After several years of losses, Zepp Health Corporation (NYSE: ZEPP) took off in 2025. The manufacturer of smart wearable technology is up over 1,900% on the year, as of Oct. 16, and most of that growth came during the last three months. That’s much better than Apple, the leader in wearable devices, which has lost about 1%.
What turned around Zepp Health’s performance? One strategic shift has made all the difference.
Zepp Health began as Huami, a spinoff from Chinese electronics giant Xiaomi. Huami sold Xiaomi-branded wearables through a licensing agreement, making it highly reliant on that company.
In 2021, Huami rebranded to Zepp Health and started transitioning away from the Xiaomi brand. It focused on developing its existing Amazfit line of smartwatches and fitness trackers. This was a risky move, and until recently, Zepp Health’s share price and revenue were consistently trending downward.
Now, however, it’s looking like a smart decision. Zepp Health reported revenue of $59 million in the second quarter of 2025, a 46% year-over-year increase and its first overall revenue growth since 2021. Crucially, it also reported that the growth came entirely from Amazfit products.
In addition, Amazfit has been building a roster of elite athletes to serve as brand ambassadors. One of the latest big names is Baltimore Ravens running back Derrick Henry, who joined Amazfit in July.
Zepp Health is still a risky company and not profitable yet. If you’re just looking for a steady performer, Apple, despite lackluster recent returns, is the better way to go. But if you’re looking for smaller tech companies, particularly wearables manufacturers, Zepp Health is one to watch and potentially add to your portfolio.
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