Soaring waterdrop earnings surge by 59%, triggering a massive $200 million dividend flood
Waterdrop Reports Strong Q2 2025 Results, Boosted by AI Integration and Expanded Partnerships
In a recent announcement, Waterdrop Inc., a leading Chinese health-tech company, reported impressive financial results for the second quarter of 2025. The company's net operating revenue reached RMB 838.0 million, marking a 23.9% year-over-year increase.
Peng Shen, the founder, chairman, and CEO of Waterdrop, highlighted the company's strong revenue and profit growth, attributing it to the deeper integration of artificial intelligence in its sales and service processes. Notable advancements include the launch of 'KEYI.AI', a real-time AI underwriting assistant for consultants, and the enhancement of the 'AI Customer Service Agent' to improve user experience.
The insurance business, a significant contributor to Waterdrop's revenue, also saw significant growth. The insurance-related revenue for Q2 2025 was RMB 738.6 million, a 28.7% year-over-year increase. First-year premiums (FYPs) generated by the insurance business amounted to RMB 3,204.3 million, a 80.2% year-over-year increase. The insurance business operating profit for the quarter was RMB 170.9 million, a 39% year-over-year increase.
Waterdrop's Digital Clinical Trial Solution also performed well, generating revenues of approximately RMB 27.7 million in Q2 2025, representing a 34.2% year-over-year increase. The E-Find Platform, Waterdrop's clinical trial platform, enrolled 999 patients this quarter and initiated services for 114 new programs. As of June 30, 2025, the Company had cumulatively enrolled 12,216 patients into 1,385 clinical trial programs through the E-Find Platform.
Operating expenses accounted for 38.7% of revenue in Q2 2025, a decrease of 6.4 percentage points year-on-year. This improvement indicates a more efficient operation and a stronger financial position for the company.
Waterdrop's efforts to strengthen partnerships also paid off. The E-Find Platform expanded its collaboration to 198 pharmaceuticals and contract research organizations. Waterdrop Medical Crowdfunding, another key business of Waterdrop, has cumulatively raised RMB 70 billion for 3.54 million patients.
In a positive move for shareholders, the board of directors of the company has approved an enhanced cash dividend of US$10.9 million, a 50% increase over the previous dividend.
Waterdrop has also made strides in risk management. Waterdrop Medical Crowdfunding upgraded its risk assessment capabilities, using a large-language-model engine to track 15 high-risk scenarios and refine itself to identify risks more accurately.
Since September 2021, Waterdrop has repurchased approximately 55.7 million American Depositary Shares (ADSs). This move demonstrates the company's confidence in its future growth and its commitment to creating value for shareholders.
In summary, Waterdrop's Q2 2025 results reflect the company's successful integration of artificial intelligence, expansion of partnerships, and focus on risk management. These efforts have resulted in strong revenue and profit growth, improved operational efficiency, and increased shareholder value.
