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 increased by 17% year-over-year to $113 million, with the adjusted EBITDA margin exceeding the long-term target of approximately 40% [22][23] - Net revenue retention rate (NRR) was 113%, indicating strong client retention and expansion [21][17] Business Line Data and Key Metrics Changes - Subscription revenue grew to $134 million, a 14% increase year-over-year, while volume-based revenue was $132 million, up 10% year-over-year [22] - The client base generating over $100,000 in trailing 12-month revenue increased by 11% year-over-year to 1,306 clients [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, administrative, and financial data [8][10] - The company is focused on leveraging AI to enhance operational efficiencies and client satisfaction, positioning itself as a leader in the healthcare revenue cycle management space [9][15][68] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of addressing rising denial rates and workforce shortages in the healthcare sector, which are pressuring margins [12][60] - The company is optimistic about capturing growth opportunities through the integration of Iodine's capabilities and the ongoing demand for AI-driven solutions [9][10][68] 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 is committed to maintaining high cash flow conversion rates, with unleveraged free cash flow of $96 million in Q3 2025 [24][25] Q&A Session Summary Question: Feedback from Iodine clients during the True North conference - Management reported 100% positive feedback from clients regarding the Iodine acquisition, highlighting the strategic fit and potential benefits for healthcare [31][32] Question: Cadence of replacing legacy processes in RCM - Management noted that Iodine's capabilities will facilitate faster transitions from legacy systems, enhancing the overall efficiency of revenue cycle management [35][36] Question: Patient utilization trends and seasonality - Management indicated that patient utilization is returning to historical levels, with expectations for continued growth in the volume-based revenue segment [41][42] Question: Transition from mail payments to mobile - Management discussed the ongoing shift towards digital payment solutions, emphasizing the long-term transformation in patient financial engagement [46][49] Question: Acceleration of product roadmap due to Iodine acquisition - Management provided examples of how Iodine's clinical data will enhance existing products, potentially accelerating the product development timeline by nearly two years [52][56] Question: Competitive landscape and go-to-market strategy - Management acknowledged increased competition but emphasized Waystar's comprehensive platform approach and strong client relationships as key differentiators [66][68] Question: Sustainability of EBITDA margin efficiencies - Management expressed confidence in maintaining margin efficiencies through ongoing operational improvements and AI-driven solutions [82]