Financial Data and Key Metrics Changes - Zepp Health reported a revenue increase of 78.5% year-over-year, reaching $75.8 million in Q3 2025, meeting the upper end of previous guidance [3][12] - Gross margin was reported at 38.2%, a decrease from 40.6% in Q3 2024, primarily due to lower pricing on entry-level products and promotional discounts [13][14] - Operating expenses remained stable at $28.6 million, accounting for 37.7% of sales, with a focus on maintaining cost management [15][17] - The company achieved operating break-even in Q3 2025, a significant improvement compared to an adjusted operating loss of $11.3 million in Q3 2024 [17] Business Line Data and Key Metrics Changes - The launch of the Amazfit T-Rex 3 Pro in September was a highlight, contributing to strong sales alongside the Balance 2 and Helio Strap [3][12] - Entry-level models, including Bip 6 and Active 2, maintained steady sales across global channels, reinforcing Amazfit's strong market positioning [6][12] - The Helio Strap faced supply constraints due to memory chip issues and typhoon-related shipment delays, impacting availability [21][22] Market Data and Key Metrics Changes - North America is estimated to account for approximately 15%-20% of total shipments, with a dual-sourcing strategy mitigating tariff impacts [24] - The company is experiencing strong demand signals for its new products, particularly during the holiday season [30] Company Strategy and Development Direction - Zepp Health is focused on a multi-tier product strategy, enhancing brand visibility while balancing R&D investments with marketing spending [4][10] - The acquisition of Wide AI's core assets aims to integrate women's wellness analytics into the Amazfit ecosystem, enhancing personalized coaching experiences [6] - The company plans to continue expanding its online presence while also addressing offline channel opportunities as supply constraints are resolved [34][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, anticipating Q4 revenue between $82 million and $86 million, representing 38%-45% year-over-year growth [19] - Despite a challenging macroeconomic environment, the strategic focus on sports tech and a holistic health ecosystem is yielding positive results [9][10] Other Important Information - The company has retired $64.5 million of debt since the beginning of 2023, optimizing its capital structure [18] - Zepp Health maintained its share-buyback program, reflecting confidence in long-term fundamentals and growth trajectory [19] Q&A Session Summary Question: Supply constraints on Helio Strap - Management acknowledged supply constraints due to memory chip issues and typhoon-related delays, impacting availability [21][22] Question: North America shipment percentage and tariff impact - Management confirmed North America accounts for approximately 15%-20% of shipments, with minimal tariff impact due to dual-sourcing strategies [24] Question: Product launches in Q3 and Q4 - The only new product launched in Q3 was the T-Rex 3 Pro, with the 44 mm version launched in Q4 [25][30] Question: Holiday season demand and product performance - Management reported positive signals for holiday season demand, with T-Rex 3 Pro performing well compared to previous models [30][31] Question: Channel strategy for 2026 - Management highlighted growth in online channels, particularly through Amazon and their own website, while also planning to expand offline presence as supply issues are resolved [34][35] Question: Q4 top-line guidance assumptions - Management expects a strong holiday season, aiming to increase average selling prices while managing discounting selectively [41][42] Question: Future product roadmap and launches - Management indicated a consistent pace of new product launches, with plans for two to three new products each quarter [44][45]

Financial Data and Key Metrics Changes - Zepp Health reported a revenue increase of 78.5% year-over-year, reaching $75.8 million in Q3 2025, meeting the upper end of previous guidance [3][12] - Gross margin was reported at 38.2%, a decrease from 40.6% in Q3 2024, influenced by product mix and pricing strategies [13][14] - Operating expenses remained stable at $28.6 million, accounting for 37.7% of sales, compared to 37.6% in Q3 2024 [15][18] - Cash balance increased to $103 million from $95 million in Q2 2025, driven by improved working capital and operational efficiency [18][19] Business Line Data and Key Metrics Changes - The launch of the Amazfit T-Rex 3 Pro in September was a significant contributor to Q3 performance, alongside continued strong sales from Balance 2 and Helio Strap [3][12] - Entry-level models, including Bip 6 and Active 2, maintained steady sales volume, contributing to overall revenue growth [12][14] - The Helio Strap faced supply constraints due to memory chip issues and typhoon-related shipment delays [22][23] Market Data and Key Metrics Changes - North America accounted for approximately 15%-20% of total shipments, with a dual-sourcing strategy mitigating tariff impacts [23] - The company is experiencing strong demand signals for its new products, particularly during the holiday season [31][41] Company Strategy and Development Direction - Zepp Health is focused on a multi-tier product strategy, enhancing brand visibility while maintaining operational discipline [4][10] - The acquisition of Wide AI's core assets aims to integrate women's wellness analytics into the Amazfit ecosystem, enhancing personalized coaching experiences [6] - The company plans to continue expanding its online presence while also addressing offline channel opportunities as supply constraints are resolved [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4 2025, expecting revenue between $82 million and $86 million, representing 38%-45% year-over-year growth [20] - The company anticipates continued growth driven by a strong product pipeline and margin improvement initiatives despite a challenging macroeconomic environment [9][10] Other Important Information - Zepp Health achieved operating break-even in Q3 2025, a significant improvement from an adjusted operating loss of $11.3 million in Q3 2024 [18] - The company has retired $64.5 million of debt since the beginning of 2023, optimizing its capital structure [19] Q&A Session Summary Question: Supply constraints on Helio Strap - Management acknowledged supply constraints due to memory chip issues and typhoon-related delays, impacting availability [22][23] Question: Product launches in Q3 and Q4 - The only new product launched in Q3 was the T-Rex 3 Pro, with the 44-millimeter version launched in Q4 [24][25] Question: Holiday season demand and product performance - Management noted positive demand signals for the holiday season and strong initial feedback for the T-Rex 3 Pro [31][41] Question: Channel strategy for 2026 - The company plans to continue expanding its online presence while also addressing offline opportunities as supply issues are resolved [36] Question: Q4 top-line guidance assumptions - Management expects a good holiday season and aims to increase average selling prices while managing discounting selectively [41][42] Question: Future product roadmap - Management confirmed plans for new product launches in Q4 and a similar pace of product releases in 2026 [44][46]

Financial Data and Key Metrics Changes - Zepp Health reported a revenue increase of 78.5% year-over-year, reaching $75.8 million, meeting the upper end of previous guidance [12][3] - Gross margin was reported at 38.2%, a decrease from 40.6% in Q3 2024, influenced by product mix and pricing strategies [14][11] - Operating expenses remained stable at $28.6 million, accounting for 37.7% of sales, compared to 44.4% in the previous quarter [16][15] - The company achieved operating break-even in Q3 2025, a significant improvement from an adjusted operating loss of $11.3 million in Q3 2024 [18] Business Line Data and Key Metrics Changes - The launch of the Amazfit T-Rex 3 Pro contributed significantly to revenue growth, alongside continued strong performance from Balance 2 and Helio Strap [13][3] - Entry-level models, including Bip 6 and Active 2, maintained steady sales across global channels, reinforcing Amazfit's strong market positioning [6][4] - The T-Rex product line showed strong margin performance, helping to offset the impact of discounts on entry-level products [14][9] Market Data and Key Metrics Changes - The company noted that North America accounts for approximately 15%-20% of total shipments, with a dual-sourcing strategy mitigating tariff impacts [23] - Inventory levels increased slightly to prepare for upcoming product launches and the peak consumer electronics season in Q4 [18][11] Company Strategy and Development Direction - Zepp Health is focused on a multi-tier product strategy, enhancing brand visibility while maintaining operational discipline [4][3] - The acquisition of Wide AI's core assets aims to integrate women's wellness analytics into the Amazfit ecosystem, enhancing personalized coaching experiences [6][5] - The company is committed to expanding its online presence while also planning to increase offline channel reach once supply constraints are resolved [30][29] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4, expecting revenue between $82 million and $86 million, representing 38%-45% year-over-year growth [10][20] - The macroeconomic landscape has impacted performance, but the company is focused on long-term supply chain optimizations and inventory management [11][10] - Management highlighted a positive demand signal for new products and a strong product pipeline heading into the holiday season [26][25] Other Important Information - The company received the RED Network Security MB certificate, reflecting its commitment to user privacy and product safety [7] - Zepp Health has retired $64.5 million of debt since the beginning of 2023, optimizing its capital structure [20] Q&A Session Summary Question: Can you provide more details on the supply constraints for the Helio Strap? - Management indicated that supply constraints were due to memory chip issues affecting the entire industry and typhoon-related shipment delays [22] Question: What is the current contribution of North America to total shipments? - Management confirmed that North America accounts for approximately 15%-20% of total shipments, with minimal tariff impact due to a dual-sourcing strategy [23] Question: How has the T-Rex 3 Pro performed compared to previous models? - The T-Rex 3 Pro has received positive feedback and is performing better than the T-Rex 3 at launch, indicating strong market acceptance [26] Question: What are the plans for channel growth in 2026? - Management noted that both online and offline channels present significant growth opportunities, with a focus on expanding online presence while resolving supply issues for offline channels [30][29] Question: What are the assumptions behind the Q4 revenue guidance? - The guidance is based on expectations of a strong holiday season, with efforts to increase average selling prices through new product launches [33]