Waystar Holding Corp.(US:WAY)2025-07-30 20:06Financial Performance - Revenue for Q2 2025 reached $270,654,000, a 15.4% increase from $234,543,000 in Q2 2024[20] - Net income for Q2 2025 was $32,184,000, compared to a net loss of $27,685,000 in Q2 2024, marking a significant turnaround[20] - For the six months ended June 30, 2025, Waystar reported a net income of $61,453,000, a significant improvement compared to a net loss of $43,617,000 for the same period in 2024, representing a turnaround of approximately 241%[30] - Consolidated net income for the six months ended June 30, 2025, was $61.5 million, a significant improvement from a net loss of $43.6 million in 2024[79] - Non-GAAP net income for Q2 2025 was $65.7 million, compared to a loss of $27.7 million in Q2 2024, representing a significant turnaround[193] Revenue Breakdown - Subscription revenue for the three months ended June 30, 2025, was $131.1 million, up 16.7% from $112.3 million in 2024[69] - Volume-based revenue for the three months ended June 30, 2025, reached $138.3 million, representing a 14.3% increase from $120.9 million in 2024[69] - Revenue increased by $67.8 million, or 14.8%, to $527.1 million for the six months ended June 30, 2025, with $37.7 million attributed to subscription revenue and $30.2 million to volume-based revenue[177] Expenses and Cost Management - Operating expenses decreased to $205,808,000 in Q2 2025 from $226,298,000 in Q2 2024, a reduction of 9.0%[20] - Total operating expenses decreased by 9.1% to $205.8 million for the three months ended June 30, 2025, compared to $226.3 million in the same period in 2024[168] - Sales and marketing expense decreased by $2.2 million, or 4.8%, to $43.5 million for the three months ended June 30, 2025, primarily due to a reduction in stock-based compensation[171] - General and administrative expense decreased by $10.8 million, or 26.9%, to $29.2 million for the three months ended June 30, 2025, mainly due to a reduction in stock-based compensation[172] - Research and development expense decreased by $3.3 million, or 20.6%, to $12.6 million for the three months ended June 30, 2025, primarily due to a reduction in stock-based compensation[173] Cash Flow and Liquidity - Cash and cash equivalents rose to $290,300,000 as of June 30, 2025, up from $182,133,000 at the end of 2024, a growth of 59.5%[18] - Cash flows from operating activities surged to $161.0 million for the six months ended June 30, 2025, a 515.0% increase from $26.2 million in the same period of 2024[202] - The net increase in cash and restricted cash was $106.9 million for the six months ended June 30, 2025, a 205.1% increase from $35.0 million in 2024[202] - Cash used in investing activities was $61,718,000 for the first half of 2025, compared to $12,428,000 in the prior year, indicating a significant increase in investment activity[30] Assets and Equity - Total assets increased to $4,677,922,000 as of June 30, 2025, up from $4,577,004,000 at the end of 2024, reflecting a growth of 2.2%[18] - Total stockholders' equity increased to $3,173,140,000 as of June 30, 2025, from $3,079,786,000 at the end of 2024, an increase of 3.1%[18] - Waystar's total stockholders' equity increased to $3,173,140,000 as of June 30, 2025, compared to $2,946,098,000 at the same time in 2024, marking an increase of about 8%[30] Debt and Financing - Long-term debt, net of current portion, decreased to $1,160,234,000 as of June 30, 2025, from $1,185,411,000 at the end of 2024, a reduction of 2.1%[18] - Total outstanding debt as of June 30, 2025, is $1,237.7 million, a slight decrease from $1,243.5 million on December 31, 2024[101] - The effective interest rate for the First Lien Credit Facility is 6.82% as of June 30, 2025, with principal payments due in 20 equal quarterly installments until October 22, 2029[102][103] Market Position and Client Base - The company has a strong market presence in the U.S. healthcare sector, providing cloud technology solutions that enhance data integrity and improve billing accuracy[34] - The company serves over 30,000 clients, representing over one million distinct providers, and facilitated over six billion healthcare payment transactions in 2024, amounting to over $1.8 trillion in gross claims volume[147] Acquisitions and Growth Strategy - The company entered into an agreement to acquire Iodine for $1.25 billion, which includes $625.0 million in cash and 16,751,541 shares of common stock[142] - The company announced the acquisition of Iodine for $1.25 billion, which includes $625 million in cash and shares, aimed at enhancing its AI capabilities and improving financial performance for providers[153] Stock-Based Compensation and Equity Awards - The company recognized $18,274,000 in stock-based compensation for the six months ended June 30, 2025, compared to $39,497,000 in the same period of 2024, a reduction of approximately 54%[30] - The company expects to incur a compensation expense of approximately $45.4 million over a weighted average of 3.5 years for all unvested time-based awards outstanding on June 30, 2025[124] - The company recorded $11.5 million of stock-based compensation expense for the three months ended June 30, 2025, down from $37.0 million in 2024[133]