Waterdrop Inc. (WDH) shares plummeted 5.71% during intraday trading on Tuesday, as investors reacted to the company's first quarter 2026 financial results which showed strong revenue growth but declining profitability.
The technology platform dedicated to insurance and healthcare services reported net operating revenue of RMB1,242.2 million, representing a 64.8% year-over-year increase. Insurance-related income rose 74.1% to RMB1,145.8 million, driven primarily by a surge in technical service income.
However, net profit attributable to ordinary shareholders fell 9.05% to RMB98.4 million compared to the same period last year. Adjusted earnings per share declined 20% to $0.04 from $0.05 year-over-year. The profit decline occurred despite revenue growth as sales and marketing expenses more than doubled to RMB541.1 million, with the company citing increased marketing spend for third-party traffic channels.
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