Zepp Health reported second-quarter 2026 revenue of $63.5 million, increasing 6.9% year over year as new product launches and a shift toward higher-value devices supported growth.
Gross margin improved to 37.4% from 36.2% a year earlier, reflecting a more favorable product mix despite higher memory and component costs.
The company reported a $12.3 million operating loss compared with a $6.1 million loss a year earlier, as higher marketing investment and foreign-exchange headwinds offset revenue and margin improvements.
Net loss attributable to Zepp was $11.3 million, compared with $7.7 million in the prior-year quarter.
Zepp ended June with $106.3 million in cash, cash equivalents and restricted cash, up from $95.3 million a year earlier.
Inventory declined to $62.4 million from $79.9 million a year earlier as the company improved working-capital management.
Zepp highlighted higher-value products across its T-Rex, Active and Balance families. Higher-end T-Rex models represented approximately half of global T-Rex activations, while the $169 Active tier increased to approximately 40% of Active-family activations during the quarter.
The company also plans to increase pricing across its Bip product family beginning in January 2027.
For the third quarter, Zepp expects revenue of $68 million to $73 million.
KEY QUOTES:
“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.”
Wayne Huang, Chairman and Chief Executive Officer of Zepp Health
“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.”
Leon Deng, Chief Financial Officer of Zepp Health
