NYSE$ZEPP

ZEPP Health Corp.-ADR · Q1 2025 earnings

Q1 2025 earnings · · After market close · Investor relations

Briefing

Zepp Health Corporation reported a decrease in revenue but an increase in gross margin for the first quarter of 2025, with Amazfit-branded products showing growth.

Zepp Health Corporation's first quarter 2025 results showed total revenue of $38.5 million, a 3.6% decrease year-over-year, primarily due to lower Xiaomi wearable product sales. However, Amazfit-branded products saw a 10.2% year-over-year revenue growth. The company achieved a gross margin of 37.3% and reported a net loss of $19.7 million.

  • Revenue for the first quarter of 2025 was US$38.5 million, a 3.6% decrease from the first quarter of 2024.
  • Amazfit-branded products revenue grew by 10.2% year-over-year, marking a return to growth since Q1 2022.
  • Gross margin improved to 37.3% in Q1 2025, higher than both Q4 2024 and Q1 2024.
  • Net loss attributable to Zepp Health Corporation was US$19.7 million, compared to US$14.8 million in Q1 2024.

Headline financials

Total Revenue

$38.5M

Previous: $40M-3.6%
EPS (adj)

-$0.07

Previous: -$0.76+90.8%
Gross Margin

37.3%

No prior period
Adjusted Operating Loss

-$17.2M

No prior period
Adjusted Net Loss

-$18.1M

No prior period
Adjusted EBIT

-$17.1M

No prior period
R&D Expense

$12.4M

No prior period
Selling and Marketing Expense

$13.8M

No prior period
General and Administrative Expense

$6.52M

No prior period
Net Income

-$19.7M

Previous: -$14.7M-34.5%
Operating Income

-$18.4M

Previous: -$15.8M-16.1%
Gross Profit

$14.4M

Previous: $14.7M-2.3%

Revenue & EPS history

ZEPP Health · Revenue · Quarterly

$38.5M

Q1 2025-3.6%vs Q1 2024
Beat estimate in 1 of 10 quarters(10%)
ActualEstimate

Forward guidance

For the second quarter of 2025, Zepp Health expects net revenues to be between US$50 million and US$55 million, representing a significant year-over-year increase.

Tailwinds

  • Expected net revenue increase of approximately 23% to 35% from US$40.6 million in Q2 2024.
  • Anticipated higher sales for Amazfit Active 2 and Bip 6 series.
  • Continued growth in Amazfit-branded sales with many new product launches in the pipeline.
  • Commitment to investing in new technologies and AI to maintain competitive edge.
  • Share-repurchase program remains in place, underscoring confidence in outlook.

Headwinds

  • Outlook based on current market conditions and preliminary estimates, subject to change.
  • First quarter is traditionally the lowest sales season for consumer electronics industry.
  • Supply constraints, especially on long lead-time components, impacted Q1 2025.
  • Fixed expenses were not fully absorbed in the low season, limiting gross-margin leverage in Q1.
  • Additional 20% tariffs on China-made products impacted gross margin in Q1 2025.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q1 2025

Historical avgQ1 2025

-2.3%

Avg return

Earnings day

-3.4%

Avg return

5 days after

+1.6%

Avg return

30 days after

24%

9 / 37 earnings

Positive

+32.6%

Q2 2025

Best reaction

-29.3%

Q1 2027

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027-29.3%-24.1%
Q1 2026+0.0%-1.4%-44.9%
Q4 2026-12.1%-17.3%-13.5%
Q3 2025-6.1%-39.6%-22.9%
Q2 2025+32.6%+91.2%+312.8%
Q1 2025-5.1%-10.2%-15.8%
Q4 2024+15.3%+2.7%-9.7%
Q3 2024-14.9%-19.7%-8.7%
Q2 2024+19.7%-3.3%+10.0%
Q1 2024-6.2%-13.5%-22.5%
Q4 2023-8.5%-17.0%-29.4%
Q3 2023+9.8%-5.7%+12.2%
Q2 2023-4.2%-5.8%-6.7%
Q1 2023-11.2%-14.9%-16.4%
Q4 2022-6.9%-11.5%-11.5%
Q3 2022-4.5%-7.0%+21.0%
Q2 2022-9.1%-7.2%-28.8%
Q1 2022-8.2%-6.8%-9.5%
Q4 2021-0.6%-1.3%-15.1%
Q3 2021-5.8%-9.3%-46.4%
Q2 2021-1.0%+10.7%-5.6%
Q1 2021-3.4%+3.9%+13.8%
Q4 2020-2.1%-10.2%-28.6%
Q3 2020-11.3%-16.4%-18.4%
Q2 2020-11.1%-8.8%-4.2%
Q1 2020-16.7%-19.9%-19.7%
Q4 2019-5.2%+1.7%-2.8%
Q3 2019+5.0%+13.9%+10.1%
Q2 2019-1.5%-14.0%-5.7%
Q1 2019+8.7%+18.3%+35.3%
Q4 2018-7.9%-13.9%-18.1%
Q3 2018-6.8%+7.6%-1.8%
Q2 2018+9.1%+4.7%+0.4%
Q1 2018+18.8%+21.8%+20.5%
Q4 2015-1.5%-0.9%+21.6%
Q4 2016-1.5%-0.9%+21.6%
Q4 2017+0.1%-0.5%-15.3%
Q3 2017
Q2 2017
Q1 2017

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