$ZEPP

Zepp Health Corp

CIK:0001720446|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
CONSOLIDATED STATEMENTS OF OPERATIONS
Revenues (including US$92,046, US$11,002 and nil with related parties for the years ended December 31, 2023, 2024 and 2025, respectively)	$ 258,897	$ 182,603	$ 352,860
Cost of revenues (including US$82,237, US$9,426 and nil resulting from related parties sales for the years ended December 31, 2023, 2024 and 2025, respectively)	159,707	112,369	260,502
Gross profit	99,190	70,234	92,358
Operating expenses
Selling and marketing	53,829	46,471	44,527
General and administrative	29,273	24,854	26,778
Research and development	45,318	46,159	51,503
Total operating expenses	128,420	117,484	122,808
Operating loss	(29,230)	(47,250)	(30,450)
Other income and expenses
Interest income	1,526	3,672	3,089
Interest expenses	(5,697)	(5,552)	(6,752)
Realized gain from investments			109
Gain from fair value change of long-term investments	76	2,011	213
Impairment loss from investments	(2,194)	(10,129)	(313)
Other (expenses)/income, net	56	(656)	(525)
Loss before income tax and loss from equity method investments	(35,463)	(57,904)	(34,629)
Income taxes benefits/(expenses)	(2,537)	(13,693)	2,430
Loss before income/(loss) from equity method investments	(38,000)	(71,597)	(32,199)
Income/(loss) from equity method investments	(2,068)	(4,211)	1,113
Net loss	(40,068)	(75,808)	(31,086)
Less: Net loss attributable to non-controlling interest		(75)	(66)
Net loss attributable to Zepp Health Corporation	(40,068)	(75,733)	(31,020)
Net loss attributable to ordinary shareholders of Zepp Health Corporation	$ (40,068)	$ (75,733)	$ (31,020)
Net loss per share attributable to ordinary shareholders of Zepp Health Corporation
Basic loss per ordinary share	$ (0.16)	$ (0.29)	$ (0.13)
Diluted loss per ordinary share	$ (0.16)	$ (0.29)	$ (0.13)
Weighted average number of shares used in computing net loss per share
Ordinary share - basic	254,431,492	258,876,120	243,135,964
Ordinary share - diluted	254,431,492	258,876,120	243,135,964

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2025	Dec. 31, 2024	Dec. 31, 2023
Cash Flows from Operating Activities
Net loss	$ (40,068)	$ (75,808)	$ (31,086)
Adjustment to reconcile net loss to net cash provided by operating activities:
Non-cash lease expenses	1,348	1,480	4,844
Depreciation and amortization	4,535	5,017	7,690
Provision for excess and obsolete inventories	7,781	5,168	7,297
Share-based compensation	2,492	4,778	8,792
(Income)/loss from equity method investments	2,068	4,211	(1,113)
Loss /(gain) on disposal of property, plant and equipment and others	21	(56)	53
Gain from fair value change of long-term investments	(76)	(2,011)	(213)
Impairment loss from long-term investments	1,168	8,180	313
Deferred income taxes	2,238	13,445	(2,876)
Allowance for doubtful accounts	7,502	1,592
Impairment loss from short-term investments	1,026	1,949
Impairment loss from intangible assets	0	0	1,135
Realized gain from investments			(109)
Changes in operating assets and liabilities
Accounts receivable	(8,331)	(5,082)	36,384
Inventories	(22,092)	5,555	51,909
Prepaid expenses and other current assets	(16,170)	(1,365)	(745)
Amounts due from related parties	(3,207)	5,486	7,417
Other non-current assets	333	4,513	(2,392)
Amounts due to related parties	(1,879)	(998)	(2,466)
Accounts payable	28,295	14,811	(27,816)
Notes payable	11,583	(8,587)	(5,291)
Advance from customers	(126)	(36)	(76)
Income tax payables	(189)	(478)	592
Accrued expenses and other current liabilities	(4,012)	(6,027)	13,664
Other non-current liabilities	68	(129)	(23,305)
Net Cash Provided by/(Used in) Operating Activities	(25,692)	(24,392)	42,602
Cash Flows from Investing Activities
Purchase of property, plant and equipment	(516)	(1,403)	(1,596)
Disposal of property, plant and equipment	124	696	1,602
Purchase of intangible assets	(268)	(87)	(83)
Disposal of intangible assets	471	1,052	3,134
Loans provided to related parties			(1,404)
Disposal of short-term investments		275	1,263
Purchase of long-term investments		(6,998)	(282)
Disposal of long-term investments	1,669	4,886	4,666
Deconsolidation of a subsidiary and others			427
Net Cash Provided by/(Used in) by Investing Activities	1,480	(1,579)	7,727
Cash Flows from Financing Activities
Bank borrowings received	65,733	10,959	56,490
Repayment of bank borrowings	(73,068)	(12,604)	(103,800)
Repayment of loan from a related party			329
Prepayment for the repurchase of non-controlling interest			(251)
Repurchase of ordinary shares	(1,238)	(2,278)	(2,518)
Letter of credit factoring received	131,529	67,774	66,720
Repayment of letter of credit factoring	(97,050)	(62,669)	(58,646)
Purchase of non-controlling interest	(1,071)	(705)
Net Cash (Used in)/Provided by Financing Activities	24,835	477	(41,676)
Net increase /(decrease) in cash and cash equivalents and restricted cash	623	(25,494)	8,653
Effect of exchange rate changes	1,575	(4,240)	(9,305)
Cash and cash equivalents and restricted cash at beginning of the year	110,735	140,469	141,121
Cash and cash equivalents and restricted cash at end of the year	112,933	110,735	140,469
Reconciliation to amounts on consolidated balance sheets
Cash and cash equivalents	57,046	91,069	133,669
Restricted cash	55,887	19,666	6,800
Total cash and cash equivalents and restricted cash	112,933	110,735	140,469
Supplemental disclosure of cash flow information
Income tax (receipt)/paid- Mainland China	274	30	(116)
Interest paid	1,243	89	6,265
Non-cash investing and financing activities
Receivable from the disposal of intangible assets	1,182	1,653	2,781
Conversion from loan to long-term investment			2,411
Payable/(Receivable) for repurchasing of ordinary shares	(118)	(100)	59
Transfer from other receivables to convertible bonds		1,962
Transfer from convertible bonds to equity investment		1,099
Transfer from convertible bonds to other receivables		939
Transfer from equity investment to other non-current assets		690
Transfer from long-term investment to intangible assets	8,500
Chinese Hong Kong
Supplemental disclosure of cash flow information
Income tax (receipt)/paid	141	15	(60)
Netherlands
Supplemental disclosure of cash flow information
Income tax (receipt)/paid	56	6	(24)
Others
Supplemental disclosure of cash flow information
Income tax (receipt)/paid	$ 96	$ 11	$ (41)

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2025	Dec. 31, 2024
Current assets:
Cash and cash equivalents	$ 57,046	$ 91,069
Restricted cash	55,887	19,666
Accounts receivable (net of allowance of US$1,457 and US$2,916 as of December 31, 2024 and 2025, respectively)	66,908	62,965
Amounts due from related parties (net of allowance of nil and nil as of December 31, 2024 and 2025, respectively)	$ 6,665	$ 2,663
Other Receivable, after Allowance for Credit Loss, Current, Related Party [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Inventories, net	$ 72,756	$ 56,789
Short-term investments (including available-for-sale debt securities measured at fair value of US$997 and nil as of December 31, 2024 and 2025, respectively)		997
Prepaid expenses and other current assets	34,263	17,415
Total current assets	293,525	251,564
Property, plant and equipment, net	5,662	6,898
Intangible assets, net	13,611	7,091
Long-term investments (including available-for-sale debt securities measured at fair value of US$26,666 and US$17,382 as of December 31, 2024 and 2025, respectively)	220,047	225,910
Deferred tax assets	15,743	17,465
Operating lease right-of-use assets	1,958	3,458
Goodwill	9,581	9,581
Amounts due from related parties, non-current	991	2,019
Other non-current assets	3,718	4,607
Total assets	564,836	528,593
Current liabilities:
Accounts payable (including accounts payable of the consolidated VIEs without recourse to the Group of US$48,653 and US$64,004 as of December 31, 2024 and 2025, respectively)	80,768	51,077
Advance from customers and others of the consolidated VIEs without recourse to the Group	76	197
Amounts due to related parties (including amounts due to related parties of the consolidated VIEs without recourse to the Group of US$1,587 and US$221 as of December 31, 2024 and 2025, respectively)	$ 654	$ 2,477
Other Liability, Current, Related Party [Extensible Enumeration]	Related Party [Member]	Related Party [Member]
Accrued expenses and other current liabilities (including accrued expenses and other current liabilities of the consolidated VIEs without recourse to the Group of US$26,495 and US$26,671 as of December 31, 2024 and 2025, respectively)	$ 37,527	$ 37,576
Income tax payables (including income tax payables of the consolidated VIEs without recourse to the Group of US$69 and US$5 as of December 31, 2024 and 2025, respectively)	366	508
Notes payable and others of the consolidated VIEs without recourse to the Group	111,725	61,679
Short-term bank borrowings (including short-term bank borrowings of the consolidated VIEs without recourse to the Group of US$39,113 and US$46,433 as of December 31, 2024 and 2025, respectively)	55,728	41,853
Total current liabilities	286,844	195,367
Deferred tax liabilities (including deferred tax liabilities of the consolidated VIEs without recourse to the Group of US$3,015 and US$2,646 as of December 31, 2024 and 2025, respectively)	2,673	3,117
Other non-current liabilities of the consolidated VIEs without recourse to the Group	209	133
Long-term borrowings (including long-term borrowings of the consolidated VIEs without recourse to the Group of US$35,551 and US$27,027 as of December 31, 2024 and 2025, respectively)	59,475	75,241
Non-current operating lease liabilities (including non-current operating lease liabilities of the consolidated VIEs without recourse to the Group of US$308 and nil as of December 31, 2024 and 2025, respectively)	1,102	2,007
Total liabilities	350,303	275,865
Equity
Additional paid-in capital	280,676	278,116
Treasury shares	(16,153)	(14,993)
Accumulated retained earnings/(losses)	(11,450)	28,618
Accumulated other comprehensive loss	(38,566)	(40,178)
Total Zepp Health Corporation shareholders' equity	214,533	251,589
Non-controlling interest		1,139
Total equity	214,533	252,728
Total liabilities and equity	564,836	528,593
Class A Ordinary Shares
Equity
Ordinary shares	15	13
Class B Ordinary Shares
Equity
Ordinary shares	$ 11	$ 13