Waystar Reports Third Quarter 2025 Results

Core Insights - Waystar Holding Corp. reported a 12% year-over-year revenue growth for Q3 2025, with total revenue reaching $268.7 million [1][8] - The company achieved a net income of $30.6 million, resulting in a net income margin of 11% and a non-GAAP net income of $67.8 million [1][8] - Waystar raised its revenue and adjusted EBITDA guidance for the full fiscal year 2025, reflecting strong operational performance and integration of Iodine Software [2][8] Financial Highlights - Q3 2025 revenue was $268.7 million, up from $240.1 million in Q3 2024, marking a 12% increase [8] - Net income for Q3 2025 was $30.6 million, with a diluted GAAP net income per share of $0.17 [8] - Non-GAAP net income was reported at $67.8 million, translating to a non-GAAP net income per diluted share of $0.37 [8] - Adjusted EBITDA for Q3 2025 was $112.7 million, with an adjusted EBITDA margin of 42% [8] Operational Metrics - Cash flow from operations for Q3 2025 was $82 million, with unlevered free cash flow amounting to $96 million [8] - The company reported a net revenue retention rate (NRR) of 113%, indicating strong client retention and upsell opportunities [8] - Subscription revenue reached $134.5 million, reflecting a 14% increase year-over-year, while volume-based revenue was $132.3 million, up 10% [8] Guidance and Outlook - For the full fiscal year 2025, Waystar expects total revenue to be between $1.085 billion and $1.093 billion [8] - Adjusted EBITDA is anticipated to be between $451 million and $455 million, with non-GAAP net income projected between $271 million and $274 million [8] - Diluted non-GAAP net income per share is expected to range from $1.46 to $1.47 [8] Company Overview - Waystar serves approximately 30,000 clients, processing over 6 billion healthcare payment transactions annually, which includes over $1.8 trillion in gross claims [18][19] - The company aims to simplify healthcare payments, allowing providers to focus on patient care and financial performance [18][19]