Group 1 - Waystar has been recognized as a 2025–2026 Best Company to Work For by U.S. News & World Report, ranking in the top 6% of companies overall and top 25% in its industry and region [1][2] - The evaluation by U.S. News & World Report considered employee sentiment across six key factors, including pay and benefits, work-life balance, job stability, comfort, sense of belonging, and career opportunities [2] - The CEO of Waystar highlighted the recognition as a reflection of the company's culture, which emphasizes innovation and a commitment to simplifying healthcare payments [3] Group 2 - Waystar's software is designed to simplify healthcare payments, allowing providers to focus on patient care and financial performance [4] - The company 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 [4] - Waystar processes over 6 billion healthcare payment transactions annually, amounting to over $1.8 trillion in gross claims, covering about 50% of U.S. patients [4]

Shares of Waystar Holding (WAY) have gained 2.5% over the past four weeks to close the last trading session at $38.20, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $48.60 indicates a potential upside of 27.2%.The mean estimate comprises 10 short-term price targets with a standard deviation of $2.46. While the lowest estimate of $45 indicates a 17.8% increase from the current ...

Core Viewpoint - Waystar Holding (WAY) shows a significant improvement in earnings outlook, making it an attractive investment option as analysts continue to raise earnings estimates for the company [1][2]. Earnings Estimate Revisions - The upward trend in earnings estimate revisions reflects growing analyst optimism regarding Waystar's earnings prospects, which is expected to positively impact its stock price [2]. - For the current quarter, Waystar is projected to earn $0.32 per share, marking a substantial increase of +700% compared to the same period last year [6]. - The Zacks Consensus Estimate for the current quarter has risen by 12.99% over the last 30 days, with two estimates increasing and one decreasing [6]. - For the full year, the expected earnings per share is $1.32, indicating a year-over-year growth of +21.1% [7]. - Over the past month, five estimates for the current year have been revised upward, contributing to a 6.05% increase in the consensus estimate [7][8]. Zacks Rank and Performance - Waystar has achieved a Zacks Rank 2 (Buy), indicating strong agreement among analysts in revising earnings estimates upward [9]. - The Zacks Rank system has a proven track record, with Zacks 1 Ranked stocks averaging an annual return of +25% since 2008 [3]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have been shown to significantly outperform the S&P 500 [9]. Stock Performance - Waystar's stock has increased by 5.9% over the past four weeks, driven by strong estimate revisions and positive analyst sentiment [10]. - There is potential for further upside in the stock, suggesting it may be a good addition to investment portfolios [10].

Financial Results 1Q'25 Earnings Presentation April 30, 2025 © 2025 Waystar. All rights reserved. FORWARD - LOOKING STATEMENTS This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, statements regarding Waystar's expectations relating to future operating results and financial position, including full year 2025, and future periods; anticipated future investments; our ...

Core Insights - Waystar has been recognized as the Best Overall Healthcare Payments Solutions Provider by MedTech Breakthrough for the fourth consecutive year, highlighting its leadership in the healthcare payments sector [1][3] - The company has launched Waystar AltitudeAI™, a suite of AI-powered capabilities, and introduced generative AI solutions, significantly improving operational efficiency by reducing denial appeal times by 70% and streamlining denial-prevention workflows from three days to three minutes [2] Company Achievements - 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] - Waystar has received multiple accolades, including ranking as the 1 healthcare payments solution in eight out of 18 AI categories by Black Book Market Research™ and recognition by Best in KLAS® across two revenue cycle categories [3] Industry Context - The MedTech Breakthrough Awards program recognizes top companies and technologies in the digital health and medical technology markets, emphasizing innovation and excellence across various categories [4]

Financial Data and Key Metrics Changes - Waystar reported Q1 2025 revenue of $256 million, reflecting a 14% year-over-year increase and an adjusted EBITDA of $108 million, which is a 16% increase year-over-year [8][26][29] - The adjusted EBITDA margin was 42%, aligning with the long-term target of approximately 40% [29][30] - The net leverage ratio at the end of Q1 was 2.5 times, indicating a decrease of approximately a quarter turn in the quarter [20][30] Business Line Data and Key Metrics Changes - Subscription revenue increased by 18% year-over-year and 3% sequentially, while volume-based revenue grew by 11% year-over-year, adjusted for a prior contract termination benefit [27][28] - The number of clients generating over $100,000 in trailing twelve-month revenue increased by 15% year-over-year to 1,244 [12][26] Market Data and Key Metrics Changes - Waystar serves over a million US-based providers across various care settings, indicating a broad market presence [9] - The company reported a 114% net revenue retention rate, which is above the typical range of 108% to 110% experienced over the past three years [26] Company Strategy and Development Direction - Waystar is focused on sustainable revenue growth, operational profitability, and innovation through its cloud-based software platform [8][11] - The company is pursuing a strategic software product roadmap that emphasizes scale, automation, and substantial ROI, including the launch of Altitude AI [14][70] - Waystar aims to leverage generative AI to enhance operational efficiency and reduce costs for clients, positioning itself as a leader in healthcare payments [16][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong performance despite macroeconomic volatility, citing the recession-resistant nature of its business model [9][30] - The company raised its full-year revenue guidance to a range of $1,060 million to $1,022 million, reflecting confidence in continued strong patient payment utilization [31][32] Other Important Information - Waystar's software platform is designed to help providers optimize cash flow and reduce administrative costs, which is critical in challenging economic conditions [9][10] - The company has maintained high cybersecurity standards and regularly audits its platform against industry-leading frameworks [19] Q&A Session Summary Question: Breakdown of Q1 outperformance and guidance components - Management indicated that strong patient payment utilization contributed to Q1 performance and guidance, with 98% of revenue coming from contracted solutions [35][36] Question: Drivers of net revenue retention rate - Management highlighted robust bookings from revenue cycle solutions and strong client advocacy as key factors driving the 114% net revenue retention rate [44][46] Question: Trends in utilization and seasonality - Management noted that utilization has trended above historical averages, benefiting the business model, with no changes in expectations for seasonality [50][53] Question: Impact of cybersecurity on sales cycles - Management confirmed that cybersecurity remains a critical factor in client decision-making, with strong demand for solutions that enhance cash flow [56][58] Question: RFP activity and tariff impact - Management observed strong demand for AI and automation solutions, with clients prioritizing efficiency amid economic challenges [68][70] Question: AI's impact on business model - Management believes that the trend of bringing outsourced RCM back in-house due to AI capabilities will benefit the business model and expand market opportunities [88][90] Question: M&A strategy post-leverage target achievement - Management expressed a disciplined approach to M&A, focusing on companies that align with Waystar's technology and client base [102][104]

Financial Data and Key Metrics Changes - Waystar reported Q1 revenue of $256 million, reflecting a 14% year-over-year increase and an adjusted EBITDA of $108 million, which is a 16% increase year-over-year [7][26][19] - The adjusted EBITDA margin was 42%, aligning with the long-term target of approximately 40% [29][19] - The net leverage ratio at the end of Q1 was 2.5 times, indicating a decrease of approximately a quarter turn in the quarter [30] Business Line Data and Key Metrics Changes - Subscription revenue increased by 18% year-over-year and 3% sequentially, while volume-based revenue grew by 11% year-over-year, with an adjusted growth rate of approximately 12% [27][28] - The number of clients generating over $100,000 in trailing twelve-month revenue increased by 15% year-over-year to 1,244 clients [11] Market Data and Key Metrics Changes - Waystar serves over a million US-based providers across various care settings, indicating a broad market presence [8] - The company reported a 114% net revenue retention rate, which is above the typical range of 108% to 110% experienced over the past three years [26][11] Company Strategy and Development Direction - Waystar is focused on sustainable revenue growth, operational profitability, and innovation through its cloud-based software platform [10][19] - The company is pursuing a strategic software product roadmap that emphasizes scale, automation, and substantial ROI, including the recent launch of Altitude AI [13][66] - Waystar aims to leverage generative AI to enhance operational efficiency and reduce costs for clients, positioning itself as a leader in the healthcare payments sector [86][90] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong performance despite macroeconomic volatility, citing the recession-resistant nature of its business model [8][30] - The company anticipates no major impact from potential new healthcare policies in 2025, suggesting that reliance on software platforms like Waystar's will likely increase [9] Other Important Information - Waystar's software platform is designed to help providers optimize cash flow and reduce administrative costs, which is critical in challenging economic conditions [8][9] - The company has maintained high cybersecurity standards and regularly audits its platform against industry-leading frameworks [19] Q&A Session Summary Question: Breakdown of Q1 outperformance and guidance components - Management indicated that strong patient payment utilization contributed to Q1 performance, with 98% of revenue generally coming from contracted solutions [34][35] Question: Drivers of net revenue retention at 114% - The retention rate was influenced by robust bookings from revenue cycle solutions and strong client advocacy leading to cross-sell opportunities [40][41] Question: Trends in utilization and seasonality - Management noted that utilization has trended above historical averages, benefiting the business model, with minimal seasonality in provider solutions [45][51] Question: Impact of security and implementation time on sales cycles - The company has seen strong demand and robust RFP activity, with clients prioritizing mission-critical solutions during economic uncertainty [53][56] Question: RFP activity and tariff impact - Management reassured that Waystar has no direct exposure to tariffs and continues to see strong demand for its AI-driven solutions [59][62] Question: AI's impact on market share and client relationships - The company views the trend of bringing outsourced RCM back in-house as beneficial, allowing for expansion of addressable market opportunities [84][90] Question: M&A strategy post-leverage target achievement - Waystar is actively pursuing M&A opportunities that align with its business model, focusing on technology, people, and clients that fit its objectives [101][104]

Company Overview - Waystar is a provider of healthcare payment software, aiming to simplify healthcare payments for providers to enhance patient care and financial performance [3] - The company 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 [3] - Waystar's platform processes over 6 billion healthcare payment transactions annually, amounting to over $1.8 trillion in gross claims, covering approximately 50% of U.S. patients [3] Upcoming Events - CFO Steve Oreskovich will present at the Bank of America Securities Healthcare Conference on May 14, 2025, at 8:40 a.m. PT [2] - CEO Matt Hawkins will present at the William Blair 45th Annual Growth Stock Conference on June 3, 2025, at 12 p.m. CT [2] - Both presentations will be streamed live on Waystar's Investor Relations website, with recordings available afterward [2]

Financial Performance - Revenue for Q1 2025 was $256,435,000, representing a 14.1% increase from $224,792,000 in Q1 2024[20] - Net income for Q1 2025 was $29,269,000, compared to a net loss of $15,932,000 in Q1 2024, marking a significant turnaround[20] - Basic net income per share for Q1 2025 was $0.17, compared to a loss of $0.13 per share in Q1 2024[20] - Comprehensive income for Q1 2025 was $28,704,000, compared to a comprehensive loss of $16,107,000 in Q1 2024[22] - Total revenues for the three months ended March 31, 2025, were $256.4 million, representing a 14.1% increase from $224.8 million in the same period of 2024[68] - Subscription revenue increased to $125.0 million in Q1 2025 from $106.1 million in Q1 2024, a growth of 17.9%[68] - Volume-based revenue rose to $129.9 million in Q1 2025, up from $117.1 million in Q1 2024, marking a 10.9% increase[68] - Adjusted EBITDA for the three months ended March 31, 2025, was $107.7 million, a 16.2% increase from $92.8 million in the prior year[119] - Non-GAAP net income for the three months ended March 31, 2025, was $58.7 million, compared to $25.5 million in 2024, an increase of 129.5%[155] Cash Flow and Assets - Cash and cash equivalents increased to $223,995,000 as of March 31, 2025, from $182,133,000 at December 31, 2024[18] - Total assets rose to $4,619,178,000 as of March 31, 2025, compared to $4,577,004,000 at December 31, 2024[18] - The company generated $64,249,000 in net cash from operating activities in Q1 2025, a significant increase from $10,730,000 in Q1 2024[28] - Cash flows from operating activities increased significantly to $64.2 million for the three months ended March 31, 2025, compared to $10.7 million in 2024, an increase of 498.8%[163] - Cash flows used in investing activities rose to $29.9 million in the first quarter of 2025, compared to $5.6 million in 2024, primarily due to short-term investments[165] Expenses and Liabilities - Operating expenses totaled $191,226,000 in Q1 2025, slightly up from $189,601,000 in Q1 2024[20] - Income tax expense for Q1 2025 was $17.0 million, compared to a benefit of $6.1 million in Q1 2024, resulting in effective tax rates of 36.8% and 27.4%, respectively[10] - Total outstanding debt was $1,240.6 million, slightly down from $1,243.5 million as of December 31, 2024[85] - Interest expense decreased significantly by $38.3 million, or 66.9%, to $18.9 million, attributed to paydowns of the First Lien Credit Facility totaling $1.0 billion[147] Client and Revenue Retention - As of March 31, 2025, Waystar had a Net Revenue Retention Rate of 113.5% and 1,244 clients generating over $100,000 in revenue over the past twelve months[119] - The count of clients generating over $100,000 in revenue increased to 1,244 in March 2025, compared to 1,080 in March 2024, a growth of 15.2%[158] Stock and Compensation - The company recorded a stock-based compensation expense of $2.3 million for options vested in Q1 2025, compared to $1.3 million in Q1 2024[101] - Stock-based compensation expense recorded for the three months ended March 31, 2025, was $6.7 million, compared to $2.5 million for the same period in 2024[109] - The company expects to incur compensation expense of approximately $47.6 million over a weighted average of 3.5 years for all unvested time-based awards outstanding on March 31, 2025[104] Market and Competitive Landscape - The company operates in a highly competitive industry and faces risks related to client retention, technological changes, and government regulations[30] - Waystar Holding Corp. derives 99% of its total revenue from subscription and volume-based services, with implementation fees and hardware sales accounting for less than 1%[37] Accounting and Compliance - The company is evaluating the impact of recently issued accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-13[57][58] - The report includes various exhibits related to corporate governance and compliance certifications[190]

Exhibit 99.1 Waystar Reports First Quarter 2025 Results Q1 revenue growth of 14% year-over-year Q1 net income of $29.3 million and non-GAAP net income of $58.7 million Q1 net income margin of 11%; adjusted EBITDA margin of 42% Raising revenue and adjusted EBITDA guidance for 2025 LEHI, Utah and LOUISVILLE, Ky., April 30, 2025 — Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today reported results for the first quarter ended March 31, 2025. "Waystar sustained strong m ...