Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Exhibit 99.1
Zepp
Health Corporation Reports Second Quarter of 2026 Unaudited Financial Results
MILPITAS,
Calif., September 1, 2026 /PRNewswire/ -- Zepp Health Corporation (NYSE: ZEPP) (“Zepp”, the “Company” or
“we”) today announced its unaudited financial results for the second quarter of 2026.
Second
Quarter of 2026 Financial and Operating Highlights:
| · | Revenue reached US$63.5 million, representing year-over-year growth of 6.9%. |
| · | Gross margin was 37.4%, an increase of 1.2 percentage points from the second quarter of 2025. The improvement
was primarily driven by a more favorable product mix and growing contribution from higher-value products, partially offset by higher memory
and other component costs. |
| · | Net loss attributable to Zepp was US$11.3 million, compared with US$7.7 million in the same period of
2025. The benefits of higher revenue and improved gross margin were offset by foreign-exchange headwinds and increased investment in research
and development, marketing and brand building. |
| · | As of June 30, 2026, cash and cash equivalents and restricted cash totaled US$106.3 million, compared
with US$95.3 million a year earlier and US$103.2 million as of March 31, 2026, primarily reflecting improved working-capital management. |
| · | During the quarter, the Company launched new products or expanded its portfolio across multiple major
product families, including professional running, Hybrid Training, entry-level smartwatches and screen-free fitness and health wearables. |
Management Comments:
Wayne Huang, Chairman and Chief Executive Officer of Zepp Health, commented,
"Our growth in the second quarter was measured rather than explosive. More importantly, the quality of our growth and the structure
of our product portfolio continued to improve. Even before several new products had completed their production ramp and channel deployment,
and despite supply continuing to constrain certain high-demand areas, we returned to year-over-year revenue growth and improved gross
margin by 1.2 percentage points.
Several product families provide clear evidence of this structural
progress. At U.S. suggested retail prices, T-Rex 3 Pro and T-Rex Ultra 2 are priced at approximately US$399 and US$549, respectively.
Across global activations, these higher-end models continued to represent approximately 50% of the T-Rex family, demonstrating sustained
consumer acceptance of our higher-end products and price ladder.
Active
series has established a US$169 price tier that did not exist in the comparable period last year. This tier increased from approximately
22% of global Active family activations in the first quarter to approximately 40% in the second quarter, and reached approximately 57%
through August 25, 2026. After Bip supply recovered, global monthly activations of the Active family remained broadly comparable
with those of Bip in both July and August to date. This underscores that we have established meaningful scale in the US$100 to US$200
price band.
Balance is beginning to demonstrate how our long-term investment in
Hybrid Training can translate into higher-value product demand. Compared with Balance 2 at a U.S. suggested retail price of US$299, the
new Balance generation extends from US$369 to US$599. Despite this meaningful increase in price, total global Balance family (Balance
2 and 3 series) activations in July increased by more than one-third from the monthly average in the second quarter, while activations
of earlier-generation products remained relatively stable. The new generation is therefore adding to the family rather than simply replacing
earlier products. Balance remains at an early stage of growth and has not yet reached the scale we believe the family can ultimately achieve.
These positive indicators have not yet translated into their full revenue
potential. T-Rex currently represents a story of sustained higher-end mix rather than rapid unit growth. Balance has only begun to establish
growth momentum. Bip and Helio Strap were constrained by supply during the second quarter, while Cheetah and Helio Strap Pro remain at
earlier stages of professional credibility and market development. The financial contribution of these product families is therefore developing
at different speeds.
Bip supply has now recovered. Seventeen months after its launch, demand
for Bip 6 remains very strong following the restoration of supply, while Bip Max has established a meaningful higher price tier within
the family. Supported by sustained consumer demand, a more complete product structure, and the continued software evolution enabled by
our in-house processor platform and Zepp OS, we are announcing today that we will increase prices across the entire Bip family beginning
in January 2027. Our objective is to improve pricing discipline and unit economics while preserving a compelling consumer value proposition
over a longer product lifecycle.
Demand for Helio Strap also exceeded available supply during the second
quarter. We expect supply to recover partially during the third quarter and to be fully restored during the fourth quarter. As availability
improves, we expect Helio Strap to make a more meaningful contribution to our screen-free fitness, training and recovery ecosystem."
Leon
Deng, Chief Financial Officer of Zepp Health, commented, "The year-over-year improvement in gross margin, despite higher memory
and other component costs, demonstrates that the shift in our product mix is beginning to yield tangible financial benefits. At the same
time, foreign-exchange headwinds and continued investment in research and development, marketing and brand building affected profitability
during the second quarter.
We
will remain disciplined in managing our expenses and cash, while working to expand the contribution of higher-value products, restore
supply where demand remains strong, and progressively convert product-mix improvements into stronger revenue growth, healthier unit economics
and operating leverage. With our cash and cash equivalents and restricted cash balance of US$106.3 million at the end of the quarter,
we are well positioned to continue executing our long-term product and brand strategy."
Third Quarter of 2026 Outlook:
Based on the information currently available, management expects third-quarter
2026 net revenues to be between US$68.0 million and US$73.0 million. In the third quarter of 2025, revenue increased 78.5% year over year
to US$75.8 million, creating a high comparison base.
Product mix and consumer demand continued to improve during July and
August. However, normal production ramp, supply-recovery and channel-deployment cycles mean that these developments will not be fully
reflected in reported revenue immediately. The Company's third-quarter guidance incorporates this timing.
Second
Quarter of 2026 Financial Results
Revenues
Revenues
for the second quarter of 2026 reached US$63.5 million, an increase by 6.9% from the second quarter of 2025. The year-over-year
sales increase was mainly driven by new product launches in the first half of 2026, including the Active 3 Premium, Active Max, and Cheetah
models, while second-quarter sales were partially impacted by the new product launch timings and supply availability of the Balance 3
series.
Gross Margin
Gross
margin in the second quarter of 2026 was 37.4%, an increase from 36.2% in the same period of 2025. During the quarter, margin performance
faced several headwinds, including rising memory costs and RMB appreciation. On a year-over-year basis, margin expansion was primarily
driven by an improved product mix from new product launches, though this was partially offset by higher memory component prices.
Gross margin moderated from 37.7% in the first quarter of 2026, as mix benefits from new products were largely offset by increased memory
costs, while supply constraints further constrained margin accretion.
Research and Development Expenses
Research and development expenses in the second
quarter of 2026 were US$11.5 million, compared with US$11.2 million and US$13.1 million in the second quarter of 2025 and first quarter
of 2026. Excluding US$0.7 million foreign currency headwinds, research and development expenses were slightly lower than the same period
of 2025. We continued to invest in a series of cutting-edge products as well as new technologies, including AI, to maintain our competitive
edge against our peers. At the same time, we focused on refined research and development approaches, consistently evaluating resource
efficiency to optimize return on investment and productivity.
Selling and Marketing Expenses
Selling
and marketing expenses in the second quarter of 2026 were US$18.3 million, compared with US$12.1 million and US$16.6 million in
the second quarter of 2025 and first quarter of 2026. The US$6.2 million year-over-year increase was primarily driven by US$2.9 million
in new product launch campaigns and US$1.6 million in e-commerce platform charges, which increased in line with top-line growth. The remaining
increase reflected US$0.7 million in sponsorships for new athletes, US$0.5 million related to the HYROX partnership, and US$0.5 million
in physical retail and event booth activations.
General and Administrative Expenses
General and administrative expenses were US$6.2 million in the second
quarter of 2026, compared with US$4.4 million and US$7.4 million in the second quarter of 2025 and first quarter of 2026. Out of the year-over-year
increase of US$1.8 million, substantially all was due to foreign currency headwinds. We continued to streamline overhead, maintaining
disciplined cost control while improving operating efficiency.
Operating Expenses
GAAP
and adjusted operating expenses1 for the second quarter of 2026 were US$36.0 million and US$34.8 million, compared
with US$27.6 million and US$26.4 million in the second quarter of 2025, and US$37.1 million and US$35.7 million in the first quarter of
2026. Out of the year-over-year increase of US$8.4 million of operating expenses, US$2.7 million was due to foreign currency impacts.
The remaining US$5.7 million was primarily due to higher selling and marketing expenses as mentioned above. On a quarter-over-quarter
basis, operating expenses decreased slightly. Looking ahead, we anticipate a decline in overall expenses levels as the pace of new product
launches moderates.
1 Adjusted operating
expenses represent operating expenses excluding (i) share-based compensation expenses and (ii) amortization of intangible assets resulting
from acquisitions and business cooperation agreements. Please refer to the section titled “Reconciliation of GAAP and non-GAAP results”
at the end of this press release.
Operating
Income/(Loss)
GAAP
and adjusted operating results2 were loss of US$12.3 million and US$11.1 million, compared with loss of US$6.1 million and
US$4.9 million in the same quarter of 2025. Higher revenue and improved gross margin were offset by foreign currency headwinds, as well
as increased investment in marketing and branding activities linking to new product launches in the quarter.
As a result, the Company recorded an operating loss for the period, but the operating loss was narrowed compared with the first quarter
of 2026. GAAP and adjusted operating results were loss of US$30.0 million and US$27.4 million in the first half of 2026, compared with
loss of US$24.5 million and US$22.1 million in the same period of 2025. Out of operating loss in the first half of 2026, around US$4.5
million resulted from foreign currency headwinds, mainly due to appreciation of certain foreign currencies against the U.S. dollar.
Net
Income/(Loss)
GAAP
and adjusted net loss3 attributable
to Zepp for the second quarter of 2026 was US$11.3 million and US$12.5 million, compared to GAAP and adjusted net loss of US$7.7 million
and US$6.2 million in the same quarter of 2025. Higher revenue and improved gross margin were offset by foreign currency headwinds, together
with increased investment in marketing and brand-building initiatives. As a result, the Company recorded a net loss for the period, but
the loss was narrowed compared with the first quarter of 2026. Net loss were US$31.0 million in the first half of 2026, compared with
loss of US$27.5 million in the same period of 2025. Out of net loss in the first half of 2026, around US$4.5 million resulted from foreign
currency headwinds, mainly due to appreciation of certain foreign currencies against the U.S. dollar.
Liquidity and Capital Resources
As
of June 30, 2026, cash and cash equivalents and restricted cash were US$106.3 million, increased by US$11.0 million and US$3.1 million
compared with US$95.3 million and US$103.2 million as of June 30, 2025 and March 31, 2026. The cash balance increase was primarily
driven by enhanced working capital efficiency, which more than offset the net loss recorded during the period.
2 Adjusted operating
income/(loss) represents operating income/(loss) excluding: (i) share-based compensation expenses and (ii) amortization of intangible
assets resulting from acquisitions and business cooperation agreements. See “Reconciliation of GAAP and non-GAAP results”
at the end of this press release.
3 Adjusted net income/(loss)
attributable to Zepp Health Corporation represents net income/(loss) excluding (i) share-based compensation expenses, (ii) amortization
of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term
investment, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of
the above non-GAAP adjustments. See “Reconciliation of GAAP and non-GAAP results” at the end of this press release.
The
Company recorded inventory of US$62.4 million as of June 30, 2026, which was flat compared with US$62.8 million as of March 31,
2026 and decreased compared with US$79.9 million as of June 30, 2025. We will continue to manage the inventory level tightly and working
capital closely.
Long-term
and short-term debt levels increased by US$6.2 million as of June 30, 2026 compared with March 31, 2026. The increase was entirely attributable
to a rise in long-term debt, with a corresponding decrease in short-term debt. We remain committed to prudently managing our debt
profile. Our primary objective is to maintain overall debt levels broadly stable while actively extending the maturity profile by replacing
short-term borrowings with long-term debt. During the quarter, we successfully converted US$13.3 million of short-term debt into long-term
obligations, and we expect to continue this strategy in the coming quarters, supported by sufficient financial headroom and liquidity
capacity. Since the beginning of 2023, the Company has cumulatively retired US$40.2 million of debt, and will continue to optimize the
capital structure for the Company.
Resignation of Director
The Company announces that Mr.
Alain Lam has tendered his resignation as a director of the Company, with effect from September 1, 2026, in order to devote more time
to his responsibilities at Xiaomi. Mr. Lam has confirmed that (i) he has no disagreement with the board of directors of the Company (the
“Board”) and (ii) there is no matter in respect of his resignation that needs to be brought to the attention of the shareholders
of the Company. Xiaomi will remain as a significant shareholder of the Company. The Company appreciates Mr. Lam's longstanding support
and contributions and thanks him for his service on the Board.
Share Repurchase Program Update
The
Company announced in its third quarter 2021 earnings release that the board had authorized a share repurchase program of up to US$20 million
through November 2022. On November 21, 2022, the board authorized a 12-month extension of the Company’s share repurchase
program. On November 20, 2023, the board further authorized the Company to extend its share repurchase program for another 12 months.
On November 18, 2024, the board further authorized the Company to extend its share repurchase program for another 24 months. Pursuant
to the extended share repurchase program, the Company may repurchase its shares in the form of ADSs and/or ordinary shares through November
2026 with an aggregate value equal to the remaining balance under the share repurchase program. As of June 30, 2026, the Company had used
US$17.6 million to repurchase approximately 2.4 million ADSs. The Company expects to fund the repurchases under the extended share repurchase
program out of its existing cash balance.
Outlook
For
the third quarter of 2026, the Company’s management currently expects net revenues to be between US$68.0 million and US$73.0
million, compared with US$75.8 million in the third quarter of 2025.
This outlook is based
on current market conditions and reflects the Company’s current and preliminary estimates of market, operating conditions and customer
demand, which are all subject to change.
Conference Call
The
Company’s management team will hold a conference call at 9:30 p.m. Eastern Time on Tuesday, September 1, 2026 to discuss
financial results and answer questions from investors and analysts. Listeners may access the call by dialing:
| US (Toll Free): |
+1-888-346-8982 |
| International: |
+1-412-902-4272 |
| Mainland China (Toll Free): |
400-120-1203 |
| Hong Kong (Toll Free): |
800-905-945 |
Participants should dial in at least 10 minutes
before the scheduled start time and ask to be connected to the call for “Zepp Health Corporation”.
Additionally, a live and archived webcast of the
conference call will be available at http://ir.zepp.com.
A
telephone replay will be available one hour after the call until September 8, 2026 by dialing:
| US Toll Free: |
+1-855-669-9658 |
| International: |
+1-412-317-0088 |
| Replay Passcode: |
5342073 |
About
Zepp Health Corporation
Zepp Health Corporation (NYSE: ZEPP) is a global
leader in smart wearables and health technology, empowering users to live their healthiest lives by optimizing their health, fitness,
and wellness journeys through its leading consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. Powered by its proprietary Zepp Digital
Management Platform, which includes Zepp OS, AI chips, biometric sensors, and data algorithms, Zepp delivers cloud-based 24/7 actionable
insights and guidance to help users attain their wellness goals. To date, Zepp has shipped over 200 million units and served more than
53 million users, and its products are available in more than 150 countries and regions. Zepp Health has team members and offices across
the globe, especially in Europe and the United States.
Use of Non-GAAP Measures
We
use adjusted net income/(loss), a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making
purposes. Adjusted operating expenses represent operating expenses excluding (i) share-based compensation expenses and (ii) amortization
of intangible assets resulting from acquisitions and business cooperation agreements. Adjusted operating income/(loss) represents
operating income/(loss) excluding: (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions
and business cooperation agreements. Adjusted EBIT represents net income/(loss) excluding (i) share-based compensation expenses,
(ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value
change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, (vi)
income tax (benefit)/expense, and (vii) interest income and interest expense. Adjusted net income/(loss) attributable to Zepp Health
Corporation is a non-GAAP measure, which excludes (i) share-based compensation expenses, (ii) amortization of intangible assets resulting
from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment
loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of the above non-GAAP adjustments,
and is used as the numerator in computation of adjusted net income/(loss) per share and per ADS attributable to Zepp Health Corporation.
We believe that adjusted EBIT and adjusted net
income/(loss) attributable to Zepp Health Corporation help identify underlying trends in our business that could otherwise be distorted
by the effect of certain expenses that we include in net income/(loss) and net income/(loss) attributable to Zepp Health Corporation.
We believe adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation provide useful information about our operating
results, enhance the overall understanding of our past performance and future prospects and allow for greater visibility with respect
to key metrics used by our management in its financial and operational decision-making.
Adjusted EBIT and adjusted net income/(loss) attributable
to Zepp Health Corporation, should not be considered in isolation or construed as an alternative to net income/(loss), basic and diluted
net income/(loss) per share and per ADS attributable to Zepp Health Corporation or any other measure of performance or as an indicator
of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable
GAAP measures. Adjusted EBIT and adjusted net income/(loss) attributable to ordinary shareholders, presented here may not be comparable
to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting
their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety
and not rely on a single financial measure.
Safe Harbor Statement
This announcement contains forward-looking statements.
These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These
forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,”
“future,” “intends,” “plans,” “believes,” “estimates,” “confident”
and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations,
are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual
results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the recognition
of the Company’s Amazfit-branded products; the Company’s growth strategies; trends and competition in global wearable technology
market; changes in the Company’s revenues and certain cost or expense accounting policies; governmental policies relating to the
Company’s industry and general economic conditions around the globe. Further information regarding these and other risks is included
in the Company’s filings with the United States Securities and Exchange Commission. All information provided in this press release
and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking
statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Zepp
Health Corporation
Grace Yujia Zhang
Email: ir@zepp.com
Piacente Financial Communications
Tel: +86-10-6508-0677
Email: zepp@tpg-ir.com
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data, or otherwise noted)
| | |
As of December 31, | | |
As of June 30, | |
| | |
2025 | | |
2026 | |
| | |
US$ | | |
US$ | |
| Assets | |
| | | |
| | |
| Current assets: | |
| | | |
| | |
| Cash and cash equivalents | |
| 57,046 | | |
| 69,661 | |
| Restricted cash | |
| 55,887 | | |
| 36,608 | |
| Accounts receivable, net | |
| 66,908 | | |
| 75,537 | |
| Amounts due from related parties | |
| 6,665 | | |
| 7,051 | |
| Inventories, net | |
| 72,756 | | |
| 62,434 | |
| Prepaid expenses and other current assets | |
| 34,263 | | |
| 31,221 | |
| Total current assets | |
| 293,525 | | |
| 282,512 | |
| | |
| | | |
| | |
| Property, plant and equipment, net | |
| 5,662 | | |
| 5,449 | |
| Intangible asset, net | |
| 13,611 | | |
| 12,808 | |
| Goodwill | |
| 9,581 | | |
| 9,581 | |
| Long-term investments | |
| 220,047 | | |
| 227,821 | |
| Deferred tax assets | |
| 15,743 | | |
| 16,024 | |
| Amount due from related parties, non-current | |
| 991 | | |
| - | |
| Other non-current assets | |
| 3,718 | | |
| 3,346 | |
| Operating lease right-of-use assets | |
| 1,958 | | |
| 2,128 | |
| Total assets | |
| 564,836 | | |
| 559,669 | |
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data, or otherwise noted)
| | |
As of December 31, | | |
As of June 30, | |
| | |
2025 | | |
2026 | |
| | |
US$ | | |
US$ | |
| Liabilities | |
| | | |
| | |
| Current liabilities: | |
| | | |
| | |
| Accounts payable | |
| 80,768 | | |
| 87,979 | |
| Advance from customers | |
| 76 | | |
| 56 | |
| Amounts due to related parties | |
| 654 | | |
| 396 | |
| Accrued expenses and other current liabilities | |
| 37,527 | | |
| 37,182 | |
| Income tax payables | |
| 366 | | |
| 249 | |
| Notes payable | |
| 111,725 | | |
| 111,672 | |
| Short-term bank borrowings | |
| 55,728 | | |
| 76,842 | |
| Total current liabilities | |
| 286,844 | | |
| 314,376 | |
| Deferred tax liabilities | |
| 2,673 | | |
| 2,754 | |
| Long-term borrowings | |
| 59,475 | | |
| 56,397 | |
| Other non-current liabilities | |
| 209 | | |
| 108 | |
| Non-current operating lease liabilities | |
| 1,102 | | |
| 1,066 | |
| Total liabilities | |
| 350,303 | | |
| 374,701 | |
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - CONTINUED
(Amounts in thousands of U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)
| | |
As of December 31, | | |
As of June 30, | |
| | |
2025 | | |
2026 | |
| | |
US$ | | |
US$ | |
| Equity | |
| | | |
| | |
| Ordinary shares | |
| 26 | | |
| 26 | |
| Additional paid-in capital | |
| 280,676 | | |
| 282,326 | |
| Treasury stock | |
| (16,153 | ) | |
| (17,568 | ) |
| Accumulated retained earnings/(loss) | |
| (11,450 | ) | |
| (42,423 | ) |
| Accumulated other comprehensive loss | |
| (38,566 | ) | |
| (37,393 | ) |
| Total equity | |
| 214,533 | | |
| 184,968 | |
| Total liabilities and equity | |
| 564,836 | | |
| 559,669 | |
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)
| |
|
For the Three Months Ended June 30, |
|
| |
|
2025 |
|
|
2026 |
|
| |
|
US$ |
|
|
US$ |
|
| Revenues |
|
|
59,406 |
|
|
|
63,525 |
|
| Cost of revenues |
|
|
(37,915 |
) |
|
|
(39,797 |
) |
| Gross profit |
|
|
21,491 |
|
|
|
23,728 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Selling and marketing |
|
|
(12,050 |
) |
|
|
(18,288 |
) |
| General and administrative |
|
|
(4,384 |
) |
|
|
(6,200 |
) |
| Research and development |
|
|
(11,157 |
) |
|
|
(11,545 |
) |
| Total operating expenses |
|
|
(27,591 |
) |
|
|
(36,033 |
) |
| Operating loss |
|
|
(6,100 |
) |
|
|
(12,305 |
) |
| |
|
|
|
|
|
|
|
|
| Other income and expenses: |
|
|
|
|
|
|
|
|
| Interest income |
|
|
295 |
|
|
|
465 |
|
| Interest expense |
|
|
(1,245 |
) |
|
|
(1,679 |
) |
| Gain from fair value change of long-term investments |
|
|
3 |
|
|
|
3,040 |
|
| Other income/(expense), net |
|
|
56 |
|
|
|
(14 |
) |
| Loss before income tax and loss from equity method investments |
|
|
(6,991 |
) |
|
|
(10,493 |
) |
| Income tax expenses |
|
|
(242 |
) |
|
|
(114 |
) |
| Loss before loss from equity method investments |
|
|
(7,233 |
) |
|
|
(10,607 |
) |
| Net loss from equity method investments |
|
|
(507 |
) |
|
|
(723 |
) |
| Net loss attributable to Zepp Health Corporation |
|
|
(7,740 |
) |
|
|
(11,330 |
) |
| |
|
|
|
|
|
|
|
|
| Basic and diluted net loss per share attributable to Zepp Health Corporation |
|
|
(0.03 |
) |
|
|
(0.04 |
) |
| |
|
|
|
|
|
|
|
|
| Basic and diluted net loss per ADS (16 ordinary shares equal to 1 ADS) |
|
|
(0.49 |
) |
|
|
(0.72 |
) |
| |
|
|
|
|
|
|
|
|
| Weighted average number of shares used in computing basic and diluted net loss per share |
|
|
253,536,783 |
|
|
|
253,356,305 |
|
Zepp Health Corporation
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data, or otherwise noted)
| | |
For the Three Months Ended June 30, | |
| | |
2025 | | |
2026 | |
| | |
US$ | | |
US$ | |
| Total operating expenses | |
| (27,591 | ) | |
| (36,033 | ) |
| Share-based compensation expenses | |
| 482 | | |
| 715 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 711 | | |
| 494 | |
| Total adjusted operating expenses | |
| (26,398 | ) | |
| (34,824 | ) |
| | |
| | | |
| | |
| Operating loss | |
| (6,100 | ) | |
| (12,305 | ) |
| Share-based compensation expenses | |
| 482 | | |
| 715 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 711 | | |
| 494 | |
| Adjusted operating loss | |
| (4,907 | ) | |
| (11,096 | ) |
| | |
| | | |
| | |
| Net loss | |
| (7,740 | ) | |
| (11,330 | ) |
| Share-based compensation expenses | |
| 482 | | |
| 715 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 711 | | |
| 494 | |
| Interest income | |
| (295 | ) | |
| (465 | ) |
| Interest expense | |
| 1,245 | | |
| 1,679 | |
| Gain from fair value change of long-term investments | |
| (3 | ) | |
| (3,040 | ) |
| Income tax expenses | |
| 242 | | |
| 114 | |
| Loss from equity method investments | |
| 507 | | |
| 723 | |
| Adjusted EBIT4 | |
| (4,851 | ) | |
| (11,110 | ) |
| | |
| | | |
| | |
| Net loss attributable to Zepp Health Corporation | |
| (7,740 | ) | |
| (11,330 | ) |
| Share-based compensation expenses | |
| 482 | | |
| 715 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 711 | | |
| 494 | |
| Gain from fair value change of long-term investments | |
| (3 | ) | |
| (3,040 | ) |
| Tax effects on non-GAAP adjustments | |
| (116 | ) | |
| (84 | ) |
| Loss from equity method investments | |
| 507 | | |
| 723 | |
| Adjusted net loss attributable to Zepp Health Corporation | |
| (6,159 | ) | |
| (12,522 | ) |
| | |
| | | |
| | |
| Adjusted
basic and diluted net loss per share attributable to Zepp Health Corporation5 | |
| (0.02 | ) | |
| (0.05 | ) |
| | |
| | | |
| | |
| Adjusted basic and diluted net loss per ADS (16 ordinary shares equal to 1 ADS) | |
| (0.39 | ) | |
| (0.79 | ) |
| | |
| | | |
| | |
| Weighted average number of shares used in computing adjusted basic and diluted net loss per share | |
| 253,536,783 | | |
| 253,356,305 | |
| | |
| | | |
| | |
| Share-based compensation expenses included are as follows: | |
| | | |
| | |
| Selling and marketing | |
| 3 | | |
| 81 | |
| General and administrative | |
| 289 | | |
| 352 | |
| Research and development | |
| 190 | | |
| 282 | |
| Total | |
| 482 | | |
| 715 | |
4 Adjusted EBIT is a non-GAAP financial measure, which
is defined as net loss, excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions
and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment loss from long-term
investments, (v) income/(loss) from equity method investments, (vi) income tax (benefit)/ expense, and (vii) interest income and interest
expense.
5 Adjusted diluted net income/(loss) is the abbreviation
of adjusted net (loss)/income attributable to Zepp Health Corporation, which is a non-GAAP measure and excludes (i) share-based compensation
expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from
fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments
and (vi) tax effects of the above non-GAAP adjustments, and is used as the numerator in computation of adjusted basic and diluted net
loss per ADS attributable to Zepp Health Corporation.
Zepp Health Corporation
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands of U.S. dollars (“US$”)
except for number of shares and per share data, or otherwise noted)
| |
|
For the Six Months Ended June 30, |
|
| |
|
2025 |
|
|
2026 |
|
| |
|
US$ |
|
|
US$ |
|
| Revenues |
|
|
97,943 |
|
|
|
115,072 |
|
| Cost of revenues |
|
|
(62,091 |
) |
|
|
(71,907 |
) |
| Gross profit |
|
|
35,852 |
|
|
|
43,165 |
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Selling and marketing |
|
|
(25,891 |
) |
|
|
(34,928 |
) |
| General and administrative |
|
|
(10,902 |
) |
|
|
(13,555 |
) |
| Research and development |
|
|
(23,534 |
) |
|
|
(24,679 |
) |
| Total operating expenses |
|
|
(60,327 |
) |
|
|
(73,162 |
) |
| Operating loss |
|
|
(24,475 |
) |
|
|
(29,997 |
) |
| |
|
|
|
|
|
|
|
|
| Other income and expenses: |
|
|
|
|
|
|
|
|
| Interest income |
|
|
876 |
|
|
|
796 |
|
| Interest expense |
|
|
(2,603 |
) |
|
|
(3,333 |
) |
| (Loss)/gain from fair value change of long-term investments |
|
|
(122 |
) |
|
|
3,117 |
|
| Other income/(expense), net |
|
|
60 |
|
|
|
(66 |
) |
| Loss before income tax and loss from equity method investments |
|
|
(26,264 |
) |
|
|
(29,483 |
) |
| Income tax expenses |
|
|
(352 |
) |
|
|
(328 |
) |
| Loss before loss from equity method investments |
|
|
(26,616 |
) |
|
|
(29,811 |
) |
| Net loss from equity method investments |
|
|
(865 |
) |
|
|
(1,162 |
) |
| Net loss |
|
|
(27,481 |
) |
|
|
(30,973 |
) |
| Less: Net loss attributable to noncontrolling interest |
|
|
- |
|
|
|
- |
|
| Net loss attributable to Zepp Health Corporation |
|
|
(27,481 |
) |
|
|
(30,973 |
) |
| |
|
|
|
|
|
|
|
|
| Basic and diluted net loss per share attributable to Zepp Health Corporation |
|
|
(0.11 |
) |
|
|
(0.12 |
) |
| |
|
|
|
|
|
|
|
|
| Basic and diluted net loss per ADS (16 ordinary shares equal to 1 ADS) |
|
|
(1.72 |
) |
|
|
(1.95 |
) |
| |
|
|
|
|
|
|
|
|
| Weighted average number of shares used in computing basic and diluted net loss per share |
|
|
254,965,539 |
|
|
|
253,533,249 |
|
Zepp Health Corporation
Reconciliation of GAAP and Non-GAAP Results
(Amounts in thousands of U.S. dollars ("US$")
except for number of shares and per share data, or otherwise noted)
| | |
For the Six Months Ended June 30, | |
| | |
2025 | | |
2026 | |
| | |
US$ | | |
US$ | |
| Total operating expenses | |
| (60,327 | ) | |
| (73,162 | ) |
| Share-based compensation expenses | |
| 1,071 | | |
| 1,650 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 1,346 | | |
| 984 | |
| Total adjusted operating expenses | |
| (57,910 | ) | |
| (70,528 | ) |
| | |
| | | |
| | |
| Operating loss | |
| (24,475 | ) | |
| (29,997 | ) |
| Share-based compensation expenses | |
| 1,071 | | |
| 1,650 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 1,346 | | |
| 984 | |
| Adjusted operating loss | |
| (22,058 | ) | |
| (27,363 | ) |
| | |
| | | |
| | |
| Net loss | |
| (27,481 | ) | |
| (30,973 | ) |
| Share-based compensation expenses | |
| 1,071 | | |
| 1,650 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 1,346 | | |
| 984 | |
| Interest income | |
| (876 | ) | |
| (796 | ) |
| Interest expense | |
| 2,603 | | |
| 3,333 | |
| Loss/(gain) from fair value change of long-term investments | |
| 122 | | |
| (3,117 | ) |
| Income tax expenses | |
| 352 | | |
| 328 | |
| Loss from equity method investments | |
| 865 | | |
| 1,162 | |
| Adjusted EBIT | |
| (21,998 | ) | |
| (27,429 | ) |
| | |
| | | |
| | |
| Net loss attributable to Zepp Health Corporation | |
| (27,481 | ) | |
| (30,973 | ) |
| Share-based compensation expenses | |
| 1,071 | | |
| 1,650 | |
| Amortization of intangible assets resulting from acquisitions and business cooperation agreements | |
| 1,346 | | |
| 984 | |
| Loss/(gain) from fair value change of long-term investments | |
| 122 | | |
| (3,117 | ) |
| Tax effects on non-GAAP adjustments | |
| (219 | ) | |
| (167 | ) |
| Loss from equity method investments | |
| 865 | | |
| 1,162 | |
| Adjusted net loss attributable to Zepp Health Corporation | |
| (24,296 | ) | |
| (30,461 | ) |
| | |
| | | |
| | |
| Adjusted basic and diluted net loss per share attributable to Zepp Health Corporation | |
| (0.10 | ) | |
| (0.12 | ) |
| | |
| | | |
| | |
| Adjusted basic and diluted net loss per ADS (16 ordinary shares equal to 1 ADS) | |
| (1.52 | ) | |
| (1.92 | ) |
| | |
| | | |
| | |
| Weighted average number of shares used in computing adjusted basic and diluted net loss per share | |
| 254,965,539 | | |
| 253,533,249 | |
| | |
| | | |
| | |
| Share-based compensation expenses included are follows: | |
| | | |
| | |
| Selling and marketing | |
| 45 | | |
| 277 | |
| General and administrative | |
| 575 | | |
| 352 | |
| Research and development | |
| 451 | | |
| 1,021 | |
| Total | |
| 1,071 | | |
| 1,650 | |
