Viomi Technology (NASDAQ:VIOT) outlined progress on its “Global Water” strategy while reporting mixed results between the second half and the full year of 2025, as management highlighted overseas expansion, product development, and stepped-up brand investments during the company’s earnings call.
Second-half results pressured by category and mix changes
For the second half of 2025, Viomi reported net revenue of CNY 950.6 million, down 25.9% from CNY 1,282.4 million in the prior-year period. Management attributed the decline primarily to lower revenue from home water systems, including a drop in additional service fees for water purifiers.
- Home water systems revenue was CNY 628.2 million, down 32.1% year over year, driven mainly by a decline in additional service fees.
- Consumables revenue was CNY 112.2 million, down 17.9%, primarily due to decreased sales of water purifier filters to Xiaomi.
- Kitchen appliances and others revenue was CNY 210.2 million, down 4.5%, which management linked to reduced orders from Xiaomi and the build-out of the company’s Wellme-branded products in the category.
Gross profit in the second half was CNY 223.8 million versus CNY 289.5 million a year earlier, while gross margin improved to 23.5% from 22.6%. Sam Yang, head of capital and investment, said the margin increase was “merely due to the elimination of the impact” from one-off costs incurred during the divestment of certain IoT-at-home business assets.
Operating expenses rose 12% year over year to CNY 248.0 million, driven by higher selling and marketing spending, partially offset by lower general and administrative expenses. The company reported second-half net income attributable to the company of CNY 21.2 million and non-GAAP net income of CNY 28.2 million.
Full-year 2025 revenue grew 14.6% as expenses increased
For full-year 2025, Viomi reported net revenues of CNY 2,428.2 million, up 14.6% from CNY 2,119.0 million in 2024. Net income attributable to ordinary shareholders was CNY 141.6 million, and management cited a net profit margin of 5.8% for the year. Non-GAAP net income attributable to shareholders was CNY 155.7 million.
Full-year revenue by category was described as follows:
- Home water systems revenue rose 12.6% to CNY 1,686.6 million.
- Consumables revenue fell 14.2% to CNY 235.4 million.
- Kitchen appliances and others revenue increased 47.6% to CNY 506.2 million.
Full-year gross profit increased to CNY 615.0 million from CNY 548.7 million, while gross margin declined to 25.3% from 25.9%. Operating expenses increased 24.6% to CNY 529.4 million, reflecting higher R&D, selling and marketing, and G&A costs. Yang said R&D spending rose due to increased investment in new product development, while selling and marketing costs climbed on brand promotion and higher personnel costs tied to channel expansion.
Global Water strategy: North America and Southeast Asia in focus
Founder and CEO Xiaoping Chen emphasized continued execution of the company’s Global Water strategy, including the formation of multinational teams across North America, Southeast Asia, and Europe. Chen said the company is working to use AI to improve product experience and position Viomi as a “world-leading water technology company.”
In North America, management highlighted momentum on Amazon during the second half, citing triple-digit sequential sales growth. Chen said that during Black Friday promotions, Viomi ranked 19th in the water purifier category and fourth in the under-sink RO tankless segment. The company also pointed to its premium flagship Master One Mineral Water Purifier as an expansion of its portfolio.
In Southeast Asia, Viomi said it is deepening channel cooperation in Malaysia and launched a compact “Inno” mineral water dispenser tailored to local preferences, featuring mineralization and cooling functions.
Brand-building and offline channel ambitions
On brand development, Chen said Viomi’s self-owned brand revenue in 2025 was primarily driven by domestic online channels, and the company ranked 10th among annual brands on JD.com. For the U.S., he reiterated the company’s 19th-place sales ranking on Amazon as a sign of progress.
Looking ahead, management said it will pursue a differentiated approach in North America, with distinct branding and positioning for online and offline channels. Chen said the company plans to participate in the World of Coffee event in San Diego and unveil a new brand series at the WQA Convention in Miami in April 2026, describing this as an initial step into U.S. offline markets and a venue to present its “AI for Better Water” vision to partners.
Manufacturing, patents, and shareholder returns
Chen said the company reached a milestone in the global expansion of its water purifier “gigafactory,” noting the commencement of full operations of an overseas premium production line integrating modular functions such as instant heating and cooling and ice making. He said this is intended to provide agile supply chain support for differentiated overseas market needs.
As of the end of 2025, Chen said Viomi’s global patent applications surpassed 1,950 across 14 countries and regions, and he cited areas such as AI-driven water quality algorithms, precision mineral control, and intelligent self-cleaning as core technical capabilities.
On capital returns, management said Viomi declared a special dividend of $0.088 per ADS in July 2025 and authorized a $20 million share repurchase program in August 2025. By the end of 2025, the company said it had repurchased 1.03 million ADS for approximately $2.5 million. In its earnings release, the company also declared another special dividend of $0.06 per share (aggregate CNY 31 million, according to management).
As of Dec. 31, 2025, the company reported cash and cash equivalents of CNY 806.6 million, restricted cash of CNY 164.4 million, short-term deposits of CNY 258.0 million, and short-term investments of CNY 82.6 million.
During Q&A, management addressed domestic demand following changes in national subsidies, stating that water purifier penetration remains relatively low and demand “is still growing.” Chen also discussed partnerships with gas companies including China Gas and ENN Energy, describing 2026 as a pilot year and saying the partners’ networks could help Viomi reach lower-tier markets through installation- and service-driven distribution. For overseas markets, Chen said the company expects “triple-digit growth” in overseas revenue in 2026, while also acknowledging geopolitical and other uncertainties.
About Viomi Technology (NASDAQ:VIOT)
Viomi Technology Co, Ltd. (NASDAQ: VIOT) is a China-based provider of smart home appliances and Internet of Things (IoT) solutions. The company develops, manufactures and markets a wide range of connected home products, including water purifiers, water dispensers, washing machines, refrigerators, ovens, air conditioners and kitchen appliances. By integrating hardware design with proprietary software and cloud-based services, Viomi delivers automated control, remote monitoring and data analytics to enhance user convenience, energy efficiency and home safety.
At the core of Viomi’s offerings is its open IoT platform, which supports device interconnectivity and cross-brand compatibility.
