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Waystar Reports Strong Financial Performance for Q3 2025

Introduction
On October 29, 2025, Waystar Holding Corp. (Nasdaq: WAY), a leading provider of healthcare payment software, released its financial results for the third quarter ending September 30, 2025. The results exhibit robust year-over-year growth and improved operational metrics that speak to the company's strategic advancements and integration success.

Key Financial Highlights

• - Revenue: Waystar posted a revenue of $268.7 million, representing a 12% increase compared to the same period last year.
• - Net Income: The company achieved a net income of $30.6 million, with a GAAP net income per diluted share of $0.17. The net income margin stood at 11%.
• - Non-GAAP Metrics: Non-GAAP net income soared to $67.8 million, translating to a non-GAAP net income per diluted share of $0.37.
• - Adjusted EBITDA: The adjusted EBITDA reached $112.7 million, with an impressive margin of 42%.
• - Cash Flow: Cash flow from operations was recorded at $82 million, contributing to an unlevered free cash flow of $96 million.

Strategic Developments

Matt Hawkins, Waystar's Chief Executive Officer, attributed the solid performance to ongoing demand for their solutions and effective execution of their business strategy. He emphasized, “Waystar delivered another quarter of double-digit revenue growth and strong margins, outpacing our guidance on both measures. Our integration of Iodine Software is well underway, enhancing Waystar's AI-powered platform and unlocking new opportunities to drive profitable growth.”

Waystar's acquisition of Iodine Software has proven to be a pivotal move, strengthening the company’s product offerings in AI and analytics. This integration is expected to further enhance operational efficiency and will contribute significantly to the company’s future growth trajectory.

Client Base and Revenue Insights

• - The company reported that 1,306 clients generated over $100,000 in last-twelve-month (LTM) revenue, marking an 11% increase from the previous year.
• - The Net Revenue Retention Rate (NRR) was impressive at 113%, highlighting strong client retention and revenue growth from existing customers.
• - Subscription revenue climbed to $134.5 million, reflecting a 14% year-over-year growth, while volume-based revenue also saw a 10% increase, reaching $132.3 million.

Future Outlook

Looking ahead, Waystar has raised its revenue guidance for the full fiscal year 2025 to between $1.085 billion and $1.093 billion. Furthermore, adjusted EBITDA is anticipated to be between $451 million and $455 million, with non-GAAP net income projected to be in the range of $271 million to $274 million. The diluted non-GAAP net income per share guidance is also optimistic, expected to be between $1.46 and $1.47.

Webcast and Investor Relations

Waystar will discuss the financial results in greater detail during a conference call scheduled for 4:30 p.m. EDT on the same day. Those interested can find more information through the Investor Relations page on Waystar's website. This release is part of the company’s commitment to transparency and active communication with investors, ensuring that all major financial updates are shared promptly.

Conclusion

Waystar's robust third-quarter results clearly demonstrate its solid market position and the effectiveness of its strategic initiatives, particularly the integration of enhanced technology solutions. The company is well-positioned to continue this upward trajectory, aiming to transform healthcare payments as it drives forward into 2025 and beyond.