Waterdrop Inc. Announces Third Quarter 2025 Unaudited Financial Results

BEIJING, Dec. 3, 2025 /PRNewswire/ -- Waterdrop Inc. ("Waterdrop", the "Company" or "we") (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare service with a positive social impact, today announced its unaudited financial results for the three and nine months ended September 30, 2025.

Financial and Operational Highlights for the Third Quarter of 2025

Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "We are pleased to announce another quarter of outstanding performance, marked by robust revenue expansion and significant profit growth.

For our insurance business, we upgraded our data infrastructure and real-time identification capabilities, allowing us to gain profound insights of our users within milliseconds. This enables us to optimize traffic utilization and sharpen user-acquisition performance, fueling a 32.3% sequential increase in insurance premiums. Moreover, we prioritize user needs and continue to deliver innovative insurance products to users and their loved ones. In this quarter, we introduced 'Quan Jia Fu Family Protection Plan', which covers up to nine family members under a single policy, and upgraded 'Guo Min Bao Mid-to-High-End Medical Insurance' with an expanded network of quality private hospitals.

Our commitment to AI is creating a faster, more efficient, and more intelligent platform. By deploying AI at key touchpoints, we are unlocking new levels of performance. Premiums facilitated by our 'AI Medical Insurance Expert' increased by 82% on a quarter-over-quarter basis. Thanks to our 'KEYI.AI' underwriting assistant, underwriting workflow is streamlined and the corresponding processing time is dramatically reduced, turning tasks that previously took several minutes into a near-instantaneous process. Meanwhile, our 'AI Customer Service Agent' can now independently handle approximately 600,000 inquiries in one month. To democratize these capabilities, we have launched 'Waterdrop Sea.AI', a low-code platform that empowers our employees to build and deploy custom AI solutions, further accelerating innovation across the organization.

During the third quarter, Waterdrop Medical Crowdfunding markedly fortified its campaign risk control measures. By analyzing donation visit data to identify subtle patterns, advanced analytics have improved the identification capabilities of our algorithm model. This, in turn, has improved automatic early-warning systems to better detect and reduce fraud. This quarter also witnessed the rollout of a strengthened donor evaluation system, which now offers comprehensive evaluation rationales and gives donors clear insights into how their contributions are allocated and used. These measures have profoundly enhanced the transparency, rationality, and traceability of fund distribution.

During this quarter, the E-Find Platform has consistently delivered satisfactory fulfillment quality by collaborating across our ecosystem channels and enhancing digital capabilities. At the same time, the number of ongoing projects has increased steadily. In the third quarter, we expanded our collaboration network by partnering with 216 pharmaceutical and contract research organizations. Furthermore, the number of patients enrolled reached 1,066, fueling a 31.3% year-over-year increase in revenue.

We deeply value the trust of our investors and are dedicated to delivering strong returns for shareholders. By the end of November 2025, the company had cumulatively repurchased around 58.1 million ADSs from the open market. We also recently completed our latest cash dividend of approximately US$10.9 million.

In 2025 and beyond, we expect business momentum to continue. AI is driving more and more pragmatic advancements in our business, shaping future services for better experience, improving efficiency, and bringing tangible value to users and our shareholders."

Financial Results for the Third Quarter of 2025

Operating revenue, net

Net operating revenue for the third quarter of 2025 increased by 38.4% year-over-year to RMB974.9 million (US$136.9 million) from RMB704.1 million for the same period of 2024. On a quarter-over-quarter basis, net operating revenue increased by 16.3%.

Operating costs and expenses

Operating costs and expenses increased by 27.1% year-over-year to RMB861.1 million (US$121.0 million) for the third quarter of 2025. On a quarter-over-quarter basis, operating costs and expenses increased by 16.3%.

Operating profit for the third quarter of 2025 was RMB113.8 million (US$16.0 million), as compared with RMB26.5 million for the third quarter of 2024 and RMB97.3 million for the second quarter of 2025.

Interest income for the third quarter of 2025 was RMB37.5 million (US$5.3 million), as compared with RMB36.0 million for the third quarter of 2024 and RMB29.5 million for the second quarter of 2025.

Income tax expense for the third quarter of 2025 was RMB9.6 million (US$1.4 million), as compared with income tax benefit of RMB7.8 million for the third quarter of 2024 and income tax benefit of RMB2.9 million for the second quarter of 2025.

Net profit attributable to the Company's ordinary shareholders for the third quarter of 2025 was RMB158.5 million (US$22.3 million), as compared with RMB99.0 million for the same period of 2024, and RMB140.2 million for the second quarter of 2025.

Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP (1)) for the third quarter of 2025 was RMB167.7 million (US$23.6 million), as compared with RMB126.0 million for the same period of 2024 and RMB151.6 million for the second quarter of 2025.

Cash position (2)

As of September 30, 2025, cash position of the Company was RMB3,510.0 million (US$493.1 million), as compared with RMB3,670.3 million as of December 31, 2024.

(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, and September 2025, respectively, we had cumulatively repurchased approximately 58.1 million ADSs from the open market with cash for a total consideration of approximately US$113.4 million as of November 30, 2025.

Supplemental Information

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

The table below sets forth the segment operating results, with three-month and nine-month ended September 30, 2024 retrospectively adjusted to conform to this presentation.

For the Three Months Ended

For the Nine Months Ended

September 30, 2024

June 30, 2025

September 30, 2025

September 30, 2024

September 30, 2025

RMB

USD

RMB

USD

(All amounts in thousands)

Operating revenue, net

Insurance

600,726

738,561

869,660

122,160

1,781,335

2,266,209

318,332

Crowdfunding

65,839

67,419

65,657

9,223

202,512

200,207

28,123

Others

37,576

31,979

39,543

5,555

101,150

100,097

14,061

Total consolidated operating

revenue, net

704,141

837,959

974,860

136,938

2,084,997

2,566,513

360,516

Operating costs and expenses

Insurance

(478,225)

(567,642)

(693,216)

(97,376)

(1,406,716)

(1,767,433)

(248,271)

Crowdfunding

(83,741)

(99,519)

(98,771)

(13,874)

(275,587)

(295,589)

(41,521)

Others

(69,292)

(58,620)

(60,291)

(8,468)

(191,748)

(172,911)

(24,288)

Operating profit/(loss)

Insurance

122,501

170,919

176,444

24,784

374,619

498,776

70,061

Crowdfunding

(17,902)

(32,100)

(33,114)

(4,651)

(73,075)

(95,382)

(13,398)

Others

(31,716)

(26,641)

(20,748)

(2,913)

(90,598)

(72,814)

(10,227)

Total segment operating profit

72,883

112,178

122,582

17,220

210,946

330,580

46,436

Unallocated items*

(46,413)

(14,842)

(8,817)

(1,240)

(85,748)

(43,586)

(6,121)

Total consolidated operating

profit

26,470

97,336

113,765

15,980

125,198

286,994

40,315

Total other income

60,842

40,032

54,331

7,632

141,989

136,053

19,111

Consolidated profit before income

tax

87,312

137,368

168,096

23,612

267,187

423,047

59,426

* 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.

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 RMB7.1190 to US$1.00, the noon buying rate in effect on September 30, 2025 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, foreign currency exchange gain or losses, impairment of intangible assets acquired from business combination and related tax effects on non-GAAP adjustments.

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 "Reconciliation 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 December 3, 2025 at 7:00 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 Toll Free:

800-963976

Hong Kong:

852-58081995

Mainland China:

4001-206115

Chinese Line (Mandarin) Entry Number:

7542307

English Interpretation Line (Listen-only Mode) Entry Number:

0716285

Participants can choose between the Chinese and the English interpretation lines. Please note that the English interpretation option will be in listen-only mode. 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 December 10, 2025 by dialing the following numbers:

United States Toll Free:

1-855-669-9658

International:

1-412-317-0088

Chinese Line Access Code:

8770407

English Interpretation Line Access Code:

6961259

A live and archived webcast of the conference call will also 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 service 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 service 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, 2024

September 30, 2025

RMB

USD

Assets

Current assets

Cash and cash equivalents

986,323

344,532

48,396

Restricted cash

520,588

534,131

75,029

Short-term investments

1,612,619

1,104,844

155,197

Accounts receivable, net

716,206

833,383

117,065

Current contract assets

619,436

738,984

103,804

Amount due from related parties

257

226

Prepaid expense and other assets

182,641

209,110

29,373

Total current assets

4,638,070

3,765,210

528,896

Non-current assets

Non-current contract assets

153,749

228,739

32,131

Property, equipment and software, net

240,024

256,795

36,072

Intangible assets, net

153,011

152,914

21,480

Long-term investments

1,114,160

2,104,713

295,647

Right of use assets, net

46,872

23,240

3,265

Deferred tax assets

27,028

1,093

154

Goodwill

80,751

11,343

Total non-current assets

1,815,595

2,848,245

400,092

Total assets

6,453,665

6,613,455

928,988

Liabilities, Mezzanine Equity and Shareholders'

Equity

Current liabilities

Amount due to related parties

10,616

3,794

533

Insurance premium payables

537,344

511,809

71,893

Accrued expenses and other current liabilities

704,035

862,040

121,091

Short-term loans

198,373

63,000

8,850

Current lease liabilities

34,573

10,009

1,406

Total current liabilities

1,484,941

1,450,652

203,773

Non-current liabilities

Non-current lease liabilities

10,971

12,094

1,699

Deferred tax liabilities

84,185

77,994

10,956

Total non-current liabilities

95,156

90,088

12,655

Total liabilities

1,580,097

1,540,740

216,428

Mezzanine equity

Redeemable non-controlling interests

76,133

Shareholders' equity

Class A ordinary shares

112

115

Class B ordinary shares

Treasury stock

(15)

(2)

Additional paid-in capital

6,832,214

6,754,845

948,847

Accumulated other comprehensive income

159,550

105,376

14,802

Accumulated deficit

(2,194,453)

(1,787,633)

(251,107)

Total shareholders' equity

4,797,435

5,072,715

712,560

Total liabilities, mezzanine equity and shareholders' equity

6,453,665

6,613,455

928,988

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 Nine Months Ended

September 30, 2024

June 30, 2025

September 30, 2025

September 30, 2024

September 30, 2025

RMB

USD

RMB

USD

Operating revenue, net

704,141

837,959

974,860

136,938

2,084,997

2,566,513

360,516

Operating costs and expenses (i)

Operating costs

(340,560)

(416,493)

(475,114)

(66,739)

(990,904)

(1,265,825)

(177,809)

Sales and marketing expenses

(173,172)

(198,785)

(242,962)

(34,129)

(512,731)

(614,143)

(86,268)

General and administrative expenses

(110,988)

(73,400)

(84,692)

(11,897)

(293,927)

(233,035)

(32,734)

Research and development expenses

(52,951)

(51,945)

(58,327)

(8,193)

(162,237)

(166,516)

(23,390)

Total operating costs and expenses

(677,671)

(740,623)

(861,095)

(120,958)

(1,959,799)

(2,279,519)

(320,201)

Operating profit

26,470

97,336

113,765

15,980

125,198

286,994

40,315

Other income

Interest income

36,005

29,534

37,537

5,273

113,319

100,885

14,171

Foreign currency exchange gain/(loss)

7,909

2,656

(388)

(55)

8,979

165

Others, net

16,928

7,842

17,182

2,414

19,691

35,003

4,917

Profit before income tax

87,312

137,368

168,096

23,612

267,187

423,047

59,426

Income tax benefit/(expense)

7,843

2,852

(9,630)

(1,353)

(7,771)

(20,106)

(2,824)

Net profit

95,155

140,220

158,466

22,259

259,416

402,941

56,602

Net (loss)/profit attributable to mezzanine

equity classified as non-controlling interests

shareholders

(3,818)

(8,479)

(3,879)

(545)

Net profit attributable to ordinary shareholders

98,973

140,159

158,466

22,259

267,895

406,820

57,147

Other comprehensive income:

Foreign currency translation adjustment, net

of tax

(83,054)

(33,283)

(15,103)

(2,122)

(44,414)

(62,442)

(8,771)

Unrealized (loss)/gain on available for sale

investments, net of tax

(18,771)

9,427

1,324

8,268

1,161

Total comprehensive income

12,101

88,166

152,790

21,461

215,002

348,767

48,992

Total comprehensive (loss)/profit attributable

to mezzanine equity classified as non-

controlling interests shareholders

(3,818)

(8,479)

(3,879)

(545)

Total comprehensive income attributable to

ordinary shareholders

15,919

88,105

152,790

21,461

223,481

352,646

49,537

Weighted average number of ordinary shares

used in computing net profit per share

Basic

3,624,431,887

3,608,253,358

3,619,786,490

3,660,415,080

3,616,138,060

Diluted

3,689,357,838

3,711,084,352

3,724,685,425

3,726,590,324

3,715,930,599

Net profit per share attributable to ordinary shareholders

Basic

0.03

0.04

0.01

0.07

0.11

0.02

Diluted

0.03

0.04

0.01

0.07

0.11

0.02

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

For the Three Months Ended

For the Nine Months Ended

September 30, 2024

June 30, 2025

September 30, 2025

September 30, 2024

September 30, 2025

RMB

USD

RMB

USD

Sales and marketing expenses

(1,993)

(1,949)

(1,314)

(185)

(5,133)

(5,162)

(725)

General and administrative expenses

(21,297)

(11,899)

(6,940)

(976)

(51,909)

(34,366)

(4,826)

Research and development expenses

(2,563)

(994)

(563)

(79)

(8,146)

(4,058)

(570)

Total

(25,853)

(14,842)

(8,817)

(1,240)

(65,188)

(43,586)

(6,121)

WATERDROP INC.

RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS

(All amounts in thousands, unless otherwise noted)

For the Three Months Ended

For the Nine Months Ended

September 30, 2024

June 30, 2025

September 30, 2025

September 30, 2024

September 30, 2025

RMB

USD

RMB

USD

Net profit attributable to the

Company's ordinary shareholders

98,973

140,159

158,466

22,259

267,895

406,820

57,147

Add:

Share-based compensation expense

attributable to the Company's ordinary

shareholders

25,673

14,144

8,817

1,239

64,947

42,711

6,000

Foreign currency exchange (gain)/loss

(7,909)

(2,656)

388

(8,979)

(165)

(23)

Impairment of intangible assets

acquired from business combination

12,336

Tax effects on non-GAAP adjustments

(3,084)

Adjusted net profit attributable to

the Company's ordinary shareholders

125,989

151,647

167,671

23,553

333,115

449,366

63,124

SOURCE Waterdrop Inc.