Core Viewpoint - Waystar Holding Corp. has announced the pricing of an underwritten secondary offering of 18,000,000 shares of common stock at a public price of $39.40 per share, with the offering expected to close on or about September 12, 2025 [1][2]. Company Overview - Waystar is a provider of healthcare payments software, serving approximately 30,000 clients and over 1 million distinct providers, including 16 of the top 20 institutions on the U.S. News Best Hospitals list [5]. - The company'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 [5]. Offering Details - The offering is being conducted by certain investment funds of EQT AB, Bain Capital, LP, and Canada Pension Plan Investment Board, with Waystar not selling any shares or receiving proceeds from the sale [1]. - J.P. Morgan is acting as the underwriter for the offering [2]. - A registration statement on Form S-3 has been filed with the SEC and has become effective [3].

Group 1 - Pheresis, Inc. (NASDAQ:PHR) is recognized as one of the 14 Best Small Cap Stocks to Buy Right Now, with a price target raised from $35 to $36 by Truist Financial, maintaining a Buy rating [1] - The company's Q2 FY2026 results showed total revenue of $117.3 million, reflecting a 15% increase year-over-year, and adjusted EBITDA of approximately $22 million, which is a significant increase of $16 million compared to the previous year [2] - Pheresis updated its FY2026 adjusted EBITDA outlook to a range of $87 million to $92 million, and retained its revenue outlook at $472 million to $482 million [3] Group 2 - Pheresis has signed a definitive agreement to acquire Access One for $160 million, which is expected to enhance its addressable market by nearly $6 billion [3] - The company provides comprehensive software solutions aimed at improving the operational and financial performance of healthcare organizations, including SaaS-based integrated tools for managing patient access, registration, and payments [4]

Core Insights - Phreesia Inc. reported stronger-than-expected second-quarter earnings, with earnings of 1 cent per share compared to a forecasted loss of 6 cents, and revenue increased by 15% year-over-year to $117.26 million, surpassing estimates [1] - The company announced a $160 million cash acquisition of AccessOne Parent Holdings, expected to close in the latter half of fiscal 2026, which is projected to add approximately $35 million in annual revenue and $11 million in adjusted EBITDA [2] - Phreesia reaffirmed its fiscal 2026 sales guidance of $472 million to $482 million, slightly above consensus estimates, and updated its adjusted EBITDA outlook to $87 million to $92 million [3] Financial Performance - The average number of healthcare service clients increased by 7% to 4,467, with revenue per client also rising by 7% to $26,249 [1] - Adjusted EBITDA surged to $22.1 million from $6.5 million a year earlier [1] Analyst Reactions - Analysts expressed concerns about integration risks associated with the acquisition, despite acknowledging the solid second-quarter results [3] - Needham maintained a Buy rating on Phreesia and raised the price forecast from $29 to $35, while Piper Sandler reiterated an Overweight rating and increased the price forecast from $33 to $34 [4] Stock Performance - Phreesia's stock price fell by 8.35% to $28.61 during the last check on Friday [5]

Core Insights - HEALWELL AI Inc. reported a record revenue growth of 645% in Q2-2025, achieving quarterly revenue of $40.5 million compared to $5.4 million in Q2-2024, primarily driven by the acquisition of Orion Health [4][7][8] - The company achieved its first positive Adjusted EBITDA of $1.9 million in Q2-2025, a significant improvement from an Adjusted EBITDA loss of $3.7 million in Q2-2024, reflecting strong operational fundamentals [4][7][8] - HEALWELL's strategy is focused on becoming a pure-play software and services company, divesting its clinical research and patient services business units to enhance its AI and data science offerings [3][4][5] Financial Highlights - Revenue for Q2-2025 was $40.5 million, a 645% increase from $5.4 million in Q2-2024, with the Healthcare Software business experiencing a 1,064% year-over-year increase [4][7][13] - Gross Profit reached $21.3 million in Q2-2025, up 764% from $2.5 million in Q2-2024, resulting in a Gross Margin of 52.5%, compared to 45.2% in Q2-2024 [7][8][13] - The company had $19 million in cash as of June 30, 2025, an increase from $9.4 million at the end of 2024, positioning it well for future growth and acquisitions [5][7] Business and Operational Highlights - The acquisition of Orion Health, completed on April 1, 2025, is expected to contribute approximately $100 million in annual SaaS and services revenue, enhancing HEALWELL's global reach and customer base [4][7][8] - HEALWELL's AI segment achieved revenues of $5.1 million in the first half of 2025, representing a 223% year-over-year growth [8] - The company has identified several potential tuck-in M&A opportunities as part of its growth strategy [3][4] Strategic Initiatives - HEALWELL is focusing on integrating its AI solutions into public and private health systems, leveraging existing customer bases to accelerate adoption [3][4] - The company officially entered the U.S. healthcare market on June 11, 2025, launching AI-enabled tools targeting health systems and life sciences organizations [7][8] - The Board of Directors is exploring strategic alternatives for the clinical research and patient services business units to streamline operations and focus on high-margin software and services [4][5]

Financial Data and Key Metrics Changes - In Q2 2025, GAAP net income was $4,600,000 or $0.22 per diluted share, up from $3,400,000 or $0.17 per diluted share in Q2 2024 [25] - Total GAAP revenue increased to $35,700,000 from $34,000,000 in the prior year [26] - Adjusted EBITDA for Q2 2025 was $7,500,000 compared to $7,000,000 in the prior year [30] Business Line Data and Key Metrics Changes - Software operations bookings grew by over 34% year-over-year, reaching $11,700,000 in Q2 2025 [11] - Software revenue increased by 10%, with license revenue showing double-digit growth and managed services revenue experiencing triple-digit growth [11] - Wireless revenue was $18,400,000, with a net unit churn improvement to 1.6% from 2.1% in the prior quarter [26] Market Data and Key Metrics Changes - The company maintains a blue-chip customer base of over 2,200 hospitals, with more than 80% of revenue being recurring [20] - The average revenue per unit (ARPU) increased by $0.36 or nearly 5% year-over-year, driven by pricing actions and new product sales [26] Company Strategy and Development Direction - The company aims for double-digit full-year software bookings growth relative to 2024, supported by ongoing investments in technology and sales [5] - The strategic focus remains on generating cash and returning capital to stockholders while investing in business growth [7] - The company is exploring opportunities to integrate AI into its products and operating platform [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the competitive positioning and long-term relationships with healthcare systems [6] - The outlook for the remainder of 2025 is optimistic, with increased guidance for revenue and adjusted EBITDA [12] - The company anticipates annual free cash flow in the range of $25,000,000 to $29,000,000 [33] Other Important Information - The company reported a one-time gain of approximately $700,000 from the sale of a legacy domain name [31] - Cash and cash equivalents at the end of Q2 2025 were $20,200,000, expected to grow through the remainder of the year [32] Q&A Session Summary Question: Impact of increased fees for unreturned pagers on net unit churn - Management indicated that the price increase for unreturned equipment would not impact unit churn as it applies after disconnection [42][44] Question: Progress of the business development team focused on new logos - The business development team has been successful in adding smaller accounts, with ongoing efforts to build the pipeline [49][50] Question: Breakdown of software bookings between new customer acquisitions and expansions - Approximately 15% of software bookings were related to new logos, with ongoing efforts to increase this percentage [51][52]

Financial Data and Key Metrics Changes - Revenue for Q2 2025 reached $271 million, representing a 15% year-over-year growth with an adjusted EBITDA margin of 42% [10][24] - Adjusted EBITDA for Q2 2025 was $113 million, an increase of 20% year-over-year, driven by revenue growth and a shift to higher margin provider solutions [26][30] - The company raised its full-year revenue guidance to a range of $1.03 billion to $1.042 billion, reflecting a 10% year-over-year growth [29] Business Line Data and Key Metrics Changes - Subscription revenue increased to $131 million, up 17% year-over-year, while volume-based revenue reached $138 million, a 14% increase year-over-year [25] - The number of clients generating more than $100,000 in trailing twelve-month revenue increased to 1,268, a 14% year-over-year growth [15] Market Data and Key Metrics Changes - The company noted a strong demand for its AI-powered software platform as providers face margin pressures and workforce shortages [10][12] - Waystar's net revenue retention rate was 115%, benefiting from rapid onboarding of clients affected by a competitor's cyber event [24] Company Strategy and Development Direction - The acquisition of Iodine Software is expected to expand Waystar's total addressable market by over 15% and enhance its product roadmap [6][7] - Waystar aims to lead in the revenue cycle management space by leveraging AI to improve efficiency and reduce administrative burdens for healthcare providers [20][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience against potential Medicaid funding cuts, estimating less than a 1% impact on revenue from a hypothetical 15% reduction in Medicaid funding [12][85] - The demand environment remains robust, with providers prioritizing technology that enhances efficiency and cash flow [51][52] Other Important Information - Waystar was recognized as the best overall healthcare payments solution provider by MedTech Breakthrough and named one of the U.S. News Best Companies to Work For [22][23] - The company has established a strong governance structure with the addition of two new independent board members [23] Q&A Session Summary Question: Impact of client migration post-cyber attack on Q2 revenue - Management indicated that the year-over-year benefit from client migration had normalized by Q2, with no significant impact noted [34][36] Question: Recurring nature of volume-based revenue from large clients - Management expects that volume-based revenue from newly onboarded large clients will transition to subscription revenue as contracts mature [45][46] Question: Drivers behind the sequential increase in subscription revenue - The increase in subscription revenue was attributed to strong performance in provider solutions, which comprise a significant portion of total revenue [50][55] Question: Volume growth and digital payment penetration - Management noted that higher utilization in the healthcare system and the adoption of digital payment solutions contributed to volume growth, with a good mix from both patient payment and provider solutions [58][61] Question: Competitive landscape and client demand - Management reported strong win rates against competitors and noted an increase in client demand for AI-driven solutions [106]

Acquisition Overview - Waystar is set to acquire Iodine Software for a total enterprise value of $1.25 billion [7] - Iodine shareholders will own approximately 8% of Waystar on a fully diluted, pro forma basis [9] - Advent, Iodine's largest shareholder, is expected to receive 100% of its transaction consideration in Waystar common stock [9] Strategic Rationale - The acquisition aims to simplify healthcare payments and accelerate AI-powered transformation [5] - It expands Waystar's total addressable market by more than 15% [5] - The deal integrates clinical intelligence software to prevent denials and ensure optimal reimbursement [5] Financial Impact - Iodine's profile includes approximately 99% revenue derived from software subscriptions [26] - Iodine's gross margin is approximately 75% [26] - Iodine's Adjusted EBITDA margin is approximately 40% [26] Q2 2025 Preliminary Results - Waystar's approximate Q2 2025 revenue is $271 million [31] - Waystar's approximate year-over-year growth is 15% [32]

Core Insights - symplr has acquired Smart Square scheduling software from AMN Healthcare, enhancing its healthcare workforce and operations management capabilities [1][2] - The acquisition strengthens the symplr Operations Platform by integrating AI-driven scheduling and workforce management solutions [2][3] - symplr aims to empower healthcare organizations with actionable data and technology to improve efficiencies and patient outcomes [3][4] Company Overview - symplr is a leader in enterprise healthcare operations software, trusted by 9 out of 10 U.S. hospitals and over 400 U.S. health plans [6] - AMN Healthcare is recognized for its total talent solutions in healthcare, reaching nearly 15 million patients across more than 2,100 healthcare systems in 2024 [7] - Clearlake Capital Group and Charlesbank Capital Partners are the backing investment firms for symplr, with Clearlake managing over $90 billion in assets [9][10] Strategic Implications - The acquisition of Smart Square is expected to enhance symplr's offerings in workforce planning, analytics, and AI, addressing the complexities of healthcare staffing [5] - The partnership between symplr and AMN Healthcare aims to combine operational technology expertise with workforce solutions, benefiting customers [4][5] - The integration of Smart Square's AI capabilities is positioned to help healthcare organizations anticipate staffing needs and streamline operations [3][4]

Core Insights - AI is becoming essential in revenue cycle management (RCM) for healthcare providers, demonstrating significant impact and return on investment [1][2][3] Group 1: AI Integration in Healthcare - 82% of healthcare leaders consider AI integral to their RCM operations, with 70% identifying it as a top organizational priority [2][6] - AI is delivering 13-37% improvements in key revenue cycle areas such as claim accuracy, denial prevention, workforce efficiency, and payment speed [6] - Trust in AI is increasing, with 60% of decision-makers reporting heightened confidence since implementation [6] Group 2: Strategic Implementation and Adoption - Providers are prioritizing strategic AI implementation, particularly in payer-facing workflows like prior authorizations and denial appeals [3] - The majority of healthcare leaders are relying on existing RCM software partners for AI capabilities, favoring established platforms for faster value realization and data security [6] - Nearly 60% of healthcare leaders plan to increase AI investment, highlighting its strategic role in enhancing payment performance and process transformation [6] Group 3: Industry Impact - The study indicates a broader shift in the healthcare industry as AI accelerates automation, enhances analytics, and drives stronger returns on investment [3] - Waystar's platform processes over 6 billion healthcare payment transactions annually, reflecting the scale at which AI is being integrated into RCM [5]

Financial Data and Key Metrics Changes - Revenues for the first quarter were $73.5 million, up 1% year-over-year [38] - Operating income decreased by 23.1% to $4.4 million [38] - Net income was $4.3 million, down 17.1% [38] - EPS decreased from $0.17 to $0.14 [38] - Adjusted EBITDA was $16.2 million, down 5% [38] Business Line Data and Key Metrics Changes - Credential Stream revenue grew by 25% year-over-year [41][54] - Shift Wizard revenue increased by 19% [41][52] - Competency Suite revenue rose by 12% [41] - Core business, excluding legacy products and customer bankruptcy impacts, grew over 6% [41] Market Data and Key Metrics Changes - Remaining performance obligations were $613 million, up from $514 million year-over-year [42] - Gross margin decreased to 65.3% from 66.2% [42] - Days sales outstanding improved to 37 days from 46 days year-over-year [44] Company Strategy and Development Direction - The company is focused on developing, credentialing, and scheduling the healthcare workforce through SaaS solutions [30] - Emphasis on the interoperability of core applications through the hStream platform [30] - The company aims to bundle value to address mandatory requirements in healthcare [75] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds affecting purchasing decisions, particularly for elective content [9][10] - Despite challenges, management remains optimistic about revenue and EBITDA growth year-over-year [8] - Revised guidance reflects a cautious outlook due to delays in medium-sized deals and technology scaling issues [26][36] Other Important Information - The company has a strong cash balance of $113.3 million and no interest-bearing debt [33][44] - A quarterly cash dividend of $0.031 per share was declared [48] - The company maintains an active pipeline for potential acquisitions [47] Q&A Session Summary Question: How much of the portfolio is required versus elective? - Management indicated that the majority of products are tied to some form of requirement, estimating around 80% to 90% [80][86] Question: Was the largest contract a renewal or new business? - The largest contract was new business, involving a significant health system that had not previously used the company's learning management system [90][91] Question: What is the status of legacy products? - Legacy products are still supported but not actively sold, with a focus on transitioning customers to newer solutions [100]