Viomi Signals Confidence With Share Buyback Amid Market Volatility

GUANGZHOU, China – January 02, 2026 – Viomi Technology Co., Ltd (NASDAQ: VIOT), a company specializing in AI-driven home water solutions, has reaffirmed its confidence in its long-term strategy by providing an update on its ongoing share repurchase program. The move comes amid a volatile period for the company’s stock, signaling a deliberate effort by management to bolster shareholder value and broadcast faith in its underlying fundamentals.

The company announced it has repurchased approximately 1.02 million of its American depositary shares (ADSs) for a total of US$2.5 million as of December 31, 2025. This action is part of a larger US$20 million buyback program approved by its board on October 24, 2025, which is slated to run until the end of 2027. With US$17.5 million remaining, the company has significant firepower to continue its repurchases.

“We are pleased with the progress of our share repurchase program, which underscores our confidence in the Company’s fundamentals and long-term growth prospects,” stated Mr. Xiaoping Chen, Founder and CEO of Viomi, in the original announcement. “With our robust cash position and our ‘Global Water’ strategy, we are well-positioned to continue delivering sustainable value for our shareholders.”

A Financial Maneuver in a Turbulent Market

Share buybacks are often interpreted by investors as a strong signal that a company's leadership believes its stock is undervalued. By using its existing cash reserves to purchase its own shares from the open market, Viomi is effectively reducing the number of outstanding shares, which can increase earnings per share and support the stock price.

The initial announcement of the program in October 2025 was met with enthusiasm, causing Viomi's stock to surge over 20% on the day. However, the market's reaction since has been more complex. Following the latest update, the stock saw a brief pre-market bump before declining slightly, reflecting a broader trend of investor caution. Over the last three months, the stock has fallen by nearly 47%, even as it remains up over 23% for the past year. This volatility highlights the challenging environment for many US-listed Chinese technology firms.

Despite the stock's choppy performance, Viomi’s financial footing appears solid. The buyback is funded entirely from existing cash reserves, a move supported by financial data indicating a healthy balance sheet where cash holdings comfortably exceed debt obligations. The company returned to profitability in the first half of 2024 and has since seen its net income grow by over 180% in 2025. This financial stability was further reinforced when Viomi regained compliance with NASDAQ's periodic filing requirements in October 2025, securing its place on the exchange.

Analyst sentiment remains mixed, with some issuing cautious or "Sell" ratings, while others see the stock as undervalued compared to its peers based on its price-to-sales ratio. The repurchase program is seen by many as a prudent step to help stabilize the shares and reward long-term investors who believe in the company’s strategic direction.

Beyond the Buyback: Fueling a 'Global Water' Strategy

The financial stability demonstrated by the buyback is critical as it underpins Viomi’s ambitious “Global Water” strategy. Following a strategic reorganization in 2024 to divest underperforming segments, the company has sharpened its focus exclusively on its core mission: “AI for Better Water.”

Central to this strategy is a distinctive “Equipment + Consumables” business model. Viomi doesn't just sell water purifiers; it creates an ongoing relationship with the consumer. Its smart devices use AI to monitor water quality and filter lifespan in real-time, simplifying maintenance with automated reminders and one-click ordering for replacement cartridges. This ecosystem is designed to increase the filter replacement rate, creating a reliable, recurring revenue stream.

This entire operation is supported by Viomi's state-of-the-art “Water Purifier Gigafactory.” This integrated facility enables the company to achieve significant economies of scale, control quality meticulously, and innovate rapidly. The factory is key to driving down costs and accelerating the global adoption of residential water filtration.

Technological innovation is at the forefront of Viomi's product lineup. The company has moved towards tankless, large-flux water purifiers that provide fresh, purified water on demand, eliminating the risk of secondary contamination from stored water. Advanced systems incorporate ERO electrodialysis, allowing users to choose between pure water and mineral-enriched water. Products like the Viomi Kunlun Mineral AI Water Purifier, which launched in 2024, exemplify this push toward customizable, health-oriented solutions. This innovation extends to a growing intellectual property portfolio, which includes over 1,800 patents in water purification technology.

Navigating a Competitive and Growing Market

Viomi is operating in a rapidly expanding market. The global home water filtration market was valued at over US$20 billion in 2024 and is projected by some analysts to exceed US$50 billion by 2033, driven by rising health consciousness and widespread concerns over water quality.

The Asia Pacific region, particularly China, is the epicenter of this growth, accounting for the largest share of market demand. China's domestic water purifier market alone is expected to grow from roughly US$2.8 billion in 2023 to over US$4.1 billion by 2028. This growth is fueled by a burgeoning middle class, increasing disposable income, and government initiatives aimed at ensuring safe drinking water.

However, this opportunity comes with intense competition. The market is crowded with international heavyweights like 3M and A.O. Smith, as well as domestic giants such as Midea and Haier. Viomi also competes within the vast Xiaomi smart home ecosystem, where it must continually innovate to stand out. The dominant trends favor point-of-use systems, advanced reverse osmosis (RO) technology, and integrated smart devices—all areas where Viomi is concentrating its efforts.

Viomi’s “Global Water” strategy explicitly targets expansion beyond China. The company has made inroads into the U.S. market, with its products achieving high rankings on Amazon, and has recently expanded its marketing efforts in Malaysia. This international push is crucial for its long-term growth and diversification away from the hyper-competitive Chinese domestic market.