Waterdrop Inc.

What they do

Waterdrop operates in the insurance agents, brokers and service segment in the People's Republic of China, with principal executive offices in Beijing. Its listed security is an American depositary share program on the New York Stock Exchange, and the 20-F defines terms such as CRO (Contract Research Organization) and CSO (Contract Sales Organization) as part of its business vocabulary. The filing excerpts provided do not describe individual products or customer relationships in detail.

Revenue drivers

• Insurance-related operations — Waterdrop is classified under SIC code 6411, Insurance Agents, Brokers & Service, and its filing references first year premiums (FYP) as a metric, but the excerpts provided do not separate revenue by segment or product line.

Recent performance

Annual revenue rose to $568.8 million in 2025 from $379.7 million in 2024, after declining from $503.1 million in 2021 to $370.5 million in 2023. Net income was $80.8 million in 2025, up from $48.1 million in 2024 and $23.1 million in 2023; 2021 recorded a net loss of $247.0 million. Diluted EPS was $0.02 in 2025 versus $0.01 in both 2024 and 2023, and negative $0.09 in 2021. Operating cash flow was $34.9 million in 2025, down from $59.9 million in 2024 and $111.0 million in 2022. At December 31, 2025, total assets were $1.02 billion and total liabilities were $278.7 million, leaving shareholder equity of $736.7 million.

Strategy

The excerpted filing material contains no management discussion of strategy, acquisitions, product roadmaps or capital allocation priorities. Because the 20-F text provided covers only the cover page, table of contents, introductory definitions and the start of the annual report, there is no basis to describe stated direction. Any strategic claims would require the unprovided Operating and Financial Review and Prospects section.

Risks

• Revenue concentration and volatility — Revenue fell every year from 2021 through 2023 before rebounding sharply in 2025, indicating substantial swings in the underlying insurance business.
• Weakening operating cash conversion — Operating cash flow declined to $34.9 million in 2025 from $59.9 million in 2024 and $111.0 million in 2022, even as reported net income rose.
• China regulatory and jurisdictional exposure — The company is incorporated in the Cayman Islands and operates primarily in mainland China, and the filing itself cautions that operational risks associated with mainland China could extend to Hong Kong operations if laws become applicable.
• Limited cash relative to balance sheet size — Cash and equivalents were $69.1 million against $1.02 billion in total assets at December 31, 2025.

Outlook

The excerpted material does not include management's forward-looking outlook or guidance. The only directional information available is the historical financial trend: 2025 revenue and net income improved year over year, while operating cash flow declined.