Yuanbao Inc. Announces Third Quarter 2025 Unaudited Financial Results

Rhea-AI Summary

Yuanbao (NASDAQ: YB) reported strong third quarter 2025 results with total revenue of RMB1,157.9 million (US$162.6M), a 33.6% year‑over‑year increase, and net income of RMB370.4 million (US$52.0M), up 51.3% year‑over‑year. Net income margin expanded to 32.0%. New policies rose 41.8% YoY to 8.0 million. Cash, equivalents and deposits totaled RMB3.75 billion (US$526.8M), up 82.3% YoY. The company reported material growth in both insurance distribution and system services, and continued heavy investment in AI: LLMs produced >1,000 documents and ~50% of new code in Q3, with >4,900 models and 5,500+ labels by quarter end.

Positive

• Total revenue +33.6% year‑over‑year to RMB1,157.9M
• Net income +51.3% year‑over‑year to RMB370.4M
• Net income margin expanded to 32.0%
• New policies +41.8% year‑over‑year to 8.0 million
• Cash and equivalents +82.3% year‑over‑year to RMB3.75B
• System services revenue +36.9% year‑over‑year to RMB783.5M

Negative

• Research and development expense +56.8% year‑over‑year
• General and administrative expense +97.8% year‑over‑year
• Total operating costs and expenses +31.2% year‑over‑year
• Other services revenue down 59.7% year‑over‑year

Insights

Senior Financial Analyst

Yuanbao shows strong revenue, margin and cash growth driven by higher policy volumes and AI-enabled services.

Yuanbao grew third-quarter revenue to RMB1,157.9 million (+33.6% YoY) and delivered RMB370.4 million net income (+51.3% YoY) with a 32.0% net margin, signaling that top-line expansion from both insurance distribution and system services translated efficiently into profit and free cash flow; operating cash inflow for the quarter was RMB326.1 million and cash-like balances totaled RMB3.75 billion at September 30, 2025.

The business model combines customer acquisition (8.0 million new policies in the quarter, +41.8% YoY) with monetization through system services and distribution fees; the company also reports material reinvestment in R&D and AI (R&D expense up and R&D headcount ~70% of workforce with >10% on AI). Key dependencies include sustained policy growth, continued conversion of AI investments into measured efficiency gains, and stable unit economics as marketing and R&D spend scale. Risks implied by the facts include increased G&A and R&D expense run-rates (G&A nearly doubled YoY; R&D +56.8% in the quarter) which must be offset by ongoing revenue and margin expansion to remain accretive.

Watch for concrete, monitorable items over the next several quarters: quarterly new-policy volumes and any change in customer acquisition cost metrics, trends in selling & marketing versus revenue for operating leverage, and progress metrics on AI deployment such as percentage of AI-generated code or documented impact on service efficiency; upcoming reference points include the company’s next quarterly report and the management conference call on December 3, 2025. Overall impact is positive based on the disclosed revenue, margin, cash-generation, and scaling AI capabilities.

BEIJING, Dec. 03, 2025 (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 third quarter ended September 30, 2025.

Third Quarter 2025 Financial and Operational Highlights

• Total revenues in the third quarter of 2025 were RMB1,157.9 million (US$162.6 million), representing a 33.6% year-over-year increase from RMB866.8 million in the same period of 2024.
• Net income in the third quarter of 2025 was RMB370.4 million (US$52.0 million), representing a 51.3% year-over-year increase from RMB244.8 million in the same period of 2024.
• Net income margin in the third quarter of 2025 was 32.0%, compared with 28.2% in the same period of 2024.
• Net operating cash inflow in the third quarter of 2025 was RMB326.1 million (US$45.8 million).
• Number of new policies¹ in the third quarter of 2025 was 8.0 million, representing a 41.8% year-over-year increase from 5.7 million in the same period of 2024.
  

Recent Developments

• Seamless Integration of Large Language Model (LLM) into Core Operational Workflows:
  • Driving Efficiency in R&D. By integrating LLMs and associated toolchains into the R&D workflow, the Company has realized comprehensive efficiency gains across both documentation and coding processes. For technical documentation, LLMs have generated over 1,000 documents. During the coding stage, tools such as the Model Context Protocol (MCP) provided one-stop assistance, covering requirement decomposition, code writing, unit test generation, and automated validation. Notably, AI-generated code accounted for nearly 50% of new code developed in the third quarter.
  • Empowering Customer Service. The Company has piloted the integration of LLM capabilities into customer service scenarios, focusing primarily on call summarization and agent assistance functions. Embedded within the customer service workspace, these capabilities automatically generate service ticket summaries, extract key information post-call, and produce consumer intent labels, action logs, and recommended next steps. On the multimodal front, AI technology is employed to assist in consumer identity verification, while real-time voice analysis captures consumer sentiment dynamics, enabling agents to complete documentation and follow-ups more efficiently.
  • Enhancing the Full Consumer Service Cycle Engine. The Company has introduced LLM-assisted modeling and automated feature extraction technologies into its full consumer service cycle engine. By embedding LLMs into the feature engineering pipeline, the Company leverages the models’ semantic understanding capabilities to analyze pseudonymised or anonymous consumer behavior, interaction semantics, and transaction information for high-dimensional feature extraction. It automatically generates and filters valuable features, enabling a transition from “manual feature design” to “intelligent feature generation,” significantly enhancing both modeling efficiency and performance.

Mr. Rui Fang, Chairman and Chief Executive Officer of Yuanbao, commented, “We sustained robust operational and financial momentum in the third quarter, driven by disciplined execution and the deepening integration of our AI capabilities. During this period, the number of new policies increased 41.8% year over year to 8.0 million, demonstrating strong market demand and enhanced consumer engagement across our platform. As of the end of September, our R&D team accounted for nearly 70% of our total workforce, ​with over 10% dedicated to AI innovation, thereby laying​ a solid foundation for the continuous iteration of our engine. We continue to scale and upgrade our proprietary AI and data stack, embedding these technologies further into our core operations. By quarter end, our matrix included over 4,900 models capable of analyzing more than 5,500 labels, an increase of approximately 400 models and 750 labels from a year ago. These assets have effectively supported stable customer acquisition costs and enhanced profitability, while enabling the translation of broad market protection needs into sustained growth momentum. The deep integration of AI and the growing scale of our data assets enable us to accelerate product development, improve service quality, and optimize operational efficiency.

On the product and service front, we offer a multi-dimensional product matrix spanning medical, critical illness, and accident insurance, and continue to roll out innovative, inclusive solutions to meet diverse user protection needs. For instance, the short-term critical illness insurance co-launched with our partnered insurance carriers offers an optimal combination of critical illness and medical insurance. It features a hybrid ‘lump-sum payment plus multiple reimbursements’ structure, providing immediate compensation upon diagnosis alongside coverage for subsequent medical expenses. This approach creates an innovative, inclusive solution for critical illness insurance that better aligns with market demand by balancing accessible coverage with affordability. Through the effective synergy of precise user targeting and agile product innovation, our user base continues to expand steadily. Looking ahead, we remain committed to strengthening our AI capabilities, deepening our footprint in the inclusive health insurance segment, and executing with financial discipline to deliver sustainable, long-term value for all stakeholders.”

Mr. Ray Wan, Chief Financial Officer of Yuanbao, added, “We delivered another strong quarter characterized by robust growth and continued efficiency gains. Total revenue reached RMB1,157.9 million, up 33.6% year over year, while net income rose by 51.3% to RMB 370.4 million. Net income margin expanded to 32.0% from 28.2% a year ago. Cash generation and liquidity remained solid, enhancing our financial flexibility to advance our AI initiatives and other strategic priorities. Moving forward, we remain focused on driving high-quality revenue growth, sustaining operating leverage, and preserving a strong liquidity buffer, positioning us to invest strategically and pursue balanced and durable growth.”
__________________
¹ The number of new policies for a given period represents the total number of both short-term and long-term insurance policies purchased by the Company’s insurance consumers during that period.

Third Quarter and First Nine Months of 2025 Financial Results

Total Revenues. Total revenues in the third quarter of 2025 were RMB1,157.9 million (US$162.6 million), representing a 33.6% year-over-year increase from RMB866.8 million in the same period of 2024. This growth was primarily driven by significant increases in revenues from both insurance distribution services and system services. Total revenues in the first nine months of 2025 were RMB3,197.9 million (US$449.2 million), representing a 33.5% year-over-year increase.

Insurance Distribution Services. Revenues from insurance distribution services in the third quarter of 2025 were RMB373.3 million (US$52.4 million), representing a 27.9% year-over-year increase from RMB291.9 million in the same period of 2024. This growth was mainly due to an increase in the number of policies purchased by insurance consumers on Yuanbao’s platform, partly driven by the Company’s enhanced targeted marketing efforts. Revenues from insurance distribution services in the first nine months of 2025 were RMB1,045.7 million (US$146.9 million), representing a 33.3% year-over-year increase.

System Services. Revenues from system services in the third quarter of 2025 were RMB783.5 million (US$110.1 million), representing a 36.9% year-over-year increase from RMB572.2 million in the same period of 2024. This growth was primarily driven by the Company’s enhanced ability to provide partnered insurance carriers with more effective marketing services and precise analytics services, enabled by the Company’s continuously improving full consumer service cycle engine. Additionally, the increase was attributable to an expanded provision of system services to both existing and newly acquired partnered insurance carriers. Revenues from system services in the first nine months of 2025 were RMB2,148.7 million (US$301.8 million), representing a 34.0% year-over-year increase.

Others. Revenues from other services in the third quarter of 2025 were RMB1.1 million (US$0.2 million), representing a 59.7% year-over-year decrease from RMB2.7 million in the same period of 2024. Revenues from other services in the first nine months of 2025 were RMB3.5 million (US$0.5 million), representing a 54.5% year-over-year decrease.

Total Operating Costs and Expenses. Total operating costs and expenses in the third quarter of 2025 were RMB803.4 million (US$112.8 million), representing a 31.2% year-over-year increase from RMB612.2 million in the same period of 2024. Total operating costs and expenses in the first nine months of 2025 were RMB2,256.2 million (US$316.9 million), representing a 23.5% year-over-year increase.

Operations and Support Expenses. Operations and support expenses in the third quarter of 2025 were RMB45.1 million (US$6.3 million), remaining stable compared with RMB44.6 million in the same period of 2024. Operations and support expenses in the first nine months of 2025 were RMB130.7 million (US$18.4 million), representing a 5.6% year-over-year increase.

Selling and Marketing Expenses. Selling and marketing expenses in the third quarter of 2025 were RMB569.6 million (US$80.0 million), representing a 23.9% year-over-year increase from RMB459.6 million in the same period of 2024. This increase was primarily due to the Company’s enhanced marketing efforts to attract new consumers and retain existing consumers. Selling and marketing expenses in the first nine months of 2025 were RMB1,664.8 million (US$233.9 million), representing a 17.6% year-over-year increase.

General and Administrative Expenses. General and administrative expenses in the third quarter of 2025 were RMB93.1 million (US$13.1 million), representing a 97.8% year-over-year increase from RMB47.1 million in the same period of 2024. This increase was primarily due to higher personnel costs, including salary, bonus, and benefits. General and administrative expenses in the first nine months of 2025 were RMB207.3 million (US$29.1 million), representing a 52.4% year-over-year increase.

Research and Development Expenses. Research and development expenses in the third quarter of 2025 were RMB95.6 million (US$13.4 million), representing a 56.8% year-over-year increase from RMB60.9 million in the same period of 2024. This increase was primarily due to enhanced research and development efforts and an expansion in R&D personnel, aimed at reinforcing the Company’s leadership position as a technology-driven online insurance distributor. Research and development expenses in the first nine months of 2025 were RMB253.4 million (US$35.6 million), representing a 68.1% year-over-year increase.

Investment Income. Investment income in the third quarter of 2025 was RMB13.9 million (US$2.0 million), compared with RMB1.9 million in the same period of 2024. This growth was primarily due to higher investment income from short-term investments. Investment income in the first nine months of 2025 was RMB30.8 million (US$4.3 million).

Net Income and Net Income Margin. Net income in the third quarter of 2025 was RMB370.4 million (US$52.0 million), representing a 51.3% year-over-year increase from RMB244.8 million in the same period of 2024. Net income margin in the third quarter of 2025 was 32.0%, compared with 28.2% in the same period of 2024. Net income in the first nine months of 2025 was RMB970.2 million (US$136.3 million), representing a 69.2% year-over-year increase. Net income margin in the first nine months of 2025 was 30.3%.

Non-GAAP Adjusted Net Income² and Non-GAAP Adjusted Net Income Margin. Non-GAAP adjusted net income in the third quarter of 2025 was RMB390.0 million (US$54.8 million), representing a 51.7% year-over-year increase from RMB257.1 million in the same period of 2024. Non-GAAP adjusted net income margin in the third quarter of 2025 was 33.7%, compared with 29.7% in the same period of 2024. Non-GAAP adjusted net income in the first nine months of 2025 was RMB1,027.4 million (US$144.3 million), representing a 66.6% year-over-year increase. Non-GAAP adjusted net income margin in the first nine months of 2025 was 32.1%.

Basic and Diluted Net Income per ADS.³ Basic net income per ADS in the third quarter of 2025 was RMB8.23 (US$1.16), compared with RMB3.72 in the same period of 2024. Diluted net income per ADS in the third quarter of 2025 was RMB7.67 (US$1.08), compared with RMB3.27 in the same period of 2024. Basic net income per ADS in the first nine months of 2025 was RMB50.62 (US$7.11). Diluted net income per ADS in the first nine months of 2025 was RMB20.62 (US$2.90).

Cash Position and Cash Flow

As of September 30, 2025, the Company had cash and cash equivalents, time deposits, restricted cash, short-term investments and long-term bank deposits of RMB3.75 billion (US$526.8 million), representing increases of 82.3% year over year and 9.7% quarter over quarter.

In the third quarter of 2025, net cash provided by operating activities was RMB326.1 million (US$45.8 million). In the first nine months of 2025, net cash provided by operating activities was RMB1,204.5 million (US$169.2 million).
__________________
² Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. See “Use of Non-GAAP Financial Measure” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.
³ Each ADS represents six of the Company’s Class A ordinary shares, par value US$0.0001 per share.

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 RMB7.1190 to US$1.00, the exchange rate in effect as of September 30, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all.

Conference Call

The Company’s management will hold an earnings conference call at 7:00 A.M. U.S. Eastern Time on December 3, 2025 or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the third quarter of 2025.

Participant Online Registration:
https://register-conf.media-server.com/register/BI9a23de57c107478c9c19e3dbf7b5b934

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
Jenny Cai
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, 2024			As of September 30, 2025
			RMB			RMB			USD
ASSETS
Current assets:
Cash and cash equivalents			1,904,674			477,568			67,084
Time deposits			80,000			448,136			62,949
Restricted cash			15,000			15,000			2,107
Short-term investments			336,217			2,757,109			387,289
Accounts receivable, net			260,958			372,827			52,371
Prepayments and other current assets, net			75,964			26,513			3,724
Total current assets			2,672,813			4,097,153			575,524
Non-current assets:
Property and equipment, net			4,896			6,203			871
Intangible assets, net			58,049			65,033			9,135
Long-term bank deposits			-			52,166			7,328
Right-of-use assets			19,335			12,007			1,687
Deferred tax assets, net			6,936			11,731			1,648
Other non-current assets, net			17,611			18,595			2,612
Total non-current assets			106,827			165,735			23,281
TOTAL ASSETS			2,779,640			4,262,888			598,805
LIABILITIES
Current liabilities:
Accounts payable			10,676			14,833			2,084
Contract liabilities			117,649			97,166			13,649
Salary and welfare payable			160,690			186,094			26,140
Taxes payable			51,359			43,927			6,170
Current lease liabilities			13,447			10,273			1,443
Accrued expenses and other current liabilities			586,990			851,623			119,627
Total current liabilities			940,811			1,203,916			169,113
Non-current liabilities:
Non-current lease liabilities			5,714			1,284			180
Deferred tax liabilities, net			46,030			62,099			8,723
Total non-current liabilities			51,744			63,383			8,903
TOTAL LIABILITIES			992,555			1,267,299			178,016
TOTAL MEZZANINE EQUITY			3,420,882			-		-
SHAREHOLDERS' DEFICIT:
Ordinary shares			71			-		-
Class A ordinary shares			-			134		19
Class B ordinary shares			-			55		8
Additional paid-in capital			198,664			3,162,056		444,171
Statutory reserves			80,975			80,975		11,374
Accumulated deficit			(1,932,128	)		(261,177	)	(36,687		)
Accumulated other comprehensive income			18,621			13,546		1,904
TOTAL SHAREHOLDERS' (DEFICIT)/EQUITY			(1,633,797	)		2,995,589		420,789
TOTAL LIABILITIES, MEZZANINE EQUITY AND SHAREHOLDERS' EQUITY			2,779,640			4,262,888		598,805

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,									For the nine months ended,
		September 30, 2024				September 30, 2025					September 30, 2024			September 30, 2025
		RMB				RMB		USD			RMB			RMB		USD
Revenues		866,776				1,157,903		162,650			2,395,768			3,197,885		449,204
Operating costs and expenses*:
Operations and support		(44,631	)			(45,066	)	(6,330	)		(123,754	)		(130,722	)	(18,362	)
Selling and marketing expenses		(459,560	)			(569,592	)	(80,010	)		(1,415,915	)		(1,664,817	)	(233,855	)
General and administrative expenses		(47,080	)			(93,147	)	(13,084	)		(135,980	)		(207,283	)	(29,117	)
Research and development expenses		(60,933	)			(95,560	)	(13,423	)		(150,721	)		(253,381	)	(35,592	)
Total operating costs and expenses		(612,204	)			(803,365	)	(112,847	)		(1,826,370	)		(2,256,203	)	(316,926	)
Other income:
Interest income		6,100				5,862		823			18,431			17,031		2,392
Exchange loss		(2,217	)			(933	)	(131	)		(2,087	)		(2,801	)	(393	)
Investment income		1,895				13,910		1,954			2,561			30,837		4,332
Others, net		975				4,892		687			1,777			9,149		1,285
Income before income taxes		261,325				378,269		53,136			590,080			995,898		139,894
Income tax expenses		(16,486	)			(7,905	)	(1,110	)		(16,533	)		(25,741	)	(3,616	)
Net income		244,839				370,364		52,026			573,547			970,157		136,278
Accretion to preferred shares redemption value		(178,904	)			-		-			(332,922	)		700,795		98,440
Net income attributable to Yuanbao Inc.’s ordinary shareholders		65,935				370,364		52,026			240,625			1,670,952		234,718
Net income		244,839				370,364		52,026			573,547			970,157		136,278
Other comprehensive loss:
Foreign currency translation adjustments		(3,749	)			(3,029	)	(425	)		(2,339	)		(5,075	)	(713	)
Total comprehensive income		241,090				367,335		51,601			571,208			965,082		135,565
Accretion to preferred shares redemption value		(178,904	)			-		-			(332,922	)		700,795		98,440
Comprehensive income attributable to Yuanbao Inc.’s ordinary shareholders		62,186				367,335		51,601			238,286			1,665,877		234,005
Net income per share attributable to Yuanbao Inc.’s ordinary shareholders
Basic		0.62				1.37		0.19			2.45			8.44		1.19
Diluted		0.55				1.28		0.18			2.01			3.44		0.48
Net income per ADS attributable to Yuanbao Inc.’s ordinary shareholders
Basic		3.72				8.23		1.16			14.68			50.62		7.11
Diluted		3.27				7.67		1.08			12.06			20.62		2.90
Weighted average number of ordinary shares used in computing net income per share
Basic		106,311,065				270,043,543		270,043,543			98,328,935			198,068,251		198,068,251
Diluted		120,858,689				289,811,860		289,811,860			119,875,254			282,303,160		282,303,160

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,									For the nine months ended,
		September 30, 2024				September 30, 2025					September 30, 2024			September 30, 2025
		RMB				RMB		USD			RMB			RMB		USD
Operations and support		(16	)			(10	)	(1	)		(16	)		(31	)	(4	)
Selling and marketing expenses		(2,905	)			(2,940	)	(413	)		(10,153	)		(10,486	)	(1,473	)
General and administrative expenses		(6,846	)			(10,402	)	(1,461	)		(24,568	)		(28,802	)	(4,046	)
Research and development expenses		(2,480	)			(6,243	)	(877	)		(8,547	)		(17,889	)	(2,513	)
Total		(12,247	)			(19,595	)	(2,752	)		(43,284	)		(57,208	)	(8,036	)

**Each ADS represents six ordinary shares.

YUANBAO INC. RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS (UNAUDITED) (All amounts in thousands, unless otherwise noted)
		For the three months ended,						For the nine months ended,
		September 30, 2024			September 30, 2025			September 30, 2024		September 30, 2025
		RMB			RMB	USD		RMB		RMB	USD
Net income		244,839			370,364	52,026		573,547		970,157	136,278
Add:
Share-based compensation expenses		12,247			19,595	2,752		43,284		57,208	8,036
Non-GAAP adjusted net income		257,086			389,959	54,778		616,831		1,027,365	144,314

FAQ

What were Yuanbao (YB) Q3 2025 revenues and net income?

Q3 2025 revenue was RMB1,157.9M (US$162.6M); net income was RMB370.4M (US$52.0M).

How did Yuanbao (YB) policy sales change in Q3 2025?

New policies increased 41.8% YoY to 8.0 million in Q3 2025.

What cash position did Yuanbao (YB) report as of September 30, 2025?

Cash, deposits and short/long-term investments totaled RMB3.75 billion (US$526.8M), up 82.3% YoY.

How is Yuanbao (YB) using AI in operations as of Q3 2025?

Yuanbao embedded LLMs across R&D and customer service; LLMs generated >1,000 documents and ~50% of new code in Q3.

Which Yuanbao (YB) revenue streams grew fastest in Q3 2025?

System services grew 36.9% YoY to RMB783.5M; insurance distribution grew 27.9% YoY to RMB373.3M.

Did Yuanbao (YB) report any notable expense increases in Q3 2025?

Yes; R&D expense rose 56.8% YoY and G&A expense rose 97.8% YoY.