Zepp Health Corporation

Q1 2026 revenue was $51.5 million, up 33.8% year over year. Gross margin was 37.7%, up 0.4 points from Q1 2025, and gross profit rose 35.3% to $19.4 million. Operating loss narrowed to $6.3 million from $17.2 million a year ago, and adjusted net loss was $17.9 million, or 34.8% of sales, versus $18.1 million, or 41% of sales, in Q1 2025. Inventory ended at $62.8 million and cash and cash equivalents were $103.2 million. For Q2 2026, Zepp guided revenue to $63 million-$68 million, or about 6%-14% growth year over year. Management said the outlook reflects demand across the portfolio but also normal shipment timing and product launch phasing; no full-year revenue guidance was given, though they said they expect profitable growth over 2025.

CEO Wang Huang framed the quarter as validation of a structural shift toward hybrid training, premium products, and stronger brand positioning. He said Amazfit is evolving into a comprehensive hybrid training platform across endurance, strength, recovery, hardware, AI training intelligence, software, and data, and highlighted the new exclusive 3-year HYROX partnership as a strategic move to build authority in the emerging category. His tone was confident and strategic, emphasizing premiumization, pricing power, and a path toward long-term profitability.

CFO Leon Deng focused on the financial mechanics behind the quarter: revenue of $51.5 million, gross margin of 37.7%, and gross profit of $19.4 million. He said adjusted operating expenses were $35.7 million, operating loss was $6.3 million, adjusted net loss was $17.9 million, inventory was $62.8 million, and cash and cash equivalents were $103.2 million. He also flagged near-term gross margin pressure from higher memory costs, said the company is preparing through diversified sourcing and engineering changes, and reiterated capital discipline, including $46.7 million of debt retired since the beginning of 2023 and $17 million of the $20 million share repurchase authorization completed by March 31, 2026.

Analysts pressed management on how many new product launches remain this year, whether cost cuts can offset higher spending, and how Zepp will handle rising memory costs. Leon said there will likely be more than 9 launches in 2026, with launch-heavy first-half spending expected to normalize later in the year, and he suggested quarterly operating expenses could step down toward a roughly $30 million run rate or lower. On pricing, he said competitors are also raising prices and Zepp has room to do so, but the company still wants to deliver the best product and experience at the best price. On HYROX monetization, management said the partnership is meant to deepen product relevance for serious athletes and build brand authority so Amazfit becomes the choice when users move into more serious training.