Waterdrop Inc. Announces Second Quarter 2026 Unaudited Financial Results and a Cash Dividend

BEIJING, Sept. 8, 2026 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare services with a positive social impact, today announced its unaudited financial results for the three and six months ended June 30, 2026 and a cash dividend.

Financial and Operational Highlights for the Second Quarter of 2026

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "We are pleased to report another quarter of accelerating growth and strengthening profitability. Our AI initiatives continued to translate into tangible operating leverage.

We delivered solid results in insurance business, with an 80.5% year-over-year growth and a 16.4% quarter-over-quarter growth in insurance-related income. Continued refinement of our AI models improved conversion efficiency, leading to a 32.3% sequential increase in the number of new customers acquired. Expanding access to insurance protection remains our core product strategy. During the quarter, we introduced 'Rongyi Bao,' the market's first long-term critical illness insurance product that requires no health disclosure and offers five-year guaranteed renewability. Together with our deepening insights into evolving user needs, these efforts translated into premium growth, with long-term premiums up 33.4% quarter-over-quarter.

AI is becoming the foundational layer powering how we sell and serve. Our AI deployment continued to enhance service efficiency and operational quality across our insurance business. In this quarter, premiums facilitated by our 'AI Medical Insurance Expert' rose by 25.6% sequentially. Our 'KEYI.AI' underwriting assistant has processed more than 13,000 inquiries to date. The number of users served by 'AI Super Pre-Sales Assistant' climbed by nearly 50% sequentially.

Our AI-powered risk controls for Medical Crowdfunding resulted in marked improvement this quarter. As part of our risk review system, a new asset verification cross-references documents, medical records, and user-generated content to assess the possibility of undisclosed assets, such as property and vehicles, or unreported sources of income, and flags potential inconsistencies across the information reviewed.

Within our digital clinical trial business, the E-Find Platform delivered notably strong performance, especially in the chronic disease area. In the second quarter, we partnered with 255 pharmaceutical companies and contract research organizations and enrolled 1,540 patients. Revenue from digital clinical trial solutions was approximately RMB35.2 million, up 26.8% year-over-year.

Underscoring the commitment to shareholder returns, the board of directors of the Company (the "Board") has authorized the Company's sixth share repurchase program. Since the initial program launched in 2021, we had repurchased approximately 62.9 million ADSs for US$121.3 million as of August 31, 2026. We are also pleased to announce that, the Board has approved our sixth cash dividend of approximately US$10.8 million.

Waterdrop has always regarded technology as our core driver. With AI embedded across our platforms, we are well positioned to capture the growing demand in our existing businesses. Meanwhile, we continue to incubate new AI-driven business initiatives targeting global markets. We remain committed to delivering greater value for our shareholders in the years to come."

Financial Results for the Second Quarter of 2026

Operating revenue, net

Net operating revenue for the second quarter of 2026 reached RMB1,448.2 million (US$213.4 million), which represents an increase of 72.8% year-over-year from RMB838.0 million for the same period of 2025. On a quarter-over-quarter basis, net operating revenue increased by 16.6%.

Operating costs and expenses

Operating costs and expenses increased by 80.5% year-over-year to RMB1,336.9 million (US$197.0 million) for the second quarter of 2026. On a quarter-over-quarter basis, operating costs and expenses increased by 15.0%.

Operating profit for the second quarter of 2026 was RMB111.3 million (US$16.4 million), as compared with RMB97.3 million for the second quarter of 2025 and RMB80.0 million for the first quarter of 2026.

Interest income for the second quarter of 2026 was RMB25.4 million (US$3.7 million), as compared with RMB29.5 million for the second quarter of 2025 and RMB29.1 million for the first quarter of 2026.

Income tax expense for the second quarter of 2026 was RMB22.3 million (US$3.3 million), as compared with income tax benefit of RMB2.9 million for the second quarter of 2025 and income tax expense of RMB6.8 million for the first quarter of 2026.

Net profit attributable to the Company's ordinary shareholders for the second quarter of 2026 was RMB125.8 million (US$18.5 million), as compared with RMB140.2 million for the same period of 2025 and RMB98.4 million for the first quarter of 2026.

Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP (1 )) for the second quarter of 2026 was RMB135.5 million (US$20.0 million), as compared with RMB151.6 million for the same period of 2025 and RMB106.3 million for the first quarter of 2026.

Cash position (2 )

As of June 30, 2026, cash position of the Company was RMB2,652.7 million (US$391.0 million), as compared with RMB3,249.0 million as of December 31, 2025.

(1)

See the sections entitled "Non-GAAP Financial Measure" and "Reconciliations of GAAP and Non-GAAP Results" for more information about the non-GAAP measures referred to in this announcement.

(2)

Cash position includes cash and cash equivalents, short-term investments, and long-term debt investments included in long-term investments.

Share Repurchase Programs

Pursuant to the share repurchase programs launched in September 2021, September 2022, September 2023, September 2024, September 2025, and September 2026, respectively, we had cumulatively repurchased approximately 62.9 million ADSs from the open market with cash for a total consideration of approximately US$121.3 million as of August 31, 2026.

Our Board has approved a new share repurchase program whereby the Company is authorized to repurchase its own ordinary shares in the form of American depository shares with an aggregate value of up to US$50 million during the 12-month period through September 10, 2027. The Company expects to fund the repurchase from its existing cash balance. The Company's proposed repurchases may be made from time to time in the open market at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to the requirements of the Securities and Exchange Commission Rule 10b-18 and/or Rule 10b5-1. The Board will review the share repurchase program periodically, and may authorize adjustment to its terms and size or suspend or discontinue the program.

Cash Dividend

The Board has approved a cash dividend of US$0.03 per ADS or US$0.003 per ordinary share to shareholders of record as of the close of business on October 9, 2026. The aggregate amount of the dividend is expected to be approximately US$10.8 million. The payment date is expected to be on or around November 3, 2026, for holders of ordinary shares and on or around November 6, 2026, for holders of ADSs.

Supplemental Information

We organize and report our business in the following operating segments:

The table below sets forth the segment operating results, with three and six-month ended June 30, 2026.

For the Three Months Ended

For the Six Months Ended

June 30, 2025

March 31, 2026

June 30, 2026

June 30, 2025

June 30, 2026

RMB

USD

RMB

USD

(All amounts in thousands)

Operating revenue, net

Insurance

738,561

1,145,790

1,333,211

196,491

1,396,549

2,479,001

365,360

Crowdfunding

67,419

60,729

63,607

9,375

134,550

124,336

18,325

Others

31,979

35,729

51,401

7,575

60,554

87,130

12,841

Total consolidated operating revenue, net

837,959

1,242,248

1,448,219

213,441

1,591,653

2,690,467

396,526

Operating costs and expenses

Insurance

(567,642)

(992,834)

(1,149,660)

(169,439)

(1,074,217)

(2,142,494)

(315,765)

Crowdfunding

(99,519)

(96,786)

(100,874)

(14,867)

(196,818)

(197,660)

(29,131)

Others

(58,620)

(64,721)

(76,383)

(11,258)

(112,620)

(141,104)

(20,796)

Operating profit/(loss)

Insurance

170,919

152,956

183,551

27,052

322,332

336,507

49,595

Crowdfunding

(32,100)

(36,057)

(37,267)

(5,492)

(62,268)

(73,324)

(10,806)

Others

(26,641)

(28,992)

(24,982)

(3,683)

(52,066)

(53,974)

(7,955)

Total segment operating profit

112,178

87,907

121,302

17,877

207,998

209,209

30,834

Unallocated items*

(14,842)

(7,954)

(10,020)

(1,476)

(34,769)

(17,974)

(2,649)

Total consolidated

operating profit

97,336

79,953

111,282

16,401

173,229

191,235

28,185

Total other income

40,032

27,258

37,543

5,532

81,722

64,801

9,551

Consolidated profit before income tax, and

share of results of equity method investee

137,368

107,211

148,825

21,933

254,951

256,036

37,736

The share-based compensation represents unallocated items in the segment information because our management does not consider this as part of the

segment operating performance measure.

Subsequent to June 30, 2026, a wholly owned subsidiary of the Company entered into a secured term loan facility amounting to US$40.0 million with an independent third-party borrower, which has been fully drawn. The borrowings bear interest at 10% per annum, mature 24 months after the respective drawdown dates, and are secured by the borrower's limited partnership interest in a private investment fund.

Exchange Rate

This announcement contains translations of certain RMB amounts into U.S. dollars ("USD" or "US$") at specified rates solely for the convenience of the reader. Unless otherwise stated, all translations from RMB to USD were made at the rate of RMB6.7851 to US$1.00, the noon buying rate in effect on June 30, 2026 in the H.10 statistical release of the Federal Reserve Board. The Company makes no representation that the RMB or USD amounts referred could be converted into USD or RMB, as the case may be, at any particular rate or at all. For analytical presentation, all percentages are calculated using the numbers presented in the financial statements contained in this earnings release.

Non-GAAP Financial Measure

The Company uses non-GAAP financial measure, adjusted net profit attributable to our ordinary shareholders, in evaluating the Company's operating results and for financial and operational decision-making purposes. Adjusted net profit attributable to our ordinary shareholders represents net profit attributable to our ordinary shareholders excluding share-based compensation expense attributable to our ordinary shareholders and foreign currency exchange gain or losses. Such adjustments have no impact on income tax.

The non-GAAP financial measure is not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measure has limitations as analytical tools and when assessing the Company's operating performance, investors should not consider it in isolation, or as a substitute for net loss or other consolidated statements of comprehensive loss data prepared in accordance with U.S. GAAP. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Investors are encouraged to review the Company's historical non-GAAP financial measure to the most directly comparable GAAP measure. Adjusted net profit attributable to our ordinary shareholders presented here may not be comparable to similarly titled measure presented by other companies. Other companies may calculate similarly titled measure differently, limiting its usefulness as a comparative measure to our data.

The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable U.S. GAAP performance measure, all of which should be considered when evaluating the Company's performance.

For more information on the non-GAAP financial measure, please see the table captioned "Reconciliations of GAAP and Non-GAAP Results" set forth at the end of this press release.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking" statements pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "aims," "future," "intends," "plans," "believes," "estimates," "likely to" and similar statements. Among other things, quotations in this announcement, contain forward-looking statements. Waterdrop may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Waterdrop's beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Waterdrop's mission, goals and strategies; Waterdrop's future business development, financial condition and results of operations; the expected growth of the insurance, medical crowdfunding and healthcare industry in China; Waterdrop's expectations regarding demand for and market acceptance of our products and services; Waterdrop's expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance, medical crowdfunding and healthcare industry. Further information regarding these and other risks is included in Waterdrop's filings with the SEC. All information provided in this press release is as of the date of this press release, and Waterdrop does not undertake any obligation to update any forward-looking statement, except as required under applicable law.

Conference Call Information

Waterdrop's management team will hold a conference call on September 8, 2026 at 8:00 AM U.S. Eastern Time (8:00 PM Beijing/Hong Kong Time on the same day) to discuss the financial results. Dial-in details for the earnings conference call are as follows:

International:

1-412-317-6061

United States Toll Free:

1-888-317-6003

Hong Kong:

852-58081995

Mainland China:

4001-206115

Entry Number:

5895694

Please dial in 15 minutes before the call is scheduled to begin and provide the Elite Entry Number to join the call.

Telephone replays will be accessible two hours after the conclusion of the conference call through September 15, 2026 by dialing the following numbers:

United States Toll Free:

1-855-669-9658

International:

1-412-317-0088

Replay Access Code:

6264481

Additionally, live and archived webcasts of the conference call will be available at the Company's investor relations website at http://ir.waterdrop-inc.com/.

About Waterdrop Inc.

Waterdrop Inc. (NYSE: WDH) is a leading technology platform dedicated to insurance and healthcare services with a positive social impact. Founded in 2016, with the comprehensive coverage of Waterdrop Insurance Marketplace and Waterdrop Medical Crowdfunding, Waterdrop aims to bring insurance and healthcare services to billions through technology. For more information, please visit www.waterdrop-inc.com.

For investor inquiries, please contact

Waterdrop Inc.

[email protected]

WATERDROP INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

(All amounts in thousands, unless otherwise noted)

As of

December 31, 2025

June 30, 2026

RMB

USD

Assets

Current assets

Cash and cash equivalents

483,003

1,049,440

154,668

Restricted cash

648,450

813,647

119,917

Short-term investments

530,668

195,725

28,846

Accounts receivable, net

1,260,464

2,166,231

319,263

Current contract assets

806,916

900,970

132,787

Amount due from related parties

209

320

Prepaid expense and other assets

251,084

308,690

45,495

Total current assets

3,980,794

5,435,023

801,023

Non-current assets

Non-current contract assets

295,516

369,665

54,482

Property, equipment and software, net

255,698

251,709

37,097

Intangible assets, net

177,140

179,856

26,507

Long-term investments

2,284,102

1,533,669

226,035

Right of use assets, net

23,955

21,795

3,212

Deferred tax assets

2,870

571

Goodwill

80,751

85,472

12,597

Total non-current assets

3,120,032

2,442,737

360,014

Total assets

7,100,826

7,877,760

1,161,037

Liabilities and Shareholders' Equity

Current liabilities

Amount due to related parties

9,324

11,514

1,697

Insurance premium payables

684,800

913,286

134,602

Accrued expenses and other current liabilities

1,140,448

1,071,537

157,925

Short-term loans

47,000

476,273

70,194

Current lease liabilities

10,888

10,085

1,486

Total current liabilities

1,892,460

2,482,695

365,904

Non-current liabilities

Non-current lease liabilities

12,640

11,237

1,656

Deferred tax liabilities

43,798

70,724

10,423

Total non-current liabilities

56,438

81,961

12,079

Total liabilities

1,948,898

2,564,656

377,983

Shareholders' equity

Class A ordinary shares

116

Class B ordinary shares

Treasury stock

(16)

(17)

(3)

Additional paid-in capital

6,733,696

6,642,139

978,930

Statutory reserves

53,346

7,862

Accumulated other comprehensive income/

(loss)

43,622

(38,017)

(5,603)

Accumulated deficit

(1,625,517)

(1,454,719)

(214,399)

Non-controlling interests

110,229

16,246

Total shareholders' equity

5,151,928

5,313,104

783,054

Total liabilities and shareholders' equity

7,100,826

7,877,760

1,161,037

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

June 30, 2025

June 30, 2026

RMB

USD

RMB

USD

Operating revenue, net

837,959

1,242,248

1,448,219

213,441

1,591,653

2,690,467

396,526

Operating costs and expenses (i)

Operating costs

(416,493)

(486,812)

(537,279)

(79,185)

(790,711)

(1,024,091)

(150,932)

Sales and marketing expenses

(198,785)

(541,052)

(637,499)

(93,956)

(371,181)

(1,178,551)

(173,697)

General and administrative expenses

(73,400)

(71,701)

(93,359)

(13,759)

(148,343)

(165,060)

(24,327)

Research and development expenses

(51,945)

(62,730)

(68,800)

(10,140)

(108,189)

(131,530)

(19,385)

Total operating costs and expenses

(740,623)

(1,162,295)

(1,336,937)

(197,040)

(1,418,424)

(2,499,232)

(368,341)

Operating profit

97,336

79,953

111,282

16,401

173,229

191,235

28,185

Other income

Interest income

29,534

29,088

25,378

3,740

63,348

54,466

8,027

Foreign currency exchange gain

2,656

281

553

303

Others, net

7,842

(1,852)

11,884

1,751

17,821

10,032

1,479

Profit before income tax, and share of results of equity

method investee

137,368

107,211

148,825

21,933

254,951

256,036

37,736

Income tax benefit/(expense)

2,852

(6,785)

(22,275)

(3,283)

(10,476)

(29,060)

(4,283)

Share of results of equity method investee

(2,155)

(2,136)

(315)

Net profit

140,220

98,271

126,569

18,653

244,475

224,840

33,138

Net profit/(loss) attributable to non-controlling interests

shareholders

(101)

797

117

(3,879)

696

103

Net profit attributable to ordinary shareholders

140,159

98,372

125,772

18,536

248,354

224,144

33,035

Other comprehensive income:

Foreign currency translation adjustment, net of tax

(33,283)

(34,915)

(39,914)

(5,883)

(47,339)

(74,829)

(11,028)

Unrealized loss on available for sale investments,

net of tax

(18,771)

(5,334)

(1,476)

(218)

(1,159)

(6,810)

(1,004)

Total comprehensive income

88,166

58,022

85,179

12,552

195,977

143,201

21,106

Total comprehensive income/(loss) attributable to non-

controlling interests shareholders

(101)

797

117

(3,879)

696

103

Total comprehensive income attributable to ordinary

shareholders

88,105

58,123

84,382

12,435

199,856

142,505

21,003

Weighted average number of ordinary shares used in

computing net profit per share

Basic

3,608,253,358

3,597,746,765

3,589,788,496

3,614,283,609

3,593,745,646

Diluted

3,711,084,352

3,689,297,909

3,673,287,000

3,711,508,175

3,681,270,470

Net profit per share attributable to ordinary shareholders

Basic

0.04

0.03

0.04

0.01

0.07

0.06

0.01

Diluted

0.04

0.03

0.01

0.07

0.06

0.01

(i) Share-based compensation expenses are included in the operating costs and expenses as follows.

For the Three Months Ended

For the Six Months Ended

June 30, 2025

March 31, 2026

June 30, 2026

June 30, 2025

June 30, 2026

RMB

USD

RMB

USD

Sales and marketing expenses

(1,949)

(1,108)

(1,053)

(155)

(3,848)

(2,161)

(318)

General and administrative expenses

(11,899)

(6,134)

(7,819)

(1,152)

(27,426)

(13,953)

(2,056)

Research and development expenses

(994)

(712)

(1,148)

(169)

(3,495)

(1,860)

(275)

Total

(14,842)

(7,954)

(10,020)

(1,476)

(34,769)

(17,974)

(2,649)

WATERDROP INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, unless otherwise noted)

For the Three Months Ended

For the Six Months Ended

June 30, 2025

March 31, 2026

June 30, 2026

June 30, 2025

June 30, 2026

RMB

USD

RMB

USD

Net profit attributable to the Company's ordinary shareholders

140,159

98,372

125,772

18,536

248,354

224,144

33,035

Add:

Share-based compensation expense attributable to the

Company's ordinary shareholders

14,144

7,954

10,020

1,476

33,894

17,974

2,649

Foreign currency exchange gain

(2,656)

(22)

(281)

(41)

(553)

(303)

(45)

Adjusted net profit attributable to the Company's ordinary

shareholders

151,647

106,304

135,511

19,971

281,695

241,815

35,639

SOURCE Waterdrop Inc.