Is Zepp Health profitable in 2026?

No. Zepp Health posted a FY2025 net loss of $31.5M, improved from $56.7M in FY2024, and still lost $19.6M in Q1 2026 despite revenue growing 33.8% YoY to $51.5M. The company remains unprofitable while trying to expand margins through premiumization as of mid 2026.

Who owns Zepp Health (Amazfit)?

Founder and CEO Wang Huang holds roughly 30% of shares as of September 29, 2025, making him the largest shareholder. Former parent Xiaomi Corporation retains a minority stake, estimated around 15.6%, tied to Zepp's history as Huami, Xiaomi's original Mi Band manufacturer.

Could AI replace Zepp Health's coaching features like Zepp Flow?

Zepp Flow, the voice assistant in Zepp OS 4, runs on OpenAI's GPT-4o technology rather than proprietary models. Because it is a thin wrapper on a frontier model, platform holders like Apple, Google, and Samsung could build equivalent native AI coaching into their own ecosystems without needing Zepp as an intermediary.

Who is Zepp Health's biggest competitor?

Apple leads global smartwatch unit share at 21.5% in Q1 2026 per IDC, with Huawei at 18% and Xiaomi at 9.9%. Separately, Omdia reported Xiaomi, Zepp's former parent, reclaimed the #1 overall wearable shipment spot in 2025 with 18% share, ahead of Apple's 17% and Huawei's 16%.

Is Zepp Health (ZEPP) stock a safe investment?

ZEPP is highly volatile, with a 52-week trading range of $3.85 to $61.85 and a market cap that had fallen to roughly $72.45 million by July 25, 2026. Wall Street Zen downgraded the stock to Sell on July 26, 2026, while another analyst maintained a $56.28 price target, showing wide disagreement.

What is Zepp Health's revenue in 2025 and how did it recover?

Zepp Health reported FY2025 revenue of $258.9 million, up 41.8% from $182.6 million in FY2024, with Amazfit branded revenue growing 51%. This follows a multi-year collapse from $613.6 million in FY2022 to $352.9 million in FY2023.

China · China

Zepp Health (Amazfit)

zepp.com ↗

Chinese maker of Amazfit smartwatches and fitness bands, formerly Huami.

Losing its protection

Assessed 26 July 2026 · Evidence as of 26 July 2026

The structural protection is eroding.

On the recordSince 26 July 2026 · Checkable from August 2026 · Every call on the record Checkpoint: Q2 2026 earnings call, testing whether margin gains hold under chip and currency costs

The call

Zepp's sales are growing again but it still loses money, trails Xiaomi and Huawei in volume, and leans on borrowed AI models for its edge.

Zepp Health sells Amazfit smartwatches and fitness trackers, competing against much larger companies like Apple, Xiaomi, Huawei, and Garmin. The company is not doing well: it lost $31.5 million in 2025 on $259 million in sales, and its main trick is adding AI features powered by ChatGPT to its watches, but Apple and Samsung can easily do the same thing built into their own devices. The company's stock dropped dramatically from a higher price and is now a tiny player worth $72 million, so if it cannot reach profit soon or find a hit product that people really want, it could keep sliding downward.

Why

AI pressure: Apple Intelligence on Apple Watch, Google Gemini on Wear OS. Apple and Google are building AI health coaching straight into their own watches, making Zepp's GPT-4o wrapper easy to copy. Could AI do the core job? Yes, likely.

Bigger players: Xiaomi and Huawei (volume wearables). Xiaomi and Huawei outsell Zepp by volume, keeping Amazfit off most top five wearable vendor trackers despite its revenue bounce. Could a giant copy it? Yes, easily.

What protects it. Owning its own hardware, app, and China-based manufacturing lets Amazfit price well below Apple Watch and Garmin.

What would change this call

Zepp's Q2 2026 earnings (~August 3, 2026) show ASP and margin trends. Whether recent revenue bounce reflects durable pricing power or fades under chip/FX cost pressure.
Outcome of Zepp's patent suit against Oura in Eastern District of Texas. Whether Zepp secures leverage or licensing terms versus a smaller rival, not the named giants.
Any FDA clearance for arrhythmia or sleep apnea detection announced by Zepp. Whether Zepp gains a regulatory-based differentiator giants haven't matched.

Key numbers

FY2025 revenue $258.9M, up 41.8% YoY (2025-12-31)
FY2025 net loss $31.5M, down 44% YoY (2025-12-31)
Q1 2026 net loss $19.6M (2026-03-31)

Named risks

Continued net losses ($19.6M in Q1 2026) despite revenue growth signal path to profitability is unproven. Severity: high
Extreme stock volatility, 52-week range $3.85 to $61.85, market cap collapsed to $72.45M by July 2026. Severity: high
AI coaching differentiation (Zepp Flow) built on third-party GPT-4o, replicable natively by Apple, Samsung, Google. Severity: high
Memory chip cost increases and RMB FX headwinds pressuring gross margins through 2026. Severity: medium
Headcount decline from 1,507 in 2020 to 763 in 2025 reflects sustained organizational contraction. Severity: medium

Rivals, as read in July 2026

Rival	Direction	Evidence
Xiaomi	gaining on	Reclaimed #1 global wearable shipment spot in 2025 with 18% share per Omdia, Feb 2026
Apple	losing to	Leads global smartwatch unit share at 21.5% in Q1 2026 per IDC, vs Zepp absent from rankings
Huawei	losing to	Holds 18% smartwatch share in Q1 2026 per IDC, ahead of Xiaomi and Zepp
Oura	contesting	Zepp filed patent suit against Oura in April 2026 alleging infringement of six patents
Garmin	losing to	Premium sports watch incumbent absent any Zepp presence in top-5 vendor trackers as of 2026

Questions people ask

Is Zepp Health profitable in 2026?: No. Zepp Health posted a FY2025 net loss of $31.5M, improved from $56.7M in FY2024, and still lost $19.6M in Q1 2026 despite revenue growing 33.8% YoY to $51.5M. The company remains unprofitable while trying to expand margins through premiumization as of mid 2026.
Who owns Zepp Health (Amazfit)?: Founder and CEO Wang Huang holds roughly 30% of shares as of September 29, 2025, making him the largest shareholder. Former parent Xiaomi Corporation retains a minority stake, estimated around 15.6%, tied to Zepp's history as Huami, Xiaomi's original Mi Band manufacturer.
Could AI replace Zepp Health's coaching features like Zepp Flow?: Zepp Flow, the voice assistant in Zepp OS 4, runs on OpenAI's GPT-4o technology rather than proprietary models. Because it is a thin wrapper on a frontier model, platform holders like Apple, Google, and Samsung could build equivalent native AI coaching into their own ecosystems without needing Zepp as an intermediary.
Who is Zepp Health's biggest competitor?: Apple leads global smartwatch unit share at 21.5% in Q1 2026 per IDC, with Huawei at 18% and Xiaomi at 9.9%. Separately, Omdia reported Xiaomi, Zepp's former parent, reclaimed the #1 overall wearable shipment spot in 2025 with 18% share, ahead of Apple's 17% and Huawei's 16%.
Is Zepp Health (ZEPP) stock a safe investment?: ZEPP is highly volatile, with a 52-week trading range of $3.85 to $61.85 and a market cap that had fallen to roughly $72.45 million by July 25, 2026. Wall Street Zen downgraded the stock to Sell on July 26, 2026, while another analyst maintained a $56.28 price target, showing wide disagreement.
What is Zepp Health's revenue in 2025 and how did it recover?: Zepp Health reported FY2025 revenue of $258.9 million, up 41.8% from $182.6 million in FY2024, with Amazfit branded revenue growing 51%. This follows a multi-year collapse from $613.6 million in FY2022 to $352.9 million in FY2023.

Timeline

2026-07-26Wall Street Zen downgrades ZEPP from Hold to Sell, market cap near $72.45M
2026-06-08Q1 2026 results: revenue $51.5M up 33.8% YoY, net loss $19.6M
2026-06-02Amazfit launches Balance 3 and Balance Ultra, signs 3-year exclusive HYROX partnership
2026-04Zepp Inc. files patent infringement suit against Oura Health Oy over six patents
2026-03-15Q4 2025 results: revenue $85.2M up 43% YoY, record gross margin 40.4%
2025-09-29CEO Wang Huang reported holding roughly 30% of Zepp Health shares
2025-05-27Zepp Health relocates principal executive offices from Hefei, China to Gorinchem, Netherlands
2021-02Huami Corporation rebrands as Zepp Health Corporation
2018-02Huami IPOs on NYSE under ticker HMI
2013Company founded in Anhui, China as Huami Corporation, a Xiaomi-linked Mi Band manufacturer

Revision history

26 July 2026

First assessed. Losing its protection. The text above is fixed as of this date and is not edited afterwards.

In the same band

Meituan Shein Group Xiaomi Corporation