Waterdrop Inc. (WDH.US) released its unaudited financial results for the second quarter ended June 30, 2026, on September 8. The company posted net operating revenue of RMB 1.448 billion for the quarter, marking a robust year-over-year increase of 72.8%. Net profit attributable to shareholders reached RMB 126 million, extending its profitability streak to 18 consecutive quarters. As of August 31, 2026, Waterdrop has repurchased approximately 62.9 million ADSs from the open market cumulatively.

Insurance business expands steadily with rising AI adoption

The insurance segment sustained its strong growth trajectory during the quarter, with insurance-related revenue climbing 80.5% year-over-year. Operating profit for the insurance division improved to RMB 184 million, up 20% quarter-over-quarter. Waterdrop continues to accelerate the integration of AI technology across the entire insurance value chain. Premium contributions from AI-powered medical insurance experts increased 25.6% quarter-over-quarter, while first-year premiums for long-term insurance products grew 33.4% sequentially.

On the product innovation front, leveraging its extensive claims data and deep user insights, Waterdrop Insurance has broken away from the conventional static approach of uniformly rejecting applicants with chronic conditions, making coverage accessible to previously excluded patients. This quarter, the company launched "Rongyibao," the industry's first long-term critical illness product requiring no health declaration and offering a five-year guaranteed renewal term. The product covers over 100 major illnesses and can be supplemented with accidental death and disability riders. Waterdrop also expanded its "Jixing Gaozhao" series with the introduction of the industry's first specific disease insurance policy offering lifelong coverage without health disclosures.

RMB 74.7 billion donated by 499 million benefactors assists 3.82 million patients

During the quarter, the Shuidichou fundraising platform continued to fulfill its mission of providing urgent assistance. Since its launch in 2016, approximately 499 million compassionate donors have contributed RMB 74.7 billion through the platform, aiding 3.82 million patients battling severe illnesses. The platform remains committed to the principle of leveraging technology for social good, deploying AI-powered dual safeguards for case authenticity verification and transparent fund flow tracking.

In this quarter, Shuidichou introduced AI-driven risk management mechanisms. Utilizing large language model semantic analysis combined with strategic assessment, the platform has established intelligent identification matrices for multiple high-risk scenarios. This enables precise detection across sensitive identity markers of fundraisers and abnormal asset patterns, significantly boosting the accuracy and efficiency of risk identification to ensure the reliability of all fundraising cases. Additionally, AI-powered fundraising assistants were launched across 548 cities nationwide. These intelligent, round-the-clock support tools offer professional guidance to users in remote regions or those unfamiliar with digital operations, covering full-cycle fundraising inquiries, basic disease education, and efficient fundraising strategies—bridging gaps where manual assistance previously fell short.

Yifan Pharma generates RMB 35.2 million in quarterly revenue with 255 pharmaceutical partners

Waterdrop's digital clinical trial solutions business recorded steady expansion, with Yifan Pharma contributing net revenue of RMB 35.2 million, up 26.8% year-over-year. During the quarter, Yifan Pharma established collaborations with 255 prominent domestic and international pharmaceutical companies and CROs. As of June 30, 2026, the subsidiary has cumulatively executed 1,873 clinical trial projects and enrolled 17,052 patients.

Addressing social responsibilities, Waterdrop swiftly activated its emergency disaster response team in reaction to severe flooding in multiple regions of Guangxi and a mudslide disaster at Gyirong Port in Shigatse, Tibet. The Waterdrop Charity platform immediately launched dedicated relief campaigns—"Support Guangxi Flood Relief" and "Support Gyirong, Tibet"—on its homepage, coordinating with various foundations for urgent aid deployment. Over 2,000 relief supply packages were transported to flood-affected areas in Guangxi, reflecting the company's commitment to helping affected communities recover.

Shen Peng, Founder and CEO of Waterdrop, commented: "Technology remains the core engine driving our growth. AI capabilities are now deeply embedded across all our business platforms, allowing us to more precisely capture expanding market demand within existing operations while reinforcing our competitive moats. Looking ahead, we will continue strengthening our technology and AI development, steadily advancing business expansion, and maintaining strategic investments to generate long-term, sustainable value for shareholders."