Zepp Health Earnings Presentation Third Quarter 2025 Investor Relations 4 November 2025 Table of Contents Adjusted Operating Expenses 2 Empowering Health, Inspiring Joy 3Q25 Financial and Operating Results 01 05 02 Revenue 03 3Q25 Gross Margin 04 3Q25 Revenue and Gross Margin Trend Net Income/ Earnings Performance 06 Liquidity Position 07 08 Business Outlook 3Q25 Financial and Operating Results $75.8 Million Revenue • Meeting upper end of guidance range Units Shipped 0.8 Million 3Q24 0.7 Million 0.0 Million ...

Core Insights - Zepp Health Corporation reported a strong performance in Q3 2025, with a revenue increase of 78.5% year-over-year, reaching US$75.8 million, driven by new product launches and a diversified product portfolio [4][8][15]. Financial Performance - Revenue for Q3 2025 was US$75.8 million, marking a 78.5% increase from Q3 2024 and a 27.6% increase from Q2 2025 [15]. - The company achieved a GAAP operating loss of US$0.9 million, significantly improved from a loss of US$12.5 million in Q3 2024, and reached adjusted operating income breakeven [11][22]. - Gross margin improved to 38.2%, a 2.0% increase from Q2 2025, despite a year-over-year decline due to lower margins on entry-level products [9][17]. Product Development and Strategy - The launch of the Amazfit T-Rex 3 Pro in September 2025 was well-received, contributing to strong sales and setting new benchmarks in the outdoor product category [5][8]. - The company enhanced its software ecosystem with AI-driven training insights and integrations with platforms like Strava and TrainingPeaks, improving user experience and personalization [6][8]. Community Engagement and Marketing - Zepp Health expanded its Amazfit Athletes team, adding elite athletes to enhance brand visibility and connect with sports communities [7][8]. - The company continued to invest in marketing and brand recognition, with selling and marketing expenses at US$12.0 million, a slight increase year-over-year [19]. Outlook - For Q4 2025, management expects net revenues between US$82.0 million and US$86.0 million, representing a year-over-year increase of approximately 38% to 45% [30][13]. - The company anticipates continued growth driven by strong product execution and market demand [30].

Core Viewpoint - Zepp Health Corporation will report its third quarter 2025 unaudited financial results on November 4, 2025, after market close [1]. Group 1: Financial Reporting - The earnings call is scheduled for 8:30 p.m. ET on November 4, 2025, with access available via multiple international phone numbers [2]. - A telephone replay of the conference call will be available until November 11, 2025, with specific dial-in numbers provided [3]. Group 2: Company Overview - Zepp Health Corporation is a global leader in smart wearables and health technology, focusing on optimizing health, fitness, and wellness through its brands, including Amazfit, Zepp Clarity, and Zepp Aura [3]. - The company has shipped over 200 million units of its products, which are available in more than 90 countries and regions [3]. - Founded in 2013 as Huami Corp., the company rebranded to Zepp Health Corporation in February 2021 to emphasize its health focus [3].

Core Insights - Zepp Health Corporation has experienced a significant turnaround, with its stock price increasing over 1,900% in 2025, primarily driven by the growth of its Amazfit brand [1][5] - The company's strategic shift from reliance on Xiaomi to focusing on its own Amazfit line has been pivotal in this recovery [3][4] Company Performance - Zepp Health reported revenue of $59 million in Q2 2025, marking a 46% year-over-year increase and its first revenue growth since 2021, with all growth attributed to Amazfit products [5] - The company has been building a roster of elite athletes as brand ambassadors, including notable figures like Derrick Henry [5] Strategic Shift - Originally known as Huami, the company transitioned to Zepp Health in 2021, moving away from the Xiaomi brand and focusing on developing its Amazfit line [3][4] - This strategic rebranding was initially risky, as the company faced consistent declines in share price and revenue prior to the recent growth [4]

Investment Rating - The report assigns a "Buy" rating for Zepp Health, marking its first coverage [1]. Core Insights - The report highlights the growth potential of the global smartwatch market, projected to reach $47.94 billion in 2024, with a steady growth rate of 7.6% in 2025, 6.9% in 2026, and 13.2% in 2027 [7][14]. - Zepp Health is transitioning from an OEM to a brand, with its own brand Amazfit focusing on three main product lines: lifestyle, sports training, and outdoor exploration [7][58]. - The company has a competitive edge through self-developed core technologies, precise marketing strategies, and a strong price-performance ratio compared to competitors like Garmin [7][61]. Summary by Sections 1. Wearable Device Industry - The smartwatch market is experiencing stable growth, with major players like Apple, Huawei, Samsung, and Xiaomi holding a combined market share of 58% in 2024 [7][19]. - The report notes that the competitive landscape is shifting, with Apple’s market share expected to decline by 12.1 percentage points to 22% in 2024 [7][19]. 2. Company Overview - Zepp Health, formerly known as Huami, became a partner of Xiaomi in 2014 and is set to end this partnership in January 2025 [7][40]. - The company has optimized its product structure, leading to an increase in gross margin to 38.5% in 2024, up by 12.1 percentage points year-on-year [7][49]. 3. Company Advantages - Zepp Health's competitive advantages include self-researched core technologies, effective marketing strategies targeting emerging sports, and a significant price advantage over Garmin [7][61]. - The company’s R&D expense ratio is 25.3% in 2024, compared to Garmin's 15.8%, indicating a strong commitment to innovation [7][61]. 4. Financial Forecast and Investment Recommendations - Revenue projections for Zepp Health are $255 million in 2025, $359 million in 2026, and $492 million in 2027, with year-on-year growth rates of 39.8%, 40.6%, and 37.1% respectively [2][7]. - The report anticipates a return to profitability with net income expected to be $14 million in 2026 and $59 million in 2027 [2][7].

Core Insights - The S&P 500 continues to reach new heights, but concerns exist regarding the reliance on large-cap tech stocks for these gains [1] Group 1 - The article highlights the ongoing performance of the S&P 500, indicating a trend of reaching new highs [1] - There is a concern that the majority of the index's gains are primarily driven by large-cap technology companies [1] - The author, Gary Alexander, has extensive experience in both Wall Street and Silicon Valley, providing insights into current industry themes [1]

Core Insights - Amazfit has announced the addition of two-time Olympic medalist Grant Fisher to its athlete ambassador team, focusing on product testing and innovation as he prepares for the 2028 Olympic Games [1][4] - Fisher made history at the Paris 2024 Olympics by winning bronze medals in both the 5,000m and 10,000m events, becoming the first American to medal in both at the same Games [2] - Fisher will utilize Amazfit's products, including the Amazfit Balance 2 and Helio Armband, to monitor his training metrics [3] Company Overview - Amazfit is a leading global smart wearable brand owned by Zepp Health, which is listed on NYSE under the ticker ZEPP [1][5] - The company emphasizes health and fitness, offering a range of smartwatches and bands designed to provide actionable insights for wellness goals [6] - Amazfit products are recognized for their craftsmanship, having won multiple design awards, and are available in over 90 countries [7]

Core Viewpoint - Zepp Health Corporation, formerly known as Huami Corporation, is experiencing a stock price increase and has reported financial results indicating growth in revenue but a decline in net profit [1] Financial Performance - As of June 30, 2025, Zepp Health's total revenue reached $97.943 million, reflecting a year-on-year growth of 21.52% [1] - The company's net profit attributable to shareholders was -$27.481 million, showing a year-on-year decrease of 7.32% [1] Company Overview - Zepp Health Corporation is a cloud-based health service provider and a leader in smart wearable technology [1] - The company was the first smart hardware innovation company from China to be listed on the U.S. capital market, having gone public on the New York Stock Exchange (NYSE) in February 2018 under the ticker symbol ZEPP [1] - The company's mission is to "connect technology with health," focusing on a "chip-end-cloud" strategy that encompasses chips, smart wearable devices, and health cloud services to build a global health ecosystem [1] Technology and Services - Zepp Health utilizes advanced artificial intelligence algorithms and big data analytics to provide 24/7 health monitoring services [1] - The integration of smart wearable technology into the global Internet of Things (IoT) aims to create a smarter and more convenient lifestyle for users [1]

Core Viewpoint - Zepp Health Corporation, formerly known as Huami Corporation, is a leading cloud-based health service provider specializing in smart wearable technology, with a mission to connect technology and health [1] Financial Performance - As of June 30, 2025, Zepp Health reported total revenue of $97.943 million, representing a year-over-year growth of 21.52% [1] - The company experienced a net loss attributable to shareholders of $27.481 million, a decrease of 7.32% compared to the previous year [1] Company Overview - Zepp Health Corporation is recognized as the first smart hardware innovation company from China to be listed on the U.S. capital market, having gone public on the New York Stock Exchange (NYSE) in February 2018 under the ticker symbol ZEPP [1] - The company's strategy, termed "chip-end-cloud," focuses on integrating chips, smart wearable devices, and health cloud services to build a global health ecosystem [1] - Utilizing advanced artificial intelligence algorithms and big data analytics, Zepp Health provides 24/7 health monitoring services and aims to create a smarter and more convenient lifestyle for users through the integration of smart wearable technology into the global Internet of Things [1]

Core Viewpoint - Zepp Health Corporation, formerly known as Huami Corporation, is experiencing a stock price increase and has reported significant revenue growth, although net profit has declined [1] Financial Performance - As of June 30, 2025, Zepp Health's total revenue reached $97.943 million, representing a year-over-year growth of 21.52% [1] - The company's net profit attributable to shareholders was -$27.481 million, showing a decrease of 7.32% compared to the previous year [1] Company Overview - Zepp Health Corporation is a cloud-based health service provider and a leader in smart wearable technology [1] - The company was the first smart hardware innovation company from China to be listed on the U.S. capital market, having gone public on the New York Stock Exchange (NYSE) in February 2018 under the ticker symbol ZEPP [1] - The company's mission is to "connect technology with health," focusing on a "chip-end-cloud" strategy that encompasses chips, smart wearable devices, and health cloud services to build a global health ecosystem [1] Technology and Services - Zepp Health utilizes advanced artificial intelligence algorithms and big data analytics to provide 24/7 health monitoring services [1] - The integration of smart wearable technology into the global Internet of Things (IoT) aims to create a smarter and more convenient lifestyle for users [1]