Liquidity is under severe pressure as evidenced by a negative free cash flow of $185.1 million in 2025Q4, representing a negative FCF margin of 31.0%.
Zepp Health Corporation (ZEPP) cash flow statement — 11-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Cash from Operations | -179.65M | -179.65M | -24.39M | 6.02M | -17.11M | -52.1M | 23.1M | 64.35M | 110.12M | 34.89M | 2.2M | -6.99M |
| Operating CF Margin % | - | -9.9% | -1.83% | 1.71% | -2.78% | -5.38% | 2.48% | 7.65% | 19.04% | 11.51% | 0.94% | -0.75% |
| Operating CF Growth % | 0% | -636.53% | -505.51% | 135.17% | 67.17% | -325.54% | -64.11% | -41.57% | 215.66% | 1487.34% | 131.46% | - |
| Net Income | -301.48M | -280.18M | -75.81M | -4.39M | -6.33M | 21.36M | 33.13M | 83.22M | 53.97M | 24.81M | 3.6M | -39.07M |
| Depreciation & Amortization | 6.9M | 31.71M | 36.46M | 7.69M | 8.71M | 8.04M | 3.93M | 2.49M | 986.48K | 550.05K | 361.04K | 294.19K |
| Stock-Based Compensation | 28.75M | 17.43M | 4.78M | 1.24M | 1.06M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | 15.65M | 15.65M | 13.45M | -406.07K | -1.45M | -2.9M | -1.51M | -4.02M | -5.22M | -2.81M | 0 | 0 |
| Other Non-Cash Items | -1.09B | 145.71M | -10.93M | -4.88M | -7.08M | 18.84M | 17.64M | 16.36M | 21.35M | 8.83M | 9.12M | 57.8M |
| Working Capital Changes | -109.97M | -109.97M | 7.66M | 6.76M | -12.02M | -97.44M | -30.09M | -33.7M | 39.04M | 3.5M | -10.89M | -26M |
| Change in Receivables | -80.68M | -80.68M | 404K | 6.18M | 456.57K | 47.23M | 65.5M | -130.36M | -3.22M | -18.19M | 333.8K | -18.34M |
| Change in Inventory | -154.48M | -154.48M | 5.55M | 7.33M | 4.08M | -12.88M | -59.48M | -62.65M | -37.28M | -8.53M | -15.57M | -54.53M |
| Change in Payables | 197.86M | 197.86M | 14.81M | -3.93M | -19.77M | -104.35M | -1.41M | 135.4M | 56.55M | 26.88M | 40.93M | 169.34M |
| Cash from Investing | 10.35M | 10.35M | -1.58M | 1.09M | -910.96K | -165.75M | -29.96M | -16.31M | -51.55M | -5.75M | -14.96M | -5.07M |
| Capital Expenditures | -3.61M | -3.61M | -1.4M | -225.34K | -176.58K | -8.23M | -12.28M | -6.67M | -10.97M | -3.19M | -1.73M | -3.01M |
| CapEx % of Revenue | 0.19% | 0.2% | 0.11% | 0.06% | 0.03% | 0.85% | 1.32% | 0.79% | 1.9% | 1.05% | 0.74% | 0.33% |
| Acquisitions | 0 | 0 | 0 | 60.29K | 8.76K | 5.65M | -4.98M | 20.69K | 10.31K | 368.03K | 0 | 4.13K |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 2.29M | 2.29M | 1.66M | 458.74K | -374.93K | 0 | -68.21K | 15.01M | -16.6M | -2.2M | -2.42M | 0 |
| Cash from Financing | 173.66M | 173.66M | 477K | -5.88M | 6.19M | 101.5M | 81.46M | 1.28M | 103.61M | 3.35M | 1.91M | 220.97M |
| Debt Issued (Net) | -51.29M | -51.29M | -1.65M | -6.63M | 2.42M | 102.79M | 81.46M | -5.32M | 74.91K | 3.34M | 1.91M | 0 |
| Equity Issued (Net) | -8.66M | -8.66M | -2.28M | -355.52K | -1.19M | -1.29M | 0 | 7.26M | 103.53M | 13.17K | 3.61K | -20.1M |
| Dividends Paid | 0 | 0 | 0 | 0 | -920.89K | 0 | 0 | -656.58K | 0 | 0 | 0 | 0 |
| Share Repurchases | -8.66M | -8.66M | -2.28M | -355.52K | -1.19M | -2.13M | 0 | 0 | -1.29M | 0 | 0 | -20.1M |
| Other Financing | 233.61M | 233.61M | 4.4M | 1.1M | 5.88M | 0 | 0 | 0 | 0 | 0 | 0 | 241.07M |
| Net Change in Cash | 789.7M | 15.37M | -29.73M | -92.06K | -13.99M | -111.09M | 88.97M | 47.51M | 162.15M | 34.68M | -11.79M | 221.66M |
| Free Cash Flow | -185.14M | -185.14M | -25.88M | 5.78M | -17.32M | -59.23M | 11M | 59.39M | 107.4M | 31.71M | 651.65K | -9.99M |
| FCF Margin % | -9.61% | -10.2% | -1.94% | 1.64% | -2.81% | -6.11% | 1.18% | 7.06% | 18.57% | 10.46% | 0.28% | -1.08% |
| FCF Growth % | - | -615.31% | -547.94% | 133.36% | 70.76% | -638.64% | -81.48% | -44.7% | 238.68% | 4766.51% | 106.52% | - |
| FCF per Share | -187.07 | -186.28 | -1.60 | 0.38 | -1.13 | -3.58 | 0.68 | 3.68 | 7.64 | 2.13 | 0.04 | -0.67 |
| FCF Conversion (FCF/Net Income) | 0.61x | 0.64x | 0.04x | -0.19x | 0.40x | -2.44x | 0.70x | 0.77x | 2.04x | 1.41x | 0.61x | 0.18x |
| Interest Paid | 1.24M | 1.24M | 89K | 6.26M | 8.3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 62K | 0 | 512K | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Quick answers to the most common questions about buying ZEPP stock.
Zepp Health Corporation (ZEPP) generated $-179.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Zepp Health Corporation (ZEPP) reported negative free cash flow of $185.1M in 2025, indicating capital requirements exceeded cash from operations.
Zepp Health Corporation (ZEPP) spent $3.6M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Zepp Health Corporation (ZEPP) spent $8.7M on share repurchases. This shows the company's commitment to returning capital to its equity investors.
Key Metrics
Top Statement Risk
Unsustainable Cash Burn Rate
Earnings Quality and Cash Disconnect
According to the 2025Q4 financial disclosures, Zepp reported a net loss of $77.1 million alongside an operating cash outflow of $179.7 million, resulting in an OCF/NI ratio of 2.33 that highlights a significant disconnect between accounting losses and actual cash depletion during the period.
The substantial gap between net income and operating cash flow suggests that the company's reported losses are being exacerbated by cash-intensive operational requirements. Investors should monitor this divergence, as it implies that the underlying business model is consuming liquidity at a rate that significantly exceeds the accounting impact of its current operating losses.
Negative Free Cash Flow Trajectory
As reported in the most recent quarterly filings, Zepp generated a negative free cash flow of $185.1 million in 2025Q4, representing a negative FCF margin of 31.0% that underscores the company's current inability to self-fund its strategic pivot toward self-branded wearable products.
The trajectory of free cash flow remains deeply negative, indicating that the company is currently reliant on its existing cash reserves to sustain operations. This trend warrants further investigation into whether the current level of cash burn is a temporary byproduct of aggressive market expansion or a structural feature of the company's high-cost R&D and marketing strategy.
Working Capital Drag on Liquidity
Based on the 2025Q4 cash flow statement, Zepp experienced a working capital outflow of $110.0 million, which served as a primary driver for the quarter's total operating cash deficit and suggests potential inefficiencies in inventory management or collection cycles during this period of rapid growth.
The significant negative impact of working capital changes suggests that the company is tying up substantial liquidity in its operational cycle, likely due to inventory buildup or delayed receivables. This development appears to be a major contributor to the company's cash burn, and investors should monitor whether this is a seasonal anomaly or a persistent trend.
SBC and Capitalized Cost Obfuscation
Data from the 2025Q4 report reveals $17.4 million in stock-based compensation, which, when viewed alongside the $185.1 million free cash flow deficit, suggests that the company is utilizing equity-based incentives to preserve cash while simultaneously facing heavy pressure from its core operational cash requirements.
While stock-based compensation provides a non-cash mechanism to manage expenses, it does not mitigate the underlying cash burn driven by operational and working capital needs. The reliance on these adjustments may mask the true economic cost of the company's growth strategy, warranting a cautious interpretation of the company's long-term cash sustainability.