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ZEPP Health Q1 2025 Earnings Report
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.
Key Takeaways
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.
ZEPP Health
ZEPP Health
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.
Positive Outlook
- 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.
Challenges Ahead
- 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.