Q2 2026 Waterdrop Inc. Earnings Call Transcript
Key Points
- Total revenue grew 72.8% year-over-year to RMB1.45 billion in Q2 2026, maintaining strong growth momentum.
- Insurance business revenue increased 80.5% year-over-year, driven by optimized user acquisition and conversion.
- Net profit attributable to ordinary shareholders was RMB130 million, marking 18 consecutive quarters of profitability since Q1 2022.
- AI integration across core business scenarios contributed nearly RMB100 million in FYP and improved operational efficiency.
- Shareholder returns prioritized with a new cash dividend of $0.03 per ADS and a sixth share repurchase program of up to $50 million.
- Net profit attributable to shareholders decreased 10.3% year-over-year due to tax-related items and non-recurring gains and losses.
- Total operating costs and expenses rose 80.5% year-over-year, primarily from increased marketing and personnel costs.
- Sales and marketing expenses surged to RMB638 million from RMB199 million, reflecting heavy investment in public domain traffic.
- G&A expenses increased 27.2% year-over-year, mainly due to a RMB33.3 million allowance for credit losses.
- R&D expenses grew 32.4% year-over-year, driven by higher cloud server fees, token fees, and personnel costs.
Good morning, ladies and gentlemen, and thank you for standing by for Waterdrop Inc.'s second quarter 2026 Financial Results Earnings Conference Call.
At this time, all participants are in a listen-only mode.
After the management's prepared remarks, there will be a question-and-answer session.
As a reminder, today's conference call is being recorded.
I would now like to turn the meeting over to Ms. Tracy Lee. Please proceed, Ms. Lee.
Thank you, Operator. Dear Ambassador and Analysts, this is Tracy Lee from Waterdrop Investor Relations. Please note that discussion today will contain forward-looking statements made under the safe harbor provision of U.S. Private securities and the Litigation Reform Act of 1,995. Forward-looking statements are separate through risks and uncertainties that may cause actual results to differ mutually from our current expectations. Potential risks and uncertainties include but not limited to those outlined in our public filings with the SEC.
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