Waterdrop Inc. (WDH) Q2 2026 Financial Results
QuoteReporter
Waterdrop Inc. (WDH) Q2 2026: Strong Revenue Growth, Profitability Improvement — Positive
Waterdrop Inc. ("Waterdrop") reported a remarkable second quarter for 2026, with net operating revenue soaring to RMB1,448.2 million (US$213.4 million), reflecting a substantial year-over-year increase of 72.8%. This robust performance indicates a strong recovery and growth trajectory for the company, making it a positive quarter for shareholders.
The key driver behind this impressive growth was the insurance-related income, which reached RMB1,333.2 million (US$196.5 million), up 80.5% from the same period in 2025. This surge in revenue is a testament to Waterdrop's effective strategies in enhancing its service offerings and leveraging technology, particularly AI, to improve customer acquisition and retention.
Key Financial Metrics:
- Net Operating Revenue: RMB1,448.2 million (US$213.4 million), +72.8% YoY
- Insurance-Related Income: RMB1,333.2 million (US$196.5 million), +80.5% YoY
- Operating Profit: RMB111.3 million (US$16.4 million), +14.3% YoY
- Net Profit Attributable to Ordinary Shareholders: RMB125.8 million (US$18.5 million), -10.3% YoY
- Adjusted Net Profit: RMB135.5 million (US$20.0 million), -10.6% YoY
- EPS (Diluted): RMB0.03 (US$0.01)
- Gross Margin: Not explicitly stated, but operating costs increased by 80.5% YoY to RMB1,336.9 million (US$197.0 million).
Despite the impressive revenue growth, the net profit attributable to ordinary shareholders decreased by 10.3% compared to the previous year, primarily due to increased operating costs and expenses, which rose by 80.5% YoY. This highlights the challenges Waterdrop faces in managing costs while scaling its operations.
Operational Highlights:
- Medical Crowdfunding: Approximately 499 million individuals have donated a total of RMB74.7 billion to 3.82 million patients through Waterdrop Medical Crowdfunding.
- Patient Enrollment: The company facilitated the enrollment of 17,052 patients across 1,873 clinical trial programs through its E-Find Platform.
- Digital Clinical Trial Solutions Revenue: RMB35.2 million (US$5.2 million), up 26.8% YoY.
Shareholder Returns:
Waterdrop's board has authorized a cash dividend of approximately US$10.8 million, translating to US$0.03 per ADS or US$0.003 per ordinary share, payable on or around November 3, 2026, for ordinary shares and November 6, 2026, for ADS holders. Additionally, the company has initiated its sixth share repurchase program, allowing for the repurchase of up to US$50 million in shares over the next 12 months.
Cash and Debt Position:
As of June 30, 2026, Waterdrop's cash position stood at RMB2,652.7 million (US$391.0 million), a decrease from RMB3,249.0 million at the end of 2025. This decline in cash reserves is noteworthy, especially in light of the company's ongoing investments in growth and technology.
Forward Catalyst:
Looking ahead, the most significant catalyst to watch for Waterdrop in the next quarter will be the continued impact of its AI initiatives on customer acquisition and operational efficiency. The company's focus on refining its AI models and expanding its insurance product offerings, such as the newly introduced 'Rongyi Bao' critical illness insurance, will be critical in sustaining growth and improving profitability.
In conclusion, while Waterdrop's second quarter results reflect strong revenue growth and operational improvements, the decline in net profit highlights the need for careful cost management. The company's strategic focus on technology and innovation positions it well for future growth, making it an intriguing prospect for investors.
Waterdrop Inc. 6-K Press Release Financial Data Extraction
Income Statement / P&L
Currency: RMB (All amounts in thousands)
| WATERDROP INC. | UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | (All amounts in thousands, except for share and per share data, or otherwise noted) |
|---|---|---|
| For the Three Months Ended | For the Six Months Ended | June 30, 2025 |
| March 31, 2026 | June 30, 2026 | USD |
| June 30, 2025 | June 30, 2026 | RMB |
| Operating | 837,959 | 1,242,248 |
| 1,448,219 | 213,441 | 1,591,653 |
| 2,690,467 | 396,526 | Operating revenue, net |
| Operating costs and expenses(i) | Operating | (416,493) |
| (486,812) | (537,279) | (79,185) |
| (790,711) | (1,024,091) | (150,932) |
| Sales and | (198,785) | (541,052) |
| (637,499) | (93,956) | (371,181) |
| (1,178,551) | (173,697) | General |
| (73,400) | (71,701) | (93,359) |
| (13,759) | (148,343) | (165,060) |
| (24,327) | Research | (51,945) |
| (62,730) | (68,800) | (10,140) |
| (108,189) | (131,530) | (19,385) |
| Total | (740,623) | (1,162,295) |
| (1,336,937) | (197,040) | (1,418,424) |
| (2,499,232) | (368,341) | operating costs and expenses |
| Operating | 97,336 | 79,953 |
| 111,282 | 16,401 | 173,229 |
| 191,235 | 28,185 | profit |
| Other income | Interest | 29,534 |
| 29,088 | 25,378 | 3,740 |
| 63,348 | 54,466 | 8,027 |
| income | Foreign | 2,656 |
| 22 | 281 | 41 |
| 553 | 303 | 45 |
| currency exchange gain | Others, | 7,842 |
| (1,852) |
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