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Waterdrop (WDH) AI Stock Analysis
Waterdrop
(NYSE:WDH)
The overall score is driven primarily by Waterdrop’s strong financial turnaround, low leverage, and improving cash generation in its insurance engine, combined with an extremely attractive valuation on both earnings and dividend yield. These strengths are reinforced by a largely positive earnings call featuring high growth in insurance revenue and premiums, sustained profitability, extensive AI deployment, and shareholder returns funded by a solid cash position. The score is moderated by cost-intensive user acquisition and AI spending that currently compress margins, recurring losses in non-insurance segments and revenue concentration in insurance, as well as neutral-to-weak technicals with the share price below key intermediate and long-term moving averages and only modest momentum.
Waterdrop Key Performance Indicators (KPIs)
Operating Income by SegmentHow profitable each segment is after core operating costs, showing which parts of the business actually contribute to earnings versus which are loss-making or still being invested in. Helps investors assess margin strength, capital allocation choices, and whether the company can convert revenue growth into durable profits and cash flow.
Insurance is the clear profit engine—recovering since mid‑2023 and sustaining GAAP profitability—while Crowdfunding and Other continue to be recurring loss centers that recently widened again. Management is doubling down on marketing and AI (guiding ~40% revenue growth while keeping operating profit “broadly stable”), so near‑term results will hinge on whether higher S&M and AI spend convert into durable insurance premium growth and margins rather than permanently inflating unallocated and non‑insurance losses.
The FlyWaterdrop (WDH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $361.72M
- Dividend Yield
- 6.00%
- Average Volume (3M)
- 508.76K
- Price to Earnings (P/E)
- 0.6
- Beta (1Y)
- 1.11
- Revenue Growth
- 76.04%
- EPS Growth
- 25.89%
- Country
- US
- Employees
- 3,018
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Insurance - Brokers
Waterdrop Business Overview & Revenue Model
Company Description
Waterdrop Inc., through its subsidiaries, provides online insurance brokerage services to match and connect users with related insurance products underwritten by insurance companies in the People’s Republic of China. The company offers short-term and...
How the Company Makes Money
Waterdrop primarily makes money through insurance distribution revenue earned by facilitating the sale of insurance products from third-party insurance companies to end customers. Its core revenue stream is commissions and service fees associated wit...
Waterdrop Earnings Call Summary
The call was predominantly positive, marked by 72.8% revenue growth, 80.5% insurance revenue growth, higher operating profit, sustained profitability, strong clinical-trial enrollment, expanding AI-driven contributions, ample cash reserves, and new shareholder-return programs. Offsetting factors included a 10.3% year-over-year decline in net profit, significant increases in operating and marketing expenses, higher R&D and credit-loss costs, and the limited current financial contribution from new global AI initiatives.
Q2-2026 Updates
Positive Updates
Negative Updates
Company Guidance
For full year of 2026, Waterdrop targets more than 40% year over year growth in total revenue and over 10% of growth in operating profit; for the second half of 26 and the full year of 27, it expects to maintain an active user acquisition pace, while user value from the current period acquisition will be gradually realized through renewals and up cells and cross-sells over the sequential user life cycle. As AI usage scales, spend will grow naturally, but the company expects to keep the overall R&D ratio to a reasonable range, and its portable AI office assistant remains in the early stage with financial impact limited for now.
Waterdrop Financial Statement Overview
Summary
Strong revenue growth and margin expansion, a very low debt-to-equity ratio with rising equity, and solid operating cash generation support a high score, offset modestly by past cash flow volatility, sub-30% coverage, and recurring losses in crowdfunding and other segments that pressure consolidated margins.
Income Statement
82Very PositiveBalance Sheet
92Very PositiveCash Flow
78Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.05B | 3.87B | 2.77B | 2.63B | 2.80B | 3.21B |
| Gross Profit | 2.89B | 1.98B | 1.46B | 1.04B | 1.47B | 1.86B |
| EBITDA | 387.34M | 374.67M | 189.73M | 6.81M | 500.96M | -1.84B |
| Net Income | 542.03M | 553.44M | 367.51M | 167.22M | 607.72M | -1.57B |
Balance Sheet | ||||||
| Total Assets | 7.88B | 7.11B | 6.45B | 6.15B | 5.92B | 5.25B |
| Cash, Cash Equivalents and Short-Term Investments | 2.06B | 1.66B | 2.60B | 3.39B | 3.70B | 2.79B |
| Total Debt | 497.77M | 70.57M | 243.92M | 197.76M | 14.05M | 58.59M |
| Total Liabilities | 2.57B | 1.95B | 1.58B | 1.47B | 1.16B | 1.28B |
| Stockholders Equity | 5.20B | 5.16B | 4.80B | 4.59B | 4.77B | 3.97B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 214.29M | 218.84M | 392.99M | 753.82M | -1.13B |
| Operating Cash Flow | 0 | 243.92M | 437.25M | 406.52M | 765.71M | -1.10B |
| Investing Cash Flow | 0 | -224.74M | 291.64M | -1.17B | -139.82M | -846.90M |
| Financing Cash Flow | 0 | -373.93M | -198.58M | -377.24M | -57.46M | 2.12B |
Waterdrop Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WDH, the sentiment is Negative. The current price of 1.00 is below the 20-day moving average (MA) of 1.01, below the 50-day MA of 1.00, and below the 200-day MA of 1.34, indicating a bearish trend. The MACD of -0.00 indicates Positive momentum. The RSI at 46.02 is Neutral, neither overbought nor oversold. The STOCH value of 50.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WDH.
Waterdrop Risk Analysis
Waterdrop disclosed 104 risk factors in its most recent earnings report. Waterdrop reported the most risks in the "Finance & Corporate" category.
Latest Risks Added
3 New RisksWaterdrop Peers Comparison
Overall Rating
- WDH83Outperform
HUIZ68Neutral
SLQT59Neutral
ZBAO41Neutral
XHG38Underperform
AIFU34Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| WDH | 83Outperform | $360.88M | 0.60 | 10.56% | 6.00% | 76.04% | 25.89% |
| HUIZ | 68Neutral | $22.74M | 0.28 | 6.41% | ― | ― | ― |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| SLQT | 59Neutral | $64.00M | -5.95 | 10.03% | ― | 6.02% | -144.93% |
| ZBAO | 41Neutral | $2.28M | -0.03 | -424.23% | ― | 37.29% | -396.20% |
| XHG | 38Underperform | $209.80M | -14.09 | 10.02% | ― | ― | ― |
| AIFU | 34Underperform | $599.52M | -0.14 | -150.44% | ― | -47.11% | -87.98% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WDH | Waterdrop, Inc. ADR Class A | 1.00 | -0.67 | -39.94% | |
| AIFU | Fanhua Inc. | 9.80 | -79.80 | -89.06% | |
| XHG | Xchange Tec.Inc Sponsored Adr Class A | 4.07 | 3.18 | 357.30% | |
| HUIZ | Huize Holding Ltd. | 2.25 | -1.45 | -39.19% | |
| SLQT | SelectQuote Inc | 0.36 | -1.70 | -82.67% | |
| ZBAO | Zhibao Technology Inc. Class A | 0.26 | -50.24 | -99.50% |
Waterdrop Corporate Events
Waterdrop Posts Surging Q2 2026 Results and Boosts Shareholder Payouts
Waterdrop reported unaudited financial results for the quarter and half-year ended June 30, 2026, showing sharp top-line and earnings momentum driven mainly by its insurance and technical service operations. Net operating revenue for the second quart...
Waterdrop Announces Finance Chief Resignation Effective July 31, 2026
As disclosed in a July 2026 regulatory filing, Waterdrop announced that Ms. Xiaoying Xu has resigned as vice president of finance and head of finance, effective July 31, 2026, citing personal reasons. The company emphasized that her departure does no...
Waterdrop Names New Independent Director and Audit Chair as Board Reshuffles
Waterdrop Inc. announced on June 23, 2026, that it has appointed Ms. Qianfei Chang as an independent director effective July 1, 2026, where she will also serve as chair of the audit committee and sit on both the compensation and nominating and corpor...
Waterdrop Posts Strong Q1 2026 Growth as AI Investments and Share Buybacks Accelerate
On June 16, 2026, Waterdrop reported unaudited results for the quarter ended March 31, 2026, highlighted by a 64.8% year-over-year jump in net operating revenue to RMB1,242.2 million and a 74.1% surge in insurance-related income to RMB1,145.8 million...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Sep 08, 2026