Zepp Health (NYSE:ZEPP) Issues Earnings Results

Zepp Health (NYSE:ZEPP) issued its quarterly earnings results on Tuesday. The company reported ($0.80) earnings per share for the quarter, FiscalAI reports. Zepp Health had a negative return on equity of 15.64% and a negative net margin of 14.70%.The business had revenue of $63.53 million for the quarter.

Here are the key takeaways from Zepp Health’s conference call:

• Q2 revenue rose 6.9% year over year to $63.5 million, while gross margin improved 120 basis points to 37.4%, despite higher memory and component costs.
• Product mix continued shifting toward higher-value offerings, with premium T-Rex models accounting for about half of activations and the $169 Active tier reaching approximately 57% of Active activations through August 25.
• The company reported strong early adoption of Balance 3 and Balance Ultra, while Bip demand remained robust after supply recovered; Zepp plans to raise prices across the Bip family beginning in January 2027 to improve unit economics.
• Zepp guided for Q3 revenue of $68 million to $73 million, implying a 4%–10% year-over-year decline, citing a difficult comparison base, macroeconomic pressure, product launch timing, and supply constraints affecting Helio Strap and Balance 3.
• Adjusted operating loss widened to $11.1 million from $4.9 million a year earlier as selling and marketing spending increased, while higher memory costs, unfavorable foreign exchange, and elevated operating expenses are expected to pressure profitability.

Zepp Health Stock Performance

Shares of Zepp Health stock opened at $4.50 on Wednesday. The company has a debt-to-equity ratio of 0.21, a quick ratio of 0.67 and a current ratio of 0.88. The company has a market capitalization of $66.06 million, a PE ratio of -1.79 and a beta of 1.87. The company has a 50-day simple moving average of $5.06 and a two-hundred day simple moving average of $10.56. Zepp Health has a one year low of $3.85 and a one year high of $61.85.

Wall Street Analysts Forecast Growth

Several brokerages recently issued reports on ZEPP. Fundamental Research set a $53.01 target price on Zepp Health and gave the company a “buy” rating in a research note on Tuesday, August 11th. Wall Street Zen upgraded Zepp Health from a “sell” rating to a “hold” rating in a research report on Monday. One analyst has rated the stock with a Buy rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock has a consensus rating of “Hold” and an average target price of $53.01.

Insider Transactions at Zepp Health

In other Zepp Health news, CFO Cheng Deng sold 9,836 shares of Zepp Health stock in a transaction on Friday, June 26th. The shares were sold at an average price of $4.61, for a total value of $45,343.96. Following the transaction, the chief financial officer directly owned 114,539 shares of the company’s stock, valued at approximately $528,024.79. The trade was a 7.91% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Corporate insiders own 36.00% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of the stock. FIL Ltd acquired a new stake in Zepp Health in the 4th quarter valued at $16,858,000. Millennium Management LLC acquired a new stake in shares of Zepp Health in the third quarter valued at about $11,265,000. UBS Group AG increased its stake in shares of Zepp Health by 16,412.0% during the third quarter. UBS Group AG now owns 181,302 shares of the company’s stock worth $8,300,000 after purchasing an additional 180,204 shares in the last quarter. Monolith Management Ltd acquired a new position in shares of Zepp Health during the 4th quarter worth about $3,601,000. Finally, State Street Corp purchased a new position in Zepp Health in the 4th quarter valued at about $3,421,000. Institutional investors and hedge funds own 52.61% of the company’s stock.

About Zepp Health

Zepp Health Corp is a technology company specializing in the design, development and sale of smart wearable devices and health management solutions. Through its flagship Amazfit brand and the Zepp software ecosystem, the company offers a range of products—including smartwatches, fitness bands, smart scales and health-oriented mobile applications—designed to track key biometric data such as heart rate, sleep patterns, blood oxygen levels and activity metrics. Zepp Health’s integrated platform enables users to monitor wellness and fitness goals while leveraging cloud-based analytics for personalized insights.

At the core of Zepp Health’s offering is its Zepp cloud platform, which aggregates and analyzes data collected from its hardware lineup.