TLDR
- WDH’s Q3 profit skyrockets 329.8%, driven by AI and insurance growth.
- Digital innovation fuels WDH’s record-breaking revenue and efficiency.
- AI tools like KEYI.AI and Sea.AI transform WDH’s service delivery.
- Clinical trial and crowdfunding arms show solid, scalable progress.
- WDH repurchases ADSs, declares dividends, and signals sustained growth.
Waterdrop Inc. (WDH) surged, closing at $1.8700, up 1.08% after announcing a significant profit increase in the third quarter of 2025.
Waterdrop Inc., WDH
The company reported steady revenue expansion and remarkable operational growth, driven by enhanced digital and AI capabilities. Its performance reinforced market confidence and reflected a robust upward trajectory.
Solid Financial Performance Boosts WDH Momentum
WDH recorded an operating profit of RMB113.8 million, representing a 329.8% year-over-year increase. Net profit reached RMB158.5 million, up 60.1% from the same quarter last year. Its net operating revenue rose by 38.4% to RMB974.9 million, underscoring broad-based business strength.
The insurance segment remained the largest contributor, generating RMB869.7 million, a 44.8% increase from 2024. This growth stemmed from rising technical service income and stronger customer engagement. WDH’s insurance business achieved a 32.3% sequential increase in premiums.
Operating costs reached RMB861.1 million, growing 27.1% year-over-year due to higher referral fees and marketing spending. Despite rising costs, WDH maintained profitability through efficient cost management. Furthermore, interest income climbed to RMB37.5 million, strengthening its financial position.
AI Innovation Drives Operational Efficiency
WDH integrated artificial intelligence across its business lines to boost speed and service quality. Its AI Medical Insurance Expert facilitated an 82% quarter-over-quarter rise in premiums, highlighting digital acceleration. The KEYI.AI system improved underwriting efficiency by cutting processing time to near instant levels.
The AI Customer Service Agent handled around 600,000 monthly inquiries, enhancing user experience and reducing manual workloads. The Waterdrop Sea.AI low-code platform enabled employees to create custom AI tools, driving productivity. These initiatives have improved both profitability and scalability within core operations.
The company also enhanced fraud detection within its crowdfunding platform using data analytics. Advanced algorithms improved early-warning systems, boosting transparency and donor trust. Consequently, WDH strengthened governance while supporting its medical crowdfunding mission.
Expanding Healthcare and Clinical Trial Services
WDH continued to expand its digital clinical trial segment through its E-Find Platform. Revenue rose 31.3% year-over-year to RMB31.9 million, driven by growing collaborations with pharmaceutical partners. Furthermore, over 13,000 patients participated across 1,491 clinical programs, showcasing operational breadth.
The crowdfunding segment maintained stable service fees of RMB65.7 million, reflecting platform maturity. Meanwhile, the total donations reached RMB71.2 billion from 485 million contributors, signifying broad social engagement. Through these efforts, WDH reinforced its leadership in health technology services.
By the end of November 2025, WDH repurchased 58.1 million ADSs and distributed US$10.9 million in dividends. The company expects sustained growth in 2025 and beyond as AI integration strengthens competitiveness. Overall, WDH continues to deliver resilient performance and expand its impact in the insurance and healthcare sectors.
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