Waterdrop Inc. Reports Strong Third Quarter 2025 Financial Results

On December 3, 2025, Waterdrop Inc. (NYSE: WDH) announced its unaudited financial results for the third quarter of 2025, marking a significant period for the company. Waterdrop achieved a net operating revenue of RMB 974.9 million, reflecting a robust increase of 38.4% year-over-year. The company's net profit attributable to ordinary shareholders reached RMB 158.5 million, representing a remarkable 60.1% growth compared to the same quarter in the previous year, marking the fifteenth consecutive quarter of profitability.

Key Financial Highlights

• Net Operating Revenue: RMB 974.9 million (+38.4% YoY)
• Net Profit: RMB 158.5 million (+60.1% YoY)
• Operating Expenses: 39.6% of revenue, down 8.3 percentage points YoY
• ADS Repurchases: Approximately 58.1 million ADSs repurchased by November 30, 2025

Growth in Insurance Business

Waterdrop's insurance-related revenue surged to RMB 869.7 million, up 44.8% year-over-year. The operating profit from the insurance sector expanded to RMB 176.4 million, showing a significant 44% increase compared to the previous year. Additionally, first-year premiums (FYPs) saw an impressive 32.3% rise from the previous quarter.

The integration of artificial intelligence (AI) into operations played a crucial role in these positive outcomes. For instance, premiums facilitated by the "AI Medical Insurance Expert" rose by 82% quarter-over-quarter, while the "AI Customer Service Agent" managed 600,000 inquiries monthly.

Innovative Insurance Products

In its commitment to meet user needs, Waterdrop introduced several innovative insurance products this quarter, including:

• "Quan Jia Fu Family Protection Plan": Covers up to nine family members under one policy.
• "Guo Min Bao Mid-to-High-End Medical Insurance": Upgraded with an expanded private hospital network.
• "Wu You Shou Hu" Disability Insurance: Enhanced coverage options tailored to serious illnesses.

Advancements in Medical Crowdfunding

Waterdrop Medical Crowdfunding continued its successful operations, raising a total of RMB 71.2 billion for 3.61 million patients as of September 30, 2025. This quarter, the platform strengthened its risk control measures, enhancing transparency and fraud detection through advanced analytics.

Growth of E-Find Platform

The Digital Clinical Trial Solution of Waterdrop, particularly its E-Find Platform, reported a revenue increase of approximately RMB 31.9 million, representing a 31.3% year-on-year growth. The platform enrolled over 1,000 patients in the third quarter, bringing the total to 13,282 patients across 1,491 clinical trial programs.

Commitment to Social Responsibility

Waterdrop also released its 2024 ESG report this quarter, furthering its commitment to sustainable development and highlighting numerous public welfare initiatives. As of September 30, 2025, the company partnered with 119 charity organizations, launching over 15,500 public welfare projects.

CEO Insights on Future Growth

Mr. Peng Shen, Founder, Chairman, and CEO of Waterdrop, stated, “In the third quarter, AI has become a core driver for enhancing business quality and efficiency, enabling the company to achieve double-digit high growth in both revenue and profit. Looking ahead, we will focus on integrating AI and driving innovation across our business ecosystem, ensuring sustainable growth and lasting value for our users and shareholders.”