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Zepp Health Corporation Reports Second Quarter of 2026 Unaudited Financial Results

ZEPP
  • Zepp Health reported Q2 2026 revenue of US$63.5 million, a 6.9% year-over-year increase.
  • Gross margin reached 37.4%, up 1.2 percentage points from Q2 2025, driven by a favorable product mix despite higher component costs.
  • Net loss attributable to Zepp widened to US$11.3 million from US$7.7 million in the prior year period, impacted by foreign-exchange headwinds and increased R&D and marketing investments.
  • Cash, cash equivalents, and restricted cash totaled US$106.3 million as of June 30, 2026, reflecting improved working capital management.
  • The company launched new products across multiple families including professional running, Hybrid Training, entry-level smartwatches, and screen-free fitness wearables.
  • High-end T-Rex models (T-Rex 3 Pro at US$399 and T-Rex Ultra 2 at US$549) now represent approximately 50% of family activations.
  • The US$169 Active series tier grew from 22% to 40% of global activations in Q2, reaching 57% by late August 2026.
  • The Balance family expanded its price range to US$369–US$599, with July activations increasing by over one-third compared to Q2 averages.
  • Bip supply recovered after constraints, and the company announced price increases across the entire Bip family effective January 2027.
  • Helio Strap demand exceeded supply in Q2, with full supply restoration expected in Q4 2026.
  • R&D expenses were US$11.5 million, while selling and marketing expenses rose to US$18.3 million due to new product campaigns and platform charges.
  • General and administrative expenses increased to US$6.2 million, primarily due to foreign currency headwinds.
  • Alain Lam resigned as a director on September 1, 2026, to focus on responsibilities at Xiaomi, with no disagreements cited.
  • The share repurchase program is extended through November 2026, with US$17.6 million utilized to buy back approximately 2.4 million ADSs as of June 30, 2026.
  • Management forecasts Q3 2026 net revenues between US$68.0 million and US$73.0 million, facing a high comparison base from Q3 2025.
  • A conference call to discuss results was scheduled for September 1, 2026, at 9:30 p.m. Eastern Time.