YB

This article first appeared on GuruFocus. Release Date: June 10, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yuanbao Inc (NASDAQ:YB) reported a 35.6% year-over-year increase in total revenues for Q1 2026, reaching $1.32 billion. Net income rose by 31.4% year-over-year to $388 million, with a net income margin of 29.5%. The company announced an annual cash dividend of $1.26 per ADS and a $15 million share repurchase program, reflecting strong financial health and commitment to shareholder returns. Yuanbao Inc (NASDAQ:YB) has developed over 5,000 models capable of analyzing more than 5,800 labels, enhancing service optimization across demand identification, product recommendations, and claims. The company has a robust cash position with reserves totaling $4.74 billion, providing a strong foundation for continued investment in technology and AI integration. Total operating expenses increased by 29.1% year-over-year to $878.6 million, driven by higher selling, marketing, and R&D expenses. Income tax expense for the quarter rose significantly to $69.4 million from $6.7 million a year ago, due to a higher effective tax rate. The company faces regulatory challenges, such as new rules banning the use of personal accounts for marketing financial products, which could impact customer acquisition models. Despite strong financial performance, the company is still exploring innovative initiatives that are not yet at a disclosable stage, indicating potential uncertainty in future growth areas. The competitive landscape is evolving with the rise of AI agents, which could impact traditional sales channels and require adaptation in business models. Warning! GuruFocus has detected 3 Warning Signs with YB. Is YB fairly valued? Test your thesis with our free DCF calculator. Q: Hi, this is Amy from City Research. My question is on marketing efficiency. Have you seen continuous improvement in marketing efficiency in 2026, and how has AI deployment enabled this? In which phase, such as customer acquisition, conversion, or post-sale services, has AI helped the most? A: Our customer acquisition efficiency has remained robust as our business scale has expanded. While rising acquisition costs typically accompany business growth in this industry, our tech-driven engine and continuous improvements help offset this trend. Over the past 15 quarters, we have successfully controlled cost growth and stabilized margins amid intense competition. Our model has consistently been AI-driven with no major changes. Q: My question is regarding the marketing policy. We see new rules from April 2026 banning the use of personal accounts to market financial products, including insurance. How will this impact your customer acquisition model? A: The release of this regulation hasn't had any material impact on our user acquisition model. We have long established marketing management systems and mandatory compliance reviews. Our core business model is built on deep collaboration with licensed issuers, ensuring ongoing compliance across our operations. We maintain proactive communication with regulatory authorities to align our strategy with the latest policy direction. Q: My question is on shareholder returns. Can you elaborate on your thinking about shareholder returns in the future? A: Our board has approved an annual cash dividend of $1.26 per ADS and a share repurchase program of up to $15 million. These actions demonstrate our long-term confidence in our business outlook and commitment to enhancing corporate value. Through shareholder return strategies, we aim to create sustainable value for our shareholders while securing future growth. We will review our shareholder return policies again in 2026. Q: We noticed the company co-published the 2025 China Online Insurance Customer Insights Report with Tsinghua University, highlighting AI as a key driver in consumer purchase decisions. Could management add some color on strategies around AI-empowered consumer decision-making? A: This quarter, we developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning application. This system provides full process support, addressing complex policy terms and enhancing professionalism and trust. Our structured knowledge system spans thousands of products and millions of data points, ensuring high service quality and consistency. We will continue to leverage our tech to deepen AI applications in precision, reach, and decision support. Q: My question is about the AI agent influence on your business model and competition landscape. How should we think about the impact of the agent era on your business model and competition? A: The viability of AI agents as mainstream channels for insurance sales remains to be seen. Current methods include online assistance and traditional human agents. The key is understanding how AI will reshape sales dynamics. Major internet platforms will continue to command significant user time. AI's use in information discovery will better educate consumers, raising awareness and driving commercial insurance adoption. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

BEIJING, June 10, 2026 (GLOBE NEWSWIRE) -- Yuanbao Inc. (“Yuanbao” or the “Company”) (NASDAQ: YB), a leading technology-driven online insurance distributor in China, today announced its unaudited financial results for the first quarter ended March 31, 2026. First Quarter 2026 Financial Highlights Total revenues in the first quarter of 2026 were RMB1,315.9 million (US$190.8 million), representing a 35.6% increase from RMB970.1 million in the same period of 2025. Net income in the first quarter of 2026 was RMB387.6 million (US$56.2 million), representing a 31.4% increase from RMB295.1 million in the same period of 2025. Net income margin in the first quarter of 2026 was 29.5%, compared with 30.4% in the same period of 2025. Net operating cash inflow in the first quarter of 2026 was RMB721.3 million (US$104.6 million). The Company’s Board of Directors approved an annual cash dividend of US$1.26 per ADS, and authorized a share repurchase program of up to US$15 million during a 12-month period. Recent Developments The Company has developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning application for consumers. The system focuses on key stages of the insurance decision-making process, providing capabilities such as interpretation of product coverage and benefits, assistance in assessing underwriting eligibility for users with pre-existing medical conditions, insurance planning suggestions, and policy explanation and comparison. Through multi-turn conversations, the system continuously refines user profiles to deliver personalized insurance consultation and planning services. On the technology front, the Company has built a structured knowledge system centered on an insurance-expertise knowledge base and domain-specific modeling capabilities, covering product clauses, underwriting rules, and service workflows. The knowledge base currently encompasses thousands of insurance products and their policy details, with millions of accumulated professional knowledge data entries spanning insurance, healthcare, and service processes. Through model training and optimization tailored to insurance scenarios, the system consistently enhances its own understanding of complex semantics, health condition descriptions, and policy rules. From an architectural perspective, a multi-agent collaborative mechanism enables modular execution of tasks such as requirement comprehension, information completion, knowledge retrieval, and solution generation, improving response quality and stability across complex consultation scenarios. In terms of business outcomes, these capabilities have measurably enhanced users’ understanding of insurance products, improved users’ decision-making efficiency, and strengthened the professionalism and trustworthiness of the consultation process. At the same time, by productizing professional knowledge and service capabilities, the Company continues to improve the standardization, professionalism, and intelligence capabilities of consumer-facing insurance consultation services. The Company is developing integrated AI capabilities as a core strategic initiative to enhance its organizational capabilities, driving the large-scale deployment and deep integration of AI Agents across all functions and processes and accelerating the paradigm shift from “tool-based AI” to “organization-wide AI.” The Company’s three-tier architecture of “platform + skills + scenarios” enables rapid composition and reliable operation of AI Agents in complex business scenarios. Mr. Rui Fang, Chairman and Chief Executive Officer of Yuanbao, commented, “As the insurance industry enters a new phase of high-quality development characterized by structural optimization, value enhancement, and ecosystem integration, consumers’ awareness of health protection has continued to rise, and their demand for professional, personalized, and full-lifecycle insurance services has grown. The industry’s accelerating transition from ‘scale expansion’ to ‘high-quality development’ aligns closely with Yuanbao’s long-term strategic commitment to technology-driven development, user-centricity, and inclusive protection. Against this backdrop, we have consistently anchored our long-term growth in products and services. On the product side, we continue to work closely with insurance carriers to enhance and iterate our inclusive insurance offerings to comprehensively address customer needs, including specialized segments such as individuals with pre-existing conditions and new urban residents. We acted swiftly to fully integrate the ‘Commercial Insurance Innovative Drug Catalog’ into our product offerings, keeping pace with emerging policy trends and increasing public access to advanced therapies and high-quality medications. On the service side, we have deeply embedded technology into the claims process with the launch of our ‘Intelligent Claims Assistance’ feature, which assists partner insurers in conducting preliminary reviews of low-value, low-risk claims. Our proprietary claims review system automatically verifies claim documents and calculates settlement amounts, helping improve insurers’ claims processing efficiency, enhancing the overall user claims experience, and significantly shortening response times for small-value claims. “As of the end of March, we had developed over 5,000 models capable of analyzing more than 5,800 labels, representing increases of approximately 250 models and 700 labels year over year. Our AI team continued to account for more than 10% of our total workforce. Going forward, we will continue to build out our integrated AI infrastructure and deepen the deployment of AI Agents across the entire insurance service process, enhancing our ability to identify user needs, match products, and deliver consulting services. These efforts will drive improvements in both operational efficiency and user experience, laying a solid foundation for establishing a full-lifecycle health and protection ecosystem. Supported by our solid financial fundamentals, sustained profitability, deep accumulation of data and large-model technologies, and long-term insights into users’ real needs, we are confident we can capture the industry’s structural opportunities. We remain dedicated to providing users with more professional, convenient, and trustworthy insurance services and creating long-term sustainable value for consumers, partners, and shareholders.” Mr. Ray Wan, Chief Financial Officer of Yuanbao, added, “In the first quarter of 2026, we delivered another strong performance, driven by our continued business expansion and operating efficiency improvements. Total revenues for the quarter reached RMB1,315.9 million, reflecting a 35.6% increase year over year. Net income grew 31.4% year over year to RMB387.6 million, and net income margin stood at 29.5%. Meanwhile, our strong cash position and liquidity provide us with ample flexibility to continue advancing integrated AI development and other strategic priorities. We will remain focused on pursuing high-quality revenue growth, unlocking further operating leverage, and creating value for shareholders. “Moreover, supported by our robust cash position and sustained operating cash flow generation, we are pleased to announce that our Board of Directors has approved an annual cash dividend of US$0.21 per ordinary share, or US$1.26 per ADS, together with a US$15 million share repurchase program. We believe these actions underscore the strength of our financial foundation and reflect our ongoing commitment to enhancing shareholder returns as we steadily grow the long‑term value of our Company.” First Quarter 2026 Financial Results Total Revenues. Total revenues in the first quarter of 2026 were RMB1,315.9 million (US$190.8 million), representing a 35.6% year-over-year increase from RMB970.1 million in the same period of 2025. This growth was primarily driven by significant increases in revenues from both insurance distribution services and system services. Insurance Distribution Services. Revenues from insurance distribution services in the first quarter of 2026 were RMB411.3 million (US$59.6 million), representing a 27.8% year-over-year increase from RMB321.8 million in the same period of 2025. This growth was mainly due to an increase in the number of policies purchased by insurance consumers on Yuanbao’s platform, partly driven by the Company’s enhanced targeted marketing efforts. System Services. Revenues from system services in the first quarter of 2026 were RMB904.6 million (US$131.1 million), representing a 39.8% year-over-year increase from RMB647.0 million in the same period of 2025. This growth was primarily driven by the Company’s strengthened ability to provide partnered insurance carriers with more effective marketing and analytics services and customer-related services, enabled by consistent improvements to its full consumer service cycle engine. The increase was also partially attributable to an enhanced provision of system services to existing and new partnered insurance carriers. Others. Revenues from other services were RMB15.1 thousand (US$2.2 thousand) and RMB1.3 million in the first quarter of 2026 and 2025, respectively. Total Operating Costs and Expenses. Total operating costs and expenses in the first quarter of 2026 were RMB878.6 million (US$127.4 million), representing a 29.1% year-over-year increase from RMB680.6 million in the same period of 2025. Operations and Support Expenses. Operations and support expenses in the first quarter of 2026 were RMB47.5 million (US$6.9 million), representing a 6.0% year-over-year increase from RMB44.8 million in the same period of 2025. This increase was primarily driven by business growth. Selling and Marketing Expenses. Selling and marketing expenses in the first quarter of 2026 were RMB638.2 million (US$92.5 million), representing a 29.4% year-over-year increase from RMB493.2 million in the same period of 2025. This increase was primarily due to enhanced efforts to attract new consumers and retain existing consumers. General and Administrative Expenses. General and administrative expenses in the first quarter of 2026 were RMB86.6 million (US$12.6 million), representing a 30.0% year-over-year increase from RMB66.6 million in the same period of 2025. This increase was primarily due to salary increases. Research and Development Expenses. Research and development expenses in the first quarter of 2026 were RMB106.3 million (US$15.4 million), representing a 39.7% year-over-year increase from RMB76.1 million in the same period of 2025. This increase was primarily due to enhanced research and development efforts and an expansion in R&D personnel, aimed at reinforcing the Company’s leadership position as a technology-driven online insurance distributor. Investment Income. Investment income in the first quarter of 2026 was RMB14.6 million (US$2.1 million), representing a 112.1% year-over-year increase from RMB6.9 million in the same period of 2025. This growth was primarily due to higher gains from short-term investments. Income Tax Expenses. Income tax expenses in the first quarter of 2026 were RMB69.4 million (US$10.1 million), representing a 932.4% year-over-year increase from RMB6.7 million in the same period of 2025. This increase was primarily driven by a higher effective tax rate. The effective tax rate represents certain estimates by the Company as to the tax obligations and benefits applicable to it in each quarter. Net Income and Net Income Margin. Net income in the first quarter of 2026 was RMB387.6 million (US$56.2 million), representing a 31.4% increase from RMB295.1 million in the same period of 2025. Net income margin in the first quarter of 2026 was 29.5%, compared with 30.4% in the same period of 2025. Non-GAAP Adjusted Net Income1 and Non-GAAP Adjusted Net Income Margin. Non-GAAP adjusted net income in the first quarter of 2026 was RMB408.8 million (US$59.3 million), representing a 31.0% increase from RMB312.2 million in the same period of 2025. Non-GAAP adjusted net income margin in the first quarter of 2026 was 31.1%, compared with 32.2% in the same period of 2025. Basic and Diluted Net Income per ADS.2 Basic net income per ADS in the first quarter of 2026 was RMB8.60 (US$1.25), compared with RMB17.87 in the same period of 2025. Diluted net income per ADS in the first quarter of 2026 was RMB8.02 (US$1.16), compared with RMB6.46 in the same period of 2025. _______________________1 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. See “Use of Non-GAAP Financial Measures” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release.2 Each ADS represents six of the Company’s Class A ordinary shares, par value US$0.0001 per share. Cash Position and Cash Flow As of March 31, 2026, the Company had cash and cash equivalents, time deposits, restricted cash, short-term investments and long-term bank deposits of RMB4.74 billion (US$687.5 million), representing increases of 71.4% year over year and 17.4% quarter over quarter. In the first quarter of 2026, net cash provided by operating activities was RMB721.3 million (US$104.6 million). Exchange Rate This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB 6.8980 to US$1.00, the exchange rate in effect as of March 31, 2026, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all. Shareholder Return Activities Declaration of Annual Cash Dividend. The Company’s Board of Directors has approved an annual cash dividend of US$1.26 per ADS or US$0.21 per ordinary share to the holders of record of the Company’s ADSs and ordinary shares (excluding certain Class A Ordinary Shares held by Citibank N.A., as the depositary bank, for bulk issuance of ADSs reserved under the Company’s share incentive plans) as of the close of business on July 2, 2026 (Eastern Time). This dividend underscores the Company’s commitment to shareholder returns while maintaining a robust cash position. Future dividends remain subject to the approval of the Company’s Board of Directors. The payment date is expected to be on or around July 21, 2026 (Eastern Time) for holders of ordinary shares and on or around July 28, 2026 (Eastern Time) for holders of ADSs, and the precise timing of receipt may vary based on the processing efficiency of the respective holding brokerage. Share Repurchase Program. The Company announced that its Board of Directors has authorized a share repurchase program under which the Company may repurchase up to US$15 million of its ordinary shares in the form of American depositary shares over a 12-month period. Mr. Rui Fang, Chairman and Chief Executive Officer of Yuanbao, commented, “The share repurchase program is a strong indication of our Board’s confidence in our business outlook and long-term strategy, and we believe it will ultimately benefit the Company and create value for our shareholders.” Repurchases may be made from time to time through open market transactions at prevailing market prices, in privately negotiated transactions, in block trades and/or through other legally permissible means, depending on market conditions and in accordance with applicable rules and regulations. The timing and dollar amount of repurchase transactions will be subject to various factors including the requirements under Rule 10b-18 and Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The Board will review the share repurchase program periodically, and may authorize adjustments to its terms and size or suspend or discontinue the program. The Company plans to fund repurchases from its existing cash balance. Conference Call The Company’s management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on Wednesday, June 10, 2026 or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the first quarter of 2026. Participant Online Registration:https://register-conf.media-server.com/register/BI37c602a9bd0e421dac580195fbc42911 Participants should complete online registration using the link provided above at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at ir.yb-inc.com. About Yuanbao Inc. Yuanbao Inc. is a leading technology-driven online insurance distributor in China, committed to protecting health and well-being through innovative technology. Leveraging its proprietary consumer service cycle engine and advanced technologies, Yuanbao delivers customized insurance solutions from its partnered insurance carriers to over ten million insurance consumers throughout the entire insurance lifecycle, ranging from personalized recommendations to post-sales services. Through deep collaboration with insurance carriers and the use of data-driven insights, Yuanbao empowers carriers to tailor flagship products, enhances consumer engagement, and drives scalable and efficient distribution. For more information, please visit: ir.yb-inc.com. Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company uses non-GAAP financial measures, including adjusted net income and adjusted net income margin, in evaluating the Company’s operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expense, and adjusted net income margin represents adjusted net income as a percentage of revenue. Such adjustments have no impact on income tax. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as an analytical tool and when assessing the Company’s operating performance, investors should not consider it in isolation. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted net income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as a comparative measure to the Company’s data. For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release. Safe Harbor Statement This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations in this announcement contain forward-looking statements. Yuanbao may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Yuanbao’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yuanbao’s mission, goals and strategies; Yuanbao’s future business development, financial condition and results of operations; the expected growth of the insurance industry in China; Yuanbao’s expectations regarding demand for and market acceptance of its products and services; Yuanbao’s expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance industry. Further information regarding these and other risks is included in Yuanbao’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yuanbao does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: Yuanbao Inc.E-mail: [email protected] Piacente Financial CommunicationsHelen WuTel: +86-10-6508-0677E-mail: [email protected] In the United States: Piacente Financial CommunicationsBrandi PiacenteTel: +1-212-481-2050E-mail: [email protected] *Share-based compensation expenses are included in the operating costs and expenses as follows: ** Each ADS represents six Class A ordinary shares.

Interested in Yuanbao Inc. - Sponsored ADR? Here are five stocks we like better. Yuanbao posted strong Q1 2026 growth, with revenue up 35.6% year over year to RMB 1.32 billion and net income rising 31.4% to RMB 388 million. Management said the gains came from stronger insurance distribution, faster-growing system services and broader AI deployment. System services were the biggest growth driver, climbing 39.8% to RMB 904.6 million, while insurance distribution revenue rose 27.8% to RMB 411.3 million. The company said both areas benefited from improved platform operations and deeper insurer partnerships. AI and shareholder returns were central themes, as Yuanbao highlighted large-scale AI integration across underwriting, recommendations and claims, plus a new annual dividend of US$1.26 per ADS and a US$15 million share repurchase plan. Management said these steps reflect confidence in the company’s outlook and long-term value creation. Yuanbao (NASDAQ:YB) reported double-digit revenue and profit growth for the first quarter of 2026, with management pointing to stronger insurance distribution activity, growth in system services and broader deployment of artificial intelligence across its platform. The internet insurance company said total first-quarter revenue rose 35.6% year over year to RMB 1.32 billion. Net income increased 31.4% to RMB 388 million, with a net income margin of 29.5%. Chief Executive Officer Rui Fang said the results reflected Yuanbao’s work with insurers on product innovation, personalized recommendations, refined operations, claims services and AI integration. → Meta Unveils Subscriptions: A New Offering With Real Growth Potential As of the end of the quarter, Yuanbao said cash reserves totaled RMB 4.74 billion. The company also announced shareholder return initiatives, including an annual cash dividend of US$1.26 per American depositary share and a share repurchase program. Chief Financial Officer Huirui Wan said the board authorized the company to repurchase up to US$15 million of ordinary shares in the form of ADSs over a 12-month period, funded from existing cash balances. Wan said Yuanbao’s first-quarter revenue growth was “broad-based,” with contributions from both insurance distribution and system services. Insurance distribution services generated RMB 411.3 million in revenue, up 27.8% year over year. Wan said the increase reflected a higher volume of policies purchased through Yuanbao’s platform, supported in part by targeted marketing initiatives. System service revenue totaled RMB 904.6 million, up 39.8% year over year. Wan attributed the growth to refinements in Yuanbao’s consumer service cycle engine and deeper engagement with existing and newly onboarded insurance carrier partners. → Cybersecurity Earnings: 1 AI Standout and 2 Stocks Under Pressure Total operating expenses and costs rose 29.1% year over year to RMB 878.6 million. Selling and marketing expenses increased 29.4% to RMB 638.2 million, reflecting continued investment in consumer acquisition and engagement. Research and development expenses rose 39.7% to RMB 106.3 million as the company expanded its R&D headcount and technical capabilities. Wan said income tax expense increased to RMB 69.4 million from RMB 6.7 million a year earlier, primarily because of a higher effective tax rate. Non-GAAP adjusted net income was RMB 408.8 million, up 31% year over year, with a non-GAAP adjusted net income margin of 31.1%. → Planet Labs: Coming Back Down to Earth Management repeatedly emphasized Yuanbao’s investment in AI as a central element of its operating model. Fang said the company’s model matrix included more than 5,000 models capable of analyzing more than 5,800 labels as of quarter-end. He said those models are used across demand identification, product recommendations and claims services. Fang said Yuanbao has deployed an AI insurance large language model at scale and integrated it into core operations. The company has developed an AI-powered service system based on multi-agent collaboration and launched an intelligent insurance consultation and planning tool for consumers. According to management, the tool supports product coverage interpretation, underwriting eligibility assessments for users with pre-existing medical conditions, insurance planning suggestions and policy comparisons. Fang said the system uses multi-turn conversations to refine user profiles and deliver more personalized consultation and planning services. Yuanbao also described its insurance knowledge base as covering thousands of insurance products and policy details, with millions of accumulated professional knowledge data points related to insurance, healthcare and service processes. Fang said the company is moving from “tool-based AI” toward “organization-wide AI” through a platform, skills and scenarios architecture. Fang said Yuanbao is working with insurance carriers to enhance inclusive insurance offerings, including products aimed at specialized customer segments such as individuals with pre-existing conditions and new urban residents. He also said the company moved to integrate the Commercial Insurance Innovative Drug Catalog into its product offerings. On claims, management said Yuanbao launched an intelligent claims assistance feature that helps partner insurers conduct preliminary reviews of low-value, low-risk claims. Stella Liu, Yuanbao’s Investor Relations and Strategy Associate Director, said the company’s proprietary claims review system automatically verifies claims documents and calculates claim amounts, which is intended to improve claims-processing efficiency and shorten response times for small-value claims. During the question-and-answer session, Citi analyst Amy Chen asked about marketing efficiency and AI’s role in customer acquisition, conversion and post-sale services. Fang said customer acquisition efficiency remained robust as Yuanbao scaled, citing operating leverage in selling and marketing expenses. He said the company’s model has “consistently been AI-driven” and that there had been no major change in its customer acquisition engine. In response to a question from Yue Xu of China Security Company about new rules restricting the use of personal accounts to market financial products, including insurance, Fang said the regulation had not had a material impact on Yuanbao’s user acquisition model. He said the company prioritizes compliance, maintains marketing management systems and mandatory compliance reviews, and works with licensed issuers whose product terms are filed with or approved by regulators. Goldman Sachs analyst Thomas Wong asked about shareholder returns. Fang said the dividend and repurchase program demonstrated management’s confidence in the company’s outlook and commitment to enhancing long-term corporate value. He added that Yuanbao would review shareholder return policies again for 2026. On customer retention and renewal rates, Fang said online customer acquisition remains important because China’s commercial health insurance market is still under-penetrated. He said Yuanbao is working with insurers on products such as zero-deductible medical insurance and multi-claim critical illness plans, while using AI-enabled claims support to improve user experience and trust. Fang said the insurance industry is moving toward “high-quality development” driven by structural optimization, value-focused efficiency and ecosystem integration. He said demand for commercial health insurance is being supported by rising consumer awareness of health protection and China’s broader multi-tier healthcare protection system. Looking ahead, Yuanbao said it will continue investing in AI agents across the insurance process, with a focus on identifying user needs, matching users with suitable products and improving advisory services. Wan said the company will remain focused on high-quality revenue growth, operating leverage and long-term shareholder value. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Yuanbao Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

This article first appeared on GuruFocus. Total Revenue (Q4 2025): RMB1.18 billion, up 32.2% year-over-year. Net Income (Q4 2025): RMB337.4 million, up 15.4% year-over-year. Net Margin (Q4 2025): 28.7%. Total Revenue (Full Year 2025): RMB4.37 billion, up 33.1% year-over-year. Net Income (Full Year 2025): RMB1.31 billion, up 51% year-over-year. Net Margin (Full Year 2025): 29.9%, improved by 3.5 percentage points. Cash Reserves (End of 2025): RMB4.04 billion, up 73.9% year-over-year. New Policies (Q4 2025): Increased by 34.5% year-over-year to approximately 7.9 million. New Policies (Full Year 2025): Approximately 30.7 million, up 36.7% year-over-year. Insurance Distribution Revenue (Q4 2025): RMB401.1 million, up 35.1% year-over-year. System Services Revenue (Q4 2025): RMB734.1 million, up 31.1% year-over-year. Operating Expenses (Q4 2025): RMB780.4 million, up 30.2% year-over-year. R&D Expenses (Q4 2025): RMB111.7 million, up 39.1% year-over-year. Operating Cash Flow (Q4 2025): RMB290.7 million. Operating Cash Flow (Full Year 2025): RMB1.5 billion. Warning! GuruFocus has detected 2 Warning Sign with YB. Is YB fairly valued? Test your thesis with our free DCF calculator. Release Date: March 18, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Yuanbao Inc (NASDAQ:YB) achieved a 32.2% year-over-year increase in total revenues for the fourth quarter of 2025, reaching RMB1.18 billion. The company reported a net income of RMB337.4 million for the fourth quarter, marking a 15.4% year-over-year increase with a net margin of 28.7%. Yuanbao Inc (NASDAQ:YB) has maintained profitability for 14 consecutive quarters, demonstrating the sustainability of its business model. The company has a strong cash reserve of RMB4.04 billion, providing a solid financial foundation for future investments and expansion. Significant progress was made in AI capabilities, with the AI team accounting for over 10% of the workforce, enhancing operational efficiency and service precision. Selling and marketing expenses increased by 47.7% year-over-year to RMB552.3 million, indicating higher costs to attract and retain consumers. Despite strong revenue growth, the company did not provide specific earnings guidance for 2026, creating uncertainty about future financial performance. The company faces intensifying industry competition, which could impact its ability to sustain revenue growth and margins. Customer renewal rates have not significantly improved, suggesting challenges in retaining existing users. The company did not provide a specific timeline for dividend payouts, which may concern investors looking for immediate returns. Q: What is the growth guidance for Yuanbao Inc in 2026, and how sustainable is the improvement in selling and marketing efficiency? A: (Rui Fang, CEO) We haven't provided specific earnings guidance for 2026, but we expect to maintain our revenue and net profit growth momentum. Despite increasing competition, we've sustained revenue growth and margins for 14 quarters, demonstrating improvements in tech-driven operational efficiency. This creates a self-reinforcing effect, enhancing scale expansion and cost optimization. Q: Does Yuanbao Inc have a specific plan or timeline for dividends in the coming years? A: (Rui Fang, CEO) We are evaluating strategies to maximize shareholder returns, including potential dividend policies. Shareholder returns are a core part of our long-term strategy, but we haven't provided a specific timeline for dividend payouts. Q: How does Yuanbao Inc plan to manage sales and marketing costs in 2026? A: (Huirui Wan, CFO) We expect consumer demand to remain healthy as we innovate and iterate insurance products. This should improve user retention and support stronger industry fundamentals. For 2026, we aim to keep sales and marketing expenses as a percentage of revenue broadly stable, with only a modest potential increase. Q: What is the contribution breakdown between new and existing users in 2025, and how does Yuanbao Inc plan to improve customer retention? A: (Huirui Wan, CFO) We haven't provided a detailed breakdown of user composition, but most current users are new due to significant customer acquisition investments. Our retention strategy focuses on product innovation, user education, and aligning with industry trends to improve customer retention and user lifetime value. Q: What policy drivers can Yuanbao Inc expect in the future regarding commercial health insurance and long-term care insurance systems? A: (Huirui Wan, CFO) Policies highlight initiatives like the Commercial Insurance Innovation Drug catalog and inclusive insurance systems, reaffirming commercial insurance's role in China's medical payment systems. We innovate to meet diverse protection needs, expanding coverage and reaching underserved users, leveraging policy tailwinds for long-term growth. Q: How do AI agents impact Yuanbao Inc's business model, and do they pose any competitive threats? A: (Huirui Wan, CFO) AI agents are promising, but their impact depends on usage scenarios. Current insurance sales occur in content-driven environments, differing from AI agent platforms. We see a distinction between search-driven and discovery-based environments, with AI agents complementing rather than threatening our competitive position. Q: How does Yuanbao Inc perceive the impact of AI application iterations on its business? A: (Huirui Wan, CFO) AI in insurance is moving to large-scale implementation. Yuanbao's competitive edge in AI is anchored in vertical expertise, data capabilities, and agentics capabilities. We aim to build an AI-driven insurance service platform, positioning AI as the primary gateway connecting users with insurance products. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

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. Interested in Yuanbao Inc. - Sponsored ADR? Here are five stocks we like better. 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. → Why Credo and Astera Soared After Oracle and Broadcom's Earnings 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. → Members of Congress Bought These 5 Stocks—Should You? 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. → Palantir’s New Partnership Continues Separating Fact From Fiction 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. The article "Yuanbao Q4 Earnings Call Highlights" was originally published by MarketBeat.

BEIJING, March 18, 2026 (GLOBE NEWSWIRE) -- Yuanbao Inc. (“Yuanbao” or the “Company”) (NASDAQ: YB), a leading technology-driven online insurance distributor in China, today announced its unaudited financial results for the fourth quarter and fiscal year ended December 31, 2025. Fourth Quarter and Fiscal Year 2025 Financial and Operational Highlights Total revenues in the fourth quarter of 2025 were RMB1,175.3 million (US$168.1 million), representing a 32.2% year-over-year increase from RMB888.8 million in the same period of 2024. Total revenues in 2025 were RMB4,373.2 million (US$625.4 million), representing a 33.1% year-over-year increase from RMB3,284.5 million in 2024. Net income in the fourth quarter of 2025 was RMB337.4 million (US$48.2 million), representing a 15.4% year-over-year increase from RMB292.3 million in the same period of 2024. Net income in 2025 was RMB1,307.5 million (US$187.0 million), representing a 51.0% year-over-year increase from RMB865.8 million in 2024. Net income margin in the fourth quarter of 2025 was 28.7%, compared with 32.9% in the same period of 2024. Net income margin in 2025 was 29.9%, compared with 26.4% in 2024. Net operating cash inflow in the fourth quarter of 2025 was RMB290.7 million (US$41.6 million). Net operating cash inflow in 2025 was RMB1,495.1 million (US$213.8 million). Number of new policies1 in the fourth quarter of 2025 was approximately 7.9 million, representing a 34.5% year-over-year increase from approximately 5.9 million in the same period of 2024. Number of new policies in 2025 was approximately 30.7 million, representing a 36.7% year-over-year increase from approximately 22.4 million in 2024. Recent Developments Large Language Model (LLM) Platform. During the fourth quarter, the Company continued to advance the upgrade and unified development of its LLM platform. Its AI capabilities further matured and entered the scaled deployment phase. Through domain-specific augmented training and knowledge base integration, the model’s performance continued to improve in scenarios such as insurance-domain Q&A, multi-turn dialogue, and policy interpretation. The Company refined its unified model-serving architecture and multi-model routing mechanism, enhancing system stability and integration efficiency while reducing AI application development costs on the business side. The LLM platform now stably supports multiple core scenarios, including pre-sales consultation, post-sales service, and service quality inspection. Model usage continues to grow, further strengthening the platform’s role as fundamental infrastructure for business operations. Insurance Agent. During the fourth quarter, the Company accelerated the deployment of insurance Agents across scenarios such as pre-sales, customer service, and claims assistance, steadily expanding business application coverage. Agents are now utilized in product explanations, insurance plan recommendations, customer service quality inspections, and agent-assisted responses, improving service efficiency and delivering a more consistent customer experience. The Company’s multimodal capabilities have also been applied in claims document classification and information extraction, further enhancing processing efficiency. Meanwhile, the Company continued to strengthen its insurance-vertical Agent framework and its underlying knowledge base, improving Agents’ ability to handle complex tasks, with overall model usage and business penetration steadily increasing. Mr. Rui Fang, Chairman and Chief Executive Officer of Yuanbao, commented, “We closed the fourth quarter with strong operational and financial momentum, highlighted by a 34.5% year-over-year increase in the number of new policies to approximately 7.9 million. Leveraging AI technology and a network of thousands of models, we delivered personalized product service recommendations, connecting users with coverage needs at lower cost and with higher efficiency, significantly improving the accessibility of insurance. By embedding our proprietary AI and data capabilities across the full consumer service cycle engine, we have delivered measurable gains in system stability, service quality, customer acquisition and cost efficiency. As of year-end, our AI team accounted for over 10% of our total workforce. Our matrix included over 4,900 models capable of analyzing more than 5,700 labels, an increase of more than 290 models and 820 labels compared to 2024, thereby laying a solid foundation for the continuous iteration of our engine. “On the product and service front, our strategy remains focused on two key dimensions: accessibility and affordability. We have leveraged AI and our model network to support precise user targeting and personalized services, while developing dedicated products for specific user segments, thereby enhancing insurance accessibility and expanding protection coverage. Meanwhile, we have consistently upgraded coverage benefits, launching products such as our ‘Zero-Deductible’ Million-RMB Medical Insurance Plan to deliver a strong value proposition and enhanced claims experience. Following the release of the inaugural national ‘Commercial Insurance Innovative Drug Catalog’ at the end of last year, we partnered with insurers to quickly expand the drug coverage of our Super Medical Insurance · Million-RMB Medical Insurance product series, responding to public demand for access to advanced treatments and high-quality medications under the new policy cycle. “As a leading player in the insurtech sector, we have achieved solid progress across technological innovation and our product and service offerings in 2025. Through steady business growth, we have further validated the sustainability of our business model while building strong competitive advantages through the deep application of AI technologies. As China enters the 15th Five-Year Plan period, supportive health insurance policies continue to gain traction, while advances in technology are playing an increasingly important role in driving the continued development of inclusive insurance. We will continue to align closely with national policy priorities and strategic priorities, leveraging AI as our core engine to deepen our focus on inclusive insurance. We remain committed to leading the industry forward, contributing to the development of a multi-tier healthcare security system, safeguarding public well-being, and supporting the advancement of the Healthy China initiative.” Mr. Ray Wan, Chief Financial Officer of Yuanbao, added, “We delivered another quarter of robust growth, bolstered by our expanding user base, deeper integration of AI across end-to-end operations, and continuous improvements in operating efficiency. Total revenues for the quarter reached RMB1,175.3 million, representing a 32.2% increase year over year. Net income grew 15.4% year over year to RMB337.4 million, with net income margin remaining healthy at 28.7%. For the full year, total revenues increased 33.1% year over year to RMB4,373.2 million. As top-line growth continued to strengthen, net income rose 51.0% year over year to RMB1,307.5 million, with net income margin expanding to 29.9% in 2025 from 26.4% in 2024. These results reinforce our confidence in our growth trajectory and our ability to generate long-term value for our shareholders. Looking ahead, we will continue to build on this momentum, scaling our operations, advancing our AI capabilities, and further enhancing shareholder value.” ____________________ 1 The number of new policies for a given period represents the total number of both short-term and long-term insurance policies purchased by the Company’s insurance consumers during that period. Fourth Quarter 2025 Financial Results Total Revenues. Total revenues in the fourth quarter of 2025 were RMB1,175.3 million (US$168.1 million), representing a 32.2% year-over-year increase from RMB888.8 million in the same period of 2024. This growth was primarily driven by significant increases in revenues from both insurance distribution services and system services. Insurance Distribution Services. Revenues from insurance distribution services in the fourth quarter of 2025 were RMB401.1 million (US$57.4 million), representing a 35.1% year-over-year increase from RMB297.0 million in the same period of 2024. This growth was mainly due to an increase in the number of policies purchased by insurance consumers on Yuanbao’s platform, partly driven by the Company’s enhanced targeted marketing efforts. System Services. Revenues from system services in the fourth quarter of 2025 were RMB774.1 million (US$110.7 million), representing a 31.1% year-over-year increase from RMB590.4 million in the same period of 2024. This growth was primarily driven by the Company’s enhanced ability to provide partnered insurance carriers with more effective marketing services and precise analytics services, enabled by the Company’s continuously improving full consumer service cycle engine. Additionally, the increase was attributable to an expanded provision of system services to both existing and newly acquired partnered insurance carriers. Others. Revenues from other services in the fourth quarter of 2025 were RMB0.1 million (US$0.01 million), representing a 93.0% year-over-year decrease from RMB1.4 million in the same period of 2024. Total Operating Costs and Expenses. Total operating costs and expenses in the fourth quarter of 2025 were RMB780.4 million (US$111.6 million), representing a 30.2% year-over-year increase from RMB599.5 million in the same period of 2024. Operations and Support Expenses. Operations and support expenses in the fourth quarter of 2025 were RMB36.7 million (US$5.3 million), representing a 13.7% year-over-year decrease from RMB42.6 million in the same period of 2024. This decrease was primarily driven by improved operating efficiency and effective cost control. Selling and Marketing Expenses. Selling and marketing expenses in the fourth quarter of 2025 were RMB552.3 million (US$79.0 million), representing a 47.7% year-over-year increase from RMB374.0 million in the same period of 2024. This increase was primarily due to the Company’s enhanced marketing efforts to attract new consumers and retain existing consumers. General and Administrative Expenses. General and administrative expenses in the fourth quarter of 2025 were RMB79.6 million (US$11.4 million), representing a 22.5% year-over-year decrease from RMB102.7 million in the same period of 2024. The decrease was mainly driven by one-off project-related bonuses accrued in the fourth quarter of 2024, with no similar accruals in the fourth quarter of 2025. Research and Development Expenses. Research and development expenses in the fourth quarter of 2025 were RMB111.7 million (US$16.0 million), representing a 39.1% year-over-year increase from RMB80.3 million in the same period of 2024. This increase was primarily due to enhanced research and development efforts and an expansion in R&D personnel, aimed at reinforcing the Company’s leadership position as a technology-driven online insurance distributor. Investment Income. Investment income in the fourth quarter of 2025 was RMB14.4 million (US$2.1 million), compared with RMB3.9 million in the same period of 2024. This growth was primarily due to higher investment income from short-term investments. Income Tax Expenses. Income tax expenses in the fourth quarter of 2025 were RMB75.4 million (US$10.8 million), representing a 734.9% year-over-year increase from RMB9.0 million in the same period of 2024. This increase was primarily driven by the accrual of withholding income tax in the fourth quarter of 2025. Net Income and Net Income Margin. Net income in the fourth quarter of 2025 was RMB337.4 million (US$48.2 million), representing a 15.4% year-over-year increase from RMB292.3 million in the same period of 2024. Net income margin in the fourth quarter of 2025 was 28.7%, compared with 32.9% in the same period of 2024. Non-GAAP Adjusted Net Income2 and Non-GAAP Adjusted Net Income Margin. Non-GAAP adjusted net income in the fourth quarter of 2025 was RMB354.5 million (US$50.7 million), representing a 13.2% year-over-year increase from RMB313.0 million in the same period of 2024. Non-GAAP adjusted net income margin in the fourth quarter of 2025 was 30.2%, compared with 35.2% in the same period of 2024. Basic and Diluted Net Income per ADS.3 Basic net income per ADS in the fourth quarter of 2025 was RMB7.49 (US$1.07), compared with RMB11.02 in the same period of 2024. Diluted net income per ADS in the fourth quarter of 2025 was RMB6.96 (US$1.00), compared with RMB6.43 in the same period of 2024. Fiscal Year 2025 Financial Results Total Revenues. Total revenues in 2025 were RMB4,373.2 million (US$625.4 million), representing a 33.1% year-over-year increase from RMB3,284.5 million in 2024. Insurance Distribution Services. Revenues from insurance distribution services in 2025 were RMB1,446.8 million (US$206.9 million), representing a 33.8% year-over-year increase from RMB1,081.3 million in 2024. System Services. Revenues from system services in 2025 were RMB2,922.7 million (US$417.9 million), representing a 33.2% year-over-year increase from RMB2,194.2 million in 2024. Others. Revenues from other services in 2025 were RMB3.6 million (US$0.5 million), representing a 60.4% year-over-year decrease from RMB9.0 million in 2024. Total Operating Costs and Expenses. Total operating costs and expenses in 2025 were RMB3,036.6 million (US$434.2 million), representing a 25.2% year-over-year increase from RMB2,425.9 million in 2024. Operations and Support Expenses. Operations and support expenses in 2025 were RMB167.5 million (US$23.9 million), representing a 0.7% year-over-year increase from RMB166.3 million in 2024. Selling and Marketing Expenses. Selling and marketing expenses in 2025 were RMB2,217.2 million (US$317.0 million), representing a 23.9% year-over-year increase from RMB1,789.9 million in 2024. General and Administrative Expenses. General and administrative expenses in 2025 were RMB286.8 million (US$41.0 million), representing a 20.2% year-over-year increase from RMB238.6 million in 2024. Research and Development Expenses. Research and development expenses in 2025 were RMB365.1 million (US$52.2 million), representing a 58.0% year-over-year increase from RMB231.0 million in 2024. Investment Income. Investment income in 2025 was RMB45.2 million (US$6.5 million) compared with RMB6.4 million in 2024. Income Tax Expenses. Income tax expenses in 2025 were RMB101.2 million (US$14.5 million), representing a 295.7% year-over-year increase from RMB25.6 million in 2024. Net Income and Net Income Margin. Net income in 2025 was RMB1,307.5 million (US$187.0 million), representing a 51.0% year-over-year increase from RMB865.8 million in 2024. Net income margin in 2025 was 29.9%, compared with 26.4% in 2024. Non-GAAP Adjusted Net Income and Non-GAAP Adjusted Net Income Margin. Non-GAAP adjusted net income in 2025 was RMB1,381.9 million (US$197.6 million), representing a 48.6% year-over-year increase from RMB929.9 million in 2024. Non-GAAP adjusted net income margin in 2025 was 31.6%, compared with 28.3% in 2024. Basic and Diluted Net Income per ADS. Basic net income per ADS in 2025 was RMB55.72 (US$7.97), compared with RMB26.07 in 2024. Diluted net income per ADS in 2025 was RMB27.44 (US$3.92), compared with RMB19.15 in 2024. Cash Position and Cash Flow As of December 31, 2025, the Company had cash and cash equivalents, time deposits, restricted cash, short-term investments and long-term bank deposits of RMB4.04 billion (US$577.6 million), representing increases of 72.9% year over year and 7.7% quarter over quarter. In the fourth quarter of 2025, net cash provided by operating activities was RMB290.7 million (US$41.6 million). In fiscal year 2025, net cash provided by operating activities was RMB1,495.1 million (US$213.8 million). ____________________ 2 Non-GAAP adjusted net income is defined as net income excluding share-based compensation expenses. See “Use of Non-GAAP Financial Measure” and “Reconciliations of GAAP and Non-GAAP Results” at the end of this press release. 3 Each ADS represents six of the Company’s Class A ordinary shares, par value US$0.0001 per share. Exchange Rate This announcement contains translations of certain Renminbi (“RMB”) amounts into U.S. dollars (“US$”) at specified rates solely for the convenience of the reader. Unless otherwise noted, all translations from RMB to US$ were made at a rate of RMB6.9931 to US$1.00, the exchange rate in effect as of December 31, 2025, as set forth in the H.10 statistical release of the Board of Governors of the Federal Reserve System. The Company makes no representation that any RMB or US$ amounts could have been, or could be, converted into US$ or RMB, as the case may be, at any particular rate, or at all. Conference Call The Company’s management will hold an earnings conference call at 8:00 A.M. U.S. Eastern Time on March 18, 2026 or 8:00 P.M. Beijing Time to discuss its financial results and operating performance for the fourth quarter and fiscal year 2025. Participant Online Registration: https://register-conf.media-server.com/register/BIb08c5d8b1d5e4ab9b8a0fc3bce9ffbf7 Participants should complete online registration using the link provided above at least 15 minutes before the scheduled start time. Upon registration, participants will receive the conference call access information, including dial-in numbers, a personal PIN and an e-mail with detailed instructions to join the conference call. Additionally, a live and archived webcast of the conference call will be available on the Company’s investor relations website at ir.yb-inc.com. About Yuanbao Inc. Yuanbao Inc. is a leading technology-driven online insurance distributor in China, committed to protecting health and well-being through innovative technology. Leveraging its proprietary consumer service cycle engine and advanced technologies, Yuanbao delivers customized insurance solutions from its partnered insurance carriers to over ten million insurance consumers throughout the entire insurance lifecycle, ranging from personalized recommendations to post-sales services. Through deep collaboration with insurance carriers and the use of data-driven insights, Yuanbao empowers carriers to tailor flagship products, enhances consumer engagement, and drives scalable and efficient distribution. For more information, please visit: ir.yb-inc.com. Use of Non-GAAP Financial Measures The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”). The Company uses non-GAAP financial measures, including adjusted net income and adjusted net income margin, in evaluating the Company’s operating results and for financial and operational decision-making purposes. Adjusted net income represents net income excluding share-based compensation expense, and adjusted net income margin represents adjusted net income as a percentage of revenue. Such adjustments have no impact on income tax. The non-GAAP financial measures are not presented in accordance with U.S. GAAP and may be different from non-GAAP methods of accounting and reporting used by other companies. The non-GAAP financial measures have limitations as an analytical tool and when assessing the Company’s operating performance, investors should not consider it in isolation. The Company encourages investors and others to review its financial information in its entirety and not rely on a single financial measure. Adjusted net income presented here may not be comparable to similarly titled measures presented by other companies. Other companies may calculate similarly titled measures differently, limiting their usefulness as a comparative measure to the Company’s data. For more information on the non-GAAP financial measures, please see the table captioned “Reconciliation of GAAP and Non-GAAP Results” set forth at the end of this press release. Safe Harbor Statement This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Among other things, quotations in this announcement contain forward-looking statements. Yuanbao may also make written or oral forward-looking statements in its periodic reports to the SEC, in its annual report to shareholders, in press releases and other written materials and in oral statements made by its officers, directors or employees to third parties. Statements that are not historical facts, including statements about Yuanbao’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. A number of factors could cause actual results to differ materially from those contained in any forward-looking statement, including but not limited to the following: Yuanbao’s mission, goals and strategies; Yuanbao’s future business development, financial condition and results of operations; the expected growth of the insurance industry in China; Yuanbao’s expectations regarding demand for and market acceptance of its products and services; Yuanbao’s expectations regarding its relationships with consumers, insurance carriers and other partners; competition in the industry and relevant government policies and regulations relating to insurance industry. Further information regarding these and other risks is included in Yuanbao’s filings with the SEC. All information provided in this press release is as of the date of this press release, and Yuanbao does not undertake any obligation to update any forward-looking statement, except as required under applicable law. For investor and media inquiries, please contact: In China: Yuanbao Inc. E-mail: [email protected] Piacente Financial Communications Helen Wu Tel: +86-10-6508-0677 E-mail: [email protected] In the United States: Piacente Financial Communications Brandi Piacente Tel: +1-212-481-2050 E-mail: [email protected]