Zepp Health Corporation Reports Third Quarter 2025 Unaudited Financial Results

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].