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Zepp Health (ZEPP)
NYSE:ZEPP
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Zepp Health
(NYSE:ZEPP)
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Rating:54Neutral
Price Target:
$44.00
▼(-7.64% Downside)
Zepp Health's overall stock score is primarily influenced by its challenging financial performance, with significant financial headwinds and negative profitability metrics. The positive sentiment from the earnings call, driven by strong revenue growth and successful product launches, provides some optimism. However, technical analysis suggests caution due to overbought conditions, and valuation metrics remain unattractive due to ongoing losses.
Zepp Health (ZEPP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$694.41M
Dividend YieldN/A
Average Volume (3M)586.87K
Price to Earnings (P/E)―
Beta (1Y)0.76
Revenue Growth-18.94%
EPS Growth-197.82%
CountryUS
Employees765
SectorTechnology
Sector Strength88
IndustryConsumer Electronics
Share Statistics
EPS (TTM)-0.02
Shares Outstanding7,042,547
10 Day Avg. Volume434,966
30 Day Avg. Volume586,872
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market Cap0.20
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit0.81
Enterprise Value/Ebitda-2.42
Forecast
1Y Price Target
$52.12Price Target Upside9.40% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
Zepp Health Business Overview & Revenue Model
Company DescriptionZepp Health (ZEPP) is a technology company specializing in health and fitness wearables, smart devices, and health management solutions. The company operates in the consumer electronics sector, focusing on integrating advanced technology with health monitoring capabilities. Zepp Health's core products include smartwatches, fitness trackers, and health data management applications that help users track their physical activities, monitor health metrics, and improve overall wellness.
How the Company Makes MoneyZepp Health generates revenue primarily through the sale of its health and fitness wearable devices, such as smartwatches and fitness trackers. These products are often complemented by subscription-based services that provide users with enhanced features and personalized health insights. Additionally, the company may generate income through partnerships with health organizations and fitness apps, which can help expand its user base and enhance its product offerings. Advertising partnerships and collaborations with other technology firms also contribute to its revenue streams, allowing Zepp Health to leverage existing platforms and reach wider audiences.
Zepp Health Earnings Call Summary
Earnings Call Date:Aug 03, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 24, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with strong revenue growth, successful product launches, and a promising financial outlook, despite some financial pressures such as an operating loss and decreased cash balance.Q2-2025 Updates
Positive Updates
Significant Revenue Growth
Zepp Health achieved a remarkable 46% year-over-year increase in revenue to $59.4 million, marking the first quarter of year-over-year revenue growth since Q2 2021.
Product Launch Success
The launch of Helio Strap and Balance 2 smartwatch received high praise, with Helio Strap being recognized as the most accurate heart rate monitoring device by professional influencers.
Strong Market Performance
Amazfit ranked as the second most improved wearable brand in the USA year-over-year, and Prime Day sales in EMEA surged by approximately 60% compared to 2024.
Positive Financial Outlook
The company forecasts revenue growth of 70% to 79% for Q3 2025, indicating continued momentum.
Operational Resilience
Proactive supply chain management and diversified manufacturing presence helped mitigate tariff impacts.
Negative Updates
Operating Loss
Despite improvements, the company reported an adjusted operating loss of $4.9 million for the quarter.
Gross Margin Pressure
Gross margin remained flat at 36.2% compared to Q1 2025, with a slight year-over-year decline due to higher sales of lower-margin products.
Cash Balance Decline
The overall cash balance decreased from $103 million in Q1 2025 to $95 million by the end of Q2 2025.
Company Guidance
During Zepp Health Corporation's second quarter 2025 earnings call, several key financial metrics and strategic initiatives were highlighted. The company reported a 46% year-over-year increase in revenue, reaching $59.4 million, attributed wholly to the Amazfit brand. This marked the first quarter of year-over-year revenue growth since Q2 2021, signaling a positive shift in the company's growth trajectory. Gross margin was reported at 36.2%, slightly down from the previous year due to a higher revenue proportion of lower-margin products. The company continues to focus on cost management, with adjusted operating costs at $26 million, and reported an adjusted operating loss of $4.9 million, improved by 42% compared to the previous year. Zepp also maintained a strong cash position with $95 million as of June 30, 2025, and has refinanced a significant portion of its short-term debt into long-term instruments to enhance capital structure. Looking forward, Zepp Health expects Q3 revenue to range between $72 million and $76 million, representing a 70% to 79% year-over-year growth, supported by strong demand for new product launches and effective supply chain management.Zepp Health Financial Statement Overview
Summary
Zepp Health faces significant financial challenges with declining revenues, increasing net losses, and negative cash flow. The company has high leverage levels and negative profitability metrics, posing challenges for future growth and sustainability.Income Statement
Zepp Health's income statement indicates a challenging financial period. The company has experienced negative revenue growth, with revenue declining significantly from 2020 to 2024. The gross profit margin has decreased over time, and the company has faced increasing net losses, as evidenced by the negative net profit margin. Additionally, EBIT and EBITDA margins have been negative, highlighting operational inefficiencies and financial struggles.45
Neutral
Balance Sheet
The balance sheet shows a mixed picture. While the company has a reasonable equity ratio, indicating some level of financial stability, its debt-to-equity ratio has increased, reflecting higher leverage and potential financial risk. The return on equity (ROE) is negative due to net losses, which diminishes the attractiveness to equity investors. The company's equity has been declining, which could be a concern for long-term solvency.55
Neutral
Cash Flow
Zepp Health's cash flow statement reveals significant challenges. Operating cash flow has been negative in recent periods, and free cash flow has consistently been negative, indicating cash burn and reliance on external financing. The free cash flow to net income ratio is unfavorable due to ongoing net losses. These factors suggest liquidity issues and the need for strategic financial management to improve cash generation.40
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 435.87M | 182.60M | 2.50B | 4.14B | 6.25B | 6.43B |
| Gross Profit | 172.42M | 70.23M | 657.78M | 803.12M | 1.31B | 1.33B |
| EBITDA | -57.54M | -47.34M | -134.39M | -354.09M | 93.94M | 105.35M |
| Net Income | -80.70M | -75.73M | -212.12M | -306.66M | 95.92M | 228.75M |
Balance Sheet | ||||||
| Total Assets | 518.75M | 528.59M | 636.53M | 5.27B | 6.09B | 5.90B |
| Cash, Cash Equivalents and Short-Term Investments | 77.43M | 92.07M | 985.62M | 920.95M | 1.49B | 2.30B |
| Total Debt | 185.71M | 182.14M | 195.77M | 1.68B | 1.26B | 680.92M |
| Total Liabilities | 286.72M | 275.87M | 283.22M | 2.58B | 3.15B | 3.17B |
| Stockholders Equity | 232.03M | 251.59M | 2.49B | 2.67B | 2.92B | 2.73B |
Cash Flow | ||||||
| Free Cash Flow | 0.00 | -25.88M | 40.92M | -5.46B | -285.52M | 72.53M |
| Operating Cash Flow | 0.00 | -24.39M | 42.60M | -5.40B | -232.44M | 157.30M |
| Investing Cash Flow | 0.00 | -1.58M | 7.73M | -289.55M | -1.07B | -206.88M |
| Financing Cash Flow | 0.00 | 477.00K | -41.68M | 1.98B | 551.08M | 564.67M |
Zepp Health Technical Analysis
Positive
47.64
Price Trends
29.89
Positive
16.26
Positive
9.58
Positive
Market Momentum
5.46
Positive
61.31
Neutral
28.71
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ZEPP, the sentiment is Positive. The current price of 47.64 is above the 20-day moving average (MA) of 45.80, above the 50-day MA of 29.89, and above the 200-day MA of 9.58, indicating a bullish trend. The MACD of 5.46 indicates Positive momentum. The RSI at 61.31 is Neutral, neither overbought nor oversold. The STOCH value of 28.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | 371.50M | -3.32 | -110.84% | ― | -19.83% | 73.22% | |
54 Neutral | $694.41M | ― | -28.36% | ― | -18.94% | -197.82% | |
52 Neutral | 59.62M | -3.57 | -10.72% | ― | 4.00% | 62.67% | |
49 Neutral | 53.71M | -60.55 | -2.86% | ― | 2.93% | 8.95% | |
48 Neutral | 183.30M | -4.47 | -197.19% | ― | -12.75% | 57.64% | |
44 Neutral | 30.06M | -0.71 | -204.12% | ― | -9.05% | 53.22% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
Performance Comparison
ZEPP
Zepp Health
47.64
44.37
1356.88%
GPRO
GoPro
2.31
0.97
72.39%
KOSS
Koss
5.68
-0.97
-14.59%
UEIC
Universal Electronics
4.47
-4.15
-48.14%
VUZI
Vuzix
2.37
1.29
119.44%
WLDS
Wearable Devices Ltd.
5.55
-17.78
-76.21%
Zepp Health Corporate Events
Zepp Health Sees Revenue Surge in Q2 2025 with Amazfit Success
Aug 4, 2025
Zepp Health Corporation reported a significant 46.2% year-over-year revenue growth for the second quarter of 2025, reaching $59.4 million, driven by the success of its Amazfit products. This marks the company’s first overall revenue growth since 2021, highlighting the effectiveness of its strategic focus on the Amazfit ecosystem. The company introduced new products, including the Amazfit Balance 2 and Helio Strap, and welcomed prominent athletes to its brand ambassador team, which contributed to increased brand recognition and sales. Despite a narrowed net loss, Zepp Health’s gross margin remained stable, and the company anticipates continued growth in the third quarter with projected revenues between $72.0 million and $76.0 million, representing a 70% to 79% year-over-year increase.
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.