Zepp Health Corporation, renowned for its smart wearable technology, has experienced a remarkable resurgence in 2025 after enduring several years of financial struggles. As of mid-October, the company’s stock has surged over 1,900%, marking a striking recovery primarily driven by its own Amazfit brand.
Previously known as Huami, Zepp Health originated as a spinoff from the prominent Chinese tech entity, Xiaomi. In its early days, the company heavily relied on Xiaomi-branded wearables through a licensing agreement, which limited its autonomy and growth potential. However, in 2021, Huami rebranded itself as Zepp Health, signaling a strategic shift that marked the beginning of its evolution away from dependence on Xiaomi’s branding. The transition allowed the company to reinforce its commitment to its proprietary Amazfit line of smartwatches and fitness trackers.
This decision initially presented significant risks, as evidenced by the company’s stagnant share prices and declining revenues. Yet, the recent turnaround in fortunes has proved the strategy to be a astute one. In the second quarter of 2025, Zepp Health reported an impressive revenue of $59 million, reflecting a remarkable 46% increase year-over-year. This marked the company’s first revenue growth since 2021, a notable accomplishment considering that the boost was entirely attributed to Amazfit products.
Adding to its momentum, Amazfit has secured a roster of high-profile athletes as brand ambassadors, with NFL star Derrick Henry joining in July. This marketing strategy aims to elevate the brand’s visibility in a competitive landscape dominated by giants like Apple. Despite Apple’s stature as the leader in wearable technology, the company has experienced a slight decline of about 1% in its market performance this year.
Nevertheless, while Zepp Health’s dramatic growth presents a compelling narrative, potential investors should exercise caution. The company remains unprofitable and carries inherent risks, particularly for those seeking stable investment opportunities. In contrast, Apple may be a safer bet, despite its recent lackluster performance. For those interested in exploring smaller tech companies within the wearables sector, Zepp Health’s remarkable turnaround may warrant consideration as a potential addition to their investment portfolio.
