Zepp Health Corporation
- Open
- 5.20
- Day high
- 5.65
- Day low
- 5.20
- Prev close
- 5.29
- Volume
- 26K
- Mkt cap
- $80M
- P/E (TTM)
- —
- EPS (TTM)
- —
- P/B
- 0.4
- P/S
- 0.3
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$45K over the last 3 months (0 open-market buys, 1 sale)
- 🏛Institutions mixed (13F)
Zepp Health Corporation (ZEPP) is a Technology company listed on NYSE. The stock is down 60% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 1 sale (SEC Form 4).
Zepp Health Corporation (ZEPP) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
ZEPP earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 9, 2026 | — | $-1.13 | — | $39M | — |
| Mar 16, 2026 | — | $-0.40 | — | $86M | — |
| Nov 4, 2025 | — | $-0.04 | — | $76M | — |
| May 19, 2025 | — | $-1.13 | — | $39M | — |
| Mar 26, 2025 | $0.22 | $-1.40 | -723.9% | $8M | -92.7% |
| Nov 18, 2024 | $0.17 | $-0.78 | -558.6% | $6M | -94.2% |
| Aug 21, 2024 | $0.02 | $-0.60 | -2685.1% | $41M | -42.6% |
| May 20, 2024 | $-0.03 | $-0.76 | -2433.3% | $40M | -14.2% |
| Mar 18, 2024 | $0.30 | $0.04 | -86.7% | $85M | -10.9% |
| Nov 20, 2023 | $0.23 | $0.12 | -47.8% | $82M | -59.7% |
| Aug 21, 2023 | $0.09 | $-0.52 | -677.8% | $89M | -40.0% |
| May 23, 2023 | $-0.17 | $-1.08 | -535.3% | $94M | -38.6% |
ZEPP insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 30, 2026 | FAN Meihuiofficer: Chief Technology Officer | Option | 520,000 | — |
| Jun 30, 2026 | FAN Meihuiofficer: Chief Technology Officer | Option | 80,000 | — |
| Jun 29, 2026 | Deng Chengofficer: Chief Financial Officer | Option | 22,875 | — |
| Jun 29, 2026 | Deng Chengofficer: Chief Financial Officer | Sell | 9,836 | $4.61 |
| Jun 29, 2026 | Deng Chengofficer: Chief Financial Officer | Grant | 366,000 | — |
| Jun 29, 2026 | Deng Chengofficer: Chief Financial Officer | Option | 366,000 | — |
Source: ZEPP SEC Form 4 filings, latest Jun 30, 2026. For informational purposes only — not investment advice.
See the full ZEPP insider & 13F page →Zepp Health Corporation company profile
Overview
Zepp Health Corporation (NYSE:ZEPP) is a Chinese consumer electronics company that develops, manufactures, and sells smart wearable devices. Founded in 2013 and originally known as Huami Corporation, the company rebranded to Zepp Health in February 2021. The company went public on the New York Stock Exchange in February 2018. Zepp Health has undergone a significant strategic transformation over the past few years, shifting from primarily manufacturing wearables for Xiaomi to focusing on its own self-branded products under the Amazfit brand. The company is headquartered in Hefei, China, and has expanded its global presence with operations across Europe, North America, and Asia-Pacific regions.
Business
Zepp Health operates in the smart wearable technology industry, which encompasses devices that can be worn on the body to track health metrics, fitness activities, and provide smart connectivity features. The company's core business revolves around two main segments: **Self-Branded Products (over 90% of revenue):** This segment includes the company's proprietary Amazfit brand products, which consist of smartwatches, fitness trackers, smart bands, and health monitoring devices. The Amazfit product line is organized into several series: the Essential series (including Bip watches and basic fitness bands) accounts for approximately 40% of revenue; the Balance and Active lines contribute 30-40% of revenue; and the Performance and Adventure series (designed for outdoor activities and sports) represents 20-30% of revenue. The company has also expanded into new form factors with the Amazfit Helio Ring, a smart ring that provides 24/7 health monitoring. **Xiaomi Wearable Products (less than 10% of revenue):** This segment involves manufacturing wearable devices for Xiaomi under their Mi brand. This was historically the company's primary business model but has been significantly reduced as part of the strategic pivot toward self-branded products. The company also develops and maintains Zepp OS, a proprietary operating system for wearable devices that includes AI-powered features and third-party app integration. Additionally, Zepp Health offers mobile applications (Zepp Life and Zepp App) that provide health data analysis, charts, and graphs to help users understand their biometric and activity data collected from the wearable devices. Beyond traditional wearables, the company has begun expanding into adjacent health technology areas, including hearing aids (Zepp Clarity One), smart home fitness equipment, and AI-powered health coaching services.
Revenue model
Zepp Health primarily generates revenue through direct product sales of its smart wearable devices. The company operates on a traditional manufacturing and retail business model where it designs, develops, and manufactures hardware products that are sold through various distribution channels. **Revenue Streams:** The company's main revenue source is the sale of smartwatches, fitness trackers, smart rings, and related accessories. Products are sold through multiple channels including online marketplaces (Amazon, company website), retail partnerships (Best Buy, Target, Walmart in the US), and international distributors. The company has also begun exploring recurring revenue opportunities through its Zepp OS ecosystem, including premium app subscriptions and AI-powered health services, though these remain a small portion of total revenue. **Customer Base:** Zepp Health serves consumers directly (B2C model) across global markets, with approximately 50% of revenue coming from Europe and the remaining 50% split between Asia-Pacific and North America. The company targets health-conscious consumers, fitness enthusiasts, and outdoor sports participants with products ranging from budget-friendly fitness bands to premium GPS watches. **Margin Influencing Factors:** Several factors significantly impact the company's profitability. Positive margin drivers include the shift toward higher-margin self-branded products (gross margins improved from 26.2% in 2023 to 38.5% in 2024), reduced dependency on low-margin Xiaomi contract manufacturing, and the introduction of premium product lines. The company has also benefited from operational efficiency improvements, reducing quarterly operating expenses from RMB 180 million in 2022 to around RMB 100 million by 2024. Negative margin pressures include intense competition in the wearables market from established players like Apple, Samsung, and Fitbit, which can force pricing pressure. Supply chain disruptions and component cost inflation can also impact margins, as evidenced by supply constraints on popular products like the T-Rex 3. Additionally, the company's significant investment in R&D for AI capabilities and new product development, while necessary for long-term competitiveness, creates ongoing cost pressures.
Competitive moat
Zepp Health operates in a highly competitive consumer electronics market with limited sustainable competitive advantages. The company's moat is relatively narrow and primarily consists of a few key elements that provide modest differentiation rather than strong barriers to entry. **Proprietary Software Ecosystem:** The company's strongest moat element is its Zepp OS platform, which provides a unified software experience across its device portfolio. The integration of AI capabilities, including OpenAI's GPT-4 and proprietary health coaching algorithms, creates some user stickiness and differentiation from generic wearable manufacturers. However, this advantage is not insurmountable, as larger tech companies have significantly more resources to develop competing platforms. **Brand Recognition and Market Position:** Amazfit has established recognition in certain geographic markets, particularly in Europe where it holds meaningful market share. The company's focus on outdoor and fitness-oriented consumers has created some brand loyalty, supported by partnerships with athletes and sports events. However, brand loyalty in consumer electronics tends to be relatively weak, and the company faces intense competition from well-established brands with much larger marketing budgets. **Manufacturing and Supply Chain Capabilities:** The company has developed manufacturing expertise and supply chain relationships, including facilities in Vietnam for production diversification. However, these capabilities are not unique in the industry and can be replicated by competitors or accessed through contract manufacturers. **Competitive Threats:** The company faces significant competitive pressure from multiple directions. Apple dominates the premium smartwatch market with deep integration into its ecosystem. Samsung, Garmin, and Fitbit (owned by Google) have strong market positions with substantial R&D resources. Additionally, numerous low-cost manufacturers, particularly from China, compete aggressively on price in the budget and mid-range segments where Zepp Health generates most of its revenue. The company's competitive position is further challenged by its limited resources compared to Big Tech competitors, making it difficult to invest heavily in cutting-edge technology development or large-scale marketing campaigns. The wearables market's rapid technological evolution means that competitive advantages can quickly erode as new features become commoditized.
Risks & safety
The company presents moderate financial risk with mixed safety indicators: **Overall Assessment:** Zepp Health maintains adequate liquidity but faces profitability challenges and declining financial metrics. **Liquidity and Solvency:** - Cash and short-term investments: $91 million as of Q4 2024 - Current ratio: 1.29x (adequate but declining from 2.04x in 2023) - Quick ratio: 1.00x (borderline acceptable) - Total debt has been reduced significantly through active debt retirement - Debt-to-equity ratio: 0.72x (manageable but elevated) **Profitability and Cash Flow:** - Net loss of $76 million in 2024, representing negative 30% return on equity - Negative free cash flow of $26 million in 2024 - EBITDA negative $47 million, though improving from deeper losses in prior periods - Operating cash flow turned negative in 2024 after several positive quarters **Valuation Metrics:** - Trading at 0.04x book value, suggesting significant market pessimism - Negative P/E ratio due to losses - EV/EBITDA not meaningful due to negative EBITDA **Other Considerations:** - NYSE compliance issues due to low stock price (under $1.00 threshold) - Ongoing share buyback program provides some price support - Revenue declining trend with 2024 revenue of $183 million vs. $344 million in 2023
Recent development
Over the past few years, Zepp Health has executed a comprehensive strategic transformation focused on reducing dependency on Xiaomi and building a sustainable self-branded business. The most significant change has been the dramatic shift in revenue mix, with self-branded products growing from 57.7% of revenue in Q4 2021 to over 90% by 2024. **Product Innovation and Expansion:** The company has significantly expanded its product portfolio beyond traditional fitness trackers. Key launches include the Amazfit Helio Ring, marking the company's entry into the smart ring market, and the T-Rex 3 outdoor smartwatch, which became a breakout success with supply constraints due to unexpectedly high demand. The company has also introduced AI-powered devices like the Amazfit Vital nutrition tracking device and expanded into adjacent categories with the Zepp Clarity One hearing aid. **Technology Platform Development:** A major strategic initiative has been the development of Zepp OS 4.0, which integrates OpenAI's GPT-4 for personalized health insights and AI-powered coaching. This represents a shift toward creating a more comprehensive health and wellness ecosystem rather than just hardware manufacturing. The company has also redesigned its Zepp App with enhanced health tracking features and formed partnerships like the collaboration with Wild.AI for women's health tracking. **Operational Efficiency:** The company has implemented significant cost reduction measures, cutting quarterly operating expenses from RMB 180 million in 2022 to approximately RMB 100 million by 2024. This included organizational restructuring and operational efficiency improvements while maintaining R&D investment in key areas like AI and new product development. **Global Market Expansion:** Zepp Health has strengthened its international presence, with revenue now 90% generated outside of China. The company has expanded retail partnerships in the US with major chains like Best Buy, Target, and Walmart, while maintaining strong positions in European markets. Marketing efforts have been enhanced through athlete partnerships and sports event sponsorships, including deals with Olympic medalists and HYROX fitness competitions. **Financial Restructuring:** The company has actively improved its balance sheet by retiring over $55 million in debt since Q1 2023 and implementing an ongoing share buyback program extended through 2026. These actions demonstrate management's commitment to returning capital to shareholders while maintaining financial flexibility.
ZEPP company profile · for informational purposes only — not investment advice.
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