Waterdrop (NYSE:WDH) Announces Quarterly Earnings Results

Waterdrop (NYSE:WDH) issued its quarterly earnings results on Tuesday. The company reported $0.05 earnings per share for the quarter, Zacks reports. The company had revenue of $213.16 million for the quarter. Waterdrop had a return on equity of 10.64% and a net margin of 10.69%.

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 Performance

Waterdrop stock opened at $1.02 on Thursday. The company has a market cap of $369.90 million, a P/E ratio of 4.88 and a beta of -0.08. Waterdrop has a one year low of $0.96 and a one year high of $2.07. The business has a fifty day moving average of $1.08 and a two-hundred day moving average of $1.40.

Waterdrop Dividend Announcement

The firm also recently announced a dividend, which will be paid on Friday, November 6th. Shareholders of record on Friday, October 9th will be issued a $0.03 dividend. The ex-dividend date of this dividend is Friday, October 9th. This represents a yield of 558.0%. Waterdrop’s dividend payout ratio (DPR) is 23.81%.

Hedge Funds Weigh In On Waterdrop

A number of large investors have recently made changes to their positions in the stock. Invesco Ltd. purchased a new stake in Waterdrop during the second quarter worth about $156,000. Marshall Wace LLP acquired a new position in Waterdrop during the second quarter worth about $25,000. E Fund Management Co. Ltd. purchased a new position in Waterdrop in the second quarter valued at about $372,000. Russell Investments Group Ltd. purchased a new position in Waterdrop in the third quarter valued at about $36,000. Finally, Sei Investments Co. acquired a new stake in shares of Waterdrop during the 3rd quarter valued at approximately $26,000. Hedge funds and other institutional investors own 1.96% of the company’s stock.

Analyst Upgrades and Downgrades

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