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Waterdrop Inc. Reports Impressive Q3 2025 Financial Results

Waterdrop Inc. (NYSE: WDH), a leading technology platform for insurance and healthcare services, has announced its unaudited financial results for the third quarter ending September 30, 2025. The company has showcased significant growth, indicating its positive trajectory in the financial sector.

Financial Highlights

In Q3 2025, Waterdrop experienced remarkable growth, particularly in its operating profit, which surged to RMB 113.8 million (approximately US$16.0 million), reflecting a staggering year-over-year increase of 329.8%. Additionally, the net profit attributable to ordinary shareholders reached RMB 158.5 million (around US$22.3 million), marking a solid year-over-year growth of 60.1%. This exemplary performance sets a robust precedent for the company moving forward.

The net operating revenue soared to RMB 974.9 million (about US$136.9 million), which is an increase of 38.4% compared to the same quarter last year. Insurance-related income also showed substantial growth, amounting to RMB 869.7 million (approximately US$122.2 million), an impressive 44.8% increase from the previous year’s figures.

Innovations and Enhancements

Mr. Peng Shen, the Founder and CEO of Waterdrop, emphasized the importance of technological upgrades, stating, "The upgrades to our data infrastructure and real-time identification capabilities allow us to gauge user needs effectively, resulting in optimized user acquisition strategies and a 32.3% increase in insurance premiums."

The company launched the ‘Quan Jia Fu Family Protection Plan,’ allowing coverage for up to nine family members under one policy, and enhanced its ‘Guo Min Bao Medical Insurance’ plan, expanding its network to include more quality private hospitals.

Waterdrop is also heavily investing in AI technology. The introduction of the ‘AI Medical Insurance Expert’ saw premiums facilitated rise by 82% in just one quarter. The company’s underwriting process was streamlined with the help of their ‘KEYI.AI’ tool, drastically reducing processing times and enhancing efficiency. These AI innovations are proving to be pivotal in delivering improved service to both clients and shareholders.

Enhanced Services and Growth

In Q3, Waterdrop Medical Crowdfunding refined its risk control measures, utilizing advanced analytics to improve fraud detection. Approximately 485 million individuals contributed RMB 71.2 billion to support 3.61 million patients through the platform. These measures substantially enhance the transparency and accountability around the donations made, instilling confidence among contributors.

The performance of the E-Find Platform, which facilitates participant recruitment for clinical trials, has also shown unprecedented results. By the end of September 2025, 1,066 patients were enrolled in a total of 1,491 clinical trials, resulting in a 31.3% increase in revenue over last year.

Commitment to Investors

Waterdrop remains committed to providing significant returns to its investors. As of November 2025, the company had repurchased approximately 58.1 million ADSs, alongside a cash dividend payout of US$10.9 million. Their robust cash position stands at RMB 3.51 billion (around US$493.1 million), allowing for continued expansion and investments.

Mr. Shen reiterated the company’s commitment to growth, stating, "We are dedicated to leveraging AI to drive practical advancements, enhancing user experience while delivering value to our shareholders."*

Conclusion

The third quarter of 2025 marked another milestone in Waterdrop’s journey. With significant financial growth, technological advancements, and a commitment to integrity and transparency, Waterdrop is poised for further success in the insurance and healthcare sectors. As they move into the future, the anticipated momentum in their business strategies will likely continue to foster remarkable advancements for their services and offerings.

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This report encapsulates Waterdrop Inc.'s spectacular Q3 financials and prospects, projecting a promising outlook ahead.