Waterdrop Inc.
- Open
- 1.17
- Day high
- 1.22
- Day low
- 1.17
- Prev close
- 1.19
- Volume
- 36K
- Mkt cap
- $437M
- P/E (TTM)
- 1.0
- EPS (TTM)
- $1.17
- P/B
- 0.6
- P/S
- 0.7
- Yield
- 1.98%
- Per share
- $0.02
Waterdrop Inc. (WDH) is a Financial Services company listed on NYSE. The stock is down 29% over the past year.
Waterdrop Inc. (WDH) financials & analyst ratings
Fundamentals (TTM)
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
WDH earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 16, 2026 | — | $0.04 | — | $180M | +0.4% |
| Mar 25, 2026 | $0.04 | $0.06 | +55.4% | $202M | +71.4% |
| Dec 3, 2025 | $0.04 | $0.06 | +58.2% | $137M | +13.5% |
| Sep 4, 2025 | $0.19 | $0.06 | -68.4% | $117M | -86.7% |
| Jun 5, 2025 | $0.04 | $0.05 | +25.0% | $104M | -86.4% |
| Mar 25, 2025 | — | $0.02 | — | $94M | — |
| Dec 11, 2024 | $0.03 | $0.06 | +100.0% | $730M | +6.7% |
| Sep 4, 2024 | — | $0.00 | — | $659M | +554.2% |
| Feb 26, 2024 | — | $0.02 | — | $93M | -1.5% |
| Dec 7, 2023 | $0.00 | $0.00 | -23.0% | $94M | -6.8% |
| Jun 2, 2023 | $0.02 | $0.00 | -90.9% | $94M | -14.4% |
| Mar 31, 2023 | — | $0.02 | — | $88M | — |
Waterdrop Inc. company profile
Overview
Waterdrop Inc. (NYSE:WDH) is a Chinese financial technology company founded in 2016 and headquartered in Beijing. The company went public on the New York Stock Exchange in May 2021. Waterdrop operates as an online insurance brokerage platform that connects Chinese consumers with insurance products, while also running a medical crowdfunding platform and providing healthcare-related services. The company has evolved from a startup focused on mutual aid and crowdfunding into a diversified insurance technology platform that leverages artificial intelligence to serve millions of users across China.
Business
Waterdrop operates in China's digital insurance and healthcare ecosystem, providing three main business segments that collectively serve the country's growing demand for accessible insurance and medical financial assistance. The Insurance Business represents the company's core revenue driver, accounting for approximately 85% of total revenues. This segment operates as an online insurance brokerage platform that connects consumers with insurance products underwritten by traditional insurance companies. Waterdrop offers both short-term health insurance products (such as accident and critical illness coverage) and long-term life insurance products. The platform serves as an intermediary, earning commissions and fees from insurance companies when customers purchase policies through their digital channels. The company has developed specialized insurance products targeting underserved demographics including seniors, mothers, and individuals with pre-existing medical conditions. The Medical Crowdfunding Platform operates under a social impact model where users can create fundraising campaigns for medical expenses. This platform has facilitated over RMB 67.5 billion in donations to help more than 3.4 million patients cover medical costs. The platform generates revenue through service fees (typically 3% of funds raised) and has partnered with 115 public charity organizations to enhance transparency and legitimacy of fundraising campaigns. The Healthcare-related Business segment, representing approximately 15% of revenues, provides digital clinical trial solutions and patient recruitment services. Through their E-Find platform, Waterdrop connects pharmaceutical companies and contract research organizations (CROs) with patients for clinical trials. This business-to-business service has grown significantly, collaborating with 185 pharmaceutical companies and CROs while enrolling hundreds of patients in clinical trials each quarter.
Revenue model
Waterdrop generates revenue through multiple complementary business models that capitalize on China's digital transformation in healthcare and insurance sectors. The primary revenue source comes from insurance brokerage commissions and fees, where Waterdrop earns a percentage of premiums when customers purchase insurance products through their platform. The company reports First Year Premium (FYP) volumes of RMB 1.9 billion in 2024, with insurance-related revenue of approximately RMB 580 million. This model benefits from recurring revenue as customers renew policies and purchase additional coverage. The medical crowdfunding platform generates revenue through service fees charged to fundraising campaigns, typically around 3% of total funds raised. With cumulative donations exceeding RMB 67.5 billion, this creates a substantial fee-based revenue stream while serving a social purpose. The healthcare business operates on a service fee model where pharmaceutical companies and CROs pay for patient recruitment and clinical trial management services. This B2B revenue stream has shown strong growth, reaching RMB 91.1 million in 2024. Several factors influence Waterdrop's profit margins. Positive margin drivers include China's aging population increasing demand for health insurance, growing health consciousness post-COVID driving insurance adoption, and the company's AI-powered automation reducing customer acquisition costs. The platform's network effects create economies of scale as more users attract more insurance partners, improving bargaining power and commission rates. Margin pressures come from intensifying competition in China's insurtech space, regulatory changes affecting online insurance sales, and the need for continuous technology investment to maintain competitive AI capabilities. Economic downturns could reduce discretionary insurance spending, while increased scrutiny of medical crowdfunding platforms may require additional compliance costs.
Competitive moat
Waterdrop's competitive moat appears moderate but vulnerable to disruption from larger technology platforms and traditional financial institutions entering the insurtech space. The company's primary moat stems from its network effects and data advantages. With over 417 million people having participated in donations through their crowdfunding platform, Waterdrop has built significant user engagement and trust within China's digital ecosystem. This large user base provides valuable data for risk assessment and product development, while also creating a natural funnel for cross-selling insurance products to crowdfunding users. Waterdrop's AI and technology capabilities represent another defensive element, with 48 patents related to large language models and AI-powered insurance agents that reportedly achieve 98% of human broker performance. This technological sophistication helps differentiate their platform and improve operational efficiency. However, the moat faces significant challenges. China's insurtech market is highly competitive, with major technology giants like Ant Group (Alipay) and Tencent having vastly superior resources and user bases. Traditional insurance companies are also developing direct-to-consumer digital capabilities, potentially disintermediating brokers like Waterdrop. The regulatory environment poses additional risks, as Chinese authorities have increased oversight of fintech companies and could implement restrictions that limit Waterdrop's business model flexibility. The company's dependence on third-party insurance products also means they lack control over underwriting and pricing, limiting their ability to differentiate on product features. While Waterdrop has established a meaningful position in serving underserved demographics and rural markets where larger competitors may have less focus, this represents more of a niche advantage than a sustainable long-term moat against well-funded competitors.
Risks & safety
Waterdrop demonstrates a strong margin of safety from a financial stability perspective, though valuation metrics suggest the market has already recognized this strength. **Cash Position and Solvency:** - Cash and short-term investments: RMB 134.4 million ($134.4 million) - Current ratio: 3.12x indicating strong liquidity - Debt-to-equity ratio: 0.051 showing minimal leverage - Positive free cash flow: $29.8 million for FY 2024 - 12 consecutive quarters of profitability **Valuation Metrics:** - Price-to-earnings ratio: 0.86x (extremely low) - Price-to-book ratio: 0.066x (trading below book value) - EV/EBITDA: 12.6x (reasonable for growth profile) - Graham number: 17.14 vs current price of $1.28 (significant undervaluation) **Other Considerations:** - Market cap of only $53 million despite profitable operations - Strong balance sheet with minimal debt burden - Consistent dividend payments and share repurchases demonstrating capital allocation discipline - Revenue growth of 5.4% in 2024 with improving margins
Recent development
Over the past few years, Waterdrop has undergone a significant strategic transformation from a growth-focused platform to a profitability-driven, AI-enhanced insurance technology company. The most notable development has been the company's aggressive adoption of artificial intelligence across all business segments. Waterdrop has developed AI-powered insurance agents that achieve 98% of human broker performance, obtained 48 patents related to large language models, and launched AI tools for customer service, risk assessment, and sales optimization. The company's "AI Top Sales Platform 3.0" represents a comprehensive integration of AI capabilities into their insurance brokerage operations. Waterdrop has also shifted toward serving underserved market segments, particularly focusing on seniors, mothers, and individuals with pre-existing medical conditions. This strategic pivot allows the company to differentiate from larger competitors while addressing genuine market needs in China's evolving healthcare landscape. The company has demonstrated strong capital allocation discipline by implementing regular dividend payments and share repurchase programs. Since going public, Waterdrop has repurchased 52.1 million ADS for $104 million and paid three special cash dividends, indicating management's confidence in the business model and commitment to returning capital to shareholders. In the healthcare segment, Waterdrop has expanded its digital clinical trial solutions, growing partnerships from 100 to 185 pharmaceutical companies and CROs. This B2B revenue stream has shown consistent growth and provides diversification from the core insurance brokerage business. The medical crowdfunding platform has evolved to include enhanced transparency measures and partnerships with 115 public charity organizations, addressing regulatory concerns while maintaining its social impact mission.
WDH company profile · for informational purposes only — not investment advice.
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