Waterdrop (NYSE:WDH) Posts Quarterly Earnings Results

Waterdrop (NYSE:WDH) announced its quarterly earnings data on Tuesday. The company reported $0.05 earnings per share for the quarter, Zacks reports. Waterdrop had a return on equity of 10.87% and a net margin of 12.47%.The company had revenue of $213.16 million during the quarter.

Here are the key takeaways from Waterdrop’s conference call:

• Q2 revenue rose 72.8% year over year to CNY 1.45 billion, while operating profit increased 14.3% to CNY 111 million; management maintained profitability for the 18th consecutive quarter.
• The insurance business continued expanding, with reported insurance-related revenue up 80.5% year over year, new customers rising more than 30% sequentially, and long-term insurance premiums increasing 33.4% sequentially. AI tools are being used across acquisition, conversion, underwriting and servicing to improve productivity.
• Aggressive customer-acquisition spending pressured profitability, with sales and marketing expenses surging to nearly CNY 638 million from CNY 199 million a year earlier, largely due to third-party traffic investments. Net profit attributable to shareholders fell 10.3% year over year to approximately CNY 126–130 million, partly due to tax items and nonrecurring gains and losses.
• Management reiterated ambitious 2026 targets of more than 40% revenue growth and over 10% operating-profit growth, while signaling that active acquisition investment will continue through the second half of 2026 and into 2027 to build renewal, cross-sell and lifetime customer value.
• The company reported strong healthcare-platform momentum, including more than 1,500 quarterly clinical-trial enrollments, up 54% year over year, and an 80% increase in chronic-disease enrollments. With CNY 2.653 billion in cash and cash equivalents and investments, Waterdrop also approved a new $50 million share-repurchase program and an approximately $10.8 million dividend.

Waterdrop Stock Up 5.4%

Shares of WDH opened at $1.07 on Wednesday. Waterdrop has a twelve month low of $0.96 and a twelve month high of $2.07. The stock has a market cap of $387.95 million, a PE ratio of 5.12 and a beta of -0.08. The business’s 50-day moving average price is $1.08 and its 200-day moving average price is $1.41.

Hedge Funds Weigh In On Waterdrop

Hedge funds have recently bought and sold shares of the company. Boundless Plain Holdings Ltd bought a new stake in Waterdrop during the 4th quarter worth approximately $21,936,000. IDG China Capital Fund GP III Associates Ltd. purchased a new position in shares of Waterdrop during the 4th quarter valued at $538,000. E Fund Management Co. Ltd. purchased a new position in shares of Waterdrop during the 2nd quarter valued at $372,000. Invesco Ltd. purchased a new position in shares of Waterdrop during the 2nd quarter valued at $156,000. Finally, Renaissance Technologies LLC bought a new position in shares of Waterdrop in the first quarter worth $94,000. Hedge funds and other institutional investors own 1.96% of the company’s stock.

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Weiss Ratings downgraded shares of Waterdrop from a “hold (c)” rating to a “hold (c-)” rating in a research note on Tuesday, July 28th. Wall Street Zen downgraded shares of Waterdrop from a “buy” rating to a “hold” rating in a report on Monday, July 6th. Two investment analysts have rated the stock with a Hold rating, According to MarketBeat, Waterdrop presently has an average rating of “Hold” and a consensus target price of $2.00.

Waterdrop Company Profile

Waterdrop Inc (NYSE: WDH) is a China-based insurtech and health protection platform that leverages digital technology to connect consumers with insurance and healthcare services. Through its mobile app and online marketplace, Waterdrop offers a range of microinsurance and critical illness products designed to provide affordable coverage for everyday risks. The platform also features crowdfunding channels that enable users to contribute to medical expense relief for individuals facing serious health challenges.

Since its founding in 2016 and headquartered in Shanghai, Waterdrop has grown its partner network to include leading insurance carriers and medical institutions across mainland China.