Yuanbao delivered strong results with Q4 revenue up 32.2% y/y to RMB 1.18 billion and full‑year revenue up 33.1% to RMB 4.37 billion, net income rising 51% YoY to RMB 1.31 billion, marking 14 consecutive quarters of profitability and ending 2025 with RMB 4.04 billion in cash.
AI is a core growth driver: the company says its AI team exceeds 10% of staff, it runs a model network of over 4,900 models, upgraded its LLM platform, and is deploying AI agents and multimodal tools across pre‑sales, customer service and claims to boost targeting and efficiency.
Management is increasing investment in growth—Q4 selling & marketing rose 47.7% and R&D rose 39.1% (R&D +58% for the year)—while cutting ops and G&A, and expects to sustain revenue and net‑profit momentum in 2026 with marketing spend kept “broadly stable” and shareholder return policies under review.
Yuanbao (NASDAQ:YB) reported strong fourth-quarter and full-year fiscal 2025 results, highlighting continued revenue growth, expanding profitability, and increased investment in AI-driven capabilities across its insurance distribution and system services businesses. Management also discussed industry policy tailwinds in China, progress in large language model deployment, and expectations for maintaining growth momentum in 2026, though the company did not provide specific guidance.
Chairman and CEO Rui Fang said the company “concluded the year with strong performance” in the fourth quarter, positioning Yuanbao for sustained growth. Total revenue in the quarter rose 32.2% year-over-year to RMB 1.18 billion, while net income increased 15.4% to RMB 337.4 million, with a net margin of 28.7%. Fang noted Yuanbao has now delivered profitability for 14 consecutive quarters.
For the full year, Yuanbao posted total revenue of RMB 4.37 billion, up 33.1% year-over-year. Net income increased 51% to RMB 1.31 billion, and net margin improved 3.5 percentage points to 29.9%, according to management’s prepared remarks. The company ended 2025 with RMB 4.04 billion in cash reserves, which Fang said would support continued investment in models and big data capabilities and business expansion.
Chief Financial Officer Huirui Wan said fourth-quarter performance was supported by an expanding user base, deeper AI integration, and improved operational efficiency, which also strengthened cash generation. Wan attributed revenue growth primarily to increases in both insurance distribution services and system services.
Wan described the company’s revenue drivers during the quarter as follows:
Insurance distribution services: Wan said this segment grew 35.1% year-over-year, driven by a higher number of policies purchased on the platform, supported by more precise consumer targeting and enhanced marketing capability.
System services: System services revenue rose 31.1% year-over-year, which management linked to improvements in its AI-integrated “full consumer service cycle engine,” enhancing marketing solutions and analytics services for insurance carriers, as well as expanded services provided to both existing and new carrier partners.
Operationally, Fang said new policies increased 34.5% year-over-year in the fourth quarter to 7.9 million, and full-year new policies reached 30.7 million, up 36.7%. He tied this growth to ongoing strengthening of AI capabilities, including an AI team that accounted for more than 10% of the workforce and a model network of more than 4,900 models analyzing over 5,700 labels.
Wan said total operating costs and expenses rose 30.2% year-over-year in the fourth quarter to RMB 780.4 million. The company reported a mixed expense picture, including higher selling and marketing and R&D spending alongside declines in operations and support expenses and general and administrative expenses.
Selling and marketing: Up 47.7% year-over-year to RMB 552.3 million, as the company continued investing to attract and retain consumers.
R&D: Up 39.1% year-over-year to RMB 111.7 million, reflecting intensified R&D efforts and expansion of the R&D team.
Operations and support: Down 13.7% year-over-year to RMB 36.7 million, attributed to improved operating efficiency and cost controls.
G&A: Down 22.5% year-over-year to RMB 79.6 million, which Wan said was mainly due to product-related bonuses accrued in 4Q 2024 that did not recur in 4Q 2025.
On an adjusted basis, Wan said non-GAAP adjusted net income in the fourth quarter increased 13.2% to RMB 354.5 million, with a non-GAAP net margin of 30.2%.
For the full year, total operating costs and expenses rose 25.2% to RMB 3.04 billion. Wan said selling and marketing expenses increased 23.9% to RMB 2.22 billion and R&D rose 58% to RMB 365.1 million. The company’s year-end cash balance of RMB 4.04 billion was up 72.9% year-over-year, and operating cash flow inflow was RMB 290.7 million in the fourth quarter and RMB 1.5 billion for 2025.
Management emphasized that AI is becoming a key differentiator in insurance distribution and services. Fang said the company continued upgrading and unifying its large language model platform in the fourth quarter, improving performance in insurance domain Q&A, multi-turn dialogue, and policy interpretation. He also said refinements to model serving architecture and multi-model routing improved stability and integration efficiency while lowering the cost of AI application development.
Fang said AI agents are being deployed across pre-sales, customer service, and claims assistance, including product explanations, plan recommendations, customer service quality inspection, and agent-assisted responses. The company also applied multimodal capabilities to claims document classification and information extraction to improve processing efficiency.
On product strategy, Fang said Yuanbao continues to build out a product matrix spanning medical, critical illness, and accident insurance, with a focus on “accessibility and affordability.” He highlighted efforts to develop dedicated products for specific groups such as women, new urban residents, and individuals with pre-existing conditions. Fang also referenced products including a “zero-deductible million RMB medical insurance plan,” and said that following the release of the inaugural Commercial Insurance Innovative Drug Catalog, the company partnered with insurers to expand drug coverage for its medical insurance product series.
Management also pointed to supportive industry policies. Fang said commercial health insurance in China is entering a phase of “high quality development,” citing regulatory support and the 2026 government work report’s emphasis on strengthening a multi-tiered healthcare security system and accelerating development of commercial health insurance. In response to a question about policy drivers, management said these measures reinforce the role of commercial insurance within a diversified medical payment system and can serve as a catalyst for expanding commercial insurance coverage through online channels.
In the Q&A, management said it did not provide specific earnings guidance for 2026, but expects to maintain revenue and net profit growth momentum, even as competition intensifies. The company attributed its ability to sustain growth and margins over 14 quarters to improvements in technology-driven operating efficiency and a “flywheel effect” between scale expansion and cost optimization.
On marketing spend, management told analysts it aims to keep sales and marketing expenses as a percentage of revenue “broadly stable,” with only a modest potential increase, as it balances growth and profitability.
Asked about dividends, management said it continues to evaluate shareholder return strategies, including potential dividend policies, but did not provide a specific timeline for any payout plan.
Our mission is to protect health and well-being through technology. We are a leading technology-driven online insurance distributor in China. We take pride in pioneering the seamless integration of insurance with cutting-edge technologies, and have constructed a highly efficient full consumer service cycle engine. Through this engine, we successfully distribute suitable and high-quality insurance products to over ten million insurance consumers. According to Frost & Sullivan, we were the largest independent insurance distributor in China’s personal life and accident & health (A&H) insurance market in terms of first year premiums in 2023.
