Financial Data and Key Metrics Changes - In Q4 2025, revenue rose to $85.2 million, up 43% year-over-year, reaching the upper end of guidance [11] - For the full year 2025, revenue was $183 million, representing a 41.8% year-over-year growth [11] - Gross margin in Q4 reached 40.4%, an increase of 3.6 percentage points compared to the same period in 2024 [12][13] - Full-year gross margin for 2025 was 38.3%, with expectations for continued improvement in 2026 [14] Business Line Data and Key Metrics Changes - Amazfit branded product revenue grew 51% year-over-year for the full year 2025, with Q4 sales increasing by 45.4% year-over-year [4][11] - The launch of new products like Active Max and T-Rex Ultra 2 contributed to the strong performance across both entry-level and premium segments [5][10] Market Data and Key Metrics Changes - The company reported strong execution during critical sales periods, particularly Black Friday and Christmas, enhancing brand visibility across major e-commerce channels [11] - The average selling price of products has steadily increased, providing a competitive edge against rivals [22] Company Strategy and Development Direction - The company is transitioning from a traditional wearable hardware business to a hybrid training platform, focusing on integrating hardware, training intelligence, and software [4] - Strategic partnerships with elite athletes and events like HYROX are aimed at enhancing brand credibility and visibility in the performance sports community [8][9] - Plans for 2026 include strengthening the premium product lineup and expanding the ecosystem through AI-driven training insights [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustained demand beyond seasonal trends, projecting Q1 2026 revenue between $50 million and $55 million, representing a year-over-year growth of 30%-43% [10][22] - The company is navigating macroeconomic challenges, including memory cost inflation, while maintaining a focus on cost management and operational efficiency [21] Other Important Information - The net loss attributed to Zepp Health was $6.4 million in Q4 2025, a significant improvement from an adjusted net loss of $22.5 million in Q4 2024 [18] - Cash equivalents stood at $113 million as of December 31, 2025, reflecting a strong liquidity position [19] Q&A Session Summary Question: How many new products are you planning to launch this year compared to last year? - The company plans to launch a similar number of products as last year, which was around nine [26] Question: How are you preparing for the recent spike in the U.S. dollar? - The company is not significantly affected by dollar fluctuations, as production is diversified across Asia, and the dollar is providing some tailwind [28] Question: Which specific areas do you think there are reductions in operating expenses? - Selling and marketing expenses have been front-loaded for product launches, and G&A costs have been decreasing [29]

Core Insights - Zepp Health Corporation reported strong financial results for the fourth quarter and full year of 2025, with significant revenue growth and improved gross margins, indicating a successful transition to a premium-focused brand [1][2]. Financial Highlights Fourth Quarter 2025 - Revenue reached US$85.2 million, representing a 43.0% year-over-year increase and meeting the upper end of guidance [1][2]. - Gross margin achieved a record level of 40.4%, an increase of 3.6 percentage points from Q4 2024 [1][2]. - The company narrowed its GAAP net loss to US$11.0 million, a significant improvement from a loss of US$36.9 million in Q4 2024 [1][3]. - Adjusted operating loss was reduced to US$2.7 million from US$7.4 million in Q4 2024, reflecting effective cost control and revenue growth [2][3]. Full Year 2025 - Total revenue for the year was US$258.9 million, a 41.8% increase from US$182.6 million in 2024 [1][4]. - Gross margin for the full year was 38.3%, slightly down from 38.5% in 2024, but the company remains on track with its margin-expansion strategy [1][4]. - The net loss for the year was US$40.1 million, significantly improved from a loss of US$75.7 million in 2024 [1][4]. Product Development and Market Strategy - The company expanded its Amazfit Athletes team, adding notable athletes to enhance brand visibility and engagement [1]. - New product launches included the Amazfit Active Max, Amazfit T-Rex Ultra 2, and Amazfit Active 3 Premium, aimed at various market segments [1][2]. - The company emphasized its transition from a volume-driven brand to a premium-focused global brand, enhancing pricing power and community engagement [1][3]. Cash and Inventory Management - As of December 31, 2025, cash and cash equivalents increased to US$112.9 million from US$102.6 million as of September 30, 2025, driven by strong operating performance [1][2]. - Inventory decreased to US$72.8 million from US$87.7 million, reflecting improved inventory management practices [1][2]. Outlook - For Q1 2026, management expects net revenues to be between US$50.0 million and US$55.0 million, indicating a year-over-year increase of approximately 30% to 43% [1][4].