Waystar Reports Impressive First Quarter 2025 Results, Boosts Financial Guidance

Waystar Holding Corp. Reports Strong Financial Results for Q1 2025

Waystar Holding Corp. (Nasdaq: WAY), a leading provider of healthcare payment software, has announced its financial results for the first quarter ending March 31, 2025. The company has demonstrated robust growth, highlighting a significant increase in revenue and a strong net income margin, showcasing its operational effectiveness and innovative capabilities.

Financial Highlights

In the first quarter of 2025, Waystar achieved a revenue of $256.4 million, representing a remarkable 14% increase compared to the same period last year. The company's net income amounted to $29.3 million, which corresponds to a net income margin of 11%. Additionally, when adjusted for certain items, Waystar's net income was reported at $58.7 million, translating to a non-GAAP net income per diluted share of $0.32. This healthy performance reflects the company’s effective management strategies and strong market position.

Waystar's adjusted EBITDA, a critical measure of operational performance, reached $107.7 million, resulting in an impressive adjusted EBITDA margin of 42%. The solid cash flow from operations was reported at $64 million, with an unlevered free cash flow amounting to $79 million, underscoring the company’s financial health and resilience.

Innovation and Growth

During his commentary on the earnings release, CEO Matt Hawkins expressed enthusiasm about Waystar's momentum in the quarter. He stated, "We delivered net income margins exceeding 10%, adjusted EBITDA margins exceeding 40%, and achieved our fourth consecutive quarter of double-digit revenue growth as a public company." The successful launch of Waystar AltitudeAI is also a noteworthy development, providing clients with advanced artificial intelligence capabilities that enhance operational workflows and elevate financial outcomes.

Aiming for continued growth, Waystar has increased its fiscal 2025 revenue and adjusted EBITDA guidance. The company anticipates total revenue ranging between $1.006 billion and $1.022 billion, alongside an expected adjusted EBITDA between $406 million and $414 million. This proactive outlook positions Waystar favorably for the year's remaining quarters.

Client Growth and Retention

Waystar reported that its client base continues to expand, with 1,244 clients contributing over $100,000 in revenue—a 15% year-over-year increase. The net revenue retention rate further confirms the company's success in maintaining and growing relationships with existing clients, with a reported rate of 114% for the last twelve months. In terms of revenue composition, subscription revenue climbed to $125 million, showing an 18% uptick, while volume-based revenue grew to $129.9 million, marking an 11% increase.

Looking Ahead

The upcoming conference call scheduled for April 30, 2025, at 4:30 p.m. EDT will provide further insights into Waystar’s operations and expansion strategies. Interested parties can listen to the call live on Waystar's investor relations webpage, where an archive will also be made available.

Waystar has solidified its role in simplifying healthcare payments, serving approximately 30,000 clients, which include over 1 million distinct providers across the healthcare sector. The company’s platform processes over 6 billion healthcare payment transactions annually, processing more than $1.8 trillion in gross claims, thus playing a critical role in meeting the needs of patients and healthcare providers alike. With these strong results and innovative advancements, Waystar is well-positioned to continue its transformative impact on healthcare payments.

For further details on Waystar’s financial updates and resources, visit their official website or consult their investor relations page.