Waterdrop (WDH) investor relations material

Executive summary

• Achieved robust financial performance in FY2025, with significant top and bottom line growth driven by AI plus insurance strategy and business expansion.

• Delivered GAAP profitability for 16 consecutive quarters, meeting market guidance.

• Achieved strong profit expansion in Q4 2025, with operating profit up 58.4% and net profit attributable to shareholders up 62.7% year-over-year.

• AI integration across operations enhanced efficiency, scalability, and competitive positioning, with notable gains in insurance and clinical trial businesses.

• Board approved a fifth cash dividend of $0.03 per ADS, totaling $10.8 million, and continued share repurchases, totaling $118.1 million as of February 2026.

Financial highlights

• FY2025 revenue reached RMB 3.98 billion (US$568.8 million), up 43.5% year-over-year; net profit attributable to shareholders was RMB 570 million (US$81.4 million), up 64.8%.

• Q4 2025 net operating revenue: RMB 1.41 billion (US$201.8 million), up 105.5% year-over-year; net profit attributable to shareholders: RMB 162.1 million (US$23.2 million), up 62.7%.

• Insurance segment contributed RMB 3.58 billion in revenue for FY2025, up 51.3% year-over-year.

• Operating costs for Q4 were RMB 680 million, up 109.2% year-over-year; full-year operating costs and expenses rose 39.1%.

• Maintained cash position of RMB 3.25 billion (US$464.6 million) at year-end 2025.

Outlook and guidance

• Targeting double-digit growth in both revenue and profit for the coming year, with moderately higher investment in marketing and AI.

• Plans to leverage AI advancements to accelerate scale, strengthen competitive moat, and deliver sustainable long-term value.