Waterdrop Inc. Announces Third Quarter 2025 Unaudited Financial Results, Net profit rises 60.1% year-on-year

Rhea-AI Summary

Waterdrop (NYSE: WDH) reported third-quarter 2025 unaudited results for the period ended Sept 30, 2025: net operating revenue RMB 974.9 million (+38.4% YoY) and net profit attributable to ordinary shareholders RMB 158.5 million (+60.1% YoY), marking the fifteenth consecutive profitable quarter.

Operating expenses fell to 39.6% of revenue, down 8.3 percentage points YoY. Since 2021, the company repurchased ~58.1 million ADSs through Nov 30, 2025. Insurance revenue grew to RMB 869.7 million (+44.8% YoY) with insurance operating profit RMB 176.4 million (+44% YoY). Medical crowdfunding raised RMB 71.2 billion for 3.61 million patients cumulatively.

Positive

• Revenue +38.4% YoY to RMB 974.9 million
• Net profit +60.1% YoY to RMB 158.5 million; 15th consecutive profitable quarter
• Insurance revenue +44.8% YoY to RMB 869.7 million
• Medical crowdfunding RMB 71.2 billion raised for 3.61 million patients
• 58.1M ADSs repurchased since program start through Nov 30, 2025

Negative

• None.

News Market Reaction

+1.07% 3.5x vol

7 alerts

+1.07% News Effect

+3.0% Peak Tracked

-9.6% Trough Tracked

+$8M Valuation Impact

$734M Market Cap

3.5x Rel. Volume

On the day this news was published, WDH gained 1.07%, reflecting a mild positive market reaction. Argus tracked a peak move of +3.0% during that session. Argus tracked a trough of -9.6% from its starting point during tracking. Our momentum scanner triggered 7 alerts that day, indicating moderate trading interest and price volatility. This price movement added approximately $8M to the company's valuation, bringing the market cap to $734M at that time. Trading volume was very high at 3.5x the daily average, suggesting strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net operating revenue: RMB 974.9 million Net profit: RMB 158.5 million Operating expenses ratio: 39.6% of revenue +5 more

8 metrics

Net operating revenue RMB 974.9 million Q3 2025, up 38.4% year-over-year

Net profit RMB 158.5 million Q3 2025, up 60.1% year-over-year; 15th profitable quarter

Operating expenses ratio 39.6% of revenue Q3 2025, down 8.3 percentage points year-on-year

Insurance revenue RMB 869.7 million Q3 2025, insurance-related revenue up 44.8% year-over-year

Insurance operating profit RMB 176.4 million Q3 2025, up 44% year-over-year

Digital trial revenue RMB 31.9 million Q3 2025 Digital Clinical Trial Solution, up 31.3% year-over-year

Medical crowdfunding raised RMB 71.2 billion Cumulative donations to 3.61 million patients as of Sep 30, 2025

E-Find enrollment 13,282 patients in 1,491 trials Cumulative enrollment via E-Find Platform as of Sep 30, 2025

Market Reality Check

Price: $1.73 Vol: Volume 365,192 is close t...

normal vol

$1.73 Last Close

Volume Volume 365,192 is close to the 20-day average of 362,577, indicating typical trading activity ahead of these results. normal

Technical Price at 1.82 is trading above the 200-day MA of 1.58, showing a pre-existing upward bias before this earnings release.

Peers on Argus

WDH gained 2.94% while key peers IGIC, FIHL, DGICA, HRTG and UVE also showed pos...

WDH gained 2.94% while key peers IGIC, FIHL, DGICA, HRTG and UVE also showed positive moves between 0.25% and 4.12%, suggesting a supportive backdrop but the momentum scanner did not flag a broad sector move.

Historical Context

5 past events · Latest: Dec 03 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 03	Q3 2025 earnings	Positive	+1.1%	Strong Q3 revenue and net profit growth with 15th profitable quarter.
Dec 03	Q3 2025 earnings	Positive	+1.1%	Detailed Q3 results, higher operating profit and solid cash position.
Dec 02	Award recognition	Positive	+1.1%	Global Best Case Brands Award highlighting AI and inclusive protection.
Nov 19	Earnings date notice	Neutral	-1.8%	Announcement of Q3 2025 results release and conference call timing.
Sep 25	ESG report	Positive	+2.0%	2024 ESG report with AI innovation, crowdfunding and emissions reduction.

Pattern Detected

Recent news, especially earnings and ESG or award updates, has generally been followed by small single-digit gains within 24 hours, indicating constructive but measured reactions.

Recent Company History

Over the past six months, Waterdrop reported multiple strong financial and impact milestones. Q3 2024 and Q1 2025 earnings showed rising revenue and profit with expanding insurance and crowdfunding platforms. An April 2025 Form 20-F filing maintained transparency on audited results. ESG achievements and AI-driven innovation were highlighted in the 2024 ESG report. The current Q3 2025 earnings continue this trend with double-digit growth and a sustained profitability streak, and the stock again reacted with a modest positive move.

Market Pulse Summary

This announcement highlights robust Q3 2025 performance, with net operating revenue of RMB 974.9 mil...

Analysis

This announcement highlights robust Q3 2025 performance, with net operating revenue of RMB 974.9 million and net profit of RMB 158.5 million, alongside lower expense ratios and continued share repurchases. Insurance and digital clinical trial revenues both grew strongly, and the medical crowdfunding platform reached RMB 71.2 billion raised. Investors may focus on sustainability of growth, AI-driven efficiency gains, and future earnings updates to track execution.

Key Terms

american depositary shares, clinical trial programs, esg report

3 terms

american depositary shares financial

"has repurchased approximately 58.1 million American Depositary Shares (ADSs)"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

clinical trial programs medical

"enrolled 13,282 patients into 1,491 clinical trial programs through the E-Find Platform"

A clinical trial program is a coordinated set of medical studies that test whether a new drug, device or treatment is safe and works in people, usually moving through staged steps from small safety tests to larger effectiveness trials. Investors care because each stage changes the likelihood a product will reach the market — like milestones on a road trip that determine whether you’ll reach your destination and how valuable the journey becomes.

esg report technical

"released its 2024 ESG report this quarter, disclosing multiple environmental data"

An ESG report is a company's public summary of how it manages environmental, social and governance issues—such as pollution and resource use, treatment of employees and communities, and board oversight or ethical practices. Investors use it as a scorecard to judge risk and long-term resilience; like a vehicle inspection highlighting potential breakdowns, the report helps spot risks that could lead to fines, higher costs, lost customers or reputational damage that hurt returns.

AI-generated analysis. Not financial advice.

BEIJING, Dec. 3, 2025 /PRNewswire/ -- On December 3, 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 September 30,2025. During the quarter, Waterdrop reported net operating revenue of RMB 974.9 million, representing an increase of 38.4% year-over-year. Net profit attributable to ordinary shareholders totaled RMB 158.5 million, up  60.1% from the previous year, sustaining profitability for the fifteenth consecutive quarter. Operating expenses, including sales, administrative, and R&D expenses, accounted for 39.6% of revenue, a decrease of 8.3 percentage points year-on-year.

Since announcing its first share repurchase program in September 2021, As of November 30, 2025, Waterdrop has repurchased approximately 58.1 million American Depositary Shares (ADSs) from the open market.

Insurance Business: operating revenue increased by 44.8% YOY

Waterdrop's insurance-related revenue amounted to RMB 869.7 million in the third quarter of 2025, representing an increase of 44.8% year-over-year. The insurance business operating profit reached RMB 176.4 million,representing an increase of 44% year-over-year. First-year premiums (FYPs) generated by insurance business increased by 32.3% quarter over quarter.

By deploying AI at key touchpoints, the company is unlocking new levels of performance. Premiums facilitated by "AI Medical Insurance Expert" increased by 82% on a quarter-over-quarter basis. Thanks to "KEYI.AI" underwriting assistant, underwriting workflow is streamlined and the corresponding processing time is dramatically reduced, turning tasks that previously took several minutes into a near-instantaneous process. Meanwhile, "AI Customer Service Agent" currently independently handles 600,000 inquiries in one month. 

Waterdrop Insurance Marketplace prioritize user needs and continue to deliver innovative insurance products to users and their loved ones. In this quarter, the company introduced "Quan Jia Fu Family Protection Plan", which covers up to nine family members under a single policy, and upgraded "Guo Min Bao Mid-to-High-End Medical Insurance" with an expanded network of quality private hospitals. Additionally, the "Wu You Shou Hu" series of disability insurance product matrix has been upgraded, achieving comprehensive coverage from broad-spectrum protection that "covers all diseases" to in-depth protection that "pays out for life in case of high-incidence severe diseases leading to disability".

Waterdrop Medical Crowdfunding cumulatively Raised RMB 71.2 Billion for 3.61 Million Patients

During the quarter, Waterdrop Medical Crowdfunding upheld its mission of "saving lives" with remarkable success. As of September 30, 2025, around 485 million people cumulatively donated an aggregate of RMB 71.2 billion to 3.61 million patients through Waterdrop Medical Crowdfunding.

During the third quarter, Waterdrop Medical Crowdfunding significantly fortified its case risk control measures. Advanced analytics have improved the algorithm model's identification capabilities. By leveraging donation visit features, it has improved automatic early-warning systems to better detect and reduce fraud. This quarter also saw the rollout of a strengthened donor evaluation system, which now offers comprehensive evaluation rationales and gives donors clear insights into how their contributions are allocated and used. This has significantly enhanced the transparency, rationality, and traceability of fund distribution across all stages.

Since its launch in 2016, Waterdrop Medical Crowdfunding has continuously improved the assistance service model, partnered with Guangzhou's Civil Affairs Bureau to launch 'Waterdrop Co-Help'. Online one-click application for Guangzhou registered low-income patients through the "Sui Hao Ban" platform. Offline service teams are established through the "Sui Jiu Yi•Co-Help Space" to provide door-to-door assistance services.Innovative practice in deeply integrating government assistance with major disease personal assistance.

E-Find Platform enrolled over one thousand patients this quarter

Waterdrop's Digital Clinical Trial Solution has maintained its growth in the third quarter of 2025, generating revenues of approximately RMB 31.9 million, representing an increase of 31.3% year-over-year. As of  September 30, 2025, the Company had cumulatively enrolled 13,282 patients into 1,491 clinical trial programs through the E-Find Platform.

In this quarter, E-Find Platform expanded its collaboration to 216 pharmaceuticals and contract research organizations. Meanwhile, the number of patients enrolled also reached a historic high, over one thousand patients were enrolled in the third quarter.

In terms of digital omnichannel marketing, this quarter, E-Find Platform continuously advanced the application of large-scale model technology in the doctor-patient service scenarios, and has implemented multiple projects related to health management, health popularization and digital human. Additionally, Waterdrop collaborated with a leading multinational pharmaceutical company for three consecutive years, providing services to hundreds of thousands of patients in total, with significant improvements in service efficiency and user experience.

In terms of social responsibility, Waterdrop adhered to the concept of sustainable development and released its 2024 ESG report this quarter, disclosing multiple environmental data for the first time. It continued to optimize its ESG governance structure and enhanced the ESG data refinement management capability. In terms of public welfare practice, as of September 30, 2025, Waterdrop Charity platform has cooperated with 119 public charity organizations and launched over 15,500 public welfare projects.

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "In the third quarter, AI served as the core driver for enhancing business quality and efficiency, propelling the company to achieve double-digit high growth in both revenue and profit. Looking ahead, we will capitalize on technological opportunities by deepening AI integration and driving innovation across our business ecosystem, thereby fueling sustainable growth. We are committed to creating lasting value by providing reliable services to our users, fostering mutually beneficial partnerships, and maintaining a strong dedication to our shareholders."

View original content:https://www.prnewswire.com/news-releases/waterdrop-inc-announces-third-quarter-2025-unaudited-financial-results-net-profit-rises-60-1-year-on-year-302631662.html

SOURCE Waterdrop Inc.

FAQ

What were Waterdrop's (WDH) Q3 2025 revenue and net profit figures?

Waterdrop reported Q3 2025 revenue RMB 974.9 million and net profit RMB 158.5 million, up 38.4% and 60.1% YoY respectively.

How did Waterdrop's insurance business perform in Q3 2025 (WDH)?

Insurance operating revenue was RMB 869.7 million (+44.8% YoY) with insurance operating profit of RMB 176.4 million (+44% YoY).

How much has Waterdrop (WDH) repurchased under its ADS buyback program as of Nov 30, 2025?

As of Nov 30, 2025, Waterdrop repurchased approximately 58.1 million ADSs from the open market.

What scale has Waterdrop Medical Crowdfunding reached by Sept 30, 2025?

By Sept 30, 2025, Waterdrop Medical Crowdfunding raised a cumulative RMB 71.2 billion for 3.61 million patients.

What AI initiatives did Waterdrop cite as driving Q3 2025 performance (WDH)?

The company cited AI tools—AI Medical Insurance Expert, KEYI.AI underwriting assistant, and AI Customer Service Agent—to speed underwriting and handle 600,000 monthly inquiries.