Waterdrop Inc. (NYSE: WDH) posted robust third‑quarter 2025 results, reporting total revenue of RMB 974.9 million—up 38.4% year‑over‑year—and net profit attributable to ordinary shareholders of RMB 158.5 million, a 60.1% increase from the same period last year. The company’s 15th consecutive profitable quarter underscores a sustained momentum in its core businesses.
Revenue growth was largely powered by the insurance segment, which generated RMB 869.7 million—an increase of 44.8% year‑over‑year—and by the medical crowdfunding platform, which raised RMB 71.2 billion for 3.61 million patients. The AI‑driven “Medical Insurance Expert” and the KEYI.AI underwriting assistant accelerated premium collection and reduced processing time from five minutes to one second, respectively, contributing to the strong revenue mix.
Waterdrop’s earnings per share of CNY 0.40 beat analyst consensus of $0.27, reflecting disciplined cost management and a favorable mix shift toward higher‑margin insurance contracts. The company’s operating expenses fell to 39.6% of revenue, an 8.3‑percentage‑point improvement year‑over‑year, while the insurance operating profit margin expanded to 20.3%—a result of AI‑enabled underwriting efficiencies and scale.
Management highlighted the strategic importance of AI integration. Chief Financial Officer Xiaoying Xu noted that AI “has become a core engine of quality and efficiency,” while Insurance Technology partner Ran Wei emphasized that the system’s deep integration with the corporate data lake “continues to refine marketing strategy and pricing.” Executive Tracy Li added that the firm would “leverage advancing AI technologies to drive integration and innovation across operations, fueling sustainable long‑term growth.”
Investors responded cautiously, with the stock trading flat as analysts weighed the strong results against valuation concerns. The company’s cash position of RMB 3.51 billion and ongoing share repurchases signal confidence in its capital allocation strategy.
Waterdrop’s Q3 performance demonstrates that its AI‑centric strategy is translating into tangible financial gains, reinforcing the company’s competitive position in the insurtech and healthcare service markets.
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