Waystar Holding (WAY) Company Report

Waystar reported its sixth consecutive quarter of revenue and EBITDA beat above consensus and updated its full-year 2025 guidance, with the midpoint reflecting $1.09 billion in revenue and approximately 12% year-over-year growth.
The company maintains a "Rule of 50" business profile, characterized by over 40% Adjusted EBITDA margins and strong free cash flow conversion, averaging greater than 80% of Adjusted EBITDA to free cash flow this year.
Waystar's revenue model is approximately 50% subscription and 50% volume-based, providing 98% visibility on future year's revenue at the start of each year.
AI is a key growth driver, contributing 31% of year-to-date bookings from new AI solutions, and the company identifies significant cross-sell opportunities, including those arising from the Iodine acquisition.

Dec 10, 2025, 11:40 PM

Transcript

Waystar Discusses Strong Financial Performance and AI-Driven Growth

WAY

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Waystar reported its sixth consecutive quarter of revenue and EBITDA beat above consensus and updated its full-year 2025 guidance to $1.09 billion in revenue, representing approximately 12% year-over-year growth. The company operates as a "Rule of 50" business, with over 40% Adjusted EBITDA margins and strong free cash flow conversion.
The company's business model is approximately 50% subscription and 50% volume-based, with 98% visibility on future year's revenue at the start of each year, indicating high predictability.
31% of year-to-date bookings have come from new AI solutions, which are being leveraged to automate tasks, prevent denied claims, and draft appeal letters. Waystar plans to monetize AI through enhanced pricing, new product SKUs, and internal operating leverage.
Strategic growth drivers include launching new capabilities, cross-selling opportunities within its existing client base (which could more than double the company's size), and integrating the Iodine acquisition to cross-sell solutions to combined client bases.

Dec 10, 2025, 11:40 PM

Transcript

Waystar Highlights Strong Performance, 2025 Guidance, and AI Impact at Barclays Conference

WAY

Guidance Update

Revenue Acceleration/Inflection

New Projects/Investments

Waystar reported its sixth consecutive quarter of revenue and EBITDA beat above consensus and updated its full year 2025 guidance to a midpoint of $1.09 billion in revenue, representing 12% year-over-year growth.
The company operates as a Rule of 50 business with greater than 40% Adjusted EBITDA margins and converts greater than 80% of Adjusted EBITDA to free cash flow.
Waystar's business model is characterized by 50% subscription and 50% volume-based revenue, with 98% visibility on future year's revenue opportunity at the start of each year.
AI is a significant growth driver, with 31% of year-to-date bookings coming from new AI solutions.
The company's year-to-date growth is approximately 14%, exceeding its long-term organic low double-digit revenue growth target.

Dec 10, 2025, 11:40 PM

Transcript

Waystar CFO Discusses Growth Drivers, AI Strategy, and Market Dynamics at Citi Conference

WAY

Guidance Update

Product Launch

M&A

Waystar's core business helps healthcare providers ensure efficient payment, achieving a 99% first pass clean claim rate and differentiating through a platform approach that demonstrates clear ROI.
The company's revenue is split approximately 50% subscription and 50% volume-based, benefiting from strong utilization observed over the past five to six quarters.
Generative AI solutions have delivered significant results, with clients reporting a 70% decrease in time for prior authorizations and a 90% decrease in time for denials and appeals management, with monetization through price increases and new SKUs.
The $1.25 billion acquisition of Iodine strategically expanded Waystar into clinical documentation, integrating over 160 AI models to enhance claim accuracy.
Waystar maintains long-term targets of low double-digit revenue growth, 40%+ Adjusted EBITDA margins, and 70%+ free cash flow conversion, alongside an annual deleveraging goal of one turn.

Dec 3, 2025, 6:45 PM

Transcript

Waystar Discusses Strategic Acquisitions, AI Product Impact, and Financial Outlook

WAY

M&A

Product Launch

Guidance Update

Waystar acquired Iodine for $1.25 billion, integrating its 160+ AI modules to enhance clinical documentation and advance its "perfect undeniable claim" vision.
New generative AI products, part of the Altitude suite, are showing strong results, with clients reporting a 70% decrease in prior authorization time and a 90% decrease in denials and appeals management time, contributing to a growing portion of the company's pipeline and bookings.
The company's revenue mix is approximately 50% subscription and 50% volume-based, with a strong net revenue retention rate of 108-110%, supported by 97% gross revenue retention and 3-4% annual price increases.
Waystar differentiates itself through its platform approach, demonstrated ROI, a database of over 6 billion annual transactions for AI learning, and extensive connectivity with over 500 EHR/practice management systems and thousands of payers.
For FY 2025, the guide implies an 8% year-over-year standalone growth rate in Q4, with long-term targets including low double-digit revenue growth, 40%+ adjusted EBITDA margins, and 70%+ free cash flow conversion.

Dec 3, 2025, 6:45 PM

Transcript

Waystar Discusses Platform Strategy, AI Integration, and Financial Outlook at Citi Conference

WAY

M&A

Product Launch

Guidance Update

Waystar's core business focuses on helping healthcare providers efficiently capture revenue, achieving a 99% first pass clean claim rate for its clients, significantly higher than the national average denial rate of 16-17%.
The company's $1.25 billion acquisition of Iodine has expanded its platform into clinical documentation, integrating over 160 AI models to convert unstructured clinical notes into structured information for claims and improve prior authorizations.
Waystar's generative AI solutions have demonstrated substantial efficiency gains, including a 70% decrease in time for prior authorizations and a 90% decrease in time for denials and appeals management.
The revenue mix is approximately 50% subscription and 50% volume-based, with the company reporting strong utilization over the past five to six quarters. Waystar targets low double-digit revenue growth and a net revenue retention rate of 108-110%.
Waystar maintains a competitive advantage through its large database of over 6 billion annual transactions for AI model training and extensive connectivity with over 500 EHR/practice management systems and thousands of payers.

Dec 3, 2025, 6:45 PM

Transcript

Waystar Reports Strong Q3 2025 Results and Raises Full-Year Guidance Following Iodine Acquisition

WAY

Earnings

Guidance Update

M&A

Waystar reported strong Q3 2025 financial results, with revenue growing 12% year-over-year to $269 million and adjusted EBITDA increasing 17% year-over-year to $113 million, achieving a 42% adjusted EBITDA margin.
The company completed the acquisition of Iodine Software on October 1, which is expected to expand its total addressable market by over 15% and contribute approximately $30 million in revenue in Q4 2025.
Waystar raised its full-year 2025 guidance, with revenue now expected to be between $1,085 million and $1,093 million (midpoint $1,089 million) and adjusted EBITDA between $451 million and $455 million (midpoint $453 million), reflecting a 15% year-over-year revenue growth rate and an adjusted EBITDA margin of approximately 42%.
The company's net revenue retention rate was 113% for the last 12 months, and unleveraged free cash flow for Q3 2025 was $96 million.

Oct 29, 2025, 8:30 PM

Transcript

Waystar Reports Strong Q3 2025 Results, Completes Iodine Software Acquisition, and Raises Full-Year Guidance

WAY

Earnings

M&A

Guidance Update

Waystar reported strong financial results for Q3 2025, with revenue growing 12% year-over-year to $269 million and an adjusted EBITDA margin of 42%.
The company completed the acquisition of Iodine Software on October 1, which expands its total addressable market by more than 15% and adds nearly 150 health systems to its client base.
Waystar raised its full-year 2025 guidance, projecting revenue between $1,085 million and $1,093 million (midpoint $1,089 million) and adjusted EBITDA between $451 million and $455 million (midpoint $453 million), with an expected 42% adjusted EBITDA margin.
The Net Revenue Retention Rate (NRR) was 113% for the last 12 months, and the number of clients generating over $100,000 in trailing 12-month revenue increased 11% year-over-year to 1,306 in Q3.

Oct 29, 2025, 8:30 PM

Transcript

Waystar reports strong Q3 2025 results, completes Iodine Software acquisition, and raises full-year guidance

WAY

Earnings

Guidance Update

M&A

Waystar achieved $269 million in revenue for Q3 2025, representing 12% year-over-year growth, and an adjusted EBITDA of $113 million, resulting in a 42% adjusted EBITDA margin.
The company completed the acquisition of Iodine Software on October 1, 2025, which is expected to expand its total addressable market by more than 15% and accelerate its product roadmap by nearly two years.
Client metrics remained robust, with a Net Revenue Retention Rate of 113% for the last 12 months and an 11% year-over-year increase in clients generating over $100,000 in trailing 12-month revenue, reaching 1,306 in Q3 2025.
Waystar raised its full-year 2025 guidance, projecting revenue between $1,085 million and $1,093 million (midpoint $1,089 million) and adjusted EBITDA between $451 million and $455 million (midpoint $453 million), with an expected adjusted EBITDA margin of approximately 42%.

Oct 29, 2025, 8:30 PM

Transcript

Waystar Reports Strong Q3 2025 Performance and Raises FY25 Guidance

WAY

Earnings

Guidance Update

M&A

Waystar reported strong Q3 2025 performance, with 12% revenue growth and 17% Adjusted EBITDA growth compared to Q3 2024, achieving an Adjusted EBITDA margin of 42%.
The company generated $96 million in unlevered free cash flow for Q3 2025.
For the twelve months ended September 30, 2025, Waystar saw 11% year-over-year growth in clients with over $100,000 in TTM revenue and a net revenue retention rate of 113%.
Waystar raised its FY 2025 guidance midpoints, projecting revenue of $1,089 million and Adjusted EBITDA of $453 million, which includes $30 million in revenue and $12 million in Adjusted EBITDA from the lodine Software acquisition for one full quarter.

Oct 29, 2025, 8:30 PM

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