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Waterdrop Inc. Reports Strong Financial Results for Q4 2025

Waterdrop Inc., a significant player in the insurance and healthcare technology sector, has shared its financial results for the fourth quarter and the fiscal year ending December 31, 2025. The company's results reflected strong growth, particularly in operating profit and insurance-related income, marking a noteworthy period for the business.

Financial Highlights

In Q4 2025, Waterdrop recorded an operating profit of RMB 83.9 million (approximately US$ 12.0 million), which displays a remarkable year-over-year increase of 58.4%. The net profit attributable to ordinary shareholders reached RMB 162.1 million (about US$ 23.2 million), rising by 62.7% compared to the previous year. These positive shifts indicate a robust performance and effective business strategies.

The net operating revenue for this quarter soared to RMB 1,411.2 million (around US$ 201.8 million), representing a stunning 105.5% year-over-year increase. Specifically, the insurance-related income peaked at RMB 1,310.4 million (roughly US$ 187.4 million), reflecting a 125% rise from Q4 2024.

Operational Achievements

Waterdrop has made significant strides in its Medical Crowdfunding initiative, with nearly 490 million individuals contributing a total of RMB 72.3 billion to approximately 3.68 million patients as of the end of December 2025. This showcase of social impact underlines the company's commitment to enhancing healthcare accessibility.

Moreover, in light of advancing technologies, Waterdrop has adopted AI solutions extensively throughout its operations. The CEO, Mr. Peng Shen, emphasized that 2025 was a pivotal year for the company, particularly due to the strategic integration of AI technologies, which bolstered operational efficiency and competitive advantages.

AI implementation led to a 125% increase in insurance-related income this quarter. The fleet of AI tools, including the 'AI Medical Insurance Expert' and 'AI Customer Service Agent', substantially optimized services, managing over 1.4 million customer inquiries in one month. Additionally, the 'AI Service Quality Copilot' enhanced efficiency rates effectively.

The firm also made considerable enhancements to its risk control systems associated with Medical Crowdfunding. Utilizing automated data masking techniques, Waterdrop improved data security while accelerating the review process. This foresight helps in safeguarding against potential risks, ensuring a reliable operational model for stakeholders.

Clinical Trial Innovations

The digital clinical trial solutions segment of Waterdrop also thrived during the final quarter, with a significant revenue increase attributed to new patent-secured technologies for intelligent drug-patient matching. This innovation fosters precise alignment between eligible patients and clinical trials, with 1,273 patients being enrolled in various programs this quarter.

Shareholder Returns and Future Outlook

As part of its initiative to provide consistent shareholder returns, Waterdrop announced its plan to issue a cash dividend of approximately US$ 10.8 million. This cash dividend, decided by the board, is expected to reward shareholders recorded as of April 24, 2026. The payment is set for either May 13, 2026 (for ordinary shares) or May 20, 2026 (for American Depositary Shares).

Looking to the future, Waterdrop is poised to leverage its technological advancements within the burgeoning AI landscape. With a vision to enhance healthcare services through innovative solutions, the company is prepared to solidify its growth trajectory and deliver lasting value to its stakeholders.

Overall, Waterdrop Inc.'s financial results reveal a promising outlook that fuses technology with healthcare, aiming to deepen its social impact while ensuring profitable operations. The commitment to innovation, combined with solid financial performance, sets the stage for a forward-looking approach as the company heads into its tenth anniversary.