Waterdrop (WDH) Q2 2025 earnings summary

Executive summary

• Revenue grew 23.9% year over year in Q2, driven by AI integration in insurance and healthcare sectors, with net profit attributable to shareholders rising 58.7% to RMB140.2 million ($19.6 million).

• Operating profit increased 85.9% year over year, with operating margin up 3.9 percentage points.

• AI-driven operational efficiency and product innovation contributed to robust business performance, with AI-facilitated premiums up 155% sequentially.

• Enhanced cash dividend of $10.9 million approved, a 50% increase over the previous dividend, and a new $50 million share repurchase program was authorized.

• Completed full acquisition of Shenlanbao to accelerate synergies and growth opportunities.

Financial highlights

• Total revenue up 23.9% year over year and 11.2% quarter over quarter, reaching RMB838.0 million ($117.0 million).

• Insurance business revenue up 28.7% year over year; digital clinical trial solutions revenue up 34.2%.

• Operating costs and expenses rose 18.7% year over year to RMB740.6 million ($103.4 million), below revenue growth rate.

• Net profit attributable to shareholders reached RMB140.2 million ($19.6 million), up 58.7% year over year.

• Cash reserves at June 30, 2025, were RMB3,406.7 million ($475.6 million), with positive operating cash flow.

Outlook and guidance

• Management expects continued top-line and bottom-line growth in the second half of 2025, leveraging AI and technology to expand the user base and optimize operations.

• Focus on long-term value creation for shareholders and society.