Beijing – September 10, 2026 -- Waterdrop Inc. (NYSE: WDH) reported second-quarter 2026 net operating revenue of RMB1,448.2 million (US$213.4 million), up 72.8% year-over-year and 16.6% quarter-over-quarter, as the Beijing-based insurance and healthcare technology platform scaled its AI-driven underwriting tools. Operating profit rose 14.3% year-over-year and 39.2% sequentially to RMB111.3 million (US$16.4 million).
Insurance income climbs 80.5% as AI tools drive customer acquisition
Insurance-related income reached RMB1,333.2 million (US$196.5 million), up 80.5% year-over-year and 16.4% quarter-over-quarter, driven by expanded risk assessment services and higher first-year premiums. Technical service income more than tripled year-over-year to RMB488.0 million (US$71.9 million) from RMB160.9 million. CEO Peng Shen said AI model refinements lifted new customer acquisition by 32.3% sequentially, while premiums facilitated by the company's 'AI Medical Insurance Expert' grew 25.6% quarter-over-quarter. The 'KEYI.AI' underwriting assistant has processed more than 13,000 inquiries, and users of the 'AI Super Pre-Sales Assistant' climbed nearly 50% sequentially. Long-term premiums increased 33.4% quarter-over-quarter, aided by the launch of 'Rongyi Bao,' described as the market's first long-term critical illness product requiring no health disclosure and offering five-year guaranteed renewability.
Clinical trial and crowdfunding platforms post steady gains
Digital clinical trial solution income rose 26.8% year-over-year to RMB35.2 million (US$5.2 million), with 45.1% quarter-over-quarter growth. Waterdrop partnered with 255 pharmaceutical companies and contract research organizations during the quarter and enrolled 1,540 patients through its E-Find Platform, bringing cumulative enrollment to 17,052 patients across 1,873 clinical trial programs as of June 30, 2026. Medical crowdfunding service fees fell 5.7% year-over-year to RMB63.6 million (US$9.4 million) but rose 4.7% quarter-over-quarter. Since inception, approximately 499 million individuals have donated an aggregate RMB74.7 billion to 3.82 million patients through the Waterdrop Medical Crowdfunding platform, which now applies AI-powered risk controls cross-referencing documents, medical records and user-generated content to flag undisclosed assets or unreported income.
Costs surge on marketing spend as company expands third-party traffic channels
Total operating costs and expenses rose 80.5% year-over-year to RMB1,336.9 million (US$197.0 million). Sales and marketing expenses jumped 220.7% year-over-year to RMB637.5 million (US$94.0 million), largely from a RMB415.0 million increase in third-party traffic channel spending. Operating costs increased 29.0% year-over-year to RMB537.3 million (US$79.2 million), driven by higher referral and service fees, SMS costs for user onboarding, and personnel expenses.
Board authorizes sixth buyback and cash dividend
The board approved the company's sixth share repurchase program and a sixth cash dividend of approximately US$10.8 million. Since the initial buyback launched in 2021, Waterdrop had repurchased roughly 62.9 million ADSs for US$121.3 million as of August 31, 2026.