Zepp Health Corporation (ZEPP)
NYSE:ZEPP
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Zepp Health
(NYSE:ZEPP)
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Rating:43Neutral
Price Target:
$4.00
▼(-76.13% Downside)
Action:Reiterated
Date:06/11/26
The score is held down primarily by weak financial performance (ongoing losses, negative free cash flow, and rising leverage) and very bearish technicals (price far below moving averages with negative momentum). The latest earnings call adds some support via strong growth and improving operating trends, but profitability and cost headwinds remain key constraints; valuation support is limited due to negative earnings and no dividend.
Positive Factors
Revenue Growth
Sustained double-digit top-line growth driven by new product launches and broad-based demand indicates improving product-market fit and expanding distribution. Over the next 2–6 months, this revenue momentum supports higher operating leverage and a clearer path to sustained profitability if execution holds.
Negative Factors
Ongoing Net Losses
Material adjusted net losses at scale limit internal funding capacity and extend dependence on financing or balance-sheet actions. Even with narrowing losses, persistent negative profitability reduces strategic flexibility and elevates the risk that investments in product and marketing will not generate sustainable returns within the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained double-digit top-line growth driven by new product launches and broad-based demand indicates improving product-market fit and expanding distribution. Over the next 2–6 months, this revenue momentum supports higher operating leverage and a clearer path to sustained profitability if execution holds.
Read all positive factors
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$68.85M
Dividend YieldN/A
Average Volume (3M)177.83K
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth50.67%
EPS Growth49.50%
CountryUS
Employees765
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-90.67
Shares Outstanding8,460,126
10 Day Avg. Volume298,309
30 Day Avg. Volume177,831
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.12
Price to Sales (P/S)0.10
P/FCF Ratio-1.01
Enterprise Value/Market Cap23.18
Enterprise Value/Revenue0.87
Enterprise Value/Gross Profit2.25
Enterprise Value/Ebitda-7.56
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
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 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:Jun 09, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 26, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational narrative: strong top-line performance with Q1 revenue up 33.8% YoY, meaningful premiumization (ASP +20% YoY), gross profit expansion (up 35.3%) and market share gains supported by new product launches and a strategic 3‑year HYROX partnership. Management also demonstrated progress on expense discipline (operating loss narrowed) and working capital (inventory down). Key near-term challenges include rising memory costs, unfavorable FX impacts, elevated operating expenses from front‑loaded launches/marketing, sequential margin moderation from a Q4 peak, and potential shipment timing risk that could shift revenue across quarters. Overall, the positive revenue, premiumization, margin resilience YoY and strategic partnerships outweigh the challenges, but the company remains on a path toward profitability rather than currently profitable.Positive Updates
Strong Revenue Growth
Q1 2026 revenue of $51.5M, up 33.8% year-over-year, driven by new product launches (Active MAX, Active 3 Premium, T‑Rex Ultra 2) and broad-based demand across entry and premium tiers.
Negative Updates
Continued Net Loss
Adjusted net loss remains significant at $17.9M in Q1 2026 (34.8% of sales), indicating the company is not yet profitable on a GAAP adjusted-net basis despite improvements.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Q1 2026 revenue of $51.5M, up 33.8% year-over-year, driven by new product launches (Active MAX, Active 3 Premium, T‑Rex Ultra 2) and broad-based demand across entry and premium tiers.
Read all positive updates
Company Guidance
Guidance for Q2 2026 is revenue of $63–68 million (≈+6% to +14% YoY), with management emphasizing continued year‑over‑year growth driven by product demand but noting the quarter is sensitive to shipment timing and launch phasing; they reiterated focus on quality of growth (premium mix, pricing power and margin expansion) rather than volume alone and said the company expects full‑year 2026 to be on a profitable growth path versus 2025 (no full‑year number given). For context, Q1 revenue was $51.5M (+33.8% YoY), Q1 gross margin was 37.7% (+0.4 pts YoY) with gross profit $19.4M (+35.3%), adjusted operating expenses were $35.7M (R&D $11.9M, S&M $16.4M, G&A $7.4M), operating loss narrowed to $6.3M (vs. $17.2M a year ago) and adjusted net loss was $17.9M (34.8% of sales); cash was $103.2M, inventory $62.8M, $17M repurchased of a $20M program, and management flagged near‑term memory cost pressure (DDR5) but expects ASPs (+>20% YoY) and cost levers to help support margins.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 | -223.19M | -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 | -185.14M | -25.88M | 40.92M | -118.59M | -377.22M |
| Operating Cash Flow | -179.65M | -24.39M | 42.60M | -117.11M | -331.77M |
| Investing Cash Flow | 10.35M | -1.58M | 7.73M | -6.24M | -1.06B |
| Financing Cash Flow | 173.66M | 477.00K | -41.68M | 42.37M | 646.39M |
Zepp Health Technical Analysis
Negative
16.76
Price Trends
11.68
Negative
15.32
Negative
26.36
Negative
Market Momentum
-2.16
Positive
26.22
Positive
14.45
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 7.47, above the 50-day MA of 11.68, and below the 200-day MA of 26.36, indicating a bearish trend. The MACD of -2.16 indicates Positive momentum. The RSI at 26.22 is Positive, neither overbought nor oversold. The STOCH value of 14.45 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 | $49.51M | -2.52 | -13.45% | ― | -10.20% | 9.43% | |
48 Neutral | $37.01M | -33.62 | -3.62% | ― | 3.28% | -44.36% | |
47 Neutral | $259.45M | -8.32 | -87.47% | ― | 14.24% | 62.87% | |
43 Neutral | $68.85M | -0.11 | -17.94% | ― | 50.67% | 49.50% | |
43 Neutral | $134.64M | -0.98 | -201.66% | ― | -21.02% | 12.80% | |
42 Neutral | $2.75M | -0.03 | -268.12% | ― | 23.95% | 85.47% |
* Technology Sector Average
ZEPP
Zepp Health
4.69
2.38
103.03%
GPRO
GoPro
0.77
-0.11
-12.95%
KOSS
Koss
3.91
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-20.20%
UEIC
Universal Electronics
3.92
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-43.60%
VUZI
Vuzix
3.12
-0.03
-0.95%
WLDS
Wearable Devices Ltd.
0.78
-3.84
-83.12%
Zepp Health Corporate Events
Zepp Health Posts Strong Q1 2026 Growth and Deepens HYROX Partnership
Jun 9, 2026
Zepp Health reported unaudited results for the first quarter of 2026 on June 8, showing revenue of US$51.5 million, up 33.8% year over year, with gross margin edging up to 37.7% despite seasonal weakness and higher component costs. Cash and equiva...
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.