Waterdrop (NYSE:WDH) Releases Quarterly Earnings Results, Beats Expectations By $0.02 EPS

Waterdrop (NYSE:WDH) announced its quarterly earnings results on Wednesday. The company reported $0.06 earnings per share for the quarter, beating the consensus estimate of $0.04 by $0.02, FiscalAI reports. Waterdrop had a return on equity of 11.51% and a net margin of 14.28%.The firm had revenue of $201.71 million for the quarter, compared to analysts’ expectations of $117.69 million.

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

• FY2025 revenue reached CNY 3.98 billion (+43.5% YoY) and net profit attributable to ordinary shareholders was CNY 570 million (+64.8% YoY), marking 16 consecutive quarters of GAAP profitability; the board approved a $0.03 per ADS cash dividend and the company has repurchased 60.7 million ADSs for about $118 million.
• The insurance segment showed strong momentum—Q4 insurance-related income rose 125% YoY to CNY 1.31 billion and full-year insurance income was ~CNY 3.58 billion (+51.3% YoY) with ~18% operating margin—while AI features drove a 33% sequential increase in premiums and improved agent productivity.
• Waterdrop is pushing an AI-native strategy: it filed 72 LLM-related patent applications (9 international), deployed multi-modal AI agents across acquisition, sales, service and R&D under “Waterdrop C AI,” and unveiled CloudSphere for autonomous multi-agent collaboration and partner integrations.
• The medical platform reported cumulative donations of CNY 72.3 billion to 3.68 million patients, implemented LLM-based dynamic data masking and authenticity checks, and its E-Find patient-matching technology received a national invention patent while setting record clinical trial enrollments.
• Operating costs and expenses rose sharply (Q4 operating costs +109% YoY, sales & marketing up ~178% YoY to ~CNY 510 million) as the company scaled marketing and AI investments, which could pressure near-term margins despite a healthy cash balance (~CNY 3.25 billion).

Waterdrop Stock Down 1.5%

NYSE:WDH opened at $1.63 on Friday. The business’s 50-day moving average price is $1.75 and its two-hundred day moving average price is $1.79. Waterdrop has a twelve month low of $1.16 and a twelve month high of $2.18. The stock has a market cap of $589.03 million, a P/E ratio of 7.74 and a beta of -0.28.

Waterdrop Announces Dividend

The firm also recently announced a dividend, which will be paid on Wednesday, May 20th. Shareholders of record on Friday, April 24th will be paid a $0.03 dividend. This represents a yield of 363.0%. The ex-dividend date is Friday, April 24th. Waterdrop’s dividend payout ratio is currently 26.32%.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen lowered shares of Waterdrop from a “buy” rating to a “hold” rating in a report on Saturday, January 3rd. Two equities research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $2.00.

More Waterdrop News

Here are the key news stories impacting Waterdrop this week:

• Positive Sentiment: Q4 revenue and profit expansion — Waterdrop said Q4 operating revenue rose ~105.5% year‑over‑year to RMB1,411.2M and operating profit increased 58.4% YoY, signaling accelerating top-line recovery and profit expansion. PR Newswire
• Positive Sentiment: Cash dividend declared — Waterdrop announced a $0.03 per share cash dividend (record date Apr 24; pay date May 20), which can attract income-focused investors. Dividend Press Release
• Positive Sentiment: Reported results beat some expectations — third‑party summaries (MarketBeat) show Waterdrop reported $0.06 EPS for the quarter and revenue of ~$201.7M, topping consensus estimates and supporting positive sentiment. MarketBeat Earnings
• Positive Sentiment: Management highlights AI-driven growth — media coverage cites management’s emphasis on AI initiatives as a driver of strong Q4 results, which helped shares initially rally after the release. MSN Coverage
• Neutral Sentiment: Prepared remarks and call materials available — the company posted prepared remarks and the conference call transcript for investors to review the details and reconcile GAAP vs. non‑GAAP metrics. Seeking Alpha Prepared Remarks Press Release PDF
• Neutral Sentiment: Analyst/industry commentary — recent analyst pieces and sector comparisons are circulating; these provide context but are not single drivers of price action. Analyst Note
• Negative Sentiment: Conflicting EPS reports and an earnings‑call transcript suggesting a miss — some transcripts flag an EPS miss (InsiderMonkey notes reported EPS of $0.00572 vs. $0.0386 expected), creating confusion versus other outlets that reported an EPS beat. That discrepancy increases uncertainty and likely drove intraday selling/volatility. InsiderMonkey Transcript

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. E Fund Management Co. Ltd. purchased a new stake in Waterdrop in the second quarter valued at approximately $372,000. Invesco Ltd. purchased a new position in Waterdrop in the 2nd quarter worth approximately $156,000. SmartHarvest Portfolios LLC bought a new position in shares of Waterdrop in the 4th quarter worth $86,000. NewEdge Advisors LLC purchased a new stake in shares of Waterdrop during the 3rd quarter valued at $80,000. Finally, Centiva Capital LP purchased a new stake in shares of Waterdrop during the 3rd quarter valued at $59,000. 1.96% of the stock is currently owned by institutional investors.

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.