Zepp Health Corporation (ZEPP): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the real engine driving Zepp Health Corporation (ZEPP) as they firmly pivot to their Amazfit brand, and honestly, the numbers from late 2025 show a company executing a clear strategy. We see strong Q3 2025 net revenue hitting US$75.8 million and a solid cash cushion of US$102.6 million as of September 30, 2025, which funds their R&D into proprietary tech like Zepp OS and AI chips. This isn't just about selling hardware; it's a calculated play balancing value-driven pricing for segments from budget buyers to outdoor athletes, all while building out a global footprint in over 90 countries through key partnerships and massive digital channels like Amazon, which accounts for 42% of their digital sales. Dive into the Business Model Canvas below to see exactly how their US$29.8 million in Q3 operating expenses fuels this growth engine and what their revenue guidance of US$82.0 million to US$86.0 million for Q4 suggests about their near-term trajectory.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Key Partnerships

You're looking at how Zepp Health Corporation builds value through its external relationships, which is critical given their pivot back to revenue growth in 2025. These alliances are key to market penetration and product enhancement, so let's break down the concrete numbers we have on these strategic moves.

The partnership with HYROX, the World Series of Fitness Racing, positions Amazfit as the Official Wearable and Timekeeping partner through 2026. This deal gives Zepp Health access to a community that sees over 300,000 participants per season across the EU and US regions. To cement this, software updates included a dedicated HYROX Race workout mode on several key watches.

The move into women's health is formalized by the acquisition of core assets and intellectual property from Wild.AI. This targets a strategic niche within the $90+ billion global wearable market, aiming to offer AI-based hormone-informed coaching tailored for female physiology.

For physical reach, Zepp Health's extensive network of Global Retailers is significant. To date, the company has shipped over 200 million units, and its products are available in more than 90 countries and regions. This broad distribution helps drive the 46.2% year-over-year revenue growth reported in Q2 2025.

Brand visibility is boosted by Athlete Ambassadors. In Q2 2025, Zepp Health welcomed NFL Pro Bowl running back Derrick Henry and Ultra Runner Rod Farvard to the Amazfit Athletes team. This follows earlier engagements in Q1 2025 with rising stars like Gabby Thomas and Jasmine Panini to enhance brand awareness. The HYROX roster expansion in late 2025 included returning champion Hunter McIntyre alongside Rich Ryan, Joanna Wietrzyk, Emilie Dahmen, and Linda Meier.

Operational resilience is managed through Manufacturing Partners. Zepp Health has successfully mitigated tariff risks by diversifying its global supply chain across China and Vietnam. The expected tariff impact in Q1 2025 was estimated between $2 million and $3 million, which the company aimed to fully offset through these efficiency and sourcing initiatives.

Here is a quick look at the scale of these key relationships and associated metrics as of late 2025:

Partner Type/Name	Metric/Detail	Associated Value/Figure
Global Distribution Network	Total Units Shipped to Date	Over 200 million units
Global Distribution Network	Countries with Product Availability	Over 90 countries
HYROX Partnership	Partnership Duration End Year	2026
HYROX Partnership	Participants Reached Per Season (EU/US)	Over 300,000
Wild.AI Acquisition	Targeted Market Size (Global Wearable)	$90+ billion
Manufacturing Diversification	Estimated Q1 2025 Tariff Headwind	$2 million to $3 million

The company is actively using these partnerships to drive growth, as seen by the Q2 2025 revenue reaching $59.4 million, a 46.2% year-over-year increase.

The specific focus areas within these partnerships include:

• - HYROX: Integration of a dedicated HYROX Race workout mode into multiple Amazfit smartwatches.
• - Wild.AI: Unlocking AI-based hormone-informed coaching for female athletes.
• - Global Retailers: Supporting the return to year-over-year revenue growth, the first since Q2 2021.
• - Athlete Ambassadors: Utilizing feedback from athletes like Derrick Henry and Hunter McIntyre for product testing and storytelling.
• - Manufacturing Partners: Maintaining a dual-sourcing strategy in China and Vietnam to offset tariff pressures.

Finance: draft Q3 2025 cash flow projection incorporating expected revenue guidance of $72.0 million to $76.0 million by next Tuesday.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Key Activities

You're looking at the core operational engine of Zepp Health Corporation as of late 2025. The activities here are what drive the revenue growth we saw, hitting 78.5% year-over-year in the third quarter.

• - R&D and Innovation: Developing proprietary Zepp OS, AI chips, and biometric sensors.
• - Product Manufacturing: Producing smartwatches, smart bands, and the new Helio Strap.
• - Global Brand Building: Targeted digital marketing and athlete sponsorship campaigns.
• - Software Ecosystem Development: Enhancing Zepp Coach™ and Zepp Flow™ AI features.
• - Supply Chain Management: Strategic inventory buildup of US$87.7 million for Q4 2025.

The investment in the digital platform is clear when you look at the spending on research and development. For the third quarter of 2025, R&D expenses were US$10.8 million. That spend supports the proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, and biometric sensors that power the Amazfit line.

Manufacturing centers on a diversified product portfolio. The latest wave of launches included the flagship Amazfit T-Rex 3 Pro in the third quarter, following the Amazfit Balance 2 and Amazfit Helio Strap in the second quarter. Entry-level products like the Amazfit Bip 6 and Active 2 ranges continue to provide steady volume. Still, you see the operational risks; Q3 2025 saw sales partially offset by supply constraints on the Helio Strap.

Brand building is an active, funded effort. Marketing spend is ramping up to support new product momentum. Here's a quick look at the Selling and Marketing Expenses for recent quarters:

Period	Selling and Marketing Expenses
Q3 2025	US$12.6 million
Q2 2025	US$12.1 million

The year-over-year increase in Q2 2025 was explicitly tied to promotional campaigns and expanding the Amazfit Athletes team. That team grew further in Q3 2025 with the addition of elite trail runners Ruth Croft and Rosa Lara Feliu, plus marathoner Ota Aoi.

For the software ecosystem, the key activity is making the value proposition subscription-free where competitors charge. For example, the Helio Strap offers advanced AI smart training metrics as an alternative to premium subscriptions typically priced above $200 per year. This is a direct play on the value of their integrated software.

Supply chain management is critical, especially heading into the peak season. The company strategically built up stock to prepare for the fourth-quarter consumer electronics season. The inventory balance as of September 30, 2025, stood at US$87.7 million. That is a significant increase from the US$56.8 million recorded at the end of 2024, showing a clear commitment to meeting anticipated Q4 demand.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Key Resources

You're looking at the core assets Zepp Health Corporation (ZEPP) relies on to deliver its value proposition in the smart wearables space as of late 2025. These aren't just line items; they are the engines driving that impressive 78.5% year-over-year revenue growth seen in Q3 2025.

The most tangible resource is the financial cushion. This liquidity supports ongoing operations, strategic inventory buildup for peak seasons, and share repurchases. Here's the quick math on the balance sheet as of September 30, 2025.

Financial Metric	Amount (as of September 30, 2025)
Cash and Cash Equivalents (including restricted cash)	US$102.6 million
Inventory	US$87.7 million

That cash balance grew sequentially from US$95.3 million at the end of Q2 2025, which is a solid sign of operational discipline, especially as they strategically built up that inventory to prepare for the fourth quarter consumer electronics season. Still, managing working capital closely remains key.

Proprietary Technology is where the moat is built. It's not just about the hardware; it's the integrated software and sensing capabilities that make the Amazfit devices sticky. This platform is what turns raw data into actionable guidance for users.

• Proprietary Technology: Zepp OS, AI chips, biometric sensors, and data algorithms.
• Latest Hardware Innovation: The Amazfit T-Rex 3 Pro, featuring a display up to 3,000-nits peak brightness.
• Advanced Capability: Supports professional outdoor navigation and recreational scuba diving down to 45 meters.

Brand Equity is centered around the globally recognized consumer brand, Amazfit. This brand equity is being actively reinforced through high-profile endorsements and ecosystem expansion. They're not just selling watches; they're selling a wellness journey supported by a recognized name.

The brand portfolio includes:

• The globally recognized Amazfit consumer brand.
• Software/Service Brands: Zepp Clarity and Zepp Aura.
• Marketing Investment: Expanded the Amazfit Athletes team, adding elite trail runners and marathoners, like Ota Aoi, the first Japanese brand ambassador.

Human Capital is focused on the teams driving the next wave of innovation. You see this commitment reflected in their operating expenses; adjusted operating expenses were US$28.6 million in Q3 2025, representing 37.7% of sales, with R&D being a key investment area to support long-term competitiveness.

Finally, Global Distribution is the mechanism for reaching customers. Zepp Health Corporation has successfully established a wide footprint, which is critical for a hardware-centric business.

Key distribution facts include:

• Channel Infrastructure: Logistics and channel presence across more than 90 countries and regions.
• Strategic Partnerships: Leveraging an exclusive partnership with Xiaomi to expand distribution reach.
• Geographic Focus: Team members and offices are strategically placed across the globe, particularly in Europe and USA regions.

Finance: draft 13-week cash view by Friday.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Value Propositions

You're looking at how Zepp Health Corporation positions its products against the competition, and the numbers from Q3 2025 show a clear strategy balancing volume and premium appeal. The value proposition centers on delivering advanced health technology across a tiered portfolio, which is key to their recent financial turnaround.

Value-Driven Pricing: Positioning between entry-level and high-end brands.

Zepp Health Corporation successfully executes a multi-tiered product strategy to capture diverse consumer groups. This is evident in the margin performance, where the gross margin for Q3 2025 was 38.2%, an improvement sequentially from Q2 2025, but down year-over-year from 40.6% in Q3 2024, primarily due to the higher revenue proportion from lower-margin entry-level products. The company explicitly relies on the popularity of entry-level products like the Amazfit Bip 6 and Active 2 ranges to drive volume, while the premium T-Rex product line provides strong margin performance to offset this. The Q3 2025 revenue of US$75.8 million, a 78.5% year-over-year increase, was driven by both segments, showing the balance is working. The Q4 2025 revenue guidance remains strong, projected between US$82.0 million and US$86.0 million.

Advanced Health Tracking: 24/7 heart rate, SpO2, and six-stage sleep analysis.

The core technological value is delivered through the proprietary Zepp Digital Management Platform, which includes the Zepp OS, AI chips, and biometric sensors. This platform powers the cloud-based 24/7 actionable insights users receive. While specific adoption rates for every feature aren't public, the advertised tracking capabilities are central to the offering:

• Continuous monitoring of heart rate.
• Blood oxygen saturation (SpO2) tracking.
• Comprehensive sleep analysis, including a six-stage breakdown.

The company's focus on this technology is supported by an investment in R&D, with adjusted R&D expenses at $10.2 million in Q3 2025.

AI-Powered Coaching: Personalized fitness plans via Zepp Coach™ and Zepp Flow™.

Zepp Health Corporation positions itself as a health technology leader by integrating artificial intelligence into guidance. The value proposition includes personalized fitness plans and guidance delivered through software solutions like Zepp Coach™ and Zepp Flow™. This AI capability, powered by the company's proprietary AI chips and data algorithms, aims to help users attain their wellness goals through actionable insights, reinforcing the brand's shift toward a health-focused technology provider rather than just a hardware vendor.

Product Durability: Rugged outdoor smartwatches like the T-Rex 3 Pro.

For the high-end segment, durability and professional utility are key. The launch of the Amazfit T-Rex 3 Pro in September 2025 exemplifies this. This model features a titanium bezel and sapphire glass protecting a 1.5-inch AMOLED display with up to 3,000-nits of peak brightness. Critically for the outdoor segment, it supports recreational scuba diving down to 45 meters (EN13319-certified) and includes professional outdoor navigation with full-color offline maps. The T-Rex line is specifically noted for sustaining its outperformance in the premium outdoor category.

Holistic Ecosystem: Seamless integration of wearables, apps, and health services.

The value extends beyond a single device through a unified ecosystem. Zepp Health Corporation has shipped over 200 million units to date, creating a massive installed base that utilizes its connected apps and health services. Products are currently available in more than 90 countries and regions, indicating broad global reach for this integrated experience. The company's strategic pivot is entirely focused on the Amazfit-branded ecosystem, which is driving the current revenue growth, evidenced by the 78.5% year-over-year revenue increase in Q3 2025.

Here is a quick snapshot of the key financial and product metrics underpinning these value propositions as of late 2025:

Metric	Value (Q3 2025 or Latest)	Context
Q3 2025 Revenue	US$75.8 million	78.5% year-over-year growth
Q3 2025 Gross Margin	38.2%	Up 2.0% sequentially from Q2 2025
Adjusted Operating Result	US$0.4 million income	Achieved breakeven, compared to a loss of US$12.5 million in Q3 2024
Cash & Equivalents (Sep 30, 2025)	US$102.6 million	Up from US$95.3 million at the end of Q2 2025
T-Rex 3 Pro Feature	Diving up to 45 meters	Professional outdoor utility feature
Entry-Level Products Mentioned	Amazfit Bip 6 and Active 2	Contributed to volume but lower margin mix
Total Units Shipped (Cumulative)	Over 200 million	Indicates large installed base for ecosystem

Finance: draft 13-week cash view by Friday.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Customer Relationships

You're looking at how Zepp Health Corporation builds and keeps its user base, which is critical since their hardware sales fuel the software ecosystem. The relationship strategy centers on digital self-service, community validation, and a clear product ladder.

Automated Service: Self-service via the Zepp App for data and insights

The Zepp App is the core touchpoint for automated service. It's where users get their data and insights without needing direct human interaction. As of Q2 2025, the Zepp app supported 15.7M active users, forming the foundation of their digital ecosystem. This self-service model is key to managing a large user base efficiently.

The platform is designed to be sticky, providing cloud-based 24/7 actionable guidance. This digital delivery is what allows Zepp Health Corporation to project future subscription revenue from its installed base.

Personalized Digital Coaching: AI-driven recommendations for training and recovery

Moving beyond simple data logging, Zepp Health Corporation is embedding AI for personalized coaching. This is where the software truly enhances the hardware value. For instance, the Balance 2 smartwatch features the Biocharge function, which uses synchronized biometric data streams to calibrate personalized body energy levels throughout the day. This level of personalization is what keeps users engaged long-term.

The company sees this software pillar as a significant future revenue stream. They estimate that their installed base of over 40 million active clients represents potential subscribers for AI services that could cost up to $10 monthly. Honestly, even a low conversion rate on that base could mean substantial gross margin down the line.

Community Building: Engaging users through the Amazfit Athletes team and events

To build credibility and drive grassroots engagement, Zepp Health Corporation leans heavily on community and athlete validation. The official Reddit community, r/amazfit, was noted as approaching 50k people in June 2025, showing active user interaction. This digital community provides a platform for users to share experiences and feel connected.

The Amazfit Athletes team is a direct investment in this area. Beyond established figures like Hunter Mclntyre, the team expanded in Q3 2025 to include Rich Ryan, Joanna Wietrzyk, Emilie Dahmen, and Linda Meier. Furthermore, ongoing collaborations, such as participation at HYROX Beijing, further strengthen engagement with local fitness communities. These ambassadors lend credibility to the performance-focused devices.

Upgrade Path: Guiding entry-level users (Bip/Active) to premium models (Balance/T-Rex)

Zepp Health Corporation employs a clear tiered product strategy to guide users up the value chain. The entry-level devices, like the Bip 6 and Active 2, provide volume and market penetration, while premium models like the Balance 2 and T-Rex 3 Pro drive higher revenue and margin. This structure is defintely intentional for customer lifetime value.

The success of this strategy is visible in the Q3 2025 financials, where the launch of high-margin products like the T-Rex 3 Pro helped offset margin pressure from promotional pricing on entry-level models during Prime Day events. The premium launches were a major factor in the 78.5% year-over-year revenue increase to $75.8 million in Q3 2025.

Here's a quick look at how the tiers stack up based on recent product mentions:

Product Tier	Example Models (Late 2025)	Reported Customer Action/Benefit
Entry-Level	Bip 6, Active 2	Provided steady sales volume; subject to promotion prices like Prime Day discounts.
Mid/Premium Health Focus	Balance 2, Helio Strap	Features like Biocharge; contributed to Q3 2025 revenue growth.
Premium/Outdoor Performance	T-Rex 3 Pro	Drove significant revenue growth; showed strong margin performance.

The company's adjusted operating expenses as a percentage of sales dropped sharply to 37.7% in Q3 2025, partly due to this margin-enhancing product mix improvement.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Channels

You're looking at how Zepp Health Corporation gets its Amazfit products into the hands of customers as of late 2025. It's a story of digital dominance with a clear focus on refining the retail mix to drive that 78.5% year-over-year revenue growth seen in Q3 2025, hitting $75.8 million in revenue for that quarter.

The core of their distribution is heavily weighted toward online sales, but they are actively managing that mix to improve profitability, as management noted they were 'consistently pushed on retail profitability and channel mix improvement.'

Here's the breakdown of how digital sales are currently structured, based on the company's stated channel focus:

• - Online Marketplaces: Amazon.com, accounting for approximately 42% of digital sales.
• - Direct-to-Consumer (DTC): Official Zepp Website, accounting for 35% of digital sales.
• - International E-commerce: Other online marketplaces, accounting for 23% of digital sales.

This digital focus is clear, but it's not the whole picture. They are definitely pushing the physical side, too. For instance, in Q1 2025, Zepp Health invested $1.4 million specifically in strengthening their sales channels, which covers both online infrastructure and offline retail support.

The offline retail expansion is a key area for near-term opportunity, especially as they try to solidify brand presence against competitors. They've seen success in specific European markets, which speaks to the effectiveness of their ground game there. For example, in Italy, their share of non-SIM smartwatch unit sales hit 23.3% in March 2025, placing them as number two right behind Apple, which held a 42% share in that specific market segment.

To give you a clearer view of the channel investment and market penetration:

Channel Focus Area	Latest Reported Investment/Metric	Context/Period
Strengthening Sales Channels (Investment)	$1.4 million	Q1 2025 Selling Expenses
Italy Non-SIM Smartwatch Market Share	23.3%	March 2025 (GFK Data)
Italy Market Leader Share (Apple)	42%	March 2025 (GFK Data)
Total Q3 2025 Revenue	$75.8 million	Q3 2025

The strategy involves meticulous refinement of these retail channels, which includes strategic staffing arrangements across sales teams to ensure they are maximizing profitability from every touchpoint. They confirmed plans to expand both online and offline channels to meet demand, especially heading into the crucial fourth quarter. If onboarding physical retail partners takes longer than expected, you could see a lag in capturing market share outside of the dominant e-commerce platforms.

Key channel activities supporting the brand include:

• Meticulous refinement of retail channels.
• Strategic staffing arrangements across sales.
• Expanding the Amazfit Athletes team for brand visibility.
• Ensuring consistent product launch cadence across all channels.

Finance: draft 13-week cash view by Friday.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Customer Segments

You're looking at how Zepp Health Corporation segments its market as of late 2025, a strategy clearly built around the Amazfit brand to capture growth across the wearable spectrum. The overall scale is significant; Zepp Health has shipped over 200 million units to date, and its ecosystem is supported by 15.7 million monthly active users on the Zepp app alone. The multi-tiered approach is working, as evidenced by the Q3 2025 revenue hitting $75.8 million, a 78.5% year-over-year jump.

Here is how Zepp Health Corporation carves up its customer base:

• - Budget-Conscious Consumers: Seeking entry-level fitness bands (e.g., Amazfit Bip 6).
• - Fitness Enthusiasts: Mid-range smartwatch buyers (e.g., Amazfit Active 2) at $129 - $249.
• - Health-Conscious Professionals: Premium smartwatch users (e.g., Amazfit Balance 2) at $299 - $499.
• - Outdoor & Adventure Athletes: Users of the rugged T-Rex series.
• - Women's Health Users: Targeting personalized cycle and recovery tracking.

The performance of these segments directly influences the financials. For instance, the popularity of the entry-level lines, such as Amazfit Bip 6 and Active 2 ranges, provided steady sales volume in Q3 2025, but the year-over-year gross margin dipped to 38.2% in Q3 2025, primarily due to the lower margins associated with these entry-level products.

The company's strategy clearly balances volume from the lower end with higher-value products. The T-Rex line, particularly with the launch of the T-Rex 3 Pro in September 2025, shows strong margin performance that helps offset other pressures. The Balance 2 and Helio Strap, introduced in Q2 2025, target the higher end and are key to the improved product mix sequentially, which saw gross margin improve by 2.0% from Q2 2025 to Q3 2025.

You can see the breakdown of how these segments map to products and their financial relevance:

Customer Segment	Product Example	Price Range (USD)	Key Value Proposition	Q3 2025 Financial Relevance
Budget-Conscious Consumers	Amazfit Bip 6	Under $70 (Based on Bip 3 Pro)	Affordable core smartwatch features, good battery life	Maintained steady sales volume; contributed to lower year-over-year gross margin
Fitness Enthusiasts	Amazfit Active 2	$129 - $249	Over 160 sports modes, AI-driven Zepp Coach	Popularity contributed to Q2 and Q3 2025 revenue growth
Health-Conscious Professionals	Amazfit Balance 2	$299 - $499	Advanced analytics, improved usability for daily training	New product launch in Q2 2025 supporting sequential gross margin improvement
Outdoor & Adventure Athletes	T-Rex 3 / T-Rex 3 Pro	Not specified	Rugged design, strong performance, new features like integrated flashlight (T-Rex 3 Pro)	Sustained outperformance; T-Rex 3 Pro launch drove Q3 2025 revenue growth
Women's Health Users	Amazfit Balance 2	$299 - $499	Cycle and recovery tracking, advanced analytics	Part of the higher contribution from new products in Q3 2025

The company's products are available in more than 90 countries and regions, showing that this segmentation strategy is deployed globally. The focus on Amazfit-branded products is near-total, as they drove 100% of the 46.2% revenue growth seen in Q2 2025. The shift to higher-margin products like the T-Rex 3 was noted as key to improving the full-year 2024 gross margin to 38.5%, a trend they are continuing in 2025.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Cost Structure

You're looking at the core expenses Zepp Health Corporation incurs to keep its smart wearable and health technology business running as of late 2025. Honestly, for a hardware company, the cost of goods sold (COGS) is always a major factor, and you see that reflected in their margins.

• - Manufacturing Costs: High COGS due to hardware production and supply chain. Gross margin in the third quarter of 2025 was 38.2%, a 2.4% decrease year-over-year from 40.6% in Q3 2024, primarily due to the lower margins on entry-level products.
• - Operating Expenses: Total GAAP operating expenses amounted to US$29.8 million in Q3 2025.
• - Research and Development: Continuous investment in AI and new sensor technology.
• - Sales and Marketing: Significant spending on digital campaigns and brand ambassadors.
• - Logistics and Tariffs: Costs associated with a diversified, dual-sourcing supply chain.

The company is managing its overall spending tightly, as evidenced by the adjusted operating expenses being US$28.6 million in Q3 2025, which represented 37.7% of sales, a significant improvement from 67.3% in Q3 2024.

Here's a quick breakdown of the major components that made up those total operating expenses for the third quarter of 2025:

Expense Category	Q3 2025 Amount (US$)	Context/Comparison
Total GAAP Operating Expenses	29.8 million	Remained flat year-over-year.
Research and Development (R&D)	10.8 million	Stable compared to US$10.9 million in Q3 2024; investment in AI.
Selling and Marketing (S&M)	12.0 million	Flat sequentially from Q2 2025 (US$12.1 million); used for brand building.
General and Administrative (G&A)	Not explicitly stated for Q3 2025	Q2 2025 G&A was US$4.4 million, showing a trend of streamlining.

You can see R&D and Sales & Marketing together accounted for a substantial portion of the total operating spend, showing where Zepp Health Corporation is prioritizing resources for innovation and market penetration.

Specifically on Research and Development, the investment remains a core cost driver to maintain a competitive edge. R&D expenses were US$10.8 million in Q3 2025, which was stable year-over-year, reflecting a focus on refined approaches to optimize resource efficiency while continuing to invest in new technologies, including AI.

For Sales and Marketing, the spending supports the global brand visibility push. Selling and marketing expenses were US$12.0 million in Q3 2025. This spend is tied to expanding the Amazfit Athletes team and front-loading certain expenses to build brand recognition and acquire market share, for instance, by adding an NFL first-tier athlete and Pro Bowl running back Derrick Henry to the roster.

Logistics and Tariffs are an ongoing consideration, especially given the hardware nature of the business and its global supply chain. Zepp Health Corporation has been working to mitigate these costs by proactively diversifying its supply chain, expanding production in Vietnam and exploring NAFTA region opportunities. This dual-sourcing strategy is a direct response to cost pressures, such as the 20% U.S. tariff on China-made products that impacted Q1 2025 gross margin. The company noted that its diversified global supply chain successfully mitigated a big part of the tariff risks as projected by Q2 2025.

Zepp Health Corporation (ZEPP) - Canvas Business Model: Revenue Streams

You're looking at the core engine of Zepp Health Corporation's financial performance, which is heavily weighted toward hardware sales right now. Honestly, the numbers coming out of late 2025 show a significant rebound in their top line, driven by successful product refreshes.

The primary revenue source is definitely the sale of their smart wearable devices under the Amazfit brand. This includes everything from their flagship smartwatches to bands and rings. The growth in Q3 2025 was substantial, showing the market is responding well to their latest hardware cycle.

Here's a quick look at the most recent top-line figures and guidance you need to track:

Metric	Amount/Range	Context/Comparison
Q3 2025 Net Revenue	US$75.8 million	Represents a 78.5% year-over-year increase from Q3 2024's US$42.5 million.
Q4 2025 Revenue Guidance	US$82.0 million to US$86.0 million	Implies 38% to 45% year-over-year growth from Q4 2024's US$59.5 million.
Trailing Twelve Months (TTM) Revenue (as of Sep 30, 2025)	$0.23 Billion USD	Up from $0.18 Billion USD in 2024.

The strong performance in Q3 2025 was explicitly fueled by new product launches. You saw the Amazfit T-Rex 3 pro hit the market in September, which clearly resonated with the adventure/outdoor segment. Also contributing were the continued sales momentum from products introduced earlier in the year.

The revenue streams break down like this:

• Smart Wearable Sales: Driven by the Amazfit T-Rex 3 pro, Amazfit Balance 2, Amazfit Bip 6, and Active 2 ranges.
• Accessories Sales: Revenue generated from associated products, such as the Amazfit Helio Strap, which debuted in Q2 2025.
• Subscription Services: Emerging revenue from platforms like Zepp Aura and Zepp Clarity.

To be fair, the gross margin gives you a sense of the revenue quality. For Q3 2025, the gross margin was 38.2%. That's an improvement of 2.0% sequentially from Q2 2025, which helps offset the impact of selling more lower-margin entry-level products.

The company is banking on that Q4 guidance range to close out 2025 strong, supported by inventory buildup for the holiday season.