Zepp Health Corporation Q2 FY2025 earnings call

• Zepp Health delivered a 46% y-o-y revenue increase to $59.4 million, marking first y-o-y revenue growth since Q2 2021. • T-Rex smartwatch in adventure series had sustained volume growth, setting standards in premium outdoor smartwatch category. • Introduced Balance 2 smartwatch and Helio Strap for training and recovery, with Balance 2 targeting multisport athletes and Helio Strap being screen-free with AI-driven metrics. • Bip 6 and Active 2 series continued steady growth. • Upgraded Zepp OS to 5.0 with AI features. • Flexible supply chain and multi-region sourcing strategy mitigated tariff impacts. • Integrated region sports community strategy boosted brand recognition with partnerships and Amazfit Athletes team.

Zepp Health achieved a 46% year-over-year increase in revenue to $59.4 million in the second quarter of 2025, with all revenue contributed by the Amazfit brand. The adventure series T-Rex smartwatch maintained volume growth, the Balance 2 smartwatch and Helio Strap introduced new integrated training and recovery solutions, and the Bip 6 and Active 2 series saw steady growth. Revenue contribution is 100% from the Amazfit brand.

• Expect Q3 2025 revenue to be in the range of $72 million to $76 million, representing a 70% to 79% y-o-y growth. • Anticipate gross margin to expand in Q3 with full quarter sales of Helio Strap and Balance 2 and new product launches. • Committed to cost management and optimizing capital structure, including share repurchase program.

• Tariff policies and global wearable technology trends present challenges and opportunities. • Supply chain uncertainties, though proactive management is mitigating impacts.

Q: Could you give more color on the recent spike in share price drivers?

A: Products well received, strong Amazon Prime Day performance, value discovery in market with smart hardware companies taking market share.

Q: How many more product launches in the second half of the year versus first half?

A: First half saw Bip 6, Active 2, Balance 2, Helio Strap launches; second half has exciting products in pipeline.

Q: What kind of sales contribution would you expect from the new Helio Strap launch and its gross margin?

A: Helio Strap launched in June, well received, carries healthy gross margin; more sales would expand its contribution.

Q: Main driver for Q3 strong guidance?

A: Traction of Bip and Active 2, seasonality of Q3/Q4, performance of Balance 2, Helio Strap, T-Rex 3, and upcoming new product.