Highlights

  • YB’S Q1 2025 revenue rose 43.8% YoY to RMB 970.1 million due to higher contributions from both insurance distribution and system services.
  • The company net income increased by 122.1% YoY to RMB295.1 million, with margin expanding to 30.4%.
  • The company issued 6.8 million new insurance policies in the first quarter, an increase of 21.3% YoY.

Yuanbao Inc. (NASDAQ: YB), a technology-led online insurance distributor in China, reported its unaudited financial results for the first quarter ended March 31, 2025, showing year-over-year growth across revenue, profitability, and policy volume.

Total revenue for the quarter reached RMB 970.1 million (US$133.7 million), a 43.8% increase from RMB 674.5 million in Q1 2024. The revenue increase was attributed to higher contributions from both insurance distribution and system services. Revenue from insurance distribution services rose by 45.0%YoY to RMB 321.8 million, reflecting a rise in the number of policies purchased through Yuanbao’s platform. System services revenue grew by 43.2%YoY to RMB 647.0 million, supported by enhanced analytics and marketing services provided to insurance partners.

Net income for the quarter was reported at RMB 295.1 million (USD 40.7 million), up 122.1%YoY from the same period a year ago. The net income margin expanded to 30.4%YoY, compared with 19.7%YoY in the prior-year period. Non-GAAP adjusted net income rose 103.2%YoY to RMB 312.2 million, with an adjusted net margin of 32.2%.

Operating cash flow remained positive, with the company generating RMB 425.1 million (USD 58.6 million) in cash from operations. As of March 31, 2025, Yuanbao held RMB 2.77 billion (USD 381.3 million) in cash, equivalents, deposits, restricted cash, and short-term investments, compared with RMB2.34 billion at the end of December 2024.

Operating expenses totalled RMB 680.6 million for the quarter, up 24.1%YoY from a year earlier. This included RMB493.2 million in selling and marketing expenses, up 15.0%YoY, and RMB 76.1 million in research and development expenses, more than doubling from Q1 2024. The rise in R&D spending was related to an expansion in technical personnel and the company’s focus on integrating advanced technologies into its operations.

The company issued 6.8 million new insurance policies in the first quarter, an increase of 21.3% YoY. This growth was partly supported by recent technological implementations, including large language model (LLM) tools for quality inspection and customer service enhancements. Yuanbao also expanded its use of retrieval-augmented generation (RAG) systems and multi-modal tools to improve customer interaction and processing accuracy.

By the end of March, the company had developed more than 4,700 analytical models and 5,100 data labels for its consumer service cycle engine, up from 4,100 models and 4,100 labels in the previous year.