Waystar Reports Third Quarter 2025 Results Q3 revenue growth of 12% year-over-year Q3 net income of $30.6 million and non-GAAP net income of $67.8 million Q3 net income margin of 11%; adjusted EBITDA margin of 42% Raising revenue and adjusted EBITDA guidance for 2025 LEHI, Utah and LOUISVILLE, Ky., October 29, 2025 — Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today reported results for the third quarter ended September 30, 2025. "Waystar delivered another quarter ...

Company Overview - Waystar provides a cloud-based software platform for healthcare payments, including solutions for financial clearance, patient financial care, claims and payment management, denial prevention and recovery, revenue capture, and analytics [4][10] - The company serves healthcare organizations as its primary customers, targeting providers seeking to optimize revenue cycle management and payment processes [5] - Waystar was founded in 2017 and is headquartered in Lehi, Utah, operating in the technology sector with approximately 1,500 employees [8] Financial Performance - As of October 16, 2025, Waystar's stock price was $36.81, with a market capitalization of $7.06 billion [3] - The company reported a total revenue of $1.01 billion and a net income of $85.94 million for the trailing twelve months (TTM) [3] - In Q2, Waystar's sales rose 15% year over year to $270.7 million, and the company expects to reach $1 billion in revenue for the year, up from $944 million in 2024 [10] Investment Insights - Capricorn Fund Managers Ltd established a new position in Waystar, acquiring 505,122 shares valued at approximately $19.15 million, which accounts for 6.4% of the fund's 13F reportable assets under management [1][2] - Waystar is now the largest holding by reported market value in Capricorn Fund Managers' portfolio [2] - The consistent sales growth and a forward price-to-earnings ratio of about 25 make Waystar an attractive long-term investment [11]

Core Viewpoint - Waystar Holding Corp. will report its financial results for Q3 2025 on October 29, 2025, after market close, followed by a conference call to discuss the results [1]. Company Overview - Waystar provides healthcare payment software designed to simplify payment processes, allowing providers to focus on patient care and financial performance [3]. - The company serves approximately 30,000 clients, which includes over 1 million distinct providers, and 17 out of the 20 institutions listed in U.S. News Best Hospitals [3]. - Waystar's platform processes over 6 billion healthcare payment transactions annually, managing over $1.8 trillion in gross claims and covering about 50% of U.S. patients [3].

Core Insights - The Kia Soul, a unique urban vehicle, has played a significant role in Kia's transformation and success in the U.S. market, contributing to nearly tripling overall sales during its lifetime [1][3] - The Kia Soul will retire at the end of the 2025 model year, with over 1.5 million units sold in the U.S. since its introduction in 2009 [2][11] - The Soul's design was inspired by the concept of a "boar with a backpack," aiming to combine the efficiency of a small car with the versatility of an SUV [4] Sales and Market Impact - The Soul has been a cornerstone for Kia in establishing its presence in the U.S. automotive market, helping the company achieve record sales and market share [3] - The vehicle's unique marketing campaigns, including the iconic "Ham-stars," significantly contributed to its popularity and brand recognition [5][6] Design and Innovation - The Soul maintained its original concept's spirit throughout its production, with various innovative models and concepts introduced over the years, such as the Soul'ster and Track'ster [6][10] - The introduction of the Soul Turbo in 2017 responded to customer demand for more powerful options, leading to the development of the Kia Seltos, which offers additional features and capabilities [7][8] Awards and Recognition - The Kia Soul has received numerous accolades over the years, including distinctions from Kelley Blue Book, J.D. Power, and IIHS, highlighting its quality, safety, and appeal [12]

Core Viewpoint - Waystar Holding (WAY) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the importance of earnings estimate revisions, which are strongly correlated with near-term stock price movements [4][6]. - Waystar is projected to earn $1.39 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 3.1% over the past three months [8]. Investment Implications - The upgrade to Zacks Rank 2 places Waystar in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. - Rising earnings estimates and the corresponding rating upgrade reflect an improvement in Waystar's underlying business, which could lead to increased buying pressure and a higher stock price [5][10].

Core Insights - Waystar Holding Corp. has successfully completed the acquisition of Iodine Software, enhancing its AI-powered financial and clinical intelligence capabilities on its cloud-based platform [1][2] - The acquisition is expected to expand Waystar's total addressable market by over 15% and be immediately accretive to gross margin, adjusted EBITDA margin, revenue growth, and non-GAAP net income per diluted share by 2027 [2][4] - The integration of Iodine's expertise in the healthcare payment ecosystem will enhance Waystar's AI capabilities, preventing revenue leakage and ensuring accurate payments to providers [3][4] Company Overview - Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 16 of the top 20 institutions on the U.S. News Best Hospitals list [5] - The company processes over 6 billion healthcare payment transactions annually, amounting to over $1.8 trillion in gross claims, covering approximately 50% of U.S. patients [5] Strategic Implications - The acquisition of Iodine is anticipated to accelerate growth through enhanced cross-selling opportunities, leveraging the combined datasets to drive a continuously learning AI platform [2][3] - Waystar's CEO emphasized that the integration of clinical and financial intelligence on a single platform is a unique market differentiator that will strengthen financial performance and automate the revenue cycle [4]

Core Insights - Waystar Holding Corp. has been added to the S&P SmallCap 600 Index, effective September 22, 2025, highlighting its growth and market position [1][3] - The company has achieved double-digit revenue growth over the past 15 months, with net revenue retention at 115% and a 15% year-over-year increase in scaled clients [2][4] - Waystar's software platform processes over $1.8 trillion in gross claims annually and serves more than one million providers, indicating its significant market presence [2][4] Company Performance - Waystar's AI-powered software platform has contributed to robust margins and sustained growth, reinforcing its innovation strategy [2] - Recent innovations, such as Waystar AltitudeAI™, have improved denial appeals processing speed by three times and increased overturn rates by over 40% [2] - The company serves approximately 30,000 clients, including 16 of the top 20 institutions on the U.S. News Best Hospitals list, showcasing its credibility in the healthcare sector [4] Market Impact - Membership in the S&P SmallCap 600 is expected to broaden Waystar's shareholder base and enhance visibility with institutional investors [3] - The addition to this index is anticipated to improve trading liquidity for Waystar's stock, potentially attracting more investment [3]

Summary of Waystar Holding Conference Call Industry Overview - The healthcare industry is facing challenges such as margin pressures, staffing shortages, and shifting policy landscapes, prompting a need for smarter operations and improved financial health [1][5] - The focus is on transforming healthcare payments through AI-powered solutions, with Waystar leading this transformation [1][2] Core Company Insights - **Waystar Altitude AI**: A comprehensive set of AI capabilities designed to enhance efficiency and accuracy in healthcare revenue cycles, eliminating manual processes and accelerating reimbursements [2][6] - **Transaction Data**: Waystar processes over 6 billion transactions and $1.8 trillion in gross claims annually, leveraging this data for smarter automation and financial outcomes [3][4] - **Provider Sentiment**: A Forrester study indicates that 82% of provider organizations consider AI essential for revenue cycle operations, with nearly 60% planning to increase investment in AI [5] Key Innovations and Impact - **Financial Clearance**: Waystar Altitude AI significantly reduces denials and accelerates reimbursement, achieving up to 90% auto-approval on prior authorizations [9] - **Patient Financial Care**: Digital-first billing solutions lead to a 17.5% reduction in statement costs and up to a 20% increase in patient revenue [10] - **Revenue Capture**: The platform helps recover an average of over $3 million in additional annual revenue for clients [11] - **Denial Management**: Automated appeals powered by AI have led to a significant increase in denial overturn rates and recovery of $33 million in revenue for early adopters [12][35] Operational Efficiency - **Time Savings**: For mid-size health systems, the time to manage claim edits has decreased from 133 hours to under 6 hours, representing a 95% time savings [21] - **Prior Authorization**: The expansion of Authorization Manager has resulted in over 90% touchless approvals, significantly reducing the time for authorization processes [26][27] Financial Transparency and Patient Experience - **Patient Wallet**: The Waystar Patient Wallet provides accurate upfront estimates and self-service payment options, increasing pre-payments from 17% to 40% [42] - **Real-Time Monitoring**: Future capabilities will include real-time visibility into payment terminal health, ensuring seamless transactions and uninterrupted care [45] Security and Trust - Waystar emphasizes a robust cybersecurity framework to protect data and operations, being recognized as a trusted vendor in the healthcare sector [52] Conclusion - Waystar is committed to transforming healthcare payments through innovative AI solutions, enhancing operational efficiency, financial performance, and patient experience while maintaining a strong focus on security and trust [53][54]

Core Insights - Waystar is addressing significant financial challenges in the healthcare sector, including $20 billion in denied claims and $17 billion in uncompensated care, by introducing AI-powered software innovations aimed at improving financial performance and resilience for healthcare providers [1][2]. Group 1: Financial Challenges - Healthcare providers are facing $20 billion annually in costs related to denied claims and $17 billion in uncompensated care due to lower patient collections [2]. - Eliminating manual steps in obtaining payer reimbursement could save the industry $2.6 billion [2]. Group 2: Waystar's Innovations - Waystar is launching the first scaled, AI-powered, end-to-end solution for denial appeals, significantly reducing the time required to create appeal packages from 38 hours to just 2 hours, which allows for a redeployment of resources [4]. - The new AI capabilities have enabled early adopters to overturn 40% more denials and improve pre-service patient payments from 17% to 40% of total payments, enhancing cash flow and reducing uncompensated care [5][4]. Group 3: Efficiency Gains - Waystar's platform delivers over 90% time savings across key capabilities, allowing healthcare providers to reclaim millions in revenue and free up resources equivalent to more than a dozen full-time employees [2]. - The AI technology reduces denial-prevention-related work from 133 hours to under 6 hours, achieving a 95% time savings [6]. Group 4: Market Position - Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, and processes over 6 billion healthcare payment transactions annually, including over $1.8 trillion in gross claims [8].

Core Insights - Selfridges and Disney are launching a festive collaboration titled "A Most Magical Christmas," set to begin on November 6, 2025, aimed at creating enchanting experiences for visitors [1][2][4] - The collaboration will feature limited edition products, including unique Disney-themed items and specially commissioned fashion pieces, enhancing the holiday shopping experience [3][5] Group 1: Collaboration Details - The partnership will transform Selfridges locations in London, Manchester, and Birmingham into festive wonderlands, featuring 18 Disney-themed window displays and over 60 brand collaborations [3][4] - Limited edition Selfridges and Disney yellow bags will be available starting November 6, marking a significant aspect of the collaboration [3][4] Group 2: Historical Context - The collaboration builds on a rich history between Selfridges and Disney, dating back to the 1950s, showcasing iconic Disney characters in Selfridges' displays over the decades [4] - This partnership reflects a shared creative dialogue and appreciation for each brand's heritage, developed over more than two years [4][5] Group 3: Executive Insights - André Maeder, CEO of Selfridges Group, expressed excitement about the collaboration, highlighting the unique and imaginative aspects of the partnership [5] - Tasia Filippatos, Global President of Disney Consumer Products, emphasized the power of storytelling and the joy it brings during the holiday season through this collaboration [5]