Waterdrop Inc. Announces First Quarter 2026 Unaudited Financial Results
Rhea-AI Summary
Waterdrop (NYSE: WDH) reported unaudited Q1 2026 results with net operating revenue of RMB1,242.2 million, up 64.8% year-over-year but down 12.0% quarter-over-quarter. Insurance-related income rose 74.1% to RMB1,145.8 million.
Operating profit reached RMB80.0 million, net profit was RMB98.4 million, and cash position stood at RMB2,880.7 million. The company continued AI deployment, expanded clinical trial enrollment, and, by May 31, 2026, had repurchased 61.8 million ADSs for US$120.1 million and paid a US$10.8 million dividend.
Positive
- Net operating revenue +64.8% year-over-year to RMB1,242.2 million
- Insurance-related income +74.1% year-over-year to RMB1,145.8 million
- Technical service income rose to RMB421.0 million from RMB9.4 million
- Operating profit increased 5.3% year-over-year to RMB80.0 million
- Digital clinical trial revenue +5.4% year-over-year to RMB24.2 million
- Cash position of RMB2,880.7 million as of March 31, 2026
- Repurchased 61.8 million ADSs for about US$120.1 million
- Paid approximately US$10.8 million in cash dividends
Negative
- Net operating revenue -12.0% quarter-over-quarter
- Insurance-related income -12.6% quarter-over-quarter
- Crowdfunding service fees -9.5% year-over-year to RMB60.7 million
- Operating costs and expenses +71.5% year-over-year to RMB1,162.3 million
- Sales and marketing expenses +213.8% year-over-year to RMB541.1 million
- Net profit attributable to shareholders fell to RMB98.4 million from RMB108.2 million year-over-year
- Adjusted net profit decreased to RMB106.3 million from RMB130.0 million year-over-year
- Cash position declined from RMB3,249.0 million at December 31, 2025
News Market Reaction – WDH
In the Jun 16 session, WDH declined 8.57%, reflecting a notable negative market reaction. Argus tracked a trough of -13.0% from its starting point during tracking. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility. Trading volume was elevated at 2.1x the daily average, suggesting increased selling activity.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Dec 03 | Q3 2025 earnings | Positive | +1.1% | Strong Q3 2025 revenue and net profit growth with continued profitability. |
| Dec 03 | Q3 2025 earnings | Positive | +1.1% | Q3 2025 earnings with higher insurance income and operating profit. |
| Jun 05 | Q1 2025 earnings | Positive | -3.3% | Q1 2025 results showing revenue and net profit growth with AI progress. |
| Jun 05 | Q1 2025 earnings | Positive | -3.3% | Detailed Q1 2025 earnings with profitable growth and crowdfunding scale. |
| Apr 25 | 2024 annual report | Neutral | +0.8% | Filing of 2024 Form 20-F with audited statements and disclosures. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings releases have often produced modest moves, with some instances of negative reactions despite positive fundamentals.
Over the past year, Waterdrop has repeatedly reported solid growth, including Q1 2025 and Q3 2025 earnings with rising net profit and expanding insurance income, while maintaining significant cash and buybacks. The 2024 and 2025 annual reports on Form 20-F reinforced profitability and disclosed structural and regulatory risks. Today’s Q1 2026 update continues this sequence of detailed earnings disclosures and capital return via ADS repurchases and dividends.
Key Terms
non-gaap financial
clinical trial medical
cash equivalents financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Financial and Operational Highlights for the First Quarter of 2026
- Strong Core Business Growth: Net operating revenue for the first quarter rose to
RMB1,242.2 million (US ), representing a$180.1 million 64.8% year-over-year increase. Insurance-related income for the quarter reachedRMB1,145.8 million (US ), up$166.1 million 74.1% from the same period in 2025. - Year-Over-Year Operating Profit Improvement: In the first quarter of 2026, operating profit was
RMB80.0 million (US ), representing a$11.6 million 5.3% year-over-year increase. - Expanded Scale of Medical Crowdfunding: As of March 31, 2026, around 494 million people have cumulatively donated an aggregate of
RMB73.5 billion to 3.75 million patients through Waterdrop Medical Crowdfunding. - Continued Expansion in Patient Enrollment: As of March 31, 2026, the Company had cumulatively enrolled 15,512 patients into 1,718 clinical trial programs through the E-Find Platform.
Mr. Peng Shen, Founder, Chairman, and Chief Executive Officer of Waterdrop, commented, "2026 marks Waterdrop's tenth anniversary. We opened the year with a solid first-quarter result, underpinned by rapid top-line growth.
For our insurance business, we deepened R&D investment to strengthen our traffic infrastructure and user acquisition capabilities. Insurance-related income rose
Our AI deployment continued to enhance operational efficiency. First-year premiums facilitated by our user-facing 'AI Insurance Expert' increased by
During this quarter, we upgraded our AI-assisted risk screening framework for Waterdrop Medical Crowdfunding, improving the speed and consistency of campaign intake and initial screening. We also streamlined localized risk operations by integrating multilingual risk specialists and culturally attuned review workflows, while maintaining strict compliance.
In our digital clinical trial business, the E-Find platform leverages proprietary patented technology to match and recommend patients for innovative drug clinical trials based on structured medical records. In the first quarter, we partnered with 243 pharmaceutical companies and contract research organizations and enrolled 957 patients. Revenue from digital clinical trial solutions was approximately
As part of our ongoing shareholder return program, as of May 31, 2026, we had repurchased approximately 61.8 million ADSs for about
As we look to the future, we remain dedicated to the enduring purpose that has shaped our journey since day one. In 2026, we aim to move faster toward becoming an AI-native company to strengthen execution and support durable value for our users and shareholders."
Financial Results for the First Quarter of 2026
Operating revenue, net
Net operating revenue for the first quarter of 2026 reached
- Insurance-related income includes insurance brokerage income and technical service income. Insurance brokerage income represents brokerage commissions earned from insurance companies. Technical service income is derived from providing analytics and intelligent recommendation service, risk assessment technical service, customer relationship management ("CRM") system-based technical services and marketing services to insurance companies, insurance brokers, and agency companies. Reinforced by cumulative big data, we provide risk assessment technical services through algorithm-driven verification system assessing risk by analyzing user profiles and medical history, tagging risk levels for hierarchical management that help insurers refine their risk analysis capabilities since 2025. We leverage multi-dimensional consumer insights to deliver analytics and intelligent recommendation services, enabling policyholders to be matched with more suitable products and improving sales efficiency. Our insurance-related income amounted to
RMB1,145.8 million (US ) in the first quarter of 2026, representing an increase of$166.1 million 74.1% year-over-year fromRMB658.0 million for the first quarter of 2025, which was mainly due to the increase in technical service income. Our technical service income amounted toRMB421.0 million (US ) in the first quarter of 2026, compared with$61.0 million RMB9.4 million for the same quarter of 2025. On a quarter-over-quarter basis, insurance-related income decreased by12.6% , due to the decrease in technical service income.
- Crowdfunding service fees represent the service income earned when patients successfully withdraw the proceeds from their crowdfunding campaigns. Our role is to operate the Waterdrop Medical Crowdfunding platform to provide crowdfunding related services through the internet, enabling patients with significant medical bills to seek help from caring hearts through technology (the "medical crowdfunding services"). Our medical crowdfunding services generally consist of providing technical and internet support, managing, reviewing and supervising the crowdfunding campaigns, providing comprehensive risk management and anti-fraud measures, and facilitating the collection and transfer of the funds. For the first quarter of 2026, we generated
RMB60.7 million (US ) in service fees, representing a decrease of$8.8 million 9.5% fromRMB67.1 million for the first quarter of 2025. On a quarter-over-quarter basis, crowdfunding service fees slightly decreased by1.1% .
- Digital clinical trial solution income represents the service income earned from our customers mainly including biopharmaceutical companies and leading biotechnology companies. We match qualified and suitable patients for enrollment in clinical trials for our customers and generate digital clinical trial solution revenue for successful matches and we typically charge our customers a fixed unit price per successful match. For the first quarter of 2026, our digital clinical trial solution income amounted to
RMB24.2 million (US ), representing an increase of$3.5 million 5.4% fromRMB23.0 million in the same period of 2025. On a quarter-over-quarter basis, digital clinical trial solution income decreased by32.2% .
Operating costs and expenses
Operating costs and expenses increased by
- Operating costs increased by
30.1% year-over-year toRMB486.8 million (US ) for the first quarter of 2026, as compared with$70.6 million RMB374.2 million for the first quarter of 2025, which was primarily driven by (i) an increase ofRMB53.9 million in costs of referral and service fees, (ii) an increase ofRMB38.9 million in the costs for short message service (SMS) costs for new user onboarding and authentication processes; and (iii) an increase ofRMB7.3 million in personnel costs. On a quarter-over-quarter basis, operating costs decreased by28.1% fromRMB677.3 million , primarily due to (i) a decrease ofRMB201.9 million in costs of referral and service fees, partially offset by (ii) an increase ofRMB12.3 million in the costs for SMS.
- Sales and marketing expenses increased by
213.8% year-over-year toRMB541.1 million (US ) for the first quarter of 2026, as compared with$78.4 million RMB172.4 million for the same quarter of 2025. The increase was primarily due to an increase ofRMB361.4 million in marketing expenses for third-party traffic channels. On a quarter-over-quarter basis, sales and marketing expenses increased by6.8% fromRMB506.8 million , primarily due to an increase ofRMB29.4 million in marketing expenses for third-party traffic channels.
- General and administrative expenses decreased by
4.3% year-over-year toRMB71.7 million (US ) for the first quarter of 2026, as compared with$10.4 million RMB74.9 million for the same quarter of 2025. On a quarter-over-quarter basis, general and administrative expenses decreased by7.0% fromRMB77.1 million , due to a decrease ofRMB6.5 million in professional service fees.
- Research and development expenses increased by
11.5% year-over-year toRMB62.7 million (US ) for the first quarter of 2026, as compared with$9.1 million RMB56.2 million for the same period of 2025, which was primarily driven by an increase ofRMB6.7 million in cloud server fees and other IT support expenses. On a quarter-over-quarter basis, research and development expenses decreased by5.2% fromRMB66.2 million . The decrease was primarily due to (i) a decrease ofRMB4.3 million in personnel costs and share-based compensation expenses, partially offset by (ii) an increase ofRMB1.2 million in cloud server fees and other IT support expenses.
Operating profit for the first quarter of 2026 was
Interest income for the first quarter of 2026 was
Income tax expense for the first quarter of 2026 was
Net profit attributable to the Company's ordinary shareholders for the first quarter of 2026 was
Adjusted net profit attributable to the Company's ordinary shareholders (non-GAAP(1)) for the first quarter of 2026 was
Cash position(2)
As of March 31, 2026, cash position of the Company was
(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 61.8 million ADSs from the open market with cash for a total consideration of approximately
Supplemental Information
We organize and report our business in the following operating segments:
- Insurance, which mainly includes insurance brokerage service and technical service;
- Crowdfunding, which mainly includes crowdfunding service; and
- Others, which do not individually or in the aggregate meet the quantitative and qualitative thresholds to be individually reportable and are aggregated.
The table below sets forth the segment operating results, with three-month ended March 31, 2026.
For the Three Months Ended | |||||||||
March 31, 2025 | December 31, 2025 | March 31, 2026 | |||||||
RMB | RMB | RMB | USD | ||||||
(All amounts in thousands) | |||||||||
Operating revenue, net | |||||||||
Insurance | 657,988 | 1,310,357 | 1,145,790 | 166,105 | |||||
Crowdfunding | 67,131 | 61,429 | 60,729 | 8,804 | |||||
Others | 28,575 | 39,462 | 35,729 | 5,179 | |||||
Total consolidated operating revenue, net | 753,694 | 1,411,248 | 1,242,248 | 180,088 | |||||
Operating costs and expenses | |||||||||
Insurance | (506,575) | (1,164,229) | (992,834) | (143,931) | |||||
Crowdfunding | (97,299) | (96,722) | (96,786) | (14,031) | |||||
Others | (54,000) | (58,252) | (64,721) | (9,383) | |||||
Operating profit/(loss) | |||||||||
Insurance | 151,413 | 146,128 | 152,956 | 22,174 | |||||
Crowdfunding | (30,168) | (35,293) | (36,057) | (5,227) | |||||
Others | (25,425) | (18,790) | (28,992) | (4,204) | |||||
Total segment operating profit | 95,820 | 92,045 | 87,907 | 12,743 | |||||
Unallocated items* | (19,927) | (8,181) | (7,954) | (1,152) | |||||
Total consolidated operating profit | 75,893 | 83,864 | 79,953 | 11,591 | |||||
Total other income | 41,690 | 36,538 | 27,258 | 3,952 | |||||
Consolidated profit before income tax, and share | 117,583 | 120,402 | 107,211 | 15,543 | |||||
* | The share-based compensation represents unallocated items in the segment information because our management does not |
Exchange Rate
This announcement contains translations of certain RMB amounts into
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
The Company mitigates these limitations by reconciling the non-GAAP financial measure to the most comparable
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
Conference Call Information
Waterdrop's management team will hold a conference call on June 16, 2026 at 8:00 AM
International: | 1-412-317-6061 |
United States Toll Free: | 1-888-317-6003 |
Hong Kong Toll Free: | 800-963976 |
852-58081995 | |
Mainland | 4001-206115 |
Chinese Line (Mandarin) Entry Number: | 4749778 |
English Interpretation Line (Listen-only Mode) Entry Number: | 1011277 |
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 June 23, 2026 by dialing the following numbers:
United States Toll Free: | 1-855-669-9658 |
International: | 1-412-317-0088 |
Chinese Line Access Code: | 8479769 |
English Interpretation Line Access Code: | 6416967 |
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 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 service to billions through technology. For more information, please visit www.waterdrop-inc.com.
For investor inquiries, please contact
Waterdrop Inc.
IR@shuidi-inc.com
WATERDROP INC. | |||||
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
(All amounts in thousands, unless otherwise noted) | |||||
As of | |||||
December 31, 2025 | March 31, 2026 | ||||
RMB | RMB | USD | |||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | 483,003 | 751,940 | 109,008 | ||
Restricted cash | 648,450 | 935,432 | 135,609 | ||
Short-term investments | 530,668 | 143,805 | 20,847 | ||
Accounts receivable, net | 1,260,464 | 1,821,836 | 264,111 | ||
Current contract assets | 806,916 | 879,145 | 127,449 | ||
Amount due from related parties | 209 | 280 | 41 | ||
Prepaid expense and other assets | 251,084 | 294,031 | 42,628 | ||
Total current assets | 3,980,794 | 4,826,469 | 699,693 | ||
Non-current assets | |||||
Non-current contract assets | 295,516 | 323,671 | 46,922 | ||
Property, equipment and software, net | 255,698 | 253,567 | 36,759 | ||
Intangible assets, net | 177,140 | 179,182 | 25,976 | ||
Long-term investments | 2,284,102 | 2,076,805 | 301,073 | ||
Right of use assets, net | 23,955 | 21,448 | 3,109 | ||
Deferred tax assets | 2,870 | 578 | 84 | ||
Goodwill | 80,751 | 80,751 | 11,706 | ||
Total non-current assets | 3,120,032 | 2,936,002 | 425,629 | ||
Total assets | 7,100,826 | 7,762,471 | 1,125,322 | ||
Liabilities and Shareholders' Equity | |||||
Current liabilities | |||||
Amount due to related parties | 9,324 | 9,914 | 1,437 | ||
Insurance premium payables | 684,800 | 1,009,041 | 146,280 | ||
Accrued expenses and other current liabilities | 1,140,448 | 1,173,724 | 170,154 | ||
Short-term loans | 47,000 | 274,675 | 39,820 | ||
Current lease liabilities | 10,888 | 9,746 | 1,413 | ||
Total current liabilities | 1,892,460 | 2,477,100 | 359,104 | ||
Non-current liabilities | |||||
Non-current lease liabilities | 12,640 | 11,034 | 1,600 | ||
Deferred tax liabilities | 43,798 | 48,522 | 7,034 | ||
Total non-current liabilities | 56,438 | 59,556 | 8,634 | ||
Total liabilities | 1,948,898 | 2,536,656 | 367,738 | ||
Shareholders' equity | |||||
Class A ordinary shares | 116 | 116 | 17 | ||
Class B ordinary shares | 27 | 27 | 4 | ||
Treasury stock | (16) | (17) | (2) | ||
Additional paid-in capital | 6,733,696 | 6,640,030 | 962,602 | ||
Accumulated other comprehensive income | 43,622 | 3,373 | 489 | ||
Accumulated deficit | (1,625,517) | (1,527,145) | (221,390) | ||
Non-controlling interests | - | 109,431 | 15,864 | ||
Total shareholders' equity | 5,151,928 | 5,225,815 | 757,584 | ||
Total liabilities and shareholders' equity | 7,100,826 | 7,762,471 | 1,125,322 | ||
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 | ||||||||
March 31, 2025 | December 31, 2025 | March 31, 2026 | ||||||
RMB | RMB | RMB | USD | |||||
Operating revenue, net | 753,694 | 1,411,248 | 1,242,248 | 180,088 | ||||
Operating costs and expenses(i) | ||||||||
Operating costs | (374,218) | (677,337) | (486,812) | (70,573) | ||||
Sales and marketing expenses | (172,396) | (506,786) | (541,052) | (78,436) | ||||
General and administrative expenses | (74,943) | (77,094) | (71,701) | (10,394) | ||||
Research and development expenses | (56,244) | (66,167) | (62,730) | (9,094) | ||||
Total operating costs and expenses | (677,801) | (1,327,384) | (1,162,295) | (168,497) | ||||
Operating profit | 75,893 | 83,864 | 79,953 | 11,591 | ||||
Other income | ||||||||
Interest income | 33,814 | 34,812 | 29,088 | 4,217 | ||||
Foreign currency exchange (loss)/gain | (2,103) | 111 | 22 | 3 | ||||
Others, net | 9,979 | 1,615 | (1,852) | (268) | ||||
Profit before income tax, and share of results of equity | 117,583 | 120,402 | 107,211 | 15,543 | ||||
Income tax (expense)/benefit | (13,328) | 41,714 | (6,785) | (984) | ||||
Share of results of equity method investee | - | - | (2,155) | (312) | ||||
Net profit | 104,255 | 162,116 | 98,271 | 14,247 | ||||
Net loss attributable to non-controlling interests | (3,940) | - | (101) | (15) | ||||
Net profit attributable to ordinary shareholders | 108,195 | 162,116 | 98,372 | 14,262 | ||||
Other comprehensive income: | ||||||||
Foreign currency translation adjustment, net of tax | (14,056) | (44,224) | (34,915) | (5,062) | ||||
Unrealized gain/ (loss) on available for sale | 17,612 | (17,530) | (5,334) | (773) | ||||
Total comprehensive income | 107,811 | 100,362 | 58,022 | 8,412 | ||||
Total comprehensive loss attributable to non- | (3,940) | - | (101) | (15) | ||||
Total comprehensive income attributable to ordinary | 111,751 | 100,362 | 58,123 | 8,427 | ||||
Weighted average number of ordinary shares used in | ||||||||
Basic | 3,620,380,862 | 3,612,924,848 | 3,597,746,765 | 3,597,746,765 | ||||
Diluted | 3,711,999,000 | 3,706,306,921 | 3,689,297,909 | 3,689,297,909 | ||||
Net profit per share attributable to ordinary shareholders | ||||||||
Basic | 0.03 | 0.04 | 0.03 | 0.00 | ||||
Diluted | 0.03 | 0.04 | 0.03 | 0.00 | ||||
(i) Share-based compensation expenses are included in the operating costs and expenses as follows. | ||||||||
For the Three Months Ended | ||||||||
March 31, 2025 | December 31, 2025 | March 31, 2026 | ||||||
RMB | RMB | RMB | USD | |||||
Sales and marketing expenses | (1,899) | (1,134) | (1,108) | (160) | ||||
General and administrative expenses | (15,527) | (6,531) | (6,134) | (889) | ||||
Research and development expenses | (2,501) | (516) | (712) | (103) | ||||
Total | (19,927) | (8,181) | (7,954) | (1,152) | ||||
WATERDROP INC. | ||||||||
RECONCILIATIONS OF GAAP AND NON-GAAP RESULTS | ||||||||
(All amounts in thousands, unless otherwise noted) | ||||||||
For the Three Months Ended | ||||||||
March 31, 2025 | December 31, 2025 | March 31, 2026 | ||||||
RMB | RMB | RMB | USD | |||||
Net profit attributable to the Company's ordinary shareholders | 108,195 | 162,116 | 98,372 | 14,262 | ||||
Add: | ||||||||
Share-based compensation expense attributable to the | 19,750 | 8,181 | 7,954 | 1,152 | ||||
Foreign currency exchange loss/(gain) | 2,103 | (111) | (22) | (3) | ||||
Adjusted net profit attributable to the Company's ordinary | 130,048 | 170,186 | 106,304 | 15,411 | ||||
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SOURCE Waterdrop Inc.