Zepp Health Corporation Reports Second Quarter of 2026 Unaudited Financial Results

Zepp Health Corporation (NYSE: ZEPP ) ("Zepp", the "Company" or "we") today announced its unaudited financial results for the second quarter of 2026.

Second Quarter of 2026 Financial and Operating Highlights: Revenue reached US$63.5 million, representing year-over-year growth of 6.9%. Gross margin was 37.4%, an increase of 1.2 percentage points from the second quarter of 2025. The improvement was primarily driven by a more favorable product mix and growing contribution from higher-value products , partially offset by higher memory and other component costs. Net loss attributable to Zepp was US$11.3 million, compared with US$7.7 million in the same period of 2025. The benefits of higher revenue and improved gross margin were offset by foreign-exchange headwinds and increased investment in research and development, marketing and brand building. As of June 30, 2026, cash and cash equivalents and restricted cash totaled US$106.3 million, compared with US$95.3 million a year earlier and US$103.2 million as of March 31, 2026, primarily reflecting improved working-capital management. During the quarter, the Company launched new products or expanded its portfolio across multiple major product families, including professional running, Hybrid Training, entry-level smartwatches and screen-free fitness and health wearables.

Management Comments: Wayne Huang, Chairman and Chief Executive Officer of Zepp Health, commented, "Our growth in the second quarter was measured rather than explosive. More importantly, the quality of our growth and the structure of our product portfolio continued to improve. Even before several new products had completed their production ramp and channel deployment, and despite supply continuing to constrain certain high-demand areas, we returned to year-over-year revenue growth and improved gross margin by 1.2 percentage points. Several product families provide clear evidence of this structural progress. At U.S. suggested retail prices, T-Rex 3 Pro and T-Rex Ultra 2 are priced at approximately US$399 and US$549, respectively. Across global activations, these higher-end models continued to represent approximately 50% of the T-Rex family, demonstrating sustained consumer acceptance of our higher-end products and price ladder. Active series has established a US$169 price tier that did not exist in the comparable period last year. This tier increased from approximately 22% of global Active family activations in the first quarter to approximately 40% in the second quarter, and reached approximately 57% through August 25, 2026. After Bip supply recovered, global monthly activations of the Active family remained broadly comparable with those of Bip in both July and August to date. This underscores that we have established meaningful scale in the US$100 to US$200 price band. Balance is beginning to demonstrate how our long-term investment in Hybrid Training can translate into higher-value product demand. Compared with Balance 2 at a U.S. suggested retail price of US$299, the new Balance generation extends from US$369 to US$599. Despite this meaningful increase in price, total global Balance family (Balance 2 and 3 series) activations in July increased by more than one-third from the monthly average in the second quarter, while activations of earlier-generation products remained relatively stable. The new generation is therefore adding to the family rather than simply replacing earlier products. Balance remains at an early stage of growth and has not yet reached the scale we believe the family can ultimately achieve. These positive indicators have not yet translated into their full revenue potential. T-Rex currently represents a story of sustained higher-end mix rather than rapid unit growth. Balance has only begun to establish growth momentum. Bip and Helio Strap were constrained by supply during the second quarter, while Cheetah and Helio Strap Pro remain at earlier stages of..."