Operating income surged from $10.3 million in 2022Q4 to $354.5 million in 2025Q3, reflecting significant operating leverage as the company scales its tech-enabled insurance distribution model.
| Revenue | 4.09B | 3.28B | 2.05B | 850.25M | 385.44M |
| Revenue Growth % | 78.31% | 60.6% | 140.54% | 120.59% | - |
| Medical Costs & Claims | 173.3M | 166.33M | 137.96M | 62.88M | 63.14M |
| Medical Cost Ratio % | 4.24% | 5.06% | 6.75% | 7.4% | 16.38% |
| Gross Profit | 3.91B | 3.12B | 1.91B | 787.37M | 322.31M |
| Gross Margin % | 95.76% | 94.94% | 93.25% | 92.6% | 83.62% |
| Gross Profit Growth % | - | 63.5% | 142.22% | 144.29% | - |
| Operating Expenses | 2.68B | 2.26B | 1.73B | 803.54M | 725.91M |
| OpEx / Revenue % | 65.64% | 68.79% | 84.68% | 94.51% | 188.33% |
| Depreciation & Amortization | 6.04M | 14.95M | 16.14M | 9.52M | 8.43M |
| Combined Ratio % | 69.88% | 73.86% | 91.43% | 101.9% | 204.71% |
| Operating Income | 1.23B | 858.61M | 175.36M | -16.16M | -403.61M |
| Operating Margin % | 30.12% | 26.14% | 8.57% | -1.9% | -104.71% |
| Operating Income Growth % | - | 389.63% | 1184.8% | 95.99% | - |
| EBITDA | 1.24B | 873.55M | 191.5M | -6.65M | -395.17M |
| EBITDA Margin % | 30.27% | 26.6% | 9.36% | -0.78% | -102.52% |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Non-Operating Income | 0 | 0 | 0 | 0 | 0 |
| Pretax Income | 1.3B | 891.41M | 205.48M | -2.34M | -399.86M |
| Pretax Margin % | 31.74% | 27.14% | 10.05% | -0.27% | -103.74% |
| Income Tax | 34.78M | 25.57M | 291K | 12K | 0 |
| Effective Tax Rate % | 2.68% | 2.87% | 0.14% | -0.51% | 0% |
| Net Income | 1.26B | 865.85M | 203.12M | 18.75M | -441.51M |
| Net Margin % | 30.89% | 26.36% | 9.93% | 2.21% | -114.55% |
| Net Income Growth % | 228.92% | 326.28% | 983.18% | 104.25% | - |
| EPS (Diluted) | 156.79 | 115.24 | -44.33 | -57.95 | -162.09 |
| EPS Growth % | 611.24% | 359.96% | 23.5% | 64.25% | - |
| EPS (Basic) | - | 115.24 | -44.33 | -57.95 | -162.09 |
| Diluted Shares Outstanding | 8.05M | 7.51M | 7.51M | 7.51M | 7.51M |
Regulatory commission cap exposure
As evidenced by the reported 60.60% year-over-year revenue growth, Yuanbao is successfully capturing market share in the digital distribution space, though the deceleration to 33.6% in 2025Q3 suggests that the initial high-velocity expansion phase may be normalizing as the company matures within the Chinese insurance market.
The company's ability to scale revenue from $343.5 million in 2022Q4 to over $1.2 billion by 2025Q3 indicates a highly effective customer acquisition engine. Investors should monitor whether this growth is sustainable through organic retention or if it remains dependent on aggressive marketing spend that could be curtailed by future regulatory shifts.
Based on the provided financial data, Yuanbao has significantly improved its combined ratio from 97.0% in 2022Q4 to 69.4% in 2025Q3, reflecting a substantial increase in operational efficiency and a successful transition toward a more profitable, tech-enabled service model that minimizes direct underwriting risk exposure.
The consistent decline in the combined ratio suggests that the company is effectively leveraging its proprietary 'Smart Matching' engine to reduce acquisition costs relative to premium volume. This trend implies that the platform is becoming increasingly efficient at converting traffic, though the sustainability of these margins warrants further investigation into potential commission rate compression.
According to the latest quarterly filings, the company has successfully expanded its operating income from $10.3 million in 2022Q4 to $354.5 million in 2025Q3, demonstrating significant operating leverage as the platform's fixed costs are spread across a rapidly growing base of insurance transactions and service fees.
The widening gap between revenue growth and operating expenses suggests that Yuanbao is achieving meaningful economies of scale. This operational leverage appears to be a core driver of the company's profitability, though investors should remain cautious regarding the potential for rising traffic acquisition costs on major Chinese digital platforms.
While the reported 26.36% net margin appears robust, the discrepancy between operating and net income figures suggests that non-operating items may be inflating bottom-line results, warranting skepticism regarding the long-term sustainability of these margins in the face of potential NFRA-mandated commission caps and evolving privacy regulations.
The reliance on transactional brokerage commissions exposes the company to significant regulatory risk if authorities decide to limit intermediary compensation. Furthermore, the lack of 3-year CAGR data makes it difficult to determine if current profitability levels are structural or merely a byproduct of a favorable, yet potentially temporary, regulatory and competitive environment.
Quick answers to the most common questions about buying YB stock.
For fiscal year 2024, Yuanbao Inc. American Depositary Shares (YB) reported total revenue of $3.28B. This represents a 752.1% increase compared to $385.4M in 2021.
Yuanbao Inc. American Depositary Shares (YB) is profitable, generating $865.8M in net income for the fiscal year ending 2024 with a net profit margin of 26.4%.
Yuanbao Inc. American Depositary Shares (YB) reported an operating income of $858.6M, resulting in an operating profit margin of 26.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Yuanbao Inc. American Depositary Shares (YB) generated $3.12B in gross profit for the year, representing a gross profit margin of 94.9%. This demonstrates the company's core pricing power and production efficiency.