8,460,126
10 Day Avg. Volume147,494
30 Day Avg. Volume113,635
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.12
Price to Sales (P/S)0.10
P/FCF Ratio-7.07
Enterprise Value/Market Cap15.99
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit2.25
Enterprise Value/Ebitda-8.53
Forecast
1Y Price Target
$56.28Price Target Upside235.80% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.01
Revenue Forecast (FY)$331.24M
Zepp Health Business Overview & Revenue Model
Company Description
Zepp Health Corporation, together with its subsidiaries, develops, manufactures, and sells smart wearable technological devices in the People's Republic of China. It operates through two segments, Xiaomi Wearable Products, and Self-Branded Product...
How the Company Makes Money
Zepp Health primarily generates revenue from selling smart wearable hardware, including Amazfit- and Zepp-branded smartwatches and fitness trackers (typically sold through online and offline retail channels and distributors). Revenue is recognized...
Zepp Health Earnings Call Summary
Earnings Call Date:Mar 15, 2026
(Q4-2025)
| Next Earnings Date:Jun 08, 2026
Earnings Call Sentiment Positive
The call conveyed a broadly positive operational turnaround: strong revenue growth (41.8% FY, 43% Q4), a record gross margin (~40.4%) driven by premiumization, improved adjusted losses and solid cash balances. Management acknowledged near-term headwinds—one-time provisions, higher operating spend tied to strategic brand and channel investments, memory cost pressure, and some SKU supply shortages—but characterized many cost increases as non-structural and reiterated confidence in continued margin expansion and strong 2026 demand (Q1 guide +30% to +43% YoY). On balance, the favorable top-line, margin expansion and improving profitability trends outweigh the manageable lowlights highlighted by management.Positive Updates
Strong Top-Line Growth
Full year 2025 revenue of $259.0M, up 41.8% year-over-year from $183M; Q4 2025 revenue of $85.2M, up 43% year-over-year and meeting the upper end of guidance.
Negative Updates
Ongoing Net Loss Position
Although improved, the company remained unprofitable on an adjusted basis for full-year 2025 with an adjusted net loss of $31.5M, indicating continued work needed to reach sustained GAAP profitability.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Top-Line Growth
Full year 2025 revenue of $259.0M, up 41.8% year-over-year from $183M; Q4 2025 revenue of $85.2M, up 43% year-over-year and meeting the upper end of guidance.
Read all positive updates
Company Guidance
Zepp guided to first‑quarter 2026 revenue of $50–$55 million, or +30% to +43% year‑over‑year, and said it expects continued top‑line expansion into 2026 driven by new product launches (Active 3 Premium, Active MAX, T‑Rex Ultra 2) and a growing premium mix that should help sustain margin expansion. Management pointed to Q4 2025 momentum—quarterly revenue $85.2M (+43% YoY), Amazfit branded product sales +45.4% YoY and +12.4% sequentially, record Q4 gross margin 40.4% (FY2025 gross margin 38.3%) and full‑year revenue $259M (+41.8% YoY)—as the basis for its confidence, and said operating expenses should come down relative to revenue in 2026 as one‑offs normalize. The company also highlighted liquidity and balance‑sheet metrics (cash & equivalents $113M as of 12/31/25; inventory $72.8M vs $87.7M in Q3), reiterated a 2026 share‑repurchase program, and noted continued investment in R&D and marketing (adj R&D $10.2M, adj S&M $15.6M; full‑year adjusted operating expenses $123M, or $110M excluding one‑offs).Zepp Health Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.82B | 1.33B | 2.50B | 4.22B | 6.17B |
| Gross Profit | 711.63M | 512.88M | 653.70M | 817.22M | 1.29B |
| EBITDA | -204.93M | -345.66M | -142.88M | -261.43M | 200.80M |
| Net Income | -280.92M | -554.13M | -220.49M | -293.37M | 136.02M |
Balance Sheet | |||||
| Total Assets | 3.95B | 3.86B | 4.50B | 5.19B | 6.08B |
| Cash, Cash Equivalents and Short-Term Investments | 789.70M | 815.51M | 1.03B | 993.20M | 1.53B |
| Total Debt | 1.59B | 1.33B | 1.39B | 1.70B | 1.35B |
| Total Liabilities | 2.45B | 2.01B | 2.00B | 2.55B | 3.15B |
| Stockholders Equity | 1.50B | 1.84B | 2.49B | 2.63B | 2.92B |
Cash Flow | |||||
| Free Cash Flow | -26.48M | -25.88M | 40.92M | -118.59M | -377.22M |
| Operating Cash Flow | -25.69M | -24.39M | 42.60M | -117.11M | -331.77M |
| Investing Cash Flow | 1.48M | -1.58M | 7.73M | -6.24M | -1.06B |
| Financing Cash Flow | 24.84M | 477.00K | -41.68M | 42.37M | 646.39M |
Zepp Health Technical Analysis
Negative
16.76
Price Trends
12.49
Negative
16.41
Negative
27.40
Negative
Market Momentum
-1.94
Positive
25.69
Positive
6.17
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEPP, the sentiment is Negative. The current price of 16.76 is above the 20-day moving average (MA) of 9.44, above the 50-day MA of 12.49, and below the 200-day MA of 27.40, indicating a bearish trend. The MACD of -1.94 indicates Positive momentum. The RSI at 25.69 is Positive, neither overbought nor oversold. The STOCH value of 6.17 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ZEPP.
Zepp Health Risk Analysis
Zepp Health disclosed 72 risk factors in its most recent earnings report. Zepp Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 3 New Risks
1.
The cooperation with the securities regulatory authorities between China and the United States may not be efficient. Q4, 2023
2.
Our growth through acquisitions may be affected by certain PRC regulations. Q4, 2023
3.
If we are deemed to be an investment company under the Investment Company Act of 1940, applicable restrictions could have a material adverse effect on our business and the price of our ADSs and Class A ordinary shares. Q4, 2023
Zepp Health Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
51 Neutral | $50.27M | -2.60 | -13.45% | ― | -10.20% | 9.43% | |
49 Neutral | $99.83M | -0.15 | -17.94% | ― | 42.35% | 46.12% | |
49 Neutral | $341.36M | -11.28 | -87.47% | ― | 14.24% | 62.87% | |
48 Neutral | $38.24M | -34.95 | -3.62% | ― | 3.28% | -44.36% | |
43 Neutral | $181.43M | -1.28 | -201.66% | ― | -21.02% | 12.80% | |
42 Neutral | $3.02M | -0.03 | -268.12% | ― | 23.95% | 85.47% |
* Technology Sector Average
ZEPP
Zepp Health
6.46
4.09
172.57%
GPRO
GoPro
1.00
0.21
26.10%
KOSS
Koss
4.07
-1.59
-28.05%
UEIC
Universal Electronics
4.05
-2.71
-40.09%
VUZI
Vuzix
4.23
1.26
42.42%
WLDS
Wearable Devices Ltd.
0.91
-3.95
-81.36%
Zepp Health Corporate Events
Zepp Health Posts Strong 2025 Growth With Record Margins and Tighter Balance Sheet
Mar 16, 2026
Zepp Health reported unaudited fourth-quarter and full-year 2025 results on March 15, 2026, highlighting strong momentum in its premium smartwatch strategy. Revenue for 2025 rose 41.8% year-on-year to US$258.9 million, while 2025 gross margin impr...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.