Waterdrop Inc. (NYSE: WDH) Earnings Report Analysis

Sep 5, 2025 8:00 AM - Danny Green

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On September 4, 2025, Waterdrop Inc. (NYSE: WDH), a leading technology-driven insurance and healthcare services provider, announced its quarterly earnings before the market opened. The company reported an earnings per share (EPS) of $0.03, falling short of the consensus estimate of $0.05. Quarterly revenue reached RMB 838 million (approximately $118.2 million), slightly below the expected $125.6 million, reflecting a more modest performance than anticipated.Despite the earnings and revenue shortfall, Waterdrop demonstrated solid year-on-year growth.

Net operating revenue increased by 23.9% compared to the same quarter last year, driven by the company's expanding market presence and innovative solutions. Net profit attributable to ordinary shareholders surged by 58.7% to RMB 140.2 million ($19.8 million), marking the company's fourteenth consecutive quarter of profitability.

Waterdrop's financial metrics underscore its strong fundamentals. The company maintains a low price-to-earnings (P/E) ratio of 1.21, suggesting it is undervalued relative to its earnings. Its price-to-sales ratio of 0.17 indicates a modest market valuation of sales, while a negative enterprise value to sales ratio of -0.23 reflects a balance sheet where liabilities may exceed market capitalization and cash.

The company's financial stability is further evidenced by a low debt-to-equity ratio of 0.0075, indicating minimal reliance on debt financing. A robust current ratio of 2.84 highlights Waterdrop's strong liquidity position, ensuring its ability to meet short-term obligations. Additionally, the company's earnings yield of 82.70% signals a high return on investment, making it an attractive option for value investors.

Waterdrop continues to prioritize shareholder value through strategic initiatives. Since September 2021, the company has repurchased approximately 55.7 million American Depositary Shares (ADSs) from the open market. The board of directors also approved a cash dividend, reinforcing Waterdrop's commitment to returning capital to shareholders.

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