Key takeaway

EZVIZ’s 2026H1 revenue maintained steady growth, while profit performance was particularly strong, mainly benefiting from continuous optimization of business and cost structure, as well as a significant increase in gross margin driven by lean supply chain management. The smart home entry solutions business maintained strong growth momentum, the growth potential of cloud platform services continued to be released, and the company actively expanded into overseas markets, with the proportion of overseas business increasing. As AI technology deeply empowers various business lines and smart home market demand continues to recover, the company’s profitability is expected to improve further.

Event

On July 24, 2026, EZVIZ released its 1H26 results. In 2026H1, the company achieved operating revenue of RMB3.007bn (YoY+6.35%), while net profit attributable to shareholders of the parent company reached RMB410mn (YoY+35.44%), with net margin at 13.62% (YoY+2.92pcts);in 2Q26, the company achieved operating revenue of RMB1594mn (YoY+10.16%), while net profit attributable to shareholders of the parent company reached RMB227mn (YoY+38.07%), with net margin at 14.24% (YoY+2.88pcts).

Risks

1) Demand falls short of expectations: In China, smart cameras are more widely used in commercial scenarios. Referring to the smart lock market, the B-end market share exceeds 50%, while demand from the C-end is also expected to gradually increase. Following the adjustment and optimization of domestic pandemic prevention and control measures, if the recovery pace of offline consumption scenarios remains slow or consumer purchasing power fails to recover quickly, demand for smart cameras may struggle to rebound rapidly.

2) Slower-than-expected channel expansion: Ezviz has adopted a diversified channel strategy, with a focus on offline distributors. If the pace of distributor expansion—both domestic and overseas—slows, or if professional clients reduce their investment in smart home businesses, the company may face growth headwinds on the channel front.

3) Underperformance in cloud platform business: The payment rate and ARPU of the EZVIZ cloud platform are relatively low, both at around 30% of those of peers. Meanwhile, value-added consumer services account for over 50% of cloud platform revenue, and the cloud platform contributes over 30% of total profit. If ARPU continues to decline year by year and the paying user ratio fails to improve—or even drops—the company’s profitability could be negatively impacted.