Zepp Health Corporation

Revenue in Q1 2026 was $51.5 million, up 33.8% year over year. Gross margin was 37.7%, up 0.4 percentage points from Q1 2025, and gross profit increased 35.3% to $19.4 million. Operating loss narrowed to $6.3 million from $17.2 million a year ago, while 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 the quarter at $62.8 million, cash and cash equivalents were $103.2 million, and Zepp repurchased $17 million of its $20 million authorized buyback program. For Q2 2026, management guided revenue to $63 million to $68 million, representing about 6% to 14% year-over-year growth; no full-year revenue guide was given, but management said it expects profitable growth versus 2025.

Wang Huang framed the quarter as evidence that Zepp’s growth is becoming structural rather than seasonal, citing strong demand for premium Amazfit products and a higher-value brand position. He emphasized a shift toward hybrid training as the company’s core strategy, built around hardware, AI-driven training intelligence, software, and data, with HYROX as a key partnership to deepen credibility in that category. His tone was confident and strategic, repeatedly stressing premiumization, pricing power, and brand trust in serious training environments.

Leon Cheng Deng walked through the financials in detail, highlighting revenue of $51.5 million, gross margin of 37.7%, and gross profit of $19.4 million. He said higher memory costs and unfavorable FX were headwinds, but product mix and pricing helped offset them, and he pointed to a more than 20% increase in ASP and inventory reduction to $62.8 million. He also noted $103.2 million in cash, $46.7 million of cumulative debt retired since the start of 2023, and $17 million of the $20 million share repurchase authorization completed. On expenses, he said adjusted operating expenses were $35.7 million and should step down later in the year as launch-heavy R&D, front-loaded marketing, and G&A normalize.

Analysts focused on whether Zepp is front-loading too many product launches and whether costs can still come down. Management said the company likely has more than 9 launches this year, that R&D should trend lower after a launch-heavy first half, and that marketing and G&A should also ease in the second half, with run-rate operating expenses around $30 million per quarter or lower. On pricing, management said competitors are also raising prices, but Zepp still has room to raise prices because its products remain relatively low-priced versus peers. On HYROX monetization, management said the partnership is meant to deepen product integration, improve timing/training features for athletes, and help Zepp become the brand users choose when they move into more serious sports training.