Zepp Health Corporation Reports First Quarter of 2026 Unaudited Financial Results

MILPITAS, Calif. , June 8, 2026 /PRNewswire/ -- Zepp Health Corporation ("Zepp" or the "Company") (NYSE: ZEPP ) today announced its unaudited financial results for the first quarter of 2026. First Quarter of 2026 Financial and Operating Highlights: Revenue reached US$51.5 million, representing 33.8% year-over-year growth, in line with our guidance range. Gross margin was 37.7%, an expansion of 0.4 percentage points compared with the first quarter of 2025. We typically refresh entry-level product lines in the first quarter; these offerings carry lower gross profitability. In addition, elevated memory component costs pressured the gross margin performance. As of March 31, 2026, cash and cash equivalents and restricted cash were US$103.2 million, nearly flat compared with US$103.8 million as of March 31, 2025. The cash balance decreased by US$9.7 million compared with US$112.9 million as of December 31, 2025, primarily driven by net operating losses and seasonality, as the first quarter is traditionally a low season for consumer electronics business. Despite strategic risk purchases of key components for the future, our inventory balance decreased to US$62.8 million compared with US$72.8 million as of December 31, 2025. This reflects ongoing improvements in inventory management. For the second quarter of 2026, management currently expects net revenues to be between US$63.0 million and US$68.0 million, which would represent a year-over-year increase of approximately 6% to 14%. This outlook reflects continued year-over-year growth, supported by demand across our product portfolio, while also accounting for normal shipment timing and product launch phasing during the quarter. More importantly, we will continue to focus on the quality of growth-product mix, pricing power, gross margin structure, and user engagement. New products debut: Amazfit Balance 3 and Balance Ultra: Th