Why Did Zepp Health Soar 21.54%? Strong Q2 Earnings, AI Initiatives

Zepp Health's stock surged 21.54% in pre-market trading on August 4, 2025, driven by strong financial performance and strategic initiatives.

Zepp Health reported a 46.2% year-over-year increase in revenue for the second quarter ending June 30, 2025. This growth was primarily driven by the core brand Amazfit, with popular products like the Bip 6, Active 2, and T-Rex 3 series contributing significantly. The newly launched Balance 2 smartwatch and Helio fitness band also made notable contributions to the revenue growth.

The company's profitability improved, with the GAAP net loss narrowing to $7.7 million and the adjusted net loss to $6.16 million, representing a reduction of 28.6% and 30.2% respectively compared to the same period last year. The gross margin remained stable at 36.2%. Zepp Health's strategic transformation, including the launch of the AI-powered Zepp OS 5.0 system and partnerships with platforms like Strava, has been highly effective.

On the marketing front, Zepp Health signed NFL star Derrick Henry and other athletes, achieving a second-place ranking in brand progress in the U.S. market during Amazon Prime Day. Sales in the EMEA region surged by 60% year-over-year, further solidifying the company's market position. The company's financial health continued to improve, with operating expenses declining sequentially and cash reserves reaching $95.3 million by the end of the period.

For the third quarter, management expects revenue to reach between $72 million and $76 million, representing a year-over-year increase of 70% to 79%. CEO Huang Wang stated that this quarter marks the beginning of an upward cycle, with a rich pipeline of innovations supporting sustained growth in the second half of the year and beyond, solidifying Amazfit's innovative leadership in the performance wearables sector.