Waterdrop's Q2 2025 Earnings Call: Contradictions Emerge on Insurance Growth, Operating Margins, and Revenue

The above is the analysis of the conflicting points in this earnings call

Date of Call: September 4, 2025

Financials Results

• Revenue: RMB 838 million, up 23.9% YOY and 11.2% QOQ
• Operating Margin: 11.6%, up 3.9 percentage points YOY

Business Commentary:

* Revenue Growth and AI Integration: - Waterdrop Inc. reported quarterly revenue of CNY 840 million in Q2 2025, up 23.9% year-on-year. - This growth was driven by the integration of AI with the insurance and healthcare sectors, leading to improved operational efficiency and increased operating profit by 85.9% year-on-year.

• Insurance Business Expansion:
• The insurance business contributed CNY 739 million to the total revenue, showing a 28.7% year-on-year increase.

• The growth was attributed to AI integration, which enhanced customer acquisition, sales, underwriting, and customer service processes.

• Digital Clinical Trial Growth:

• Waterdrop's digital clinical trial solutions yielded CNY 27.7 million, with a 34.2% year-on-year increase.
• This growth was driven by the expansion of the E-Find platform and collaborations with pharmaceutical and contract research organizations, leading to a historic high in patient enrollment.

Sentiment Analysis:

• Revenue rose 23.9% YOY (11.2% QOQ) to RMB 838m; operating profit increased 85.9% YOY to RMB 97m with operating margin up 3.9 ppt; net profit attributable to ordinary shareholders rose 58.7% YOY to RMB 140m. Insurance operating margin improved to 23.1% (up ~2 ppt YOY). Management highlighted AI-driven efficiency gains across acquisition, sales, service, and quality control.