Zepp Health posts record margins as premium strategy drives 43% revenue growth
Fourth-quarter results show strong execution on pricing power and product mix, with full-year revenue reaching $259 million.
Zepp Health reported fourth-quarter 2025 revenue of $85.2 million, marking a 43 per cent increase year-on-year and placing the company firmly back on a growth trajectory. Full-year revenue reached $259 million, a 41.8 per cent rise from $183 million in 2024. The results reflect a successful strategic pivot from a volume-driven hardware business to a premium-focused brand, with the company achieving a record gross margin of 40.4 per cent in the quarter.
The expansion in gross margin, which represents a 3.6 percentage point improvement from the same period in 2024, was driven by a favourable shift in product mix towards higher-value segments. Chief Financial Officer Leon Cheng Deng noted that the company maintained price integrity during critical holiday sales periods, including Black Friday and Christmas, without relying on heavy discounting. This pricing power helped offset headwinds from foreign exchange fluctuations and rising memory chip costs.
Zepp Health’s product portfolio has broadened to capture different user segments, with the launch of the Amazfit Active Max and Active 3 Premium targeting entry-level trainers, while the T-Rex Ultra 2 flagship outdoor watch pushes the brand into the premium tier at approximately $550. The company also highlighted strong demand for its Balance series and Helio recovery devices, with management indicating that supply chain constraints for the Helio Strap are being resolved to meet demand in 2026.
On the branding front, Zepp Health announced a partnership with Olympic medalist and world champion middle-distance runner Josh Kerr. The company stated that elite athletes, including Kerr, Grant Fisher, and Tyler Andrews, actively use Amazfit devices for training and recovery, aiming to enhance the brand’s credibility in the global performance sports community. This follows a structural integration with HYROX, embedding the Amazfit brand directly into race results and athlete-generated content.
Looking ahead, Zepp Health forecasts first-quarter 2026 revenue between $50 million and $55 million, representing 30 to 43 per cent year-on-year growth. Management expressed confidence that the demand is structural rather than seasonal, supported by a strengthened ecosystem of AI-driven training insights and a disciplined approach to cost management. The company also reaffirmed its commitment to its share repurchase program for 2026, citing strong liquidity with $113 million in cash and cash equivalents as of the end of the quarter.
