Yuanbao Inc. Announces First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
Yuanbao (NASDAQ:YB) reported strong first quarter 2026 results, with revenue of RMB1,315.9 million, up 35.6% year over year, and net income of RMB387.6 million, up 31.4%. Net income margin was 29.5%.
Cash and investments reached RMB4.74 billion, operating cash inflow was RMB721.3 million, and the board approved an annual dividend of US$1.26 per ADS plus a US$15 million share repurchase program. System services and AI-driven capabilities continued to expand.
Positive
- Total revenue rose 35.6% YoY to RMB1,315.9 million
- Net income increased 31.4% YoY to RMB387.6 million
- Operating cash inflow reached RMB721.3 million in Q1 2026
- Cash and investments grew 71.4% YoY to RMB4.74 billion
- System services revenue grew 39.8% YoY to RMB904.6 million
- Board declared annual dividend of US$1.26 per ADS
- Board authorized US$15 million share repurchase program
Negative
- Net income margin declined to 29.5% from 30.4% YoY
- Non-GAAP net margin fell to 31.1% from 32.2% YoY
- Income tax expense surged 932.4% YoY to RMB69.4 million
- Selling and marketing expenses rose 29.4% YoY to RMB638.2 million
- R&D expenses increased 39.7% YoY to RMB106.3 million
- Basic net income per ADS decreased to RMB8.60 from RMB17.87 YoY
News Market Reaction – YB
In the Jun 10 session, YB gained 15.58%, reflecting a significant positive market reaction. Argus tracked a peak move of +14.2% during that session. Our momentum scanner triggered 11 alerts that day, indicating notable trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
BEIJING, June 10, 2026 (GLOBE NEWSWIRE) -- Yuanbao Inc. (“Yuanbao” or the “Company”) (NASDAQ: YB), a leading technology-driven online insurance distributor in China, today announced its unaudited financial results for the first quarter ended March 31, 2026.
First Quarter 2026 Financial Highlights
- Total revenues in the first quarter of 2026 were RMB1,315.9 million (US
$190.8 million ), representing a35.6% increase from RMB970.1 million in the same period of 2025. - Net income in the first quarter of 2026 was RMB387.6 million (US
$56.2 million ), representing a31.4% increase from RMB295.1 million in the same period of 2025. - Net income margin in the first quarter of 2026 was
29.5% , compared with30.4% in the same period of 2025. - Net operating cash inflow in the first quarter of 2026 was RMB721.3 million (US
$104.6 million ). - The Company’s Board of Directors approved an annual cash dividend of US
$1.26 per ADS, and authorized a share repurchase program of up to US$15 million during a 12-month period.
Recent Developments
- The Company has developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning application for consumers. The system focuses on key stages of the insurance decision-making process, providing capabilities such as interpretation of product coverage and benefits, assistance in assessing underwriting eligibility for users with pre-existing medical conditions, insurance planning suggestions, and policy explanation and comparison. Through multi-turn conversations, the system continuously refines user profiles to deliver personalized insurance consultation and planning services.
- On the technology front, the Company has built a structured knowledge system centered on an insurance-expertise knowledge base and domain-specific modeling capabilities, covering product clauses, underwriting rules, and service workflows. The knowledge base currently encompasses thousands of insurance products and their policy details, with millions of accumulated professional knowledge data entries spanning insurance, healthcare, and service processes. Through model training and optimization tailored to insurance scenarios, the system consistently enhances its own understanding of complex semantics, health condition descriptions, and policy rules. From an architectural perspective, a multi-agent collaborative mechanism enables modular execution of tasks such as requirement comprehension, information completion, knowledge retrieval, and solution generation, improving response quality and stability across complex consultation scenarios.
- In terms of business outcomes, these capabilities have measurably enhanced users’ understanding of insurance products, improved users’ decision-making efficiency, and strengthened the professionalism and trustworthiness of the consultation process. At the same time, by productizing professional knowledge and service capabilities, the Company continues to improve the standardization, professionalism, and intelligence capabilities of consumer-facing insurance consultation services.
- The Company is developing integrated AI capabilities as a core strategic initiative to enhance its organizational capabilities, driving the large-scale deployment and deep integration of AI Agents across all functions and processes and accelerating the paradigm shift from “tool-based AI” to “organization-wide AI.” The Company’s three-tier architecture of “platform + skills + scenarios” enables rapid composition and reliable operation of AI Agents in complex business scenarios.
Mr. Rui Fang, Chairman and Chief Executive Officer of Yuanbao, commented, “As the insurance industry enters a new phase of high-quality development characterized by structural optimization, value enhancement, and ecosystem integration, consumers’ awareness of health protection has continued to rise, and their demand for professional, personalized, and full-lifecycle insurance services has grown. The industry’s accelerating transition from ‘scale expansion’ to ‘high-quality development’ aligns closely with Yuanbao’s long-term strategic commitment to technology-driven development, user-centricity, and inclusive protection. Against this backdrop, we have consistently anchored our long-term growth in products and services. On the product side, we continue to work closely with insurance carriers to enhance and iterate our inclusive insurance offerings to comprehensively address customer needs, including specialized segments such as individuals with pre-existing conditions and new urban residents. We acted swiftly to fully integrate the ‘Commercial Insurance Innovative Drug Catalog’ into our product offerings, keeping pace with emerging policy trends and increasing public access to advanced therapies and high-quality medications. On the service side, we have deeply embedded technology into the claims process with the launch of our ‘Intelligent Claims Assistance’ feature, which assists partner insurers in conducting preliminary reviews of low-value, low-risk claims. Our proprietary claims review system automatically verifies claim documents and calculates settlement amounts, helping improve insurers’ claims processing efficiency, enhancing the overall user claims experience, and significantly shortening response times for small-value claims.
“As of the end of March, we had developed over 5,000 models capable of analyzing more than 5,800 labels, representing increases of approximately 250 models and 700 labels year over year. Our AI team continued to account for more than
Mr. Ray Wan, Chief Financial Officer of Yuanbao, added, “In the first quarter of 2026, we delivered another strong performance, driven by our continued business expansion and operating efficiency improvements. Total revenues for the quarter reached RMB1,315.9 million, reflecting a
“Moreover, supported by our robust cash position and sustained operating cash flow generation, we are pleased to announce that our Board of Directors has approved an annual cash dividend of US
First Quarter 2026 Financial Results
Total Revenues. Total revenues in the first quarter of 2026 were RMB1,315.9 million (US
Insurance Distribution Services. Revenues from insurance distribution services in the first quarter of 2026 were RMB411.3 million (US
System Services. Revenues from system services in the first quarter of 2026 were RMB904.6 million (US
Others. Revenues from other services were RMB15.1 thousand (US
Total Operating Costs and Expenses. Total operating costs and expenses in the first quarter of 2026 were RMB878.6 million (US
Operations and Support Expenses. Operations and support expenses in the first quarter of 2026 were RMB47.5 million (US
Selling and Marketing Expenses. Selling and marketing expenses in the first quarter of 2026 were RMB638.2 million (US
General and Administrative Expenses. General and administrative expenses in the first quarter of 2026 were RMB86.6 million (US
Research and Development Expenses. Research and development expenses in the first quarter of 2026 were RMB106.3 million (US
Investment Income. Investment income in the first quarter of 2026 was RMB14.6 million (US
Income Tax Expenses. Income tax expenses in the first quarter of 2026 were RMB69.4 million (US
Net Income and Net Income Margin. Net income in the first quarter of 2026 was RMB387.6 million (US
Non-GAAP Adjusted Net Income1 and Non-GAAP Adjusted Net Income Margin. Non-GAAP adjusted net income in the first quarter of 2026 was RMB408.8 million (US
Basic and Diluted Net Income per ADS.2 Basic net income per ADS in the first quarter of 2026 was RMB8.60 (US
_______________________
1 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.
2 Each ADS represents six of the Company’s Class A ordinary shares, par value US
Cash Position and Cash Flow
As of March 31, 2026, the Company had cash and cash equivalents, time deposits, restricted cash, short-term investments and long-term bank deposits of RMB4.74 billion (US
In the first quarter of 2026, net cash provided by operating activities was RMB721.3 million (US
Exchange Rate
This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB 6.8980 to US
Shareholder Return Activities
Declaration of Annual Cash Dividend. The Company’s Board of Directors has approved an annual cash dividend of US
Share Repurchase Program. The Company announced that its Board of Directors has authorized a share repurchase program under which the Company may repurchase up to US
Conference Call
The Company’s management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Wednesday, June 10, 2026 or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the first quarter of 2026.
Participant Online Registration:
https://register-conf.media-server.com/register/BI37c602a9bd0e421dac580195fbc42911
Participants should complete online registration using the link provided above at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call.
Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at ir.yb-inc.com.
About Yuanbao Inc.
Yuanbao Inc. is a leading technology-driven online insurance distributor in China, committed to protecting health and well-being through innovative technology. Leveraging its proprietary consumer service cycle engine and advanced technologies, Yuanbao delivers customized insurance solutions from its partnered insurance carriers to over ten million insurance consumers throughout the entire insurance lifecycle, ranging from personalized recommendations to post-sales services. Through deep collaboration with insurance carriers and the use of data-driven insights, Yuanbao empowers carriers to tailor flagship products, enhances consumer engagement, and drives scalable and efficient distribution.
For more information, please visit: ir.yb-inc.com.
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
The Company uses non-GAAP financial measures, including adjusted net income and adjusted net income margin, in evaluating the Company’s operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expense, and adjusted net income margin represents adjusted net income as a percentage of revenue. Such adjustments have no impact on income tax.
The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as an analytical tool and when assessing the Company’s operating performance, investors should not consider it in isolation. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted net income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as a comparative measure to the Company’s data.
For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations in this announcement contain forward-looking statements. Yuanbao may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Yuanbao’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yuanbao’s mission, goals and strategies; Yuanbao’s future business development, financial condition and results of operations; the expected growth of the insurance industry in China; Yuanbao’s expectations regarding demand for and market acceptance of its products and services; Yuanbao’s expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance industry. Further information regarding these and other risks is included in Yuanbao’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yuanbao does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For investor and media inquiries, please contact:
In China:
Yuanbao Inc.
E-mail: ir@yb-inc.com
Piacente Financial Communications
Helen Wu
Tel: +86-10-6508-0677
E-mail: yb@thepiacentegroup.com
In the United States:
Piacente Financial Communications
Brandi Piacente
Tel: +1-212-481-2050
E-mail: yb@thepiacentegroup.com
| YUANBAO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED BALANCE SHEETS (All amounts in thousands, except for share and per share data) | ||||||
| As of December 31, 2025 | As of March 31, 2026 | |||||
| RMB | RMB | USD | ||||
| ASSETS | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | 860,455 | 1,100,653 | 159,561 | |||
| Time deposits | 273,416 | 192,561 | 27,915 | |||
| Restricted cash | 23,525 | 21,488 | 3,115 | |||
| Short-term investments | 2,829,462 | 3,374,971 | 489,268 | |||
| Accounts receivable, net | 441,414 | 517,208 | 74,980 | |||
| Prepayments and other current assets, net | 29,768 | 33,031 | 4,789 | |||
| Total current assets | 4,458,040 | 5,239,912 | 759,628 | |||
| Non-current assets: | ||||||
| Property and equipment, net | 13,784 | 12,794 | 1,855 | |||
| Intangible assets, net | 64,553 | 94,740 | 13,734 | |||
| Long-term bank deposits | 52,492 | 52,816 | 7,656 | |||
| Right-of-use assets | 8,566 | 5,090 | 738 | |||
| Deferred tax assets, net | 33,337 | 36,649 | 5,313 | |||
| Other non-current assets, net | 24,796 | 17,856 | 2,589 | |||
| Total non-current assets | 197,528 | 219,945 | 31,885 | |||
| TOTAL ASSETS | 4,655,568 | 5,459,857 | 791,513 | |||
| LIABILITIES | ||||||
| Current liabilities: | ||||||
| Accounts payable | 17,378 | 27,025 | 3,918 | |||
| Contract liabilities | 63,541 | 83,316 | 12,078 | |||
| Salary and welfare payable | 230,039 | 278,076 | 40,313 | |||
| Taxes payable | 43,275 | 81,790 | 11,857 | |||
| Current lease liabilities | 7,077 | 3,849 | 558 | |||
| Accrued expenses and other current liabilities | 777,416 | 1,029,776 | 149,286 | |||
| Total current liabilities | 1,138,726 | 1,503,832 | 218,010 | |||
| Non-current liabilities: | ||||||
| Non-current lease liabilities | 846 | 403 | 58 | |||
| Deferred tax liabilities, net | 169,701 | 205,952 | 29,857 | |||
| Total non-current liabilities | 170,547 | 206,355 | 29,915 | |||
| TOTAL LIABILITIES | 1,309,273 | 1,710,187 | 247,925 | |||
| SHAREHOLDERS' EQUITY: | ||||||
| Class A ordinary shares | 135 | 135 | 20 | |||
| Class B ordinary shares | 55 | 55 | 8 | |||
| Additional paid-in capital | 3,179,602 | 3,201,317 | 464,094 | |||
| Statutory reserves | 230,033 | 230,033 | 33,348 | |||
| Accumulated (deficit)/retained earnings | (72,851 | ) | 314,796 | 45,635 | ||
| Accumulated other comprehensive income | 9,321 | 3,334 | 483 | |||
| TOTAL SHAREHOLDERS' EQUITY | 3,346,295 | 3,749,670 | 543,588 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 4,655,568 | 5,459,857 | 791,513 | |||
| YUANBAO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (All amounts in thousands, except for share, per share data, ADS and per ADS data) | ||||||||
| For the three months ended, | ||||||||
| March 31, 2025 | March 31, 2026 | |||||||
| RMB | RMB | USD | ||||||
| Revenues | 970,056 | 1,315,861 | 190,760 | |||||
| Operating costs and expenses*: | ||||||||
| Operations and support | (44,756 | ) | (47,453 | ) | (6,879 | ) | ||
| Selling and marketing expenses | (493,150 | ) | (638,219 | ) | (92,523 | ) | ||
| General and administrative expenses | (66,640 | ) | (86,618 | ) | (12,557 | ) | ||
| Research and development expenses | (76,098 | ) | (106,342 | ) | (15,416 | ) | ||
| Total operating costs and expenses | (680,644 | ) | (878,632 | ) | (127,375 | ) | ||
| Other income: | ||||||||
| Interest income | 5,228 | 4,744 | 688 | |||||
| Exchange loss | (138 | ) | (1,932 | ) | (280 | ) | ||
| Investment income | 6,879 | 14,591 | 2,115 | |||||
| Others, net | 439 | 2,372 | 344 | |||||
| Income before income taxes | 301,820 | 457,004 | 66,252 | |||||
| Income tax expenses | (6,718 | ) | (69,356 | ) | (10,055 | ) | ||
| Net income | 295,102 | 387,648 | 56,197 | |||||
| Accretion to preferred shares redemption value | 21,586 | - | - | |||||
| Net income attributable to Yuanbao Inc.’s ordinary shareholders | 316,688 | 387,648 | 56,197 | |||||
| Net income | 295,102 | 387,648 | 56,197 | |||||
| Other comprehensive loss: | ||||||||
| Foreign currency translation adjustments | (316 | ) | (5,987 | ) | (868 | ) | ||
| Total comprehensive income | 294,786 | 381,661 | 55,329 | |||||
| Accretion to preferred shares redemption value | 21,586 | - | - | |||||
| Comprehensive income attributable to Yuanbao Inc.’s ordinary shareholders | 316,372 | 381,661 | 55,329 | |||||
| Net income per share attributable to Yuanbao Inc.’s ordinary shareholders | ||||||||
| Basic | 2.98 | 1.43 | 0.21 | |||||
| Diluted | 1.08 | 1.34 | 0.19 | |||||
| Net income per ADS** attributable to Yuanbao Inc.’s ordinary shareholders | ||||||||
| Basic | 17.87 | 8.60 | 1.25 | |||||
| Diluted | 6.46 | 8.02 | 1.16 | |||||
| Weighted average number of ordinary shares used in computing net income per share | ||||||||
| Basic | 106,358,492 | 270,531,986 | 270,531,986 | |||||
| Diluted | 273,915,113 | 289,874,722 | 289,874,722 | |||||
| YUANBAO INC. UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (CONTINUED) (All amounts in thousands, except for share, per share data, ADS and per ADS data) |
*Share-based compensation expenses are included in the operating costs and expenses as follows:
| For the three months ended, | ||||||||
| March 31, 2025 | March 31, 2026 | |||||||
| RMB | RMB | USD | ||||||
| Operations and support | (11 | ) | (6 | ) | (1 | ) | ||
| Selling and marketing expenses | (3,730 | ) | (3,894 | ) | (565 | ) | ||
| General and administrative expenses | (8,437 | ) | (10,270 | ) | (1,489 | ) | ||
| Research and development expenses | (4,901 | ) | (7,019 | ) | (1,018 | ) | ||
| Total | (17,079 | ) | (21,189 | ) | (3,073 | ) | ||
** Each ADS represents six Class A ordinary shares.
| YUANBAO INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (UNAUDITED) (All amounts in thousands, unless otherwise noted) | |||||
| For the three months ended, | |||||
| March 31, 2025 | March 31, 2026 | ||||
| RMB | RMB | USD | |||
| Net income | 295,102 | 387,648 | 56,197 | ||
| Add: | |||||
| Share-based compensation expenses | 17,079 | 21,189 | 3,073 | ||
| Non-GAAP adjusted net income | 312,181 | 408,837 | 59,270 | ||
