Waterdrop Inc. Reports Impressive Q2 2025 Financial Results and Dividend Increase

Waterdrop Inc. (NYSE: WDH), a prominent technology platform focused on insurance and healthcare services, recently shared its unaudited financial outcomes for the second quarter ending June 30, 2025. The company reported remarkable growth in profitability and a substantial increase in cash dividends for shareholders.

Financial Highlights

The unaudited net profit attributable to ordinary shareholders reached RMB 140.2 million (approximately USD 19.6 million), reflecting a noteworthy rise of 58.7% compared to the same quarter last year. Waterdrop has maintained positive operating cash flow, further reinforcing its financial health.

The company experienced a striking 80.2% increase year-over-year in first-year premiums (`FYP`), amounting to RMB 3,204.3 million (USD 447.3 million) for the second quarter of 2025. Additionally, the net operating revenue increased by 23.9% year-over-year, totaling RMB 838.0 million (USD 117.0 million).

Waterdrop also boasts an impressive record in medical crowdfunding, with around 480 million individuals having contributed approximately RMB 70 billion to aid 3.54 million patients up till June 30, 2025. Furthermore, Waterdrop’s `E-Find Platform` successfully enrolled 12,216 patients in 1,385 clinical trial programs.

Mr. Peng Shen, Founder and CEO of Waterdrop, stated, "We have a lot to be proud of, particularly our profitability and revenue growth, which are driven by our strategic integration of AI into our services and sales processes. We're enhancing user acquisition and optimizing product iterations to create superior value for our customers."

Technological Advancements

Waterdrop's `Waterdrop Guardian` AI Application Suite has played a pivotal role in its success, interacting seamlessly with end-users and empowered online consultants. The introduction of the `AI Medical Insurance Expert` saw a 155% increase in premiums within a previous quarter. Additionally, the `AI Customer Service Agent` successfully addressed 60% of inquiries on the first contact, exemplifying improved customer service efficiency.

Moreover, Waterdrop's commitment to innovation is evident as they have launched `KEYI.AI`, a real-time AI underwriting assistant expected to benefit both internal consultants and industry partners soon.

The company also reported an enhancement in its crowdfunding platform's risk assessment capabilities. A large language model engine now enables better evaluation of campaigns and identifies potential risks, further solidifying Waterdrop's commitment to patient welfare and contribution transparency.

Shareholder Commitment

In alignment with its commitment to delivering value to shareholders, Waterdrop announced a cash dividend amounting to approximately USD 10.9 million, translating to an increase of 50% over previous payouts. This will benefit shareholders of record as of October 10, 2025, with payment expected around November 4, 2025.

In addition, the company approved a fifth share repurchase scheme, anticipating utilizing existing cash resources for this initiative. Since its initial repurchase program in 2021, Waterdrop has successfully repurchased about 55.7 million ADSs for USD 109 million as of August 31, 2025.

Looking Ahead

As Waterdrop progresses into the second half of 2025, it aims to further boost both top-line and bottom-line performance. With a core strategy centered around tech-driven innovation, the company is optimistic about leveraging these advancements to provide added value for users, partners, and shareholders alike.

In conclusion, Waterdrop Inc. demonstrates a strong financial framework alongside a visionary approach to healthcare and insurance. Its latest results and future plans signify a promising trajectory for both corporate growth and shareholder returns.

For those interested in the full financial details and insights from Waterdrop's management, the earnings call has been scheduled for September 4, 2025, at 8:00 AM U.S. Eastern Time, offering an opportunity for stakeholders to engage directly with company leaders.