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Zepp Health
(NYSE:ZEPP)
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Rating:44Neutral
Price Target:
$2.50
▼(-50.88% Downside)
Action:Reiterated
Date:10/16/26
ZEPP scores low primarily due to weak financial quality (continued losses, negative free cash flow, and rising leverage) and a very bearish technical backdrop (price below all key moving averages with negative MACD). The earnings call provides a meaningful positive offset via strong recent growth, margin progress, and profitability-focused guidance, but valuation remains constrained by loss-making fundamentals and no dividend support.
Positive Factors
Market Share Gains
Amazfit’s top-six value-share position in the United States and Europe indicates meaningful competitive traction across important markets. Continued share gains can improve brand credibility, broaden distribution opportunities, and support more durable demand for the company’s expanding wearable portfolio.
Negative Factors
Unreliable Cash Generation
Negative operating and free cash flow across two consecutive years shows that the business is not yet reliably funding operations internally. Continued cash burn can constrain investment flexibility and increase dependence on available balance-sheet resources while losses remain unresolved.
Read all positive and negative factors
Positive Factors
Negative Factors
Market Share Gains
Amazfit’s top-six value-share position in the United States and Europe indicates meaningful competitive traction across important markets. Continued share gains can improve brand credibility, broaden distribution opportunities, and support more durable demand for the company’s expanding wearable portfolio.
Read all positive factors
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$40.52M
Dividend Yield0.84%
Average Volume (3M)30.45K
Price to Earnings (P/E)―
Beta (1Y)1.25
Revenue Growth38.14%
EPS Growth43.05%
CountryUS
Employees763
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-292.87
Shares Outstanding8,460,126
10 Day Avg. Volume45,664
30 Day Avg. Volume30,452
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.02
Price to Sales (P/S)0.01
P/FCF Ratio-0.14
Enterprise Value/Market Cap5.48
Enterprise Value/Revenue0.12
Enterprise Value/Gross Profit0.29
Enterprise Value/Ebitda-0.87
Forecast
1Y Price Target
$43.86Price Target Upside761.69% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)-0.03
Revenue Forecast (FY)$313.16M
Zepp Health Business Overview & Revenue Model
Company Description
Headquartered in Hefei, China, and established in 2013, Zepp Health Corporation (known as Huami Corporation until its rebranding in February 2021) is a technology firm specializing in the creation, production, and sale of intelligent wearable devi...
How the Company Makes Money
Zepp Health primarily makes money from (1) selling smart wearable devices and related accessories to consumers and channel partners, and (2) providing software- and service-related offerings tied to its wearable ecosystem. The largest and most dir...
Zepp Health Earnings Call Summary
Earnings Call Date:Sep 02, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 23, 2026
Earnings Call Sentiment Positive
The call was broadly optimistic, with strong 33.8% revenue growth, higher average selling prices, year-over-year gross-margin expansion, market-share gains, product launches, and progress toward profitable growth. The main challenges were near-term memory-cost pressure, foreign-exchange headwinds, continued operating and net losses, higher operating expenses, and a lower second-quarter growth range. The positive operating and strategic developments significantly outweighed the stated challenges.Positive Updates
Strong First-Quarter Revenue Growth
First-quarter revenue reached US$51.5 million, up 33.8% year over year and in line with guidance. Amazfit-branded revenue also grew 33.8% year over year, driven primarily by the launches of ActiveMax, Active 3 Premium, and T-Rex Ultra 2, despite the quarter traditionally being a softer season for consumer electronics.
Negative Updates
Sequential Gross Margin Decline
Gross margin of 37.7% moderated from the record 40.4% achieved in Q4 2025. Management attributed the sequential comparison to the seasonal refresh of lower-margin entry-level products, higher memory component costs, and unfavorable foreign-currency fluctuations.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong First-Quarter Revenue Growth
First-quarter revenue reached US$51.5 million, up 33.8% year over year and in line with guidance. Amazfit-branded revenue also grew 33.8% year over year, driven primarily by the launches of ActiveMax, Active 3 Premium, and T-Rex Ultra 2, despite the quarter traditionally being a softer season for consumer electronics.
Read all positive updates
Company Guidance
For the second quarter of 26, the company expects revenue to be in the range of $63 million to $68 million, representing year over year growth of approximately 6% to 14%, supported by demand across its product portfolio while accounting for normal shipment timing and product launch phasing during the quarter; it expects to have more than 9 product launches this year, R&D expenses to trim towards the norm starting from the second half of the year, marketing expenses to average down in the second half of the year, G&A expenses to show a step down already in Q2 and going towards Q3 and Q4, and operating expenses to run at around $30 million a quarter or even lower than that, while it does not give the guidance on the full year but is looking at a profitable growth over 2025.Zepp Health Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
46
Neutral
Cash Flow
24
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.93B | 1.82B | 1.33B | 352.63M | 615.72M | 968.72M |
| Gross Profit | 753.89M | 711.63M | 512.88M | 92.30M | 119.36M | 202.37M |
| EBITDA | -254.42M | -191.48M | -345.84M | -20.17M | -38.18M | 31.53M |
| Net Income | -301.48M | -280.92M | -554.13M | -31.13M | -42.85M | 21.36M |
Balance Sheet | ||||||
| Total Assets | 3.80B | 3.95B | 3.86B | 635.66M | 758.34M | 954.46M |
| Cash, Cash Equivalents and Short-Term Investments | 721.36M | 789.70M | 815.51M | 145.65M | 145.06M | 240.58M |
| Total Debt | 1.67B | 1.59B | 1.33B | 195.81M | 248.57M | 211.59M |
| Total Liabilities | 2.54B | 2.45B | 2.01B | 282.83M | 371.81M | 494.37M |
| Stockholders Equity | 1.26B | 1.50B | 1.84B | 350.96M | 384.74M | 458.03M |
Cash Flow | ||||||
| Free Cash Flow | -185.14M | -185.14M | -25.88M | 5.78M | -17.32M | -59.23M |
| Operating Cash Flow | -179.65M | -179.65M | -24.39M | 6.02M | -17.11M | -52.10M |
| Investing Cash Flow | 10.35M | 10.35M | -1.58M | 1.09M | -910.96K | -165.75M |
| Financing Cash Flow | 173.66M | 173.66M | 477.00K | -5.88M | 6.19M | 101.50M |
Zepp Health Technical Analysis
Negative
5.09
Price Trends
4.33
Negative
4.71
Negative
10.89
Negative
Market Momentum
-0.44
Positive
15.84
Positive
28.69
Neutral
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 5.09 is above the 20-day moving average (MA) of 3.55, above the 50-day MA of 4.33, and below the 200-day MA of 10.89, indicating a bearish trend. The MACD of -0.44 indicates Positive momentum. The RSI at 15.84 is Positive, neither overbought nor oversold. The STOCH value of 28.69 is Neutral, 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% | |
56 Neutral | $68.55M | -4.87 | -10.51% | 4.31% | -17.87% | 7.41% | |
48 Neutral | $239.06M | -1.08 | -529.55% | ― | -23.86% | -36.75% | |
47 Neutral | $33.70M | -83.61 | -1.29% | 5.12% | 3.14% | 55.77% | |
44 Neutral | $40.52M | -0.06 | -27.93% | 0.84% | 38.14% | 43.05% | |
42 Neutral | $185.71M | -5.84 | -89.11% | ― | 6.76% | 28.34% | |
41 Neutral | $3.32M | -0.03 | -53.43% | ― | 66.59% | 88.55% |
* Technology Sector Average
ZEPP
Zepp Health
2.66
-41.86
-94.03%
GPRO
GoPro
1.02
-1.17
-53.42%
KOSS
Koss
3.48
-1.56
-30.95%
UEIC
Universal Electronics
5.07
0.92
22.08%
VUZI
Vuzix
2.06
-1.55
-42.94%
WLDS
Wearable Devices Ltd.
1.39
-22.64
-94.22%
Zepp Health Corporate Events
Zepp Health Posts Q2 2026 Revenue Growth as Product Mix Shifts to Higher-Value Wearables
Sep 2, 2026
Zepp Health reported unaudited results for the second quarter of 2026, with revenue rising 6.9% year over year to US$63.5 million and gross margin improving to 37.4% on a richer product mix. Despite this, net loss widened to US$11.3 million as for...
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.