Benzinga·Jun 24, 2026
Waterdrop Posts Strong Revenue Growth Amid Rising User Acquisition CostsThe online insurance broker's new technical services business boomed in the first quarter, but soaring user acquisition costs caused its profit to fall
Waterdrop Inc.(WDH)Earnings, Financials & Key Ratios
WDH•NYSE•Insurance & Managed Care
$1.21
0.6× P/E·Price updated Jul 7, 2026
SectorFinancial ServicesIndustryDiversified InsuranceSub-IndustryInsurance brokers and holding companies
AboutWaterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People's Republic of China. The company offers short-term health and long-term health and life insurance products and services. It also operates a medical crowdfunding platform. The company was founded in 2016 and is headquartered in Beijing, the People's Republic of China.Show more
- Revenue$3.87B+39.6%
- Combined Ratio90.68%-3.1%
- Net Income$553M+50.6%
- Return on Equity11.04%+43.4%
- Medical Cost Ratio48.85%+3.0%
- Operating Margin9.32%+45.1%
- Net Margin14.3%+7.9%
- ROA8.16%+40.0%
- Equity / Assets72.55%-3.9%
WDH Price & Volume
Waterdrop Inc. (WDH) stock price & volume — 10-year historical chart
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Underwriting Efficiency Gains Mask Regulatory Commission Risks
Investment Thesis • Updated 2025Q2
VerdictNeutral
Growth:Accelerating
Profitability:Strong
Financial:Healthy
Cash Flow:Mixed
Primary Risk:Regulatory and Policy Lapse
Key Thesis Takeaways
- Waterdrop has demonstrated a successful strategic pivot toward higher-value insurance products, evidenced by a 23.9% year-over-year revenue growth in 2025Q2 and an improved combined ratio of 88.4%.
- While the company maintains a robust capital base with $5.0 billion in equity, investors should remain cautious regarding the reliance on upfront commission recognition and potential volatility in loss ratios, which previously spiked to 105.1% in 2023Q4.
- The lack of transparent operating cash flow reporting warrants further investigation into whether accounting profits are fully supported by actual liquidity given the $416.5 million in claims payments observed in 2025Q2.
Verdict Logic
while the company shows accelerating growth and a 88.4% combined ratio, the lack of transparent cash flow reporting and exposure to regulatory commission clawbacks necessitates a cautious approach despite the low 0.51 P/E TTM valuation.
WDH Growth Metrics
Waterdrop Inc. (WDH) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years-
5 Years5.03%
3 Years11.36%
TTM9.39%
Profit CAGR
10 Years-
5 Years-
3 Years-3.07%
TTM68.84%
EPS CAGR
10 Years-
5 Years-
3 Years114%
TTM74.29%
Return on Capital
10 Years-16.23%
5 Years-5.73%
3 Years3.53%
Last Year7.09%
WDH Recent Earnings
Waterdrop Inc. (WDH) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 6/12 qtrs (75%)●Beat Revenue 7/12 qtrs (64%)
Q3 2026Latest
Jun 16, 2026Metric
Actual
Est
EPS
$0.04
—
Rev
$180M+0.4%
$179M
Q2 2026
Mar 25, 2026Metric
Actual
Est
EPS
$0.06+55.4%
$0.04
Rev
$202M+71.4%
$118M
Q4 2025
Dec 3, 2025Metric
Actual
Est
EPS
$0.06+58.2%
$0.04
Rev
$137M+13.5%
$121M
Q4 2025
Sep 4, 2025Metric
Actual
Est
EPS
$0.06-68.4%
$0.19
Rev
$117M-86.7%
$880M
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q3 2026Latest | Jun 16, 2026 | $0.04 | $180Mvs $179M+0.4% |
| Q2 2026 | Mar 25, 2026 | $0.06vs $0.04+55.4% | $202Mvs $118M+71.4% |
| Q4 2025 | Dec 3, 2025 | $0.06vs $0.04+58.2% | $137Mvs $121M+13.5% |
| Q4 2025 | Sep 4, 2025 | $0.06vs $0.19-68.4% | $117Mvs $880M-86.7% |
Based on last 12 quarters of dataView full earnings history →
Latest WDH News
Recent stock market news and headlines for Waterdrop Inc. (WDH)
PRNewsWire·Jun 23, 2026
Waterdrop Inc. Announces Appointment of New Independent DirectorBEIJING, June 23, 2026 /PRNewswire/ -- Waterdrop Inc. (NYSE: WDH) ("Waterdrop" or the "Company"), a leading technology platform dedicated to insurance and healthcare services with a positive social impact, today announced the appointment of Ms. Qianfei Chang as an independent director of the Company's board of directors (the "Board"), the chairman of the audit committee of the Board, a member of the compensation committee of the Board and a member of the nominating and corporate governance committee of the Board, replacing Mr.
Seeking Alpha·Jun 16, 2026
Waterdrop Inc. (WDH) Q1 2026 Earnings Call Prepared Remarks TranscriptWaterdrop Inc. (WDH) Q1 2026 Earnings Call Prepared Remarks Transcript
MarketBeat·Jun 16, 2026
Waterdrop Q1 Earnings Call HighlightsWaterdrop NYSE: WDH reported sharply higher first-quarter 2026 revenue as its insurance business continued to scale, while profit attributable to ordinary shareholders declined year over year amid increased marketing and technology investment.
PRNewsWire·Jun 16, 2026
Waterdrop Inc. Reports First Quarter 2026 Unaudited Financial Results, Q1 Net Revenue Up 64.8% Year-over-YearBEIJING, June 16, 2026 /PRNewswire/ -- On June 16, 2026, Waterdrop Inc. (NYSE: WDH), a leading technology platform dedicated to insurance and healthcare services with positive social impact, today announced its unaudited financial results for the first quarter ended March 31, 2026. In the first quarter of 2026, Waterdrop achieved net operating revenue of RMB1,242.2 million, representing a 64.8% year-over-year increase.
Peers Comparison
Key metrics vs top competitors for Waterdrop Inc. (WDH)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $1.21 | $449.04M | 0.56 | 39.6% | 14.3% | 11.04% | 42.72% | |
| $94.66 | $6.27B | 69.09 | 15.24% | 9.48% | 5.13% | — | |
| $2.35 | $537.92M | -33.26 | 6.96% | -2.51% | -2.41% | — | |
| $3.17 | $258.15M | -9.09 | -26.73% | -6.98% | -4.66% | — | |
| $12.94 | $79M | 2.97 | 249.63% | 5.12% | 15.72% | — | |
| $94.03 | $13.12B | 9.21 | 67.83% | 44.27% | 26.38% | — |
Compare WDH vs Peers
Waterdrop Inc. (WDH) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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WDH Frequently Asked Questions
Waterdrop Inc. (WDH) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
How fast is Waterdrop Inc. growing?
Waterdrop Inc. (WDH) grew revenue by 39.6% over the past year. This is strong growth.
Is WDH profitable?
Yes, Waterdrop Inc. (WDH) is profitable, generating $446.9M in net income for fiscal year 2025 (14.3% net margin).
Dividend & Returns
Does WDH pay dividends?
Yes, Waterdrop Inc. (WDH) pays a dividend with a yield of 42.72%. This makes it attractive for income-focused investors.
What is WDH's return on equity?
Waterdrop Inc. (WDH) has a return on equity (ROE) of 11.0%. This is reasonable for most industries.
Industry Metrics
What is Waterdrop Inc.'s combined ratio?
Waterdrop Inc. (WDH) has a combined ratio of 90.7%. A ratio below 100% indicates underwriting profitability.