Waystar Reports Fourth Quarter and Fiscal Year 2025 Results, Provides 2026 Guidance

Core Insights - Waystar Holding Corp. reported strong financial performance for Q4 and FY 2025, with Q4 revenue of $304 million, up 24% year-over-year, and FY 2025 revenue of $1,099 million, up 17% year-over-year [1][3] - The company is focusing on AI-powered innovations and has successfully integrated the Iodine acquisition ahead of schedule, indicating robust growth and operational momentum [1][2] - For FY 2026, Waystar expects total revenue between $1.274 billion and $1.294 billion, with diluted non-GAAP net income per share projected between $1.59 and $1.68 [1][2] Financial Highlights - Q4 2025 net income was $20 million, with a net income margin of 7% and adjusted EBITDA margin of 43% [1][3] - FY 2025 non-GAAP net income reached $262.9 million, with a non-GAAP net income margin of 10% and adjusted EBITDA of $462.1 million [1][3] - Cash flow from operations for FY 2025 was $310 million, with unlevered free cash flow of $365 million [1][3] Revenue Breakdown - FY 2025 volume-based revenue was $534.8 million, up 11% year-over-year, while subscription revenue was $558.4 million, up 22% year-over-year [1][3] - Q4 2025 subscription revenue was $167.8 million, reflecting a 38% increase year-over-year [1][3] - The net revenue retention rate (NRR) stood at 112%, with 1,391 clients contributing over $100,000 in last twelve months (LTM) revenue, up 16% year-over-year [1][2] Operational Metrics - The company processed over 7.5 billion healthcare payment transactions annually, amounting to over $2.4 trillion in gross claims, covering approximately 60% of U.S. patients [2][4] - Waystar serves around 30,000 clients, including 16 of the top 20 institutions on the U.S. News Best Hospitals list [2][4] Future Outlook - Waystar's guidance for FY 2026 includes expectations for adjusted EBITDA between $530 million and $540 million, and non-GAAP net income projected between $317 million and $335 million [1][2] - The company emphasizes a strong pipeline and increasing demand for its AI-powered platform, aiming for sustainable, profitable growth [1][2]