Waterdrop Inc. Announces Second Quarter 2025 Unaudited Financial Results and a Cash Dividend, Net profit rises 58.7% year-on-year

Rhea-AI Summary

Waterdrop Inc. (NYSE: WDH) reported strong Q2 2025 financial results, with net operating revenue reaching RMB 838.0 million, up 23.9% year-over-year. The company's net profit surged 58.7% to RMB 140.2 million, marking its 14th consecutive profitable quarter.

The insurance business showed exceptional performance with first-year premiums increasing 80.2% to RMB 3,204.3 million. Operating profit from insurance reached RMB 170.9 million, up 39% YOY. The company enhanced its product portfolio with innovative offerings, including the industry's first Million Medical Insurance policy with no health declaration requirement.

The board approved an enhanced cash dividend of US$10.9 million, a 50% increase over the previous dividend. The company's AI initiatives, including 'KEYI.AI' and Waterdrop Guardian, have significantly improved operational efficiency and user experience.

Positive

• Net profit increased by 58.7% year-over-year to RMB 140.2 million
• Insurance first-year premiums grew 80.2% YOY to RMB 3,204.3 million
• Operating expenses decreased by 6.4 percentage points year-on-year
• Cash dividend increased by 50% to US$10.9 million
• Insurance business operating profit up 39% YOY to RMB 170.9 million
• AI-driven sales showed 155% growth in monthly premiums quarter-over-quarter

Negative

• None.

BEIJING, Sept. 4, 2025 /PRNewswire/ -- On September 4, 2025, Waterdrop Inc. (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare services with a positive social impact, unveiled its unaudited financial results for the three months ended June 30, 2025. During the quarter, Waterdrop reported net operating revenue of RMB 838.0 million, representing an increase of 23.9% year-over-year. Net profit attributable to ordinary shareholders totaled RMB 140.2 million, up 58.7% from the previous year, sustaining profitability for the fourteenth consecutive quarter. Operating expenses, including sales, administrative, and R&D expenses, accounted for 38.7% of revenue, a decrease of 6.4 percentage points year-on-year.

Since announcing its first share repurchase program in September 2021, As of August 31, 2025, Waterdrop has repurchased approximately 55.7 million American Depositary Shares (ADSs) from the open market. The board of directors of the company has recently approved an enhanced cash dividend of US$10.9 million, representing a 50% increase over the previous dividend.

Insurance Business: First-year premiums increased by 80.2% YOY

Waterdrop's insurance-related revenue amounted to RMB 738.6 million in the Second quarter of 2025, representing an increase of 28.7% year-over-year. The insurance business operating profit reached RMB 170.9 million,representing an increase of 39% year-over-year. First-year premiums (FYPs) generated by insurance business amounted to RMB 3,204.3 million, representing an increase of 80.2% year over year.

The insurance business delivered an exceptional quarter. Year-over-year, FYP grew by 95.0% in short-term policies and 45.4% in long-term ones. These results underscore the effectiveness of our strategic focus on enhanced user acquisition, accelerated product iteration, and the implementation of AI-enhanced services.

On the product supply side, Waterdrop Insurance Marketplace has continued to expand its range of insurance offerings. It introduced the industry's first Million Medical Insurance policy with no health declaration required and guaranteed renewal for five consecutive years, making it accessible even to those with chronic or subhealth conditions, and renewable up to age 105. The maternity insurance product "Jie Hao Yun", custom-developed by Waterdrop, has been upgraded to version 6.0, becoming the first maternity insurance in the industry to cover mothers with pre-existing conditions. Additionally, Waterdrop's suite of insurance products for people with pre-existing conditions has significantly lowered the barrier to entry for users. Moreover, the company's disability insurance products reflecting strong user adoption.

Waterdrop Medical Crowdfunding cumulatively Raised RMB 70 Billion for 3.54 Million Patients

During the quarter, Waterdrop Medical Crowdfunding upheld its mission of "saving lives" with remarkable success. As of June 30, 2025, around 480 million people cumulatively donated an aggregate of RMB 70 billion to 3.54 million patients through Waterdrop Medical Crowdfunding.

This quarter, Waterdrop Medical Crowdfunding partnered with Guangzhou's Civil Affairs Bureau to launch 'Waterdrop Co-Help', the first project under the new designation as a government-endorsed platform that integrates social and public welfare resources.

E-Find Platform enrolled 999 patients this quarter

Waterdrop's Digital Clinical Trial Solution has maintained its growth in the second quarter of 2025, generating revenues of approximately RMB 27.7 million, representing an increase of 34.2% year-over-year. As of June 30, 2025, the Company had cumulatively enrolled 12,216 patients into 1,385 clinical trial programs through the E-Find Platform.

In this quarter, E-Find Platform expanded its collaboration to 198 pharmaceuticals and contract research organizations. Meanwhile, E-Find Platform initiated services for 114 new programs. The number of patients enrolled also reached a historic high, as 999 patients were enrolled in the second quarter.

FYP Facilitated by AI Medical Insurance Expert climbed 155%

"Waterdrop Guardian" AI Application Suite constantly evolves, either interacting directly with end users or supercharging the online consultants behind the scenes. Monthly premiums facilitated by 'AI Medical Insurance Expert' climbed 155% versus last quarter. 'AI Customer Service Agent' enhanced user experience. 'Life Planner Copilot' has handled 300,000 insurance product related consultations from the online consultants, driving a double-digit productivity growth in Q2. Waterdrop recently launched 'KEYI.AI', a real-time AI underwriting assistant for consultants, with plans to extend its availability to industry partners later this year.

During the second quarter, Waterdrop Medical Crowdfunding upgraded its risk assessment capabilities. A large-language-model ("LLM") engine now scans every campaign's content, comments and hidden clues, feeds insights into a smart matrix that tracks 15 high-risk scenarios, and refines itself to identify risks more accurately.

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "We are pleased to announce that we have achieved robust top-line and bottom-line growth, driven by the deeper integration of AI into our sales and service processes. As a result, the company's revenue and profit both experienced double-digit growth in Q2. Looking forward to the second half of 2025, the company will continue to uphold the principle of "Tech for good", fully embrace AI, and keep on providing long-term value for our users, partners, and shareholders!"

View original content:https://www.prnewswire.com/news-releases/waterdrop-inc-announces-second-quarter-2025-unaudited-financial-results-and-a-cash-dividend-net-profit-rises-58-7-year-on-year-302546522.html

SOURCE Waterdrop Inc.

FAQ

What were Waterdrop's (NYSE:WDH) key financial results for Q2 2025?

Waterdrop reported net operating revenue of RMB 838.0 million (up 23.9% YOY) and net profit of RMB 140.2 million (up 58.7% YOY) in Q2 2025.

How much is Waterdrop's new cash dividend for Q2 2025?

Waterdrop's board approved a cash dividend of US$10.9 million, representing a 50% increase over the previous dividend.

What was the growth in Waterdrop's insurance business for Q2 2025?

Waterdrop's insurance business saw first-year premiums grow 80.2% YOY to RMB 3,204.3 million, with insurance operating profit increasing 39% to RMB 170.9 million.

How has AI implementation affected Waterdrop's business performance?

AI implementations like KEYI.AI and Waterdrop Guardian led to a 155% increase in monthly premiums facilitated by AI Medical Insurance Expert and improved operational efficiency.

What is Waterdrop's track record of profitability as of Q2 2025?

Waterdrop has maintained profitability for 14 consecutive quarters, with Q2 2025 marking continued growth in both revenue and profit.