Zepp Health (NYSE:ZEPP) reported a 43% year-over-year increase in fourth-quarter revenue, reaching $85.2 million and meeting the high end of its previous guidance.
The performance capped a recovery year for the smart wearable and health technology leader, which saw total 2025 revenue climb to $258.9 million, a 41.8% increase over 2024.
The standout metric for the quarter was a record-high gross margin of 40.4%, up from 36.8% in the prior-year period.
Management attributed this expansion to a more favorable product mix and improved pricing power, particularly as its Amazfit-branded products now account for 100% of total revenue.
The shift marks the completion of a multi-year transformation from a high-volume original design manufacturer (ODM) for third parties into a premium, brand-focused health technology entity.
Despite the top-line growth, Zepp Health reported a GAAP net loss of $11 million for the quarter, though this represented a significant narrowing from previous levels.
On an adjusted basis, the fourth-quarter net loss was $6.4 million.
For the full year, the company’s net loss stood at $40.1 million, an improvement from the $75.7 million loss recorded in 2024.