Financial Data and Key Metrics Changes - Revenue for Q3 2025 reached $269 million, reflecting a 12% year-over-year growth, with an adjusted EBITDA margin of 42% [7][20][22] - Adjusted EBITDA for the quarter was $113 million, representing a 17% increase year-over-year [22] - Net Revenue Retention Rate (NRR) was 113%, indicating strong client retention and expansion [21][17] Business Line Data and Key Metrics Changes - Subscription revenue increased by 14% year-over-year to $134 million, while volume-based revenue grew by 10% year-over-year to $132 million [22] - The number of clients generating over $100,000 in trailing 12-month revenue grew to 1,306, an 11% increase year-over-year [17][21] Market Data and Key Metrics Changes - The acquisition of Iodine Software is expected to expand the total addressable market by over 15% and enhance innovation capabilities [9][10] - The healthcare financial system is described as complex and fragmented, with a significant opportunity for modernization through Waystar's platform [8][15] Company Strategy and Development Direction - Waystar aims to simplify healthcare payments through a cloud-based platform that integrates clinical, financial, and administrative data [8][10] - The company is focused on leveraging AI to enhance operational efficiencies and client outcomes, with a strong emphasis on automation and data integration [11][16][75] - Waystar's strategy includes continuous innovation, with hundreds of new capabilities launched each quarter to improve automation and accuracy [15][17] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of addressing rising utilization, denial rates, and workforce shortages as key challenges in the healthcare sector [12][13] - The company remains optimistic about capturing growth opportunities, driven by its AI-powered solutions and strong client relationships [9][18] Other Important Information - Waystar received recognition as one of the best workplaces for innovators and was named Healthcare Company of the Year by the Stevie Awards [18] - The company ended the quarter with $421 million in cash and equivalents and a leverage ratio of 1.9 times, down from earlier in the year [24][25] Q&A Session Summary Question: Feedback on Iodine Software and client introduction - Management reported overwhelmingly positive feedback from clients regarding the Iodine acquisition, highlighting its strategic fit and potential benefits [30][31] Question: Cadence of replacing legacy processes in RCM - Management discussed the integration of Iodine's capabilities into Waystar's platform, which is expected to accelerate the transition from legacy systems [34][36] Question: Patient utilization trends and seasonality - Management noted that patient utilization is returning to historical levels, with expectations for continued growth in the volume-based revenue segment [40][42] Question: Transition from mail payments to mobile - Management emphasized the ongoing shift towards digital payment solutions, which are expected to enhance efficiency and client satisfaction [46][49] Question: Acceleration of product roadmap with Iodine - Management provided examples of how Iodine's capabilities will enhance Waystar's offerings, particularly in prior authorizations and claims management [52][56] Question: Competitive landscape and go-to-market strategy - Management acknowledged increased competition but emphasized Waystar's unique platform approach and strong client relationships as key differentiators [66][68] Question: Monetization strategy for AI capabilities - Management outlined multiple monetization strategies, including pricing to value and introducing new software modules [71][75] Question: Sustainability of EBITDA margin trends - Management expressed confidence in maintaining margin efficiencies through ongoing operational improvements and AI integration [83]