Zepp Health (NYSE:ZEPP) Issues Earnings Results

Zepp Health (NYSE:ZEPP) posted its quarterly earnings results on Tuesday. The company reported ($0.80) EPS 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 firm 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 Price Performance

Shares of ZEPP opened at $4.50 on Wednesday. The company has a debt-to-equity ratio of 0.21, a current ratio of 0.88 and a quick ratio of 0.67. Zepp Health has a 1-year low of $3.85 and a 1-year high of $61.85. The stock has a market cap of $66.06 million, a PE ratio of -1.79 and a beta of 1.87. The firm has a fifty day moving average price of $5.06 and a 200 day moving average price of $10.56.

Insider Activity at Zepp Health

In other news, CFO Cheng Deng sold 9,836 shares of Zepp Health stock in a transaction dated Friday, June 26th. The stock was sold at an average price of $4.61, for a total transaction of $45,343.96. Following the sale, the chief financial officer owned 114,539 shares in the company, 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 is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Company insiders own 36.00% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio lifted its stake in Zepp Health by 61.4% in the fourth quarter. Public Employees Retirement System of Ohio now owns 1,514 shares of the company’s stock valued at $41,000 after buying an additional 576 shares during the last quarter. Harvest Fund Management Co. Ltd grew its position in shares of Zepp Health by 6.7% during the fourth quarter. Harvest Fund Management Co. Ltd now owns 44,800 shares of the company’s stock worth $1,207,000 after acquiring an additional 2,800 shares during the last quarter. Osaic Holdings Inc. grew its position in shares of Zepp Health by 239.5% during the fourth quarter. Osaic Holdings Inc. now owns 8,285 shares of the company’s stock worth $223,000 after acquiring an additional 5,845 shares during the last quarter. Dimensional Fund Advisors LP acquired a new position in shares of Zepp Health in the 4th quarter valued at $241,000. Finally, Capstone Capital Management Ltd acquired a new position in shares of Zepp Health in the 4th quarter valued at $298,000. Hedge funds and other institutional investors own 52.61% of the company’s stock.

Analyst Upgrades and Downgrades

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

Zepp Health Company Profile

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.