Zepp Health Corporation, the Netherlands-based parent of the Amazfit brand fitness and healthcare wearables products, posted revenues of $59.4 million for the second quarter of 2025, an increase of 46.2 percent year-over-year (y/y), marking a return to year-over-year growth for the first time since the second quarter of 2021.
The company realized a 54.2 percent sequential increase from the 2025 first quarter.
The second-quarter increase was attributed to the Amazfit Bip 6 and Active 2 ranges, as well as the T-Rex 3 and newly launched products, including the Amazfit Helio strap and Balance 2, in June 2025.
Zepp Health Corporation relocated its principal executive offices from Hefei, China, to Gorinchem, the Netherlands, in May 2025. The company said, “This strategic move reflects Zepp Health’s distributed business model and aligns with its international growth strategy.” The relocation followed an earlier transition of its legal entity to Amsterdam, reinforcing Zepp Health’s “commitment to a globally integrated operating structure.”
“Our relocation to the Netherlands marks an important milestone in our evolution as a global health tech company,” said Wayne Huang, founder and CEO of Zepp Health. “This move strengthens our ability to serve customers worldwide and operate efficiently across diverse markets.”
The formal relocation of the company’s legal entity was filed with the U.S. Securities and Exchange Commission (SEC).
Zepp Health Corporation reports in U.S. dollar ($) currency.
“In the second quarter of 2025, we are pleased to report 46.2 percent year-over-year revenue growth—driven entirely by Amazfit products – marking our first overall revenue growth since 2021,” offered Huang. “Coupled with continued improvement in our bottom line, this achievement underscores the effectiveness of our strategic pivot to the Amazfit-branded ecosystem in recent years. More importantly, it serves as a compelling testament to the enhanced global brand awareness of the Amazfit brand.”
In EMEA, Prime Day sales increased by approximately 60 percent compared to the 2024 event.
Huang went on to say that the company’s diversified global supply chain has successfully mitigated a significant portion of the tariff risks as projected, and the operational progress made in the first half of the year has offset the majority of those headwinds through volume growth and cost efficiencies.
“Our multi-tiered product strategy continues to resonate strongly with diverse consumer groups, driving sales growth across all three product segments, the CEO continued. “With our high-end Adventure series, the T-Rex 3 is sustaining its outperformance and setting new benchmarks for durability, battery life and advanced sport modes in the premium outdoor category. Our newest flagship ecosystem, the Balance 2 smartwatch and Helio Strap, has been exceptionally well received, offering breakthrough accuracy, seamless training and recovery insights, and features that traditionally required multiple high-cost competitor devices.”
Huang also stated that the entry-level Bip 6 and lifestyle-focused Active 2 series delivered steady global growth, supported by strong retail and e-commerce partnerships that expanded shelf space and increased order volumes. Zepp is sold widely in the U.S. at Amazon, Walmart.com, Target, Brandsmart USA, and Best Buy, as well as in over 90 other countries.
Huang said the company launched Zepp OS 5.0, powered by AI-driven features like Zepp Flow 2.0, which enables voice-controlled workouts, smarter performance tracking, and deep integrations with leading fitness platforms, such as Strava and Training Peaks. Huang said in the U.S., Amazfit ranked as the second most improved wearables brand year-over-year.
Lastly, Huang noted the Q2 signing of two new brand ambassadors, Baltimore Ravens running back Derrick Henry and ultra runner Rob Farvard.
Profitability and Expenses
Gross margin amounted to 36.2 percent of sales in the second quarter, which was reportedly “in line” with the first quarter of 2025 but worse than the second quarter of 2024. The year-over-year decline in gross margin was reportedly due to a higher proportion of relatively lower-margin entry-level products, namely the Amazfit Bip 6 and Active 2 smartwatches, as well as the clearance of older mid-range Balance 1 products at reduced prices to prepare for the launch of the new Balance 2 range. Gross margin remained stable sequentially.
“As we are entering the third quarter of 2025, with a full quarter of Balance 2 and new product launches, we expect the positive trend in gross margin to continue,” the company said.
Research & Development expenses in the second quarter $11.2 million, an increase of 3.1 percent y/y. The increase was attributed to investments in new technologies, including AI, aimed at maintaining a competitive edge against peers.
“Furthermore, our pipeline is robust with a series of cutting-edge products set to launch. At the same time, we focused on refined research and development approaches, as we consistently evaluated resource efficiency to optimize return on investment and productivity,” Zepp noted.
Selling & Marketing expenses in the second quarter were $12.1 million, an increase of 14.2 percent y/y, and a decrease of 12.9 percent quarter-over-quarter (q/q). The year-over-year increase was attributed primarily to promotional campaigns aimed at building brand recognition and driving sales growth. The quarter-over-quarter decrease was reportedly due primarily to the absence of large-scale physical launch events, such as the CES exhibition held in the first quarter of 2025.
The company stated it continues to invest in selling and marketing expenses and signed a few more renowned athletes to expand the Amazfit Athletes team to build brand recognition.
“At the same time, we consistently pushed on retail profitability and channel mix improvement, which included meticulous refinement of our retail channels and strategic staffing arrangements across sales regions. We are committed to investing efficiently in marketing and branding to ensure our sustainable growth,” the company said.
General & Administrative (G&A) expenses were $4.4 million in the second quarter, compared with $4.9 million in the 2024 Q2 period, a decrease by 9.7 percent y/y, indicating the company continues to streamline on G&A expenses.
Operating expenses for the second quarter were $27.6 million, an increase of 5.2 percent y/y. Adjusted operating expenses, which exclude share-based compensation and amortization of intangible assets resulting from acquisitions and business cooperation agreements, were $26.4 million, compared with $24.8 million in the Q2 period of 2024. The increase was reportedly due to continued investment in “cutting-edge technologies and new product innovation,” as well as marketing and brand-building initiatives.
“We will maintain our cost-conscious approach and remain committed to investing in R&D and marketing activities to ensure our long-term competitiveness,” the Zepp team noted.
The operating loss for the second quarter was $6.1 million, representing a 38.2 percent decrease compared with the second quarter of 2024.
Net loss attributable to Zepp Health Corporation for the second quarter of 2025 was $7.7 million, compared to a net loss of $10.8 million in the second quarter of 2024. Adjusted net loss attributable to Zepp Health Corporation was $6.16 million, compared to adjusted net loss of $8.8 million in the second quarter of 2024.
Liquidity and Capital Resources
The company had cash and cash equivalents, as well as restricted cash, of $95.3 million as of June 30, 2025, compared to a $103.8 million cash balance as of March 31, 2025. This company said the cash position provides ample runway for it to invest and “seize potential market opportunities.” In the third quarter of 2025, Zepp expects the overall cash position to grow from its current levels.
The company continued to manage its working capital and inventory efficiently, recording an inventory of $79.9 million as of June 30, 2025. Inventory increased as the company strategically increased stock in key product lines to prepare for the upcoming product launches and offset potential tariff impacts. The company improved its management of accounts receivable collections and accounts payable payment terms. The company stated that it will continue to manage its working capital tightly.
Starting the first quarter of 2023, Zeppelin has initiated the retirement of its short- and long-term debt portfolio. As of the second quarter of 2025, the company has retired a total of $68.0 million of debt since early 2023; the overall long-term and short-term debt levels remain the same between the end of the second quarter and the first quarter of 2025.
“As our operating cash flow continues to strengthen, we will continue to optimize the capital structure for the company,” Zeppelin committed.
Share Repurchase Program Update
The company announced in its third quarter 2021 earnings release that the board had authorized a share repurchase program of up to $20 million through November 2022. On November 21, 2022, the board authorized a 12-month extension of the company’s share repurchase program. On November 20, 2023, the board further authorized the company to extend its share repurchase program for another 12 months. On November 18, 2024, the board further authorized the company to extend its share repurchase program for another 24 months. Pursuant to the extended share repurchase program, the company may repurchase its shares in the form of ADSs and/or ordinary shares through November 2026 with an aggregate value equal to the remaining balance under the share repurchase program. As of June 30, 2025, the company said it had used $16.0 million to repurchase approximately 2.2 million ADSs. The company expects to fund the repurchases under the extended share repurchase program out of its existing cash balance.
Outlook
For the third quarter of 2025, the company’s management currently expects net revenues to be between $72.0 million and $76.0 million, representing an increase of approximately 70 percent to 79 percent from $42.5 million in the third quarter of 2024.
“Looking at the third quarter of 2025, we are expecting the Amazfit-branded sales to continue to grow,” the company said in its Q2 report.
This outlook is said to be based on current market conditions and reflects the company’s current and preliminary estimates of market, operating conditions and customer demand, which are all subject to change.
Image courtesy Amazfit/Zepp Health Corporation
