Waterdrop (WDH) Q1 2026 earnings summary

Executive summary

• Total revenue for Q1 2026 reached RMB 1.24 billion (US$180.1 million), up 64.8% year-over-year, with net profit attributable to ordinary shareholders of RMB 98.4 million (US$14.3 million), though down from RMB 108.2 million a year ago.

• Maintained GAAP profitability for 17 consecutive quarters since Q1 2022.

• Insurance-related income rose 74.1% year-over-year to RMB 1.15 billion, driven by technical service income.

• Crowdfunding business remained stable, supporting 3.75 million patients to date, while digital clinical trial solution business saw continued enrollment growth.

• Accelerated shift toward AI-native operations, with 75 LLM-related patent applications filed and AI deployed in customer service and claims.

Financial highlights

• Insurance-related income was RMB 1.15 billion, up 74.1% year-over-year; technical service income surged to RMB 421 million from RMB 9.4 million.

• Operating profit for Q1 was RMB 80 million (US$11.6 million), up 5.3% year-over-year.

• Net profit attributable to ordinary shareholders was RMB 98.4 million, down 9.1% year-over-year.

• Operating costs and expenses were RMB 1.16 billion, up 71.5% year-over-year; sales and marketing expenses rose sharply to RMB 541 million.

• Cash and equivalents stood at RMB 2.88 billion (US$417.6 million) as of March 31, 2026.

Outlook and guidance

• Targeting approximately 40% top-line growth for 2026, with operating profit scale expected to remain broadly stable.

• Focus on accelerating transition to an AI-native company and continued investment in R&D to strengthen user acquisition and traffic infrastructure.

• Increased marketing investments to drive user base expansion and long-term development.