Core Insights - Waystar reported strong Q2 2025 earnings, with GAAP revenue of $270.7 million, exceeding estimates by $11.17 million, and non-GAAP EPS of $0.36, above the expected $0.34 [1][5][13] - The company raised its full-year 2025 guidance, indicating robust demand and rapid client onboarding, while maintaining high adjusted EBITDA margins of 41.6% [1][13] Financial Performance - Q2 2025 revenue increased by 15.4% year-over-year, driven by strong demand for provider solutions and AI-powered features [2][5] - Non-GAAP EPS rose by 38.5% from $0.26 in Q2 2024 to $0.36 in Q2 2025 [2][6] - Adjusted EBITDA reached $112.6 million, a 19.9% increase from $93.9 million in Q2 2024 [2][6] - Unlevered free cash flow surged by 120.1% to $110.8 million compared to $50.3 million in Q2 2024 [2][6] Business Overview - Waystar specializes in cloud-based healthcare payment technology, processing over six billion transactions annually [3] - The company aims to enhance AI integration in revenue cycle management and deepen relationships with major hospital systems [4] Strategic Initiatives - The company is focused on rapid client onboarding and expanding its capabilities through partnerships and acquisitions [4][10] - Waystar's AltitudeAI software has improved appeal productivity by 70% and helped prevent nearly $6 billion in denied claims [8][12] Client and Revenue Dynamics - Three large clients were onboarded faster than expected, contributing to immediate and future subscription revenue [7] - Provider solutions account for about 70% of total revenue, with subscription revenue reaching $131.1 million [6][11] Future Outlook - Waystar raised its full-year 2025 revenue guidance to $1.03 billion to $1.04 billion, with adjusted EBITDA guidance of $418 million to $426 million [13] - The company anticipates revenue in the second half of 2025 to be lower than the first half due to seasonality and patient payment trends [14]