Zepp Health Corporation (ZEPP)
🔔 Watch stock
Zepp Health builds the Amazfit sports watches — and was called Huami until February 2021. Back then a good quarter of revenue came from contract manufacturing for Xiaomi. In 2025 not a single dollar did: revenue fell from $352.9 million to $182.6 million before recovering to $258.9 million, while gross margin climbed from 26.2 to 38.3 percent. Open the annual report, though, and something else appears: $220.0 million of investments, including $135.0 million in a Shenzhen-listed company whose board is chaired by Zepp's own chief executive. Not investment advice — but the watch on your wrist is only one third of the package here.
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AI Rating
Sells AIKI ist bei Zepp Health nicht Beiwerk, sondern Produktmerkmal und Umsatzquelle: Der Jahresbericht 20-F für 2025 führt die KI-gestützten Hörgeräte Zepp Clarity und die KI-Klangplattform Zepp Aura als eigene Produkt- und Servicelinien, beschreibt den hauseigenen KI-Chip Huangshan als Kern der Wearables und nennt die Einbindung von OpenAIs GPT-4 in Zepp OS 4.
View the full file — quotes, sources, reviewed filings
„Zepp Clarity offers discreet, AI-powered hearing aids to combat hearing loss, and Zepp Aura provides personalized, AI-generated soundscapes to improve sleep and relaxation."
Zepp Clarity bietet dezente, KI-gestützte Hörgeräte gegen Hörverlust, und Zepp Aura liefert personalisierte, KI-erzeugte Klanglandschaften zur Verbesserung von Schlaf und Entspannung.
„software and data services, including Zepp Aura, our AI-powered sound health platform, and our data analytics capabilities."
Software- und Datendienste, darunter Zepp Aura, unsere KI-gestützte Klanggesundheits-Plattform, sowie unsere Datenanalyse-Fähigkeiten.
„In the second quarter of 2024, we launched Zepp OS 4, a major leap in wearable tech by integrating OpenAI’s GPT-4, making Amazfit smartwatches more effective wellness companions."
Im zweiten Quartal 2024 brachten wir Zepp OS 4 auf den Markt, einen großen Sprung in der Wearable-Technik durch die Einbindung von OpenAIs GPT-4, die Amazfit-Smartwatches zu wirksameren Wellness-Begleitern macht.
Filings Reviewed: 20-F 2026-04-24 · 6-K 2026-06-09 · 6-K 2026-03-16 · 20-F/A 2025-05-21 · 20-F 2025-04-25 · 6-K 2025-11-05
Rated on July 29, 2026 · How the Rating Is Built
Assessment: Opportunities & Risks
Leaving the contract business behind clearly improved the quality of revenue: gross margin rose from 26.2 percent (2023) through 38.5 percent (2024) to 38.3 percent (2025), reaching 40.4 percent in the fourth quarter of 2025. In 2025, 100 percent of revenue came from the in-house Amazfit brand, and first-quarter 2026 revenue grew 33.8 percent to $51.5 million.
Better margins have not produced profit: operating loss of $29.2 million (2025), $47.3 million (2024) and $30.5 million (2023); net loss of $40.1 million, $75.8 million and $31.1 million. Operating cash flow was negative in 2024 (−$24.4 million) and 2025 (−$25.7 million), and the first quarter of 2026 brought another $19.6 million net loss. Operating expenses of $128.4 million (2025) clearly exceed gross profit of $99.2 million.
Equity stood at $194.2 million as of March 31, 2026 (a 36.5 percent ratio) and cash at $103.2 million — but $50.8 million of that is restricted collateral for bank acceptance notes. Only $52.4 million was freely available against roughly $25 million of annual operating cash burn. Financial liabilities total $238.1 million, of which $198.1 million is current; borrowing costs are low at a 2.76 percent weighted average (2025), and $168.2 million of credit lines remain undrawn.
The biggest balance-sheet item is not an operating asset: $220.0 million of long-term investments at December 31, 2025, including $135.0 million in Shenzhen-listed Jiangsu Yitong High-Tech (purchase price $144.89 million in cash in February 2021, 2025 contribution −$1.2 million). A 15.79 percent equity interest is pledged against a $33 million loan. The same company also supplies the main chips and heart-rate sensors for Amazfit watches, and chief executive Wang Wayne Huang chairs its board — a conflict of interest the annual report names explicitly.
Class B shares carry ten votes and account for 88.0 percent of the votes on 42.3 percent of the capital (February 28, 2026); founder Wang Wayne Huang controls 72.7 percent. Minority holders have no practical say. On top of that sit 48,760,845 outstanding options and share awards on Class A shares — a good fifth of the 234.9 million ordinary shares outstanding.
After an NYSE minimum-price notice dated April 30, 2024, Zepp changed the ADS ratio from 1:4 to 1:16 on September 16, 2024 and regained compliance on October 2, 2024. The annual report puts the 2025 ADS trading range between $2.17 and $61.27. Many data sources count only the Class A shares — anyone doing so understates both share count and market value by a good 42 percent.
Zepp Health has completed a restructuring that many contract manufacturers do not survive: away from the Xiaomi business ($92.0 million of revenue in 2023, zero in 2025) and toward its own Amazfit brand. Gross margin rose from 26.2 to 38.3 percent, revenue recovered 41.8 percent to $258.9 million in 2025 and grew another 33.8 percent in the first quarter of 2026. Yet the company still earns nothing: a $40.1 million net loss in 2025 and $25.7 million of operating cash burn. And the largest item on the balance sheet is a Chinese listed stake that cost $144.9 million, whose board is chaired by Zepp's own chief executive and 15.79 percent of which is pledged to a bank. Not investment advice.
- Zepp Health came onto the desk through a ratio anomaly in the universe covered by our in-house stock scanner: a company whose entire market value (roughly $68 million, calculated as of June 26, 2026) is below half its book equity ($194.2 million at March 31, 2026), while first-quarter 2026 revenue grew 33.8 percent. Scanner result lists are recalculated daily.
- Share-count trap: many data sources show about 8.5 million shares for ZEPP — that is the 135,608,316 Class A shares divided by the ADS ratio of 16. The 99,277,687 Class B shares are missing from that figure. Every valuation number in this analysis uses 234,886,003 ordinary shares, or 14.68 million ADS equivalents (annual report cover page, as of December 31, 2025). The company itself uses a broader denominator for earnings per share: a weighted average of 254,431,492 shares in 2025 and 253,929,090 in the first quarter of 2026. The difference is the Class A shares held by the depositary bank, which the cover page explicitly excludes from shares outstanding; on that broader basis the market value would be roughly 8 percent higher.
- The reporting currency has been the U.S. dollar since the second quarter of 2024 (Renminbi before that, applied retrospectively), so balance sheet and listing currency match. As a foreign private issuer, Zepp files an annual report on Form 20-F and interim reports on Form 6-K — there is no Form 10-Q.
- Not to be confused: Zepp Health Corporation (NYSE: ZEPP) was named Huami Corporation until February 2021 and is filed with the SEC under the same identifier, CIK 0001720446. The Amazfit brand belongs to Zepp, not to Xiaomi.
About the Company
Zepp Health Corporation operates as a smart wearable and health technology company worldwide. It empowers users to live lives by optimizing health, fitness, and wellness journeys through its consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. The company offers smart bands, smart watches, smart rings, hearables, the Helio Strap, smart scales, and accessories; and sportswear, home appliances, and smart watch accessories. It also provides Zepp Aura, a real-time, personalized sound health solution offering health management, including emotional regulation and sports performance optimization; and provides charts and graphs to display analysis of the activity and biometric data collected from users through its Zepp Life and Zepp mobile apps. The company offers its products under the Amazfit and Zepp brand names in approximately 90 countries. The company was formerly known as Huami Corporation and changed its name to Zepp Health Corporation in February 2021. Zepp Health Corporation was founded in 2013 and is based in Gorinchem, The Netherlands.
| IPO Year | 2018 |
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Data as of: July 29, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.