Waystar Reports First Quarter 2025 Results

Core Insights - Waystar Holding Corp. reported strong financial performance in Q1 2025, with net income margins exceeding 10% and adjusted EBITDA margins exceeding 40% [2][5] - The company launched Waystar AltitudeAI, enhancing its product offerings with AI capabilities to improve client workflows and financial performance [2] - Waystar raised its full-year revenue and adjusted EBITDA guidance for 2025, reflecting confidence in its growth model [2] Financial Highlights - Q1 2025 revenue reached $256.4 million, a 14% increase year-over-year [6][23] - Net income for Q1 2025 was $29.3 million, with a net income margin of 11% [5][24] - Adjusted EBITDA for Q1 2025 was $107.7 million, with an adjusted EBITDA margin of 42% [6][29] - The company expects total revenue for 2025 to be between $1.006 billion and $1.022 billion, and adjusted EBITDA to be between $406 million and $414 million [6] Client Metrics - Waystar serves approximately 30,000 clients, processing over 6 billion healthcare payment transactions annually [21] - The net revenue retention rate (NRR) was reported at 114% for the trailing twelve months ending March 31, 2025 [6] - The number of clients contributing over $100,000 in revenue increased by 15% year-over-year [6] Cash Flow and Debt - Cash flow from operations for Q1 2025 was $64 million, with unlevered free cash flow of $79 million [6][34] - Net debt as of March 31, 2025, was reported at $992.2 million, with an adjusted net leverage ratio of 2.5x [35]