Despite a 38.1% revenue increase in 2025Q4, the company continues to struggle with profitability, reporting a net loss of $77.1 million and an operating margin of -4.5%.
Zepp Health Corporation (ZEPP) annual income statement — 11-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 |
|---|
| Sales/Revenue | 1.93B | 1.82B | 1.33B | 352.63M | 615.72M | 968.72M | 931.73M | 840.95M | 578.52M | 303.2M | 234.24M | 925.38M |
| Revenue Growth % | 34.04% | 36.12% | 278.14% | -42.73% | -36.44% | 3.97% | 10.79% | 45.36% | 90.8% | 29.44% | -74.69% | - |
| Cost of Goods Sold | 1.17B | 1.1B | 820.57M | 260.33M | 496.36M | 766.36M | 738.72M | 628.59M | 429.43M | 229.99M | 192.68M | 811.23M |
| COGS % of Revenue | - | 60.8% | 61.54% | 73.83% | 80.61% | 79.11% | 79.29% | 74.75% | 74.23% | 75.86% | 82.26% | 87.66% |
| Gross Profit | 753.89M | 711.63M | 512.88M | 92.3M | 119.36M | 202.37M | 193.01M | 212.36M | 149.09M | 73.21M | 41.56M | 114.16M |
| Gross Margin % | 39.12% | 39.2% | 38.46% | 26.17% | 19.39% | 20.89% | 20.71% | 25.25% | 25.77% | 24.14% | 17.74% | 12.34% |
| Gross Profit Growth % | - | 38.75% | 455.68% | -22.67% | -41.02% | 4.85% | -9.11% | 42.44% | 103.66% | 76.15% | -63.59% | - |
| Operating Expenses | 993.48M | 916.56M | 857.92M | 122.73M | 180.33M | 187.81M | 167.78M | 122.55M | 91.05M | 46.28M | 39.55M | 155.57M |
| OpEx % of Revenue | - | 50.5% | 64.34% | 34.8% | 29.29% | 19.39% | 18.01% | 14.57% | 15.74% | 15.26% | 16.88% | 16.81% |
| Selling, General & Admin | 659.84M | 582.64M | 520.85M | 71.26M | 103.48M | 696.62M | 620.46M | 60.22M | 49.28M | 158.91M | 18.77M | 92.03M |
| SG&A % of Revenue | - | 32.1% | 39.06% | 20.21% | 16.81% | 71.91% | 66.59% | 7.16% | 8.52% | 52.41% | 8.01% | 9.94% |
| Research & Development | 232.83M | 317.73M | 337.07M | 51.47M | 76.86M | 79.83M | 77.92M | 62.33M | 41.77M | 22.76M | 19.91M | 63.54M |
| R&D % of Revenue | - | 17.5% | 25.28% | 14.6% | 12.48% | 8.24% | 8.36% | 7.41% | 7.22% | 7.51% | 8.5% | 6.87% |
| Other Operating Expenses | 3M | 16.2M | 0 | 0 | 0 | -588.65M | -530.6M | 0 | 0 | -135.39M | 863.79K | 0 |
| Operating Income | -239.59M | -204.93M | -345.04M | -30.43M | -60.97M | 14.56M | 25.23M | 89.81M | 58.04M | 26.93M | 2.01M | -41.41M |
| Operating Margin % | -12.43% | -11.29% | -25.88% | -8.63% | -9.9% | 1.5% | 2.71% | 10.68% | 10.03% | 8.88% | 0.86% | -4.47% |
| Operating Income Growth % | - | 40.61% | -1033.88% | 50.09% | -518.75% | -42.29% | -71.91% | 54.73% | 115.54% | 1236.98% | 104.86% | - |
| EBITDA | -233.27M | -173.22M | -308.58M | -22.74M | -52.26M | 22.6M | 29.16M | 92.3M | 59.03M | 27.48M | 2.38M | -41.11M |
| EBITDA Margin % | -12.1% | -9.54% | -23.14% | -6.45% | -8.49% | 2.33% | 3.13% | 10.98% | 10.2% | 9.06% | 1.01% | -4.44% |
| EBITDA Growth % | 24.86% | 43.86% | -1256.98% | 56.49% | -331.22% | -22.48% | -68.41% | 56.37% | 114.82% | 1056.91% | 105.78% | - |
| D&A (Non-Cash Add-back) | 6.9M | 31.71M | 36.46M | 7.69M | 8.71M | 8.04M | 3.93M | 2.49M | 986.48K | 550.05K | 361.04K | 294.19K |
| EBIT | -260.35M | -223.19M | -382.3M | -27.86M | -46.89M | 23.49M | 38.47M | 94.39M | 61.36M | 28.4M | 4.34M | -40M |
| Net Interest Income | -36.98M | -29.24M | -13.73M | -3.66M | -6.64M | -4.37M | 6.68M | 4.84M | 1.84M | 444.39K | 113.47K | 263.23K |
| Interest Income | 7.77M | 10.7M | 26.81M | 3.09M | 1.83M | 2.59M | 6.68M | 4.84M | 1.84M | 444.39K | 113.47K | 263.23K |
| Interest Expense | 44.76M | 39.94M | 40.54M | 6.75M | 8.47M | 6.96M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -44.28M | -58.2M | -108.55M | -3.06M | 8.23M | 8.33M | 12.55M | 4.42M | 3.59M | 1.88M | 2.05M | 1.41M |
| Pretax Income | -283.87M | -263.13M | -453.59M | -33.49M | -52.74M | 22.89M | 37.78M | 94.23M | 61.63M | 28.81M | 4.07M | -40M |
| Pretax Margin % | -14.73% | -14.5% | -34.02% | -9.5% | -8.57% | 2.36% | 4.05% | 11.2% | 10.65% | 9.5% | 1.74% | -4.32% |
| Income Tax | 17.61M | 17.79M | 99.99M | -2.43M | -9.79M | 1.67M | 4.51M | 11.27M | 8.26M | 4.09M | 464.73K | -925.94K |
| Effective Tax Rate % | -6.2% | -6.76% | -22.04% | 7.25% | 18.56% | 7.28% | 11.94% | 11.96% | 13.4% | 14.18% | 11.42% | 2.31% |
| Net Income | -301.48M | -280.92M | -554.13M | -31.13M | -42.85M | 21.36M | 33.13M | 83.22M | 53.97M | 24.81M | 3.6M | -39.07M |
| Net Margin % | -15.64% | -15.48% | -41.56% | -8.83% | -6.96% | 2.2% | 3.56% | 9.9% | 9.33% | 8.18% | 1.54% | -4.22% |
| Net Income Growth % | 46.21% | 49.3% | -1679.96% | 27.35% | -300.62% | -35.53% | -60.19% | 54.21% | 117.48% | 588.55% | 109.22% | - |
| Net Income (Continuing) | -301.48M | -280.92M | -553.58M | -31.07M | -42.95M | 21.23M | 33.27M | 82.96M | 53.37M | 24.73M | 3.6M | -39.07M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 8.31M | 1.87M | 1.78M | 2.05M | 0 | -453.83K | -204.5K | 366.89K | 0 | 0 |
| EPS (Diluted) | -304.63 | -283.04 | -34.08 | -0.28 | -0.40 | 0.21 | 0.33 | 5.12 | 1.24 | 0.10 | -0.51 | -19.59 |
| EPS Growth % | -735.82% | -730.52% | -12071.43% | 30% | -290.48% | -36.36% | -93.55% | 312.9% | 1150% | 119.45% | 97.4% | - |
| EPS (Basic) | - | -283.04 | -34.08 | -0.28 | -0.40 | 0.22 | 0.34 | 5.44 | 1.31 | 0.10 | -0.50 | -19.59 |
| Diluted Shares Outstanding | 989.67K | 993.87K | 16.18M | 15.2M | 15.39M | 16.52M | 16.27M | 16.15M | 14.06M | 14.86M | 14.86M | 14.86M |
| Basic Shares Outstanding | 989.67K | 993.87K | 16.18M | 15.2M | 15.39M | 15.76M | 15.53M | 15.4M | 13.98M | 14.86M | 14.86M | 14.86M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | 0.79% | - | - | - | - |
Quick answers to the most common questions about buying ZEPP stock.
For fiscal year 2025, Zepp Health Corporation (ZEPP) reported total revenue of $1.82B. This represents a 96.2% increase compared to $925.4M in 2015.
Zepp Health Corporation (ZEPP) reported a net loss of $280.9M for the fiscal year ending 2025.
Zepp Health Corporation (ZEPP) reported an operating income of $-204.9M, resulting in an operating profit margin of -11.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Zepp Health Corporation (ZEPP) generated $711.6M in gross profit for the year, representing a gross profit margin of 39.2%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent Operating Margin Erosion
Revenue Rebound Masks Structural Challenges
According to the most recent quarterly filings, Zepp Health achieved a 38.1% year-over-year revenue increase to $598.1 million, signaling a recovery from the sharp contractions observed throughout 2024, though this growth appears heavily reliant on aggressive promotional activity rather than sustainable organic demand expansion.
The recent acceleration in top-line growth suggests that the company is successfully capturing market share in the competitive wearable space. However, investors should monitor whether this trajectory is driven by high-volume, low-margin product cycles or a genuine shift toward higher-ASP self-branded devices.
Gross Margin Stability Amid Volatility
Based on the provided income statement data, Zepp maintained a gross margin of 41.0% in 2025Q4, demonstrating a resilient ability to manage component costs despite the significant fluctuations in quarterly revenue volume that have characterized the company's recent operational history.
While the 41% margin appears healthy for a consumer electronics firm, it likely masks a challenging mix shift between the low-margin Xiaomi contract business and the higher-margin Amazfit line. The inability to translate this gross profitability into positive operating income suggests that the company's pricing power remains insufficient to cover its substantial fixed-cost base.
Operating Leverage Remains Elusive
As reported in financial statements, Zepp's operating expenses, specifically the $191.8 million in SG&A for 2025Q4, continue to outpace gross profit growth, resulting in a persistent operating loss that indicates a lack of meaningful operating leverage in the current business model.
The company's inability to scale operating income alongside revenue suggests that the cost of customer acquisition and R&D remains disproportionately high. This trend warrants further investigation into whether management can achieve a break-even point without sacrificing the brand-building investments necessary for long-term viability.
Earnings Quality Impacted by SBC
Data from the 2025Q4 income statement reveals $17.4 million in stock-based compensation, which, when combined with recurring operating losses, suggests that the reported net loss of $77.1 million may understate the true economic cost of operations for shareholders.
The reliance on equity-based incentives during a period of negative net margins may indicate a misalignment between management compensation and bottom-line performance. Investors should be cautious of how these non-cash charges impact the long-term dilution profile of the company as it attempts to navigate its current strategic pivot.
Fixed Cost Burden Constrains Profitability
Based on the latest quarterly figures, Zepp's R&D expenditure of $77.1 million remains a significant drag on the income statement, reflecting a strategic commitment to proprietary technology that has yet to yield the necessary scale to achieve operational profitability.
The high fixed-cost structure appears to be a deliberate choice to prioritize long-term ecosystem development over immediate earnings. However, the lack of expense discipline in SG&A suggests that the company may be over-investing in marketing relative to the current conversion rates of its self-branded product lines.