Zepp Health (NYSE:ZEPP) Releases Earnings Results

Zepp Health (NYSE:ZEPP) issued its quarterly earnings results on Tuesday. The company reported ($0.80) EPS for the quarter, FiscalAI reports. Zepp Health had a negative return on equity of 15.64% and a negative net margin of 14.70%.The business had revenue of $63.53 million for the quarter.

Here are the key takeaways from Zepp Health’s conference call:

• Q2 revenue rose 6.9% year over year to $63.5 million, while gross margin improved 120 basis points to 37.4%, despite higher memory and component costs.
• Product mix continued shifting toward higher-value offerings, with premium T-Rex models accounting for about half of activations and the $169 Active tier reaching approximately 57% of Active activations through August 25.
• The company reported strong early adoption of Balance 3 and Balance Ultra, while Bip demand remained robust after supply recovered; Zepp plans to raise prices across the Bip family beginning in January 2027 to improve unit economics.
• Zepp guided for Q3 revenue of $68 million to $73 million, implying a 4%–10% year-over-year decline, citing a difficult comparison base, macroeconomic pressure, product launch timing, and supply constraints affecting Helio Strap and Balance 3.
• Adjusted operating loss widened to $11.1 million from $4.9 million a year earlier as selling and marketing spending increased, while higher memory costs, unfavorable foreign exchange, and elevated operating expenses are expected to pressure profitability.

Zepp Health Stock Performance

Shares of Zepp Health stock opened at $4.84 on Thursday. The business has a 50-day moving average price of $5.07 and a two-hundred day moving average price of $10.43. Zepp Health has a 1-year low of $3.85 and a 1-year high of $61.85. The company has a current ratio of 0.88, a quick ratio of 0.67 and a debt-to-equity ratio of 0.21. The company has a market cap of $71.11 million, a P/E ratio of -1.92 and a beta of 1.87.

Analysts Set New Price Targets

Several research analysts recently issued reports on the company. Wall Street Zen raised Zepp Health from a “sell” rating to a “hold” rating in a research report on Monday. Fundamental Research set a $53.01 price objective on Zepp Health and gave the stock a “buy” rating in a research note on Tuesday, August 11th. One analyst has rated the stock with a Buy rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Zepp Health currently has an average rating of “Hold” and an average target price of $53.01.

Insider Activity

In other news, CFO Cheng Deng sold 9,836 shares of the business’s stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $4.61, for a total value of $45,343.96. Following the transaction, the chief financial officer directly owned 114,539 shares of the company’s stock, valued at $528,024.79. The trade was a 7.91% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 36.00% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Zepp Health

A number of hedge funds have recently added to or reduced their stakes in the business. FIL Ltd bought a new position in shares of Zepp Health during the 4th quarter worth approximately $16,858,000. Millennium Management LLC bought a new stake in shares of Zepp Health in the 3rd quarter valued at $11,265,000. UBS Group AG increased its stake in shares of Zepp Health by 16,412.0% in the 3rd quarter. UBS Group AG now owns 181,302 shares of the company’s stock valued at $8,300,000 after acquiring an additional 180,204 shares in the last quarter. Monolith Management Ltd bought a new stake in shares of Zepp Health in the 4th quarter valued at $3,601,000. Finally, State Street Corp acquired a new position in shares of Zepp Health during the 4th quarter valued at $3,421,000. 52.61% of the stock is currently owned by institutional investors.

About Zepp Health

Zepp Health Corp is a technology company specializing in the design, development and sale of smart wearable devices and health management solutions. Through its flagship Amazfit brand and the Zepp software ecosystem, the company offers a range of products—including smartwatches, fitness bands, smart scales and health-oriented mobile applications—designed to track key biometric data such as heart rate, sleep patterns, blood oxygen levels and activity metrics. Zepp Health’s integrated platform enables users to monitor wellness and fitness goals while leveraging cloud-based analytics for personalized insights.

At the core of Zepp Health’s offering is its Zepp cloud platform, which aggregates and analyzes data collected from its hardware lineup.