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Zepp Health Corporation Reports First Quarter of 2026 Unaudited Financial Results

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MILPITAS, Calif., June 8, 2026 /PRNewswire/ — Zepp Health Corporation (“Zepp” or the “Company”) (NYSE: ZEPP) today announced its unaudited financial results for the first quarter of 2026.

First Quarter of 2026 Financial and Operating Highlights:

Revenue reached US$51.5 million, representing 33.8% year-over-year growth, in line with our guidance range.Gross margin was 37.7%, an expansion of 0.4 percentage points compared with the first quarter of 2025. We typically refresh entry-level product lines in the first quarter; these offerings carry lower gross profitability. In addition, elevated memory component costs pressured the gross margin performance.As of March 31, 2026, cash and cash equivalents and restricted cash were US$103.2 million, nearly flat compared with US$103.8 million as of March 31, 2025. The cash balance decreased by US$9.7 million compared with US$112.9 million as of December 31, 2025, primarily driven by net operating losses and seasonality, as the first quarter is traditionally a low season for consumer electronics business.Despite strategic risk purchases of key components for the future, our inventory balance decreased to US$62.8 million compared with US$72.8 million as of December 31, 2025. This reflects ongoing improvements in inventory management.For the second quarter of 2026, management currently expects net revenues to be between US$63.0 million and US$68.0 million, which would represent a year-over-year increase of approximately 6% to 14%. This outlook reflects continued year-over-year growth, supported by demand across our product portfolio, while also accounting for normal shipment timing and product launch phasing during the quarter. More importantly, we will continue to focus on the quality of growth-product mix, pricing power, gross margin structure, and user engagement.New products debut:Amazfit Balance 3 and Balance Ultra: These products are designed for users who balance strength, endurance, recovery, work, stress, and daily life. Powered by HybridCharge™ Energy Intelligence in the Zepp App, they bring together BioCharge, LifeLoad, and Training Load into one clear view of personal capacity, helping users better understand when to push, when to recover, and how to maintain consistency over the long term.Amazfit Bip Max: Our new entry-level, all-around sports watch designed for users who want a large display, long battery life, comprehensive features, and accurate tracking data.Amazfit Cheetah 2 Pro: Engineered for marathon runners who train with discipline and recover with purpose, building strength alongside endurance and following a structure that develops the body over time.Amazfit Cheetah 2 Ultra: Built for trail runners facing prolonged exposure in unpredictable terrain, where distance is sustained through endurance and load is carried through structure.Extension for HYROX partnership: In April 2026, we further deepened our collaboration with HYROX through a new exclusive three-year global partnership, securing our position as its exclusive wearable technology partner. This landmark deal expands our prior regional cooperation to a full global footprint, marking a substantial upgrade in the depth and reach of our alliance. Further expansion of our Amazfit Athletes team: Welcome Rory Linkletter, an Olympian and one of Canada’s top distance runners, holding the national record in the half marathon, to our growing athletes’ family.

Mr. Wang “Wayne” Huang, Founder, Chairman and CEO of Zepp Health, commented, “We began 2026 with another quarter in line with our guidance, as Amazfit-branded revenue grew 33.8% year-over-year, even though the first quarter is traditionally a softer season for consumer electronics. This growth reflects the continued success of our multi-year transformation from a volume-driven wearable brand into a premium-focused global brand built around Hybrid Training. 

Our ambition for 2026 is to build a leadership position in Hybrid Training. This quarter, we extended that strategy across running and hybrid training with the launch of the Cheetah 2 lineup and, most recently, Balance 3 and Balance Ultra, products designed to support users across endurance, strength, recovery, and daily life.

Growth was broad-based across both premium and entry tiers, from T-Rex Ultra 2 to Active and Bip products.

In March and April, our premium T-Rex models such as T-Rex Pro and T-Rex Ultra accounted for nearly 50% of total T-Rex family unit sales, an early sign that users are moving up the value ladder within the Amazfit ecosystem.

Beyond hardware, we continued strengthening our ecosystem through Zepp OS, with Zepp Coach, HybridCharge, and our growing library of Hybrid Training and HYROX modes deepening engagement and retention.

Our ecosystem strategy is designed to meet users at the moment they move from casual tracking to more serious training, when training value begins to matter more than the phone ecosystem alone. We further deepened our collaboration with HYROX through a new exclusive three-year global partnership, expanding our role across smart wearables, connected app experiences, HYROX-specific training modes, and selected performance data integrations.

Importantly, HYROX gives us access not only to race participants, but also to a global network of gyms, coaches, and highly engaged training communities.

We are entering the next phase of growth with stronger product mix, clearer brand positioning, and a continued focus on long-term shareholder value.“

Mr. Leon Deng, Zepp’s Chief Financial Officer, added, “We delivered a strong start to 2026, with first-quarter revenue increasing 33.8% year over year to US$51.5 million, driven by successful new product launches including Active Max, Active 3 Premium, and T-Rex Ultra 2.

Our gross margin for the first quarter was 37.7%, up from 37.3% in the first quarter of 2025. The slight sequential moderation from our record 40.4% margin in the fourth quarter of 2025 was due to our standard first-quarter refresh of our lower-margin entry-level lines as well as elevated memory component costs and the impact of RMB appreciation. Despite normal seasonality and near-term cost pressures, gross margin expanded year over year to 37.7%, while gross profit increased 35.3% to US$19.4 million, underscoring the resilience of our operating model and the continued improvement in our brand positioning.

We remain disciplined in managing operating expenses while continuing to invest in the areas that support long-term competitiveness, including R&D, marketing, branding, and AI-enabled product innovation. Although foreign-exchange translation and growth-related channel costs impacted expenses in the quarter, our adjusted operating loss narrowed year over year, and adjusted net loss as a percentage of sales improved, reflecting better operating leverage as revenue scales. Thanks to higher revenue and improved gross margins, our adjusted operating loss[1] narrowed to US$16.3 million, compared with US$17.2 million in the first quarter of 2025.

As of March 31, 2026, we ended the quarter with US$103.2 million in cash and cash equivalents and restricted cash, compared with US$112.9 million as of December 31, 2025 and US$103.8 million as of March 31, 2025. Our inventory balance stood at US$62.8 million including the strategic risk purchases of key components for the future, a reduction from US$72.8 million as of December 31, 2025, reflecting our continued discipline in inventory management. Looking forward, we continue to manage inventory, cash, debt maturity, and capital allocation prudently. While the mix between short-term and long-term debt may fluctuate from quarter to quarter due to accounting classification and maturity timing, our total debt level remained broadly stable both sequentially and year over year. Since the beginning of 2023, we have cumulatively retired US$46.4 million of debt, demonstrating our continued commitment to optimizing the capital structure, managing financing costs, and maintaining financial flexibility. In addition, we remain committed to our share-repurchase program, which we view as an effective use of capital to support long-term shareholder value.

For the second quarter of 2026, we expect revenue in the range of US$63.0 million to US$68.0 million, representing an increase of approximately 6% to 14% year-over-year. This outlook reflects continued year-over-year growth while maintaining our focus on premiumization, product mix improvement, pricing power, and long-term profitability.”

[1] Adjusted operating income/(loss) represents operating income/(loss) excluding: (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. See “Reconciliation of GAAP and non-GAAP results” at the end of this press release.

First Quarter of 2026 Financial Results

Revenues

Revenues for the first quarter of 2026 reached US$51.5 million, an increase by 33.8% from the first quarter of 2025. The year-over-year sales increase was mainly driven by new products launches in the first quarter of 2026, including Active Max, Active 3 Premium and T-Rex Ultra 2. The first quarter is traditionally a low season for consumer electronics business.

Gross Margin

Gross margin in the first quarter of 2026 was 37.7%, an increase from 37.3% in the same period of 2025. Several headwinds affected this quarter’s results. Gross margin moderated from 40.4% in the fourth quarter of 2025, as we typically refresh entry-level product lines in the first quarter, and these offerings carry lower gross profitability. In addition, elevated memory component costs and RMB appreciation pressured the gross margin performance.

Research and Development Expenses

Research and development expenses in the first quarter of 2026 were US$13.1 million, compared with US$12.4 million and US$11.0 million in the same period of 2025 and fourth quarter of 2025. Out of the year-over-year and quarter-over-quarter increase of US$0.7 million and US$2.1 million, around US$0.6 million and US$0.3 million were attributable to the foreign currency headwinds, mainly due to appreciation of certain foreign currencies against the U.S. Dollar. The remaining US$1.8 million of quarter-over-quarter increase was due to investment in new products that will be launched in the upcoming quarters. We continued to invest in a series of cutting-edge products as well as new technologies, including AI, to maintain our competitive edge against our peers. At the same time, we focused on refined research and development approaches, consistently evaluating resource efficiency to optimize return on investment and productivity.

Selling and Marketing Expenses

Selling and marketing expenses in the first quarter of 2026 were US$16.6 million, compared with US$13.8 million in the same period of 2025. Out of the year-over-year increase of US$2.8 million, around US$0.8 million was attributable to foreign currency headwinds, mainly due to appreciation of certain foreign currencies against the U.S. Dollar. US$1.4 million is directly attributable to certain e-commerce platform charges, which are proportional sales-channel fees incurred to drive revenue growth. The remaining US$0.6 million was primarily due to frontloaded investments in marketing and branding activities, such as CES and HYROX.

Selling and marketing expenses increased by US$0.7 million compared to the fourth quarter of 2025, out of which around US$0.4 million were attributable to the appreciation of certain foreign currencies against the U.S. Dollar, and the remaining US$0.3 million was mainly due to frontloaded investments in marketing and branding activities, such as CES and HYROX. We continued to invest in selling and marketing activities and expand our Amazfit Athletes team to build brand recognition. At the same time, we consistently pushed on retail profitability and channel mix improvement, including through meticulous refinement of our retail channels and strategic staffing arrangements across sales regions.

General and Administrative Expenses

General and administrative expenses were US$7.4 million in the first quarter of 2026, compared with US$6.5 million in the same period of 2025. Out of the year-over-year increase of US$0.9 million, around US$0.3 million was attributable to foreign currency headwinds, mainly due to the appreciation of certain foreign currencies against the U.S. Dollar. US$0.2 million was related to certain brand and IP protection activities. Excluding the US$6.2 million provisions related to historical business transformation, general and administrative expenses were US$5.2 million in the fourth quarter of 2025. The quarter-over-quarter increase of US$2.2 million was mainly attributable to around US$1.1 million of foreign exchange impact, as well as US$0.2 million severance cost as part of targeted initiatives to enhance organizational efficiency. We continued to streamline overhead, maintaining disciplined cost control while improving operating efficiency.

Operating Expenses

GAAP and adjusted operating expenses[2] for the first quarter of 2026 were US$37.1 million and US$35.7 million, compared with US$32.7 million and US$31.5 million in the same period of 2025. Out of the year-over-year increase of US$4.2 million of adjusted operating expenses, there were foreign currency headwinds of approximately US$1.8 million on operating expenses in the first quarter of 2026, as the majority of the Company’s operating expenses are denominated in RMB. When the RMB appreciates against the U.S. dollar, these RMB-denominated expenses were translated into higher U.S. dollar equivalents. US$1.4 million is directly attributable to certain e-commerce platform charges, which are proportional sales-channel fees incurred to drive revenue growth. The remaining US$0.6 million was primarily due to frontloaded investments in marketing and branding activities, such as CES and HYROX.

GAAP and adjusted operating expenses in the fourth quarter of 2025 were US$38.3 million and US$37.1 million, excluding the US$6.2 million provisions related to historical business transformation. The quarter-over-quarter increase of US$5.0 million was primarily driven by around US$1.8 million foreign exchange impact, a US$1.8 million increase in R&D investment to support new product launches in upcoming quarters, US$0.3 million of front-loaded marketing and branding investments, and US$0.2 million in severance costs related to targeted initiatives to enhance organizational efficiency. We will maintain our cost-conscious approach and remain committed to investing in R&D and marketing activities to ensure our long-term competitiveness.

[2]  Adjusted operating expenses represent operating expenses excluding (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Please refer to the section titled “Reconciliation of GAAP and non-GAAP results” at the end of this press release.

Operating Income/(Loss)

GAAP and adjusted operating results were loss of US$17.7 million and US$16.3 million, compared with loss of US$18.4 million and US$17.2 million in the same quarter of 2025. Higher revenue and improved gross margin were offset by foreign currency headwinds resulting from the appreciation of certain foreign currencies against the U.S. dollar, as well as increased investment in research and development initiatives and marketing and branding activities. As a result, the Company recorded an operating loss for the period, but the operating loss was narrowed compared with the first quarter of 2025.

Net Income/(Loss)

GAAP and adjusted net loss[3] attributable to Zepp Health Corporation for the first quarter of 2026 was US$19.6 million and US$17.9 million, compared to GAAP and adjusted net loss of US$19.7 million and US$18.1 million in the same quarter of 2025. Higher revenue and improved gross margin were offset by foreign currency headwinds resulting from the appreciation of certain foreign currencies against the U.S. dollar, together with increased investment in research and development, as well as marketing and brand-building initiatives. As a result, the Company recorded a net loss for the period, but the loss was narrowed compared with the first quarter of 2025.

[3] Adjusted net income/(loss) attributable to Zepp Health Corporation represents net income/(loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investment, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of the above non-GAAP adjustments. See “Reconciliation of GAAP and non-GAAP results” at the end of this press release.

Liquidity and Capital Resources

As of March 31, 2026, the Company had cash balance (including restricted cash) totaling US$103.2 million, nearly flat compared with US$103.8 million as of March 31, 2025. The cash balance decreased by US$9.7 million compared with US$112.9 million as of December 31, 2025 and was primarily driven by net operating losses, partially offset by improved working capital management. This cash position provides ample runway for the Company to invest and seize potential market opportunities.  

The Company recorded inventory of US$62.8 million as of March 31, 2026, which was lower than US$72.8 million as of December 31, 2025. We will continue to manage the inventory level tightly. The Company improved its management of accounts receivable collections and accounts payable payment terms. The Company will continue to manage working capital closely.

Long-term and short-term debt levels increased by US$11.8 million as of March 31, 2026 compared with December 31, 2025 due to timing differences. The change in the mix between short-term and long-term debt in the first quarter of 2026 was primarily driven by accounting classification, as certain borrowings originally maturing in late 2026 or 2027 were reclassified from long-term debt to short-term debt due to their remaining maturity profile. We continue to actively manage our debt maturity profile and financing costs. As debt approaches maturity, we evaluate prevailing market interest rates and available credit capacity to refinance or extend the duration of our borrowings where appropriate. While the classification between short-term and long-term debt may fluctuate from quarter to quarter, our longer-term focus remains on maintaining disciplined control over total debt levels and optimizing our debt duration and interest expense over time. Since the beginning of 2023, the Company has cumulatively retired US$46.4 million of debt, and will continue to optimize the capital structure for the Company.

Share Repurchase Program Update

The Company announced in its third quarter 2021 earnings release that the board had authorized a share repurchase program of up to US$20 million through November 2022. On November 21, 2022, the board authorized a 12-month extension of the Company’s share repurchase program. On November 20, 2023, the board further authorized the Company to extend its share repurchase program for another 12 months. On November 18, 2024, the board further authorized the Company to extend its share repurchase program for another 24 months. Pursuant to the extended share repurchase program, the Company may repurchase its shares in the form of ADSs and/or ordinary shares through November 2026 with an aggregate value equal to the remaining balance under the share repurchase program. As of March 31, 2026, the Company had used US$17.0 million to repurchase approximately 2.3 million ADSs. The Company expects to fund the repurchases under the extended share repurchase program out of its existing cash balance.

Outlook

For the second quarter of 2026, the Company’s management currently expects net revenues to be between US$63.0 million and US$68.0 million, which would represent an increase by approximately 6% to 14% from US$59.4 million in the second quarter of 2025.

This outlook is based on current market conditions and reflects the Company’s current and preliminary estimates of market, operating conditions and customer demand, which are all subject to change.

Conference Call

The Company’s management team will hold a conference call at 9:30 p.m. Eastern Time on Monday, June 8, 2026 to discuss financial results and answer questions from investors and analysts. Listeners may access the call by dialing:

US (Toll Free):

+1-888-346-8982

International:

+1-412-902-4272

Mainland China (Toll Free):

400-120-1203

Hong Kong (Toll Free):

800-905-945

Participants should dial in at least 10 minutes before the scheduled start time and ask to be connected to the call for “Zepp Health Corporation”.

Additionally, a live and archived webcast of the conference call will be available at http://ir.zepp.com.

A telephone replay will be available one hour after the call until June 15, 2026 by dialing:

US Toll Free:

+1-855-669-9658

International:

+1-412-317-0088

Replay Passcode:

3483283

About Zepp Health Corporation

Zepp Health Corporation (NYSE: ZEPP) is a global leader in smart wearables and health technology, empowering users to live their healthiest lives by optimizing their health, fitness, and wellness journeys through its leading consumer brands, Amazfit, Zepp Clarity, and Zepp Aura. Powered by its proprietary Zepp Digital Management Platform, which includes Zepp OS, AI chips, biometric sensors, and data algorithms, Zepp delivers cloud-based 24/7 actionable insights and guidance to help users attain their wellness goals. To date, Zepp has shipped over 200 million units and served more than 53 million users, and its products are available in more than 150 countries and regions. Zepp Health has team members and offices across the globe, especially in Europe and the United States.

Use of Non-GAAP Measures

We use adjusted net income/(loss), a non-GAAP financial measure, in evaluating our operating results and for financial and operational decision-making purposes. Adjusted operating expenses represent operating expenses excluding (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Adjusted operating income/(loss) represents operating income/(loss) excluding: (i) share-based compensation expenses and (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements. Adjusted EBIT represents net income/(loss) excluding (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, (vi) income tax (benefit)/expense, and (vii) interest income and interest expense. Adjusted net income/(loss) attributable to Zepp Health Corporation is a non-GAAP measure, which excludes (i) share-based compensation expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments, and (vi) tax effects of the above non-GAAP adjustments, and is used as the numerator in computation of adjusted net income/(loss) per share and per ADS attributable to Zepp Health Corporation.

We believe that adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation help identify underlying trends in our business that could otherwise be distorted by the effect of certain expenses that we include in net income/(loss) and net income/(loss) attributable to Zepp Health Corporation. We believe adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation provides useful information about our operating results, enhances the overall understanding of our past performance and future prospects and allows for greater visibility with respect to key metrics used by our management in its financial and operational decision-making.

Adjusted EBIT and adjusted net income/(loss) attributable to Zepp Health Corporation, should not be considered in isolation or construed as an alternative to net income/(loss), basic and diluted net income/(loss) per share and per ADS attributable to Zepp Health Corporation or any other measure of performance or as an indicator of our operating performance. Investors are encouraged to review the historical non-GAAP financial measures to the most directly comparable GAAP measures. Adjusted EBIT and adjusted net income/(loss) attributable to ordinary shareholders, presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as comparative measures to our data. We encourage investors and others to review our financial information in its entirety and not rely on a single financial measure.

Safe Harbor Statement

This announcement contains forward-looking statements. These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “future,” “intends,” “plans,” “believes,” “estimates,” “confident” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: the recognition of the Company’s Amazfit-branded products; the Company’s growth strategies; trends and competition in global wearable technology market; changes in the Company’s revenues and certain cost or expense accounting policies; governmental policies relating to the Company’s industry and general economic conditions around the globe. Further information regarding these and other risks is included in the Company’s filings with the United States Securities and Exchange Commission. All information provided in this press release and in the attachments is as of the date of this press release, and the Company undertakes no obligation to update any forward-looking statement, except as required under applicable law.

For investor and media inquiries, please contact:

In China:
Zepp Health Corporation
Grace Yujia Zhang
Email: ir@zepp.com

Piacente Financial Communications
Tel: +86-10-6508-0677
Email: zepp@tpg-ir.com 

 

Zepp Health Corporation

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands of U.S. dollars (“US$”)

except for number of shares and per share data, or otherwise noted)

As of December 31,

As of March 31,

2025

2026

US$

US$

Assets

Current assets:

Cash and cash equivalents

57,046

52,399

Restricted cash

55,887

50,752

Accounts receivable, net

66,908

56,240

Amounts due from related parties

6,665

6,161

Inventories, net

72,756

62,839

Prepaid expenses and other current assets

34,263

30,870

Total current assets

293,525

259,261

Property, plant and equipment, net

5,662

5,544

Intangible asset, net

13,611

13,205

Goodwill

9,581

9,581

Long-term investments

220,047

222,306

Deferred tax assets

15,743

15,804

Amount due from related parties, non-current

991

997

Other non-current assets

3,718

3,528

Operating lease right-of-use assets

1,958

2,369

Total assets

564,836

532,595

 

Zepp Health Corporation

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS – CONTINUED

(Amounts in thousands of U.S. dollars (“US$”)

except for number of shares and per share data, or otherwise noted)

As of December 31, 

As of March 31,

2025

2026

US$

US$

Liabilities

Current liabilities:

Accounts payable

80,768

59,239

Advance from customers

76

43

Amounts due to related parties

654

585

Accrued expenses and other current liabilities

37,527

35,950

Income tax payables

366

355

Notes payable

111,725

111,112

Short-term bank borrowings

55,728

86,977

Total current liabilities

286,844

294,261

Deferred tax liabilities

2,673

2,710

Long-term borrowings

59,475

40,043

Other non-current liabilities

209

106

Non-current operating lease liabilities

1,102

1,307

Total liabilities

350,303

338,427

 

Zepp Health Corporation

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS – CONTINUED

(Amounts in thousands of U.S. dollars (“US$”)

except for number of shares and per share data, or otherwise noted)

As of December 31,

As of March 31,

2025

2026

US$

US$

Equity

Ordinary shares

26

26

Additional paid-in capital

280,676

281,611

Treasury stock

(16,153)

(16,951)

Accumulated retained earnings/(loss)

(11,450)

(31,093)

Accumulated other comprehensive loss

(38,566)

(39,425)

Total equity

214,533

194,168

Total liabilities and equity

564,836

532,595

 

Zepp Health Corporation

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands of U.S. dollars (“US$”)

except for number of shares and per share data, or otherwise noted)

For the Three Months Ended March 31,

2025

2026

US$

US$

Revenues

38,537

51,547

Cost of revenues

(24,176)

(32,110)

Gross profit

14,361

19,437

Operating expenses:

Selling and marketing

(13,841)

(16,640)

General and administrative

(6,518)

(7,355)

Research and development

(12,377)

(13,134)

Total operating expenses

(32,736)

(37,129)

Operating loss

(18,375)

(17,692)

Other income and expenses:

Interest income

581

331

Interest expense

(1,358)

(1,654)

(Loss)/Gain from fair value change of long-term investments

(125)

77

Other income/(expense), net

4

(52)

Loss before income tax and loss from equity method investments

(19,273)

(18,990)

Income tax expenses

(110)

(214)

Loss before loss from equity method investments

(19,383)

(19,204)

Net loss from equity method investments

(358)

(439)

Net loss attributable to Zepp Health Corporation

(19,741)

(19,643)

Basic and diluted net loss per share attributable to Zepp Health
Corporation

(0.08)

(0.08)

Basic and diluted net loss per ADS (16 ordinary shares equal to 1
ADS)

(1.23)

(1.24)

Weighted average number of shares used in computing basic and
diluted net loss per share

256,410,171

253,929,090

 

Zepp Health Corporation

Reconciliation of GAAP and Non-GAAP Results

(Amounts in thousands of U.S. dollars (“US$”)

except for number of shares and per share data, or otherwise noted)

For the Three Months Ended March 31,

2025

2026

US$

US$

Total operating expenses

(32,736)

(37,129)

Share-based compensation expenses

589

935

Amortization of intangible assets resulting from acquisitions
and business cooperation agreements

635

490

Total adjusted operating expenses

(31,512)

(35,704)

Operating loss

(18,375)

(17,692)

Share-based compensation expenses

589

935

Amortization of intangible assets resulting from acquisitions
and business cooperation agreements

635

490

Adjusted operating loss

(17,151)

(16,267)

Net loss

(19,741)

(19,643)

Share-based compensation expenses

589

935

Amortization of intangible assets resulting from acquisitions
and business cooperation agreements

635

490

Interest income

(581)

(331)

Interest expense

1,358

1,654

Loss/(Gain) from fair value change of long-term investments

125

(77)

Income tax expenses

110

214

Loss from equity method investments

358

439

Adjusted EBIT[4]

(17,147)

(16,319)

Net loss attributable to Zepp Health Corporation

(19,741)

(19,643)

Share-based compensation expenses

589

935

Amortization of intangible assets resulting from acquisitions
and business cooperation agreements

635

490

Gain/(Loss) from fair value change of long-term investments

125

(77)

Tax effects on non-GAAP adjustments

(103)

(83)

Loss from equity method investments

358

439

Adjusted net loss attributable to Zepp Health Corporation

(18,137)

(17,939)

Adjusted basic and diluted net loss per share attributable
to Zepp Health Corporation[5]

(0.07)

(0.07)

Adjusted basic and diluted net loss per ADS (16 ordinary
shares equal to 1 ADS)

(1.13)

(1.13)

Weighted average number of shares used in computing
adjusted basic and diluted net loss per share

256,410,171

253,929,090

Share-based compensation expenses included are as
follows:

Selling and marketing

42

196

General and administrative

286

–

Research and development

261

739

Total

589

935

[4] Adjusted EBIT is a non-GAAP financial measure, which is defined as net loss, excluding (i) share-based compensation
expenses, (ii) amortization of intangible assets resulting from acquisitions and business cooperation agreements, (iii) gain/(loss)
from fair value change of long-term investments, (iv) impairment loss from long-term investments, (v) income/(loss) from equity
method investments, (vi) income tax (benefit)/ expense, and (vii) interest income and interest expense.

[5] Adjusted diluted net income/(loss) is the abbreviation of adjusted net (loss)/income attributable to Zepp Health Corporation,
which is a non-GAAP measure and excludes (i) share-based compensation expenses, (ii) amortization of intangible assets

resulting from acquisitions and business cooperation agreements, (iii) gain/(loss) from fair value change of long-term investments,
(iv) impairment loss from long-term investments, (v) income/(loss) from equity method investments and (vi) tax effects of the
above non-GAAP adjustments, and is used as the numerator in computation of adjusted basic and diluted net loss per ADS
attributable to Zepp Health Corporation.

 

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SOURCE Zepp Health Corp.

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Technology

1exchange Joins Canton to Leverage Privacy-Enabled Blockchain Infrastructure for RWA Tokenization

Published

24 minutes ago

on

August 4, 2026

By

SINGAPORE, Aug. 4, 2026 /PRNewswire/ — 1exchange, a leading regulated real-world asset (RWA) exchange for listing and trading RWA tokens, today announced that it has been approved as a validator on Canton, the only privacy-enabled public blockchain network purpose-built for capital markets. 1exchange will utilize the network’s privacy-preserving, interoperable blockchain infrastructure to support its future tokenization, listing and trading of real-world assets (RWA) with enhanced privacy and security.

As regulated institutional RWA markets continue to evolve, financial institutions increasingly require infrastructure that supports efficient transactions while meeting complex confidentiality, compliance and information-sharing requirements. Canton addresses these needs through its selective disclosure capabilities, enabling participants to share transaction data only with relevant and authorized parties while maintaining interoperability across the network. This provides a foundation for financial institutions to participate in connected RWA markets without compromising the controls expected in modern capital markets.

As a MAS-regulated Recognized Market Operator (RMO), 1exchange provides a regulated marketplace for the tokenization, listing, and secondary trading of real-world assets. By integrating with Canton, 1exchange enhances its tokenization capabilities with privacy-preserving infrastructure purpose-built for institutional assets, enabling issuers to better protect commercially sensitive information, including investor identities, ownership records, and transaction data throughout the asset lifecycle.

1exchange also aims to leverage Canton’s compliance and regulatory controls, including transfer restrictions and investor eligibility requirements, directly into its tokenization process, helping streamline the issuance of regulated digital assets while supporting institutional governance standards.

“The future of tokenization will be defined not only by the assets brought on-chain, but also by the quality of the market infrastructure supporting them,” said Sheena Lim, CEO of 1exchange. “Canton aligns closely with the needs of institutional capital markets. Through this integration, we look forward to exploring new opportunities for tokenized asset issuance and trading while continuing to build a regulated and trusted marketplace for tokenized securities.”

“We’re seeing a growing number of regulated institutions integrate tokenized assets into their existing workflows. These participants need the speed, liquidity, and composability of on-chain markets without compromising confidentiality, governance, or regulatory oversight,” said Yuval Rooz, CEO of Digital Asset and co-founder of Canton. “By joining Canton, 1exchange helps expand our presence in Asia and meet the growing regional demand for secure, interoperable digital asset infrastructures.”

Joining Canton places 1exchange alongside a growing ecosystem of leading global financial institutions and market infrastructure providers, collectively advancing the next generation of regulated digital capital markets.

About 1exchange

1exchange, a member of FOMO Group, is a leading exchange for Real-World Assets (RWA) security tokens and private listings, licensed by the Monetary Authority of Singapore (MAS). Offering full-stack on-chain infrastructure, the platform enables issuers to list enterprise-grade RWAs, while enabling investors to trade modern digital assets in a regulated secondary market, unlocking global liquidity.

Visit www.1x.exchange for more information.
For media inquiries, please contact media@1x.exchange.

About Canton

Canton is the only public, permissionless blockchain purpose-built for institutional finance–uniquely combining privacy, compliance, and scalability. With participation from leading global financial institutions and network governance independently facilitated by the Canton Foundation, Canton enables real-time, secure synchronization and settlement across multiple asset classes on a shared, interoperable infrastructure. The open-sourced network is powered by its native token, Canton Coin, and supports decentralized governance and collaborative application development. It’s the proven link between the promise of blockchain and the power of global finance, making finance flow the way it should. Learn more at: canton.network.

Disclaimer

The information contained in this article is provided strictly for general informational purposes only. It does not constitute financial advice, investment advice, an offer to sell, or a solicitation of an offer to purchase or subscribe for any securities or financial products listed or traded on 1exchange (“1X”).

Investments involve risks, including the possible loss of principal. Past performance is not necessarily indicative of future performance.

Readers should carefully consider their investment objectives, financial circumstances, and risk tolerance, and should conduct their own independent research. Where appropriate, readers are encouraged to seek advice from a qualified financial professional before making any investment decisions.

This advertisement has not been reviewed by the Monetary Authority of Singapore.

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SOURCE 1exchange (“1X”)

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Technology

AudioCodes Reports Second Quarter 2026 Results and Declares Semi-Annual Dividend of 20 cents per share

Published

24 minutes ago

on

August 4, 2026

By

OR YEHUDA, Israel, Aug. 4, 2026 /PRNewswire/ — 

Second Quarter Highlights

Quarterly revenues increased by 3.1% year-over-year to $63 million;Quarterly services revenues increased by 6.2% year-over-year to $34.6 million;GAAP results:
– Quarterly GAAP gross margin was 65.7%;
– Quarterly GAAP operating margin was 5.1%;
– Quarterly GAAP net income was $0.5 million, or $0.02 per diluted share.Non-GAAP results:
– Quarterly Non-GAAP gross margin was 65.8%;
– Quarterly Non-GAAP operating margin was 7.4%;
– Quarterly Non-GAAP net income was $3.9 million, or $0.15 per diluted share;Net cash provided by operating activities was $6.1 million for the quarter.AudioCodes repurchased 950,133 of its ordinary shares during the quarter at an aggregate cost of $8.9 million.

Details

AudioCodes (NASDAQ: AUDC) (the “Company”), a global leader in enterprise voice and VoiceAI business solutions, today announced its financial results for the second quarter ended June 30, 2026.

Revenues for the second quarter of 2026 were $63 million compared to $61.1 million for the second quarter of 2025.

Net income was $0.5 million, or $0.02 per diluted share, for the second quarter of 2026 compared to net income of $0.3 million, or $0.01 per diluted share, for the second quarter of 2025.

On a Non-GAAP basis, net income was $3.9 million, or $0.15 per diluted share, for the second quarter of 2026 compared to $4.1 million, or $0.14 per diluted share, for the second quarter of 2025.

Non-GAAP net income excludes: (i) share-based compensation expenses; (ii) amortization expenses related to intangible assets; and (iii) financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies. Non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating income and non-GAAP operating margin exclude: (i) share-based compensation expenses and (ii) amortization expenses related to intangible assets. Reconciliations of the non-GAAP measures to their most directly comparable GAAP measures are provided in the tables that accompany the condensed consolidated financial statements contained in this press release.

Net cash provided by operating activities was $6.1 million for the second quarter of 2026. Cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments were $64.2 million as of June 30, 2026, compared to $75.7 million as of December 31, 2025. The decrease in cash and cash equivalents, short-term bank deposits, short-term marketable securities, and long-term financial investments was the result of the use of cash for the continued repurchase of the Company’s ordinary shares pursuant to its share repurchase program and the payment of a cash dividend during the first quarter. This was partially offset by cash generated from operating activities and proceeds from the maturity of marketable securities.

“I am pleased to announce strong financial results for the second quarter of 2026, reflecting well on the execution of our strategic initiative to transform AudioCodes into a voice AI-driven cloud software and services company,” stated Shabtai Adlersberg, President and Chief Executive Officer of AudioCodes.

Second-quarter results were propelled again by sustained momentum across our two principal growth pillars: the Live suite of managed services for UCaaS and CX, alongside our Conversational AI business. Collectively, these segments advanced Annual Recurring Revenue (ARR) to $84 million, marking an increase of 20% compared to the year ago period. Notably, our Microsoft Teams business maintained its strong momentum, growing 5% year over year.

Consistent with the first quarter of this year, our Conversational AI business grew by more than 50% year over year in the second quarter, reflecting strong and broad-based demand across our Voice AI portfolio. The growing adoption of voice as the most natural and preferred medium for business communication and collaboration is becoming the experience of many and strengthens our confidence in the long-term growth potential of the business. During the quarter, Voice AI Connect and Live Hub delivered record bookings, driven by an accelerating pipeline, consistent new logo acquisition, and significant expansion within our existing customer base. These solutions support both virtual agent and agent-assist capabilities across the growing contact center market, in both cloud and on-premises deployments. Voca CIC, our Microsoft Teams-certified contact center solution has also generated good business progress. In addition, Meeting Insights, our enterprise-grade meeting intelligence solution for cloud and on-premises environments, continues to gain traction as customer interest grows and the opportunity pipeline steadily expands. 

“Overall, we achieved our operational and financial targets through maintaining budgetary and managerial discipline. The ongoing investments in Live services and Voice AI have significantly contributed to our current success and position us favorably for continued healthy top-line growth throughout the remainder of 2026,” concluded Mr. Adlersberg. 

Share Buy Back Program

In May 2026, the Company received court approval in Israel to purchase up to an aggregate amount of $25 million of ordinary shares. The court approval also permits AudioCodes to declare a dividend out of any part of this amount. The approval is valid through November 12, 2026.

During the quarter ended June 30, 2026, the Company acquired 950,133 of its ordinary shares under its share repurchase program for a total consideration of $8.9 million.

As of June 30, 2026, the Company had $17.4 million available under this approval for the repurchase of shares and/or declaration of cash dividends.

As of June 30, 2026, the total outstanding shares of the Company are 24,590,849.

Cash Dividend

AudioCodes also announced today that the Company’s Board of Directors has declared a semi-annual cash dividend in the amount of 20 cents per share. The aggregate amount of the dividend is approximately $4.8 million. The dividend is payable on September 3, 2026, to all of the Company’s shareholders of record at the close of trading on the NASDAQ Global Select Market on August 19, 2026.

In accordance with Israeli tax law, the dividend is subject to withholding tax at source at the rate of 25% of the dividend amount payable to each shareholder of record, subject to applicable exemptions. If the recipient of the dividend is at the time of distribution or was at any time during the preceding 12-month period the holder of 10% or more of the Company’s share capital, the withholding rate is 30%.

The dividend will be paid in U.S. dollars on the ordinary shares of AudioCodes Ltd. that are traded on the Nasdaq Global Select Market or the Tel-Aviv Stock Exchange. The amount and timing of any other dividends will be determined by the Company’s Board of Directors.

Conference Call & Web Cast Information

AudioCodes will conduct a conference call at 8:30 A.M., Eastern Time today to discuss the Company’s second quarter of 2026 operating performance, financial results and outlook. Interested parties may participate in the conference call by dialing one of the following numbers:

United States Participants: 888-506-0062

International Participants: +1 (973) 528-0011

The conference call will also be simultaneously webcast. Investors are invited to listen to the call live via webcast at the AudioCodes investor website at http://www.audiocodes.com/investors-lobby.

Follow AudioCodes’ social media channels:

AudioCodes invites you to join our online community and follow us on: AudioCodes Voice Blog, LinkedIn, X, Facebook, and YouTube.

About AudioCodes

AudioCodes Ltd. (NASDAQ, TASE: AUDC) is a global leader in enterprise voice and VoiceAI business solutions. We help organizations unlock the full value of voice, transforming every conversation, whether human or AI, into a strategic asset that drives better business outcomes. Our portfolio spans voice connectivity, unified communications and contact center integration, and next-generation voice AI applications that enhance collaboration, automate workflows and deliver real-time insights. With over 30 years of global experience and trusted by 65 of the Fortune 100, AudioCodes powers the intelligent enterprise, connecting people, platforms and data to move business forward.

For more information on AudioCodes, visit http://www.audiocodes.com.

Statements concerning AudioCodes’ business outlook or future economic performance, product introductions and plans and objectives related thereto, and statements concerning assumptions made or expectations as to any future events, conditions, performance or other matters, are “forward-looking statements” as the term is defined under U.S. federal securities laws. Forward-looking statements are subject to various risks, uncertainties, and other factors that could cause actual results to differ materially from those stated in such statements. These risks, uncertainties and factors include, but are not limited to, the following: the effect of global economic conditions in general and conditions in AudioCodes’ industry and target markets in particular, including governmental undertakings to address such conditions; shifts in supply and demand; market acceptance of new products and the demand for existing products; the impact of competitive products and pricing on AudioCodes’ and its customers’ products and markets; timely product and technology development, upgrades, the advent of artificial intelligence, and the ability to manage changes in market conditions and evolving regulatory regimes, as applicable; possible need for additional financing; the ability to satisfy covenants in AudioCodes’ financing agreements; possible impacts and disruptions from AudioCodes’ acquisitions, including the ability of AudioCodes to successfully integrate the products and operations of acquired companies into AudioCodes’ business; possible adverse impacts attributable to any pandemic or other public health crisis on our business and results of operations; the effects of the current and any future hostilities involving Israel, including in the regions in which we or our counterparties operate, which may affect our operations and may limit our ability to produce and sell our solutions; any disruption in our operations by the obligations of our personnel to perform military service as a result of current or future military actions involving Israel; and any other factors described in AudioCodes’ filings made with the U.S. Securities and Exchange Commission from time to time. AudioCodes assumes no obligation to update the information in this release.

©2026 AudioCodes Ltd. All rights reserved. AudioCodes, AC, HD VoIP, HD VoIP Sounds Better, IPmedia, Mediant, MediaPack, What’s Inside Matters, OSN, SmartTAP, User Management Pack, VMAS, VoIPerfect, VoIPerfectHD, Your Gateway To VoIP, 3GX, AudioCodes One Voice, AudioCodes Meeting Insights, and AudioCodes Room Experience are trademarks or registered trademarks of AudioCodes Limited. All other products or trademarks are property of their respective owners. Product specifications are subject to change without notice.

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

U.S. dollars in thousands      

June 30,

December 31,

2026

2025

(Unaudited)

(Unaudited)

ASSETS

CURRENT ASSETS:

Cash and cash equivalents

$ 51,414

$ 45,282

Short-term bank deposits

255

239

Short-term marketable securities

10,001

27,350

Trade receivables, net

62,877

67,358

Other receivables and prepaid expenses

18,581

19,064

Inventories

23,764

22,032

Total current assets

166,892

181,325

LONG-TERM ASSETS:

Long-term Trade receivables

$ 10,785

$ 13,065

Long-term financial investments

2,492

2,790

Deferred tax assets

7,026

7,773

Operating lease right-of-use assets

31,573

30,077

Severance pay funds

23,057

21,163

Total long-term assets

74,933

74,868

PROPERTY AND EQUIPMENT, NET

29,636

29,248

GOODWILL, INTANGIBLE ASSETS AND OTHER, NET

37,560

37,579

Total assets

$ 309,021

$ 323,020

LIABILITIES AND SHAREHOLDERS’ EQUITY

CURRENT LIABILITIES:

Trade payables

9,439

6,416

Other payables and accrued expenses

29,640

30,284

Deferred revenues

41,466

38,243

Short-term operating lease liabilities

7,430

6,635

Total current liabilities

87,975

81,578

LONG-TERM LIABILITIES:

Accrued severance pay

$ 19,097

$ 18,278

Deferred revenues and other liabilities

22,230

20,517

Long-term operating lease liabilities

33,938

31,348

Total long-term liabilities

75,265

70,143

Total shareholders’ equity

145,781

171,299

Total liabilities and shareholders’ equity

$ 309,021

$ 323,020

 

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

U.S. dollars in thousands, except per share data

 Six months ended

Three months ended

 June 30,

June 30,

2026

2025

2026

2025

(Unaudited)

(Unaudited)

Revenues:

Products

$ 56,508

$ 56,290

$ 28,378

$ 28,515

Services

68,593

65,162

34,580

32,563

Total Revenues

125,101

121,452

62,958

61,078

Cost of revenues:

Products

20,160

21,936

10,249

10,919

Services

22,455

21,258

11,348

11,035

Total Cost of revenues

42,615

43,194

21,597

21,954

Gross profit

82,486

78,258

41,361

39,124

Operating expenses:

Research and development, net

27,354

25,899

13,296

12,873

Selling and marketing

40,664

38,376

20,984

19,815

General and administrative

7,906

7,738

3,883

3,836

Total operating expenses

75,924

72,013

38,163

36,524

Operating income

6,562

6,245

3,198

2,600

Financial income (expenses), net

(2,141)

522

(1,759)

(1,194)

Income before taxes on income

4,421

6,767

1,439

1,406

Taxes on income, net

(1,991)

(2,445)

(962)

(1,100)

Net income

$ 2,430

$ 4,322

$ 477

$ 306

Basic net earnings per share

$ 0.09

$ 0.15

$ 0.02

$ 0.01

Diluted net earnings per share

$ 0.09

$ 0.15

$ 0.02

$ 0.01

Weighted average number of shares used in computing
 basic net earnings per share (in thousands)

25,826

29,202

25,185

28,877

Weighted average number of shares used in computing
 diluted net earnings per share (in thousands)

26,322

29,699

25,753

29,353

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands, except per share data

Six months ended

Three months ended

June 30,

June 30,

2026

2025

2026

2025

(Unaudited)

(Unaudited)

Gross profit

$ 82,486

$ 78,258

$ 41,361

$ 39,124

Gross margin

65.9 %

64.4 %

65.7 %

64.1 %

Share-based compensation (1)

153

225

75

130

Amortization expenses (2)

–

244

–

122

Non-GAAP gross profit

82,639

78,727

41,436

39,376

Non-GAAP gross margin

66.1 %

64.8 %

65.8 %

64.5 %

Operating income

$ 6,562

$ 6,245

$ 3,198

$ 2,600

Operating margin

5.2 %

5.1 %

5.1 %

4.3 %

Share-based compensation (1)

2,811

3,276

1,422

1,688

Amortization expenses (2)

19

266

8

133

Non-GAAP operating income

9,392

9,787

4,628

4,421

Non-GAAP operating margin

7.5 %

8.1 %

7.4 %

7.2 %

Net income

$ 2,430

$ 4,322

$ 477

$ 306

Net earnings per share

$ 0.09

$ 0.14

$ 0.02

$ 0.01

Share-based compensation (1)

2,811

3,276

1,422

1,688

Amortization expenses (2)

19

266

8

133

Exchange rate differences (3)

2,388

918

1,980

1,953

Non-GAAP net income

$ 7,648

$ 8,782

$ 3,887

$ 4,080

Non-GAAP diluted net earnings per share

$ 0.28

$ 0.29

$ 0.15

$ 0.14

Weighted average number of shares used in computing
 Non-GAAP diluted net earnings per share (in thousands)

27,075

30,422

26,430

30,120

(1)  Share-based compensation expenses related to options and restricted share units granted to employees and others.

(2)  Amortization expenses related to intangible assets.

(3)  Financial income (expenses) related to exchange rate differences in connection with revaluation of assets and liabilities in non-dollar denominated currencies.

Note:  Non-GAAP measures should be considered in addition to, and not as a substitute for, the results prepared in accordance with GAAP.  The Company believes that non-GAAP information is useful because it can enhance the understanding of its ongoing economic performance and therefore uses internally this non-GAAP information to evaluate and manage its operations. The Company has chosen to provide this information to investors to enable them to perform comparisons of operating results in a manner similar to how the Company analyzes its operating results and because many comparable companies report this type of information.

The non-GAAP measures used by the Company may not be comparable to similarly titled non-GAAP measures used by other companies.

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Six months ended

Three months ended

June 30,

June 30,

2026

2025

2026

2025

(Unaudited)

(Unaudited)

Cash flows from operating activities:

Net income

$ 2,430

$ 4,322

$ 477

$ 306

Adjustments required to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,212

1,913

1,131

959

Amortization of marketable securities premiums and accretion of discounts, net

122

197

44

93

Decrease (increase) in accrued severance pay, net

(1,075)

76

(823)

(57)

Share-based compensation expenses

2,811

3,276

1,422

1,688

Decrease in deferred tax assets, net

690

307

165

(312)

Cash financial loss (income), net

407

22

168

(31)

Decrease in operating lease right-of-use assets

2,263

2,199

1,057

1,453

Decrease (increase) in operating lease liabilities

(374)

422

786

1,965

Decrease (increase) in trade receivables, net

6,761

(3,136)

(2,905)

(3,922)

Decrease (increase) in other receivables and prepaid expenses

483

(4,444)

850

(6,827)

Decrease (increase) in inventories

(1,866)

4,976

(911)

2,121

Increase in trade payables

2,883

87

1,269

1,376

Decrease in other payables and accrued expenses

(4,150)

6,750

2,009

9,345

Increase in deferred revenues

5,320

4,215

1,357

(432)

Net cash provided by operating activities

18,917

21,182

6,096

7,725

Cash flows from investing activities:

Proceeds from short-term deposits

(16)

(18)

(13)

(19)

Proceeds from financial investment

122

178

88

65

Proceeds from maturity of marketable securities

17,377

3,200

14,377

–

Purchase of financial investments

(135)

(442)

(135)

–

Purchase of property and equipment

(2,296)

(3,259)

(1,051)

(1,785)

 

Net cash provided by (used in) investing activities

15,052

(341)

13,266

(1,739)

 

 

AUDIOCODES LTD. AND ITS SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

U.S. dollars in thousands

Six months ended

Three months ended

June 30,

June 30,

2026

2025

2026

2025

(Unaudited)

(Unaudited)

Cash flows from financing activities:

Purchase of treasury shares

(22,548)

(11,818)

(8,876)

(6,610)

Cash dividends paid to shareholders

(5,289)

(5,326)

–

–

Proceeds from issuance of shares upon exercise of options

–

173

–

110

Net cash used in financing activities

(27,837)

(16,971)

(8,876)

(6,500)

Net increase (decrease) in cash and cash equivalents

6,132

3,870

10,486

(514)

Cash and cash equivalents at beginning of period

45,282

58,749

40,928

63,133

Cash and cash equivalents at end of period

$ 51,414

$ 62,619

$ 51,414

$ 62,619

 

 

Company Contacts

Niran Baruch,

Chief Financial Officer 

AudioCodes

Tel: +972-3-976-4000

niran.baruch@audiocodes.com

Roger L. Chuchen

VP, Investor Relations

AudioCodes

Tel:  +1-732-764-2552

roger.chuchen@audiocodes.com

 

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View original content:https://www.prnewswire.com/news-releases/audiocodes-reports-second-quarter-2026-results-and-declares-semi-annual-dividend-of-20-cents-per-share-302842022.html

SOURCE AudioCodes

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Technology

Prologis Announces Recommended Acquisition of SEGRO plc

Published

24 minutes ago

on

August 4, 2026

By

Combination expands Prologis’ European platform and enhances long-term growth opportunities

SAN FRANCISCO, Aug. 4, 2026 /PRNewswire/ — Prologis, Inc. (NYSE: PLD) today announced that it has reached agreement with the board of SEGRO plc (LSE: SGRO) on the terms of a recommended acquisition of SEGRO, valuing SEGRO’s entire issued and to be issued ordinary share capital at approximately $18.8 billion.

Daniel S. Letter, chief executive officer of Prologis, commented:

“We are pleased to have reached agreement with the SEGRO Board on a combination that we believe will create meaningful value. This deal brings together SEGRO’s exceptional portfolio and customer relationships with Prologis’ global platform, operating expertise and financial strength.

We have great respect for SEGRO, its people and the business they have built over many years. The constructive engagement between our leadership teams throughout this process has reinforced our confidence in the opportunity ahead.

As we move forward, we will approach the work ahead thoughtfully and deliberately. We look forward to building on the strengths of both companies and creating even greater value for our customers and shareholders.”

Combination Highlights

The combination will:

bring together two premier portfolios in a global platform with approximately $269 billion of assets under management;strengthen the customer value proposition through a more connected global network;create a European operating portfolio of 368 million square feet, expanding Prologis’ European footprint by 47%;establish a combined European development pipeline of 13 million square feet while increasing Prologis’ European land bank by 126%; andexpand long-term growth opportunities across logistics, energy and digital infrastructure.

Transaction Terms

Under the terms of the recommended acquisition, SEGRO shareholders will receive 0.0920 new Prologis shares for each SEGRO share. Shareholders may elect to receive cash in lieu of some or all of their Prologis share consideration, subject to the terms of the partial cash alternative. SEGRO shareholders will also be entitled to receive and retain any 2026 interim dividend of up to 10.14 pence per SEGRO share and any 2026 final dividend of up to 22.56 pence per SEGRO share, which SEGRO intends to pay prior to closing.

The maximum aggregate amount of cash available under the partial cash alternative is approximately £3.5 billion. Each SEGRO shareholder’s basic entitlement under the partial cash alternative is equal to 25% of the fixed price of 1,031.7 pence per SEGRO share. Accordingly, a shareholder electing to receive only its basic entitlement would receive 258 pence in cash and 0.0690 new Prologis shares for each SEGRO share.

Shareholders may elect to receive less than or more than their basic entitlement. Elections to receive cash in excess of the basic entitlement will be scaled back on a pro rata basis if aggregate cash elections exceed the maximum cash available. Shareholders who do not elect to participate in the partial cash alternative will receive 0.0920 new Prologis shares for each SEGRO share.

The cash consideration payable under the partial cash alternative will be funded through a committed term loan facility, together with existing liquidity and other available sources of funding.

Further details are available in the Rule 2.7 announcement, which is posted on the transaction microsite accessible through Prologis’ investor relations website.

Expected Financial Impact

The combination is expected to enhance Prologis’ long-term earnings and return potential. In the first full year following completion, assuming annualized run-rate synergies, the combination is expected to have a broadly neutral to minimally dilutive impact on Core FFO per share and AFFO per share.

Prologis expects to maintain A2/A credit ratings from Moody’s and S&P.

Approvals and Timing

The boards of Prologis and SEGRO have reached agreement on the terms of the transaction, and the SEGRO board unanimously intends to recommend it. The transaction is expected to close in the first half of 2027, subject to the requisite approvals of SEGRO shareholders, sanction of the scheme by the court, receipt of applicable regulatory approvals and satisfaction of customary closing conditions.

The transaction does not require approval by Prologis shareholders.

As part of the transaction, Prologis will apply for a secondary listing of its shares on the London Stock Exchange, with the approval of that application being a condition to completion.

ABOUT PROLOGIS
The world runs on logistics. At Prologis, we don’t just lead the industry, we define it. We create the intelligent infrastructure that powers global commerce, seamlessly connecting the digital and physical worlds. From agile supply chains to clean energy solutions, our ecosystems help your business move faster, operate smarter and grow sustainably. With unmatched scale, innovation and expertise, Prologis is a category of one–not just shaping the future of logistics but building what comes next. Learn more at Prologis.com.

FURTHER INFORMATION
This document is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securities or the solicitation of any vote in any jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended, or pursuant to an exemption from registration under the Securities Act of 1933, as amended.

FORWARD-LOOKING STATEMENTS
The statements in this document that are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on current expectations, estimates and projections about the industry and markets in which we and SEGRO operate as well as management’s beliefs and assumptions. Such statements involve uncertainties that could significantly impact our financial results. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “will,” “can” and “estimates” including variations of such words and similar expressions are intended to identify such forward-looking statements, which generally are not historical in nature. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to the combination, rent and occupancy growth, acquisition and development activity, including data center developments and power procurement related thereto, contribution and disposition activity, general conditions in the geographic areas where we and SEGRO operate, expectations regarding new lines of business, our and SEGRO’s respective debt, capital structure and financial position, our or SEGRO’s ability to earn revenues from co-investment ventures, form new co-investment ventures and the availability of capital in existing or new co-investment ventures—are forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that our expectations will be attained and, therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements. Some of the factors that may affect outcomes and results include, but are not limited to: (i) Prologis’ and SEGRO’s ability to complete the combination on the proposed terms or on the anticipated timeline, or at all, including risks and uncertainties relating to satisfying the conditions to the combination; (ii) the effect of the combination on the ability of Prologis and SEGRO to operate their respective businesses and retain and hire key personnel and to maintain favorable business relationships; (iii) failure to realize expected benefits or synergies of the combination; (iv) significant transaction costs and/or unknown or inestimable liabilities; (v) the risk of shareholder litigation in connection with the combination, including resulting expense or delay; (vi) the risk that SEGRO’s business will not be integrated successfully or that such integration may be more difficult, time-consuming or costly than expected; (vii) risks related to future opportunities and plans for the combined company, including the uncertainty of expected future financial performance and results of the combined company following the closing of the transaction; (viii) risks related to the market value of the Prologis shares to be issued as consideration in the combination, including foreign currency exchange rates; (ix) other risks related to the completion of the combination and actions related thereto; (x) international, national, regional and local economic and political climates and conditions; (xi) changes in global financial markets, interest rates and foreign currency exchange rates; (xii) increased or unanticipated competition for our properties; (xiii) risks associated with acquisitions, dispositions and development of properties, including those specific to data center development and the integration of the operations of significant real estate portfolios; (xiv) maintenance of Real Estate Investment Trust status, tax structuring and changes in income tax laws and rates; (xv) availability of financing and capital, the levels of debt that we maintain and our credit ratings; (xvi) risks related to our investments in our co-investment ventures, including our ability to establish new co-investment ventures; (xvii) risks of doing business internationally, including currency risks; (xviii) environmental uncertainties, including risks of natural disasters; and (xix) those additional factors discussed in reports filed with the Securities and Exchange Commission by us under the heading “Risk Factors.” We undertake no duty to update any forward-looking statements appearing in this document except as may be required by law.

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SOURCE Prologis, Inc.

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