Zepp Health Corporation (ZEPP)
NYSE:ZEPP
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Zepp Health
(NYSE:ZEPP)
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Rating:48Neutral
Price Target:
$18.00
▲(7.40% Upside)
Action:ReiteratedDate:01/31/26
The score is held down primarily by weak multi-year financial performance (declining revenue trend, ongoing losses, and negative free cash flow) and bearish technicals (price below key moving averages with negative MACD). These are partially offset by a stronger latest earnings update featuring sharp YoY revenue growth, improving margins sequentially, improved cash position, and upbeat near-term guidance, while valuation remains difficult to support due to losses and no dividend.
Positive Factors
Product innovation and launches
Successful, well-received product launches demonstrate sustainable R&D and go-to-market execution, strengthening brand positioning and product portfolio breadth. Durable demand for multiple new SKUs reduces reliance on any single model and supports recurring device and service revenue over quarters.
Negative Factors
Persistent negative operating and free cash flow
Chronic negative operating and free cash flow signals structural cash burn that weakens the company's ability to self-fund growth and cushions against shocks. Over months this raises dependency on external financing, constrains investment flexibility, and increases liquidity risk during cyclical downturns.
Read all positive and negative factors
Positive Factors
Negative Factors
Product innovation and launches
Successful, well-received product launches demonstrate sustainable R&D and go-to-market execution, strengthening brand positioning and product portfolio breadth. Durable demand for multiple new SKUs reduces reliance on any single model and supports recurring device and service revenue over quarters.
Read all positive factors
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$165.52M
Dividend YieldN/A
Average Volume (3M)95.69K
Price to Earnings (P/E)―
Beta (1Y)0.93
Revenue Growth13.27%
EPS Growth-66.48%
CountryUS
Employees765
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.03
Shares Outstanding7,042,547
10 Day Avg. Volume78,010
30 Day Avg. Volume95,689
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)0.17
Price to Sales (P/S)0.23
P/FCF Ratio-11.86
Enterprise Value/Market Cap11.68
Enterprise Value/Revenue1.15
Enterprise Value/Gross Profit3.10
Enterprise Value/Ebitda-6.57
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-0.01
Revenue Forecast (FY)$309.92M
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 generates revenue through multiple channels, primarily by selling its wearable devices, such as smartwatches and fitness trackers, directly to consumers through online and retail partnerships. Additionally, the company monetizes its he...
Zepp Health Earnings Call Summary
Earnings Call Date:Mar 15, 2026
(Q4-2025)
| Next Earnings Date:May 26, 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
45
Neutral
Balance Sheet
55
Neutral
Cash Flow
40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.68B | 1.33B | 2.50B | 4.22B | 6.17B | 6.08B |
| Gross Profit | 624.20M | 512.88M | 653.70M | 817.22M | 1.29B | 1.26B |
| EBITDA | -294.14M | -345.66M | -142.88M | -261.43M | 200.80M | 276.76M |
| Net Income | -479.07M | -554.13M | -220.49M | -293.37M | 136.02M | 216.27M |
Balance Sheet | ||||||
| Total Assets | 4.17B | 3.86B | 4.50B | 5.19B | 6.08B | 5.89B |
| Cash, Cash Equivalents and Short-Term Investments | 446.69M | 815.51M | 1.03B | 993.20M | 1.53B | 2.29B |
| Total Debt | 784.90M | 1.33B | 1.39B | 1.70B | 1.35B | 727.44M |
| Total Liabilities | 2.56B | 2.01B | 2.00B | 2.55B | 3.15B | 3.17B |
| Stockholders Equity | 1.61B | 1.84B | 2.49B | 2.63B | 2.92B | 2.72B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -25.88M | 40.92M | -118.59M | -377.22M | 71.79M |
| Operating Cash Flow | 0.00 | -24.39M | 42.60M | -117.11M | -331.77M | 150.78M |
| Investing Cash Flow | 0.00 | -1.58M | 7.73M | -6.24M | -1.06B | -195.59M |
| Financing Cash Flow | 0.00 | 477.00K | -41.68M | 42.37M | 646.39M | 531.78M |
Zepp Health Technical Analysis
Negative
16.76
Price Trends
18.12
Negative
22.42
Negative
27.73
Negative
Market Momentum
-2.14
Negative
34.14
Neutral
38.97
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 16.76 is above the 20-day moving average (MA) of 14.16, below the 50-day MA of 18.12, and below the 200-day MA of 27.73, indicating a bearish trend. The MACD of -2.14 indicates Negative momentum. The RSI at 34.14 is Neutral, neither overbought nor oversold. The STOCH value of 38.97 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% | |
55 Neutral | $57.63M | -10.88 | -12.50% | ― | 2.35% | 18.83% | |
50 Neutral | $35.97M | -17.32 | -2.85% | ― | 11.58% | 81.08% | |
48 Neutral | $165.52M | -0.67 | -17.94% | ― | 13.27% | -66.48% | |
47 Neutral | $202.91M | -9.09 | -92.69% | ― | -4.31% | 59.68% | |
45 Neutral | $128.42M | ― | -102.47% | ― | -27.37% | 70.46% | |
41 Neutral | $4.91M | -0.13 | -268.12% | ― | -9.05% | 77.41% |
* Technology Sector Average
ZEPP
Zepp Health
11.52
9.04
364.52%
GPRO
GoPro
0.77
0.28
57.26%
KOSS
Koss
3.80
-0.67
-14.99%
UEIC
Universal Electronics
4.48
-0.73
-14.01%
VUZI
Vuzix
2.44
0.62
34.07%
WLDS
Wearable Devices Ltd.
1.39
-6.50
-82.38%
Zepp Health Corporate Events
Zepp Health Achieves Strong Q3 Growth with Amazfit T-Rex 3 Pro Launch
Nov 5, 2025
Zepp Health Corporation reported a significant 78.5% year-over-year revenue increase for the third quarter of 2025, reaching $75.8 million, driven by strong demand for its diversified product portfolio, including the successful launch of the Amazf...
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.