Zepp Health hints at busy product launch schedule following Q1 update
Zepp Health just dropped its Q1 2025 financials, but what caught our attention was the Q&A session at the end of the earnings presentation. That’s where management hinted at what’s coming next. According to them, the company is “aiming to refresh all major product lines” and has “many exciting products this year, and that many is more than 2 in the upcoming quarters to come.”
Let’s break that down.
Zepp has four major product lines: Lifestyle, Adventure, Performance and Essential. So far in 2025, we’ve seen updates to the Lifestyle series with the Amazfit Active 2 and Balance 2. The latter has just launched in China, but a global rollout is expected soon. The Essential Series has already welcomed the Bip 6 earlier this year.
That puts the spotlight next on the Adventure and Performance lines. We could see a T-Rex 3 Ultra or even a T-Rex 4 before the year wraps up, while the Performance range might get updates to the Cheetah, Falcon or possibly even the Helio Ring.
It’s a notable shift from last year, when Zepp Health only had one major launch. The rest of 2025 is shaping up to be just as active as the first 5 months.
Q1 results show Amazfit revenue back in growth
Zepp Health reported Q1 2025 revenue of $38.5 million, down slightly from the same period last year. The drop was driven mostly by a sharp decline in Xiaomi-branded wearable sales. But Amazfit-branded product revenue rose 10.2% year-on-year, marking the first return to growth since early 2022. New product launches helped boost momentum, although lingering supply issues, particularly for the Active 2 Premium, impacted availability. To remind, the premium version of that watch has only now been made available for purchase in Europe.
Gross margin ticked up to 37.3%, higher than both Q1 and Q4 of 2024. The figure would have been even higher if not for an additional 20% tariff on China-made products, which Zepp partially offset by ramping up its Vietnam-based production. The company’s dual-sourcing strategy seems to be working, helping reduce risk in its supply chain.
AI upgrades and athlete partnerships deepen brand footprint
Alongside the hardware push, Zepp has been investing in AI enhancements. The Zepp Flow voice assistant now responds up to 17 times faster. The company also claims to have cut the cost of food recognition in its nutrition tracking feature by 90% through a hybrid OpenAI and Google Gemini model. This allowed for a wider rollout in Europe and a doubling of the daily usage limit.
On the marketing front, Zepp is leaning into sports communities. The company ramped up presence at HYROX events in Chicago, Taipei and Shanghai, and secured athlete sponsorships with Olympic sprinter Gabby Thomas and Italian tennis star Jasmine Paolini. The latter recently won the Rome Open while wearing the Amazfit Active 2, giving the brand a rare moment of mainstream visibility.
Looking ahead, Zepp projects Q2 revenue between $50 million and $55 million. That would be a 23% to 35% jump over the same period last year, and would mark the company’s first year-on-year revenue growth since 2021. With more products slated for launch and a continued push into mid- and high-end markets, Zepp seems to be shifting from recovery mode to cautious expansion.
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