Sep 8, 2026 earnings call — Dividend and new share repurchase program
Board approved cash dividend of $0.03 per ADS and a fixed share repurchase program up to $50 million.
Revenue $0.2B (est $0.2B) · EPS $0.05
Key quotes
"During this quarter, products with users with preexisting conditions contribute 310 million renminbi FIP, and disability insurance added 84 million."
"This growth trend was underpinned by deep integration of AI, across our core business scenarios. And at the end of June, the company has filed 80 AI-native large language model patents, including 10 of them overseas."
"Firstly, the board has approved a cash dividend of $0.03 per ADS."
Analyst Q&A 5
Hong Kong and mainland business impact
Q (Amy Chen · Citi): Did recent media reports about Mainland tax policy affect your Hong Kong business or mainland operations?
A: Management said the media reflects enforcement of long-standing tax rules, not a new policy targeting Hong Kong. They said customer sentiment was affected in the midterm but the differentiated value of Hong Kong products remains clear and the fundamental market drivers have not changed. Waterdrop said its Mainland growth is driven by rising health awareness, policy tailwinds, product innovation, and shifts of savings into long-term assets, and that their business mix remains solid.
"Fundamental drivers of the Hong Kong insurance market, has not changed." — Peng Shen (CEO·CHAIR)
Products for customers with preexisting conditions
Q (Tsingtao Chen · CICC): How do you view the opportunity for products serving customers with preexisting conditions, and what is Waterdrop’s product strategy there?
A: They said many people now live with preexisting conditions and traditional insurance left them unprotected, so this is a clear demand opportunity. For Waterdrop, broadening coverage is central: they segment demand by scenario, age, and condition and codesign coverage with insurer partners, and they use platform and AI to match the right product to the right customer so these people can find usable products.
"As of today, we break the demand down by scenario, age, and condition, and codesign terms coverage with our insurer partners" — Wei Ran
When AI will drive value and R&D costs
Q (Liu Wu · International): When will AI start generating commercial value, how will AI affect R&D spending, and what new AI initiatives are you exploring?
A: They said AI is embedded across the value chain and they are not commercializing AI as a standalone business; its value will show up in top-line and bottom-line growth. R&D ratio is stable but resources are shifting toward AI; as usage scales spend will grow but they will be disciplined on ROI. They are also piloting a portable AI office assistant product in major global markets, but its current financial impact is limited.
"we are not commercializing AI as a standalone business and its value will show up in our top line growth and bottom line growth we deliver." — Peng Shen (CEO·CHAIR)
Which insurance categories will grow most
Q (Kate Liu · UOB Kay Hian): Which insurance categories do you see strong growth potential in?
A: They pointed to two forces: rising health protection awareness and an aging population, which shifts demand to more tailored products. Demand-driven coverage areas include insurance for preexisting conditions, high-end medical insurance, protection bundled with health management, and elderly care services; they will keep building on their online reach and AI targeting to fill these gaps.
"There are 2 forces that we are shaping our health insurance: a rising Health Protection Awareness and an aging population." — Wei Ran
Customer acquisition spend and cost outlook
Q (CITIC): You had strong Q2 growth—please explain recent customer acquisition investments and what to expect for costs in H2 2026 and into 2027.
A: They said the Q2 investment increase was mainly in user acquisition and has already shown up in higher insurance revenue and operating profit; new users rose strongly. The rise in new users was driven by better reach, conversion, and product supply; they will keep an active acquisition pace in H2 2026 and through 2027 while leveraging AI to improve conversion efficiency and expect the value from these users to realize over time via renewals and cross-sells.
"The new users were actually up more than 30% sequentially." — Peng Shen (CEO·CHAIR)