Zepp Health revenue rises 6.9% as Q2 gross margin expands

  • Zepp Health reported second-quarter revenue growth and higher gross margin.
  • US$63.5 million revenue rose 6.9%; gross margin reached 37.4%.
  • Management expects third-quarter revenue between US$68.0 million and US$73.0 million.

Zepp Health Corporation (NYSE: ZEPP) reported unaudited second-quarter 2026 revenue of US$63.5 million, up 6.9% year over year, while gross margin increased to 37.4% from 36.2%. The company attributed the margin improvement mainly to a more favorable product mix and stronger contributions from higher-value products, partly offset by higher memory and other component costs. Net loss attributable to Zepp widened to US$11.3 million from US$7.7 million a year earlier, as foreign-exchange headwinds and increased spending on research and development, marketing and brand building outweighed the benefits of higher revenue and gross margin. Cash, cash equivalents and restricted cash totaled US$106.3 million at June 30, 2026, compared with US$95.3 million a year earlier and US$103.2 million at March 31, primarily because of improved working-capital management. The company launched or expanded products across professional running, Hybrid Training, entry-level smartwatches, and screen-free fitness and health wearables during the quarter. Chief Executive Officer Wayne Huang said higher-end products were improving the portfolio structure, although supply constraints and the differing maturity of product families had not yet translated those gains into their full revenue potential. The company plans to raise prices across the Bip family beginning in January 2027. It expects Helio Strap supply to recover partially in the third quarter and fully in the fourth quarter. Management expects third-quarter 2026 revenue of US$68.0 million to US$73.0 million, below the US$75.8 million reported in the third quarter of 2025, which included 78.5% year-over-year growth and established a high comparison base.

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