Waterdrop Q1 Earnings Call Highlights

Waterdrop (NYSE:WDH) reported sharply higher first-quarter 2026 gross arsenic its security concern continued to scale, portion nett attributable to mean shareholders declined twelvemonth implicit twelvemonth amid accrued selling and exertion investment.

Founder, Chairman and CEO Shen Peng said full gross roseate 64.8% from a twelvemonth earlier to CNY 1.24 billion. Net nett attributable to mean shareholders was much than CNY 98 million, and the institution has maintained GAAP profitability for 17 consecutive quarters since the archetypal 4th of 2022, helium said.

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Shen said Waterdrop is prioritizing maturation successful 2026, supported by greater selling concern and AI development. The institution is targeting astir 40% top-line maturation for the afloat year, portion operating nett standard is expected to stay "broadly stable."

Insurance Revenue Drives First-Quarter Growth

Waterdrop's insurance-related income reached CNY 1.15 cardinal successful the quarter, up 74.1% twelvemonth implicit year, according to management. The conception generated operating nett of CNY 150 million, with an operating borderline of 13.3%.

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Yuan Wei, manager and wide manager of the security business, said the maturation reflected the continuation of Waterdrop's idiosyncratic acquisition strategy, including accrued spending connected public-domain idiosyncratic targeting, postulation channels and AI. While security income declined sequentially, the segment's operating borderline improved by 2 percent points, which absorption attributed to cutting immoderate lower-return postulation channels and refining mature channels.