Waystar Reports Fourth Quarter and Fiscal Year 2025 Results, Provides 2026 Guidance

Rhea-AI Summary

Waystar (Nasdaq: WAY) reported strong Q4 and full-year 2025 results with revenue growth and raised 2026 guidance. Q4 revenue was $303.5M (+24% YoY) and FY2025 revenue was $1,099.3M (+17% YoY). Adjusted EBITDA margins were ~42–43%. Management cited record bookings and Iodine integration.

Full‑year 2026 guidance: revenue $1.274–1.294B, adjusted EBITDA $530–540M, and non‑GAAP net income $317–335M (EPS $1.59–1.68).

Positive

• Revenue +24% Q4 to $303.5M
• FY2025 revenue +17% to $1,099.3M
• Adjusted EBITDA margin of 43% in Q4
• Net revenue retention of 112%
• 1,391 clients >$100,000 LTM revenue, +16%

Negative

• GAAP net income margin only 7% in Q4
• Volume-based revenue growth slower at 11% FY

Key Figures

Q4 2025 revenue: $303.5M Q4 2025 net income: $20.0M Q4 2025 adjusted EBITDA: $129.1M +5 more

8 metrics

Q4 2025 revenue $303.5M Fourth quarter 2025, up 24% year-over-year

Q4 2025 net income $20.0M Fourth quarter 2025, 7% net income margin

Q4 2025 adjusted EBITDA $129.1M Fourth quarter 2025, 43% adjusted EBITDA margin

FY 2025 revenue $1,099.3M Fiscal year 2025, up 17% year-over-year

FY 2025 net income $112.1M Fiscal year 2025, 10% net income margin

FY 2025 adjusted EBITDA $462.1M Fiscal year 2025, 42% adjusted EBITDA margin

Net revenue retention 112% Net revenue retention rate (NRR) for 2025

2026 revenue guidance $1.274–$1.294B Total revenue guidance for fiscal year 2026

Market Reality Check

Price: $22.41 Vol: Volume 4,511,144 is 1.83x...

high vol

$22.41 Last Close

Volume Volume 4,511,144 is 1.83x the 20-day average of 2,465,534, indicating elevated interest ahead of and around the earnings release. high

Technical At $22.41, shares trade below the 200-day MA of $35.78 and sit well under the 52-week high of $48.11, despite double-digit growth.

Peers on Argus

WAY is up 3.08% with elevated volume, while sector peers like VEEV and CERT also...

2 Up

WAY is up 3.08% with elevated volume, while sector peers like VEEV and CERT also appear in momentum scanners, moving up 1.49% and 5.89%. This aligns with a broader positive move in healthcare IT and services rather than an isolated single-stock reaction.

Common Catalyst No specific peer news today; moves appear tied to broader healthcare IT momentum alongside WAY’s earnings.

Previous Earnings Reports

5 past events · Latest: Oct 29 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 29	Q3 2025 earnings	Positive	+0.3%	Q3 2025 beat with 12% revenue growth and guidance raised for FY 2025.
Jul 30	Q2 2025 earnings	Positive	+3.8%	Strong Q2 growth, higher guidance and Iodine Software acquisition announcement.
Apr 30	Q1 2025 earnings	Positive	+6.2%	Q1 2025 revenue up 14% with higher guidance and AltitudeAI launch.
Feb 18	FY 2024 earnings	Positive	-0.5%	Strong Q4/FY 2024 growth and 2025 guidance, but shares slipped post-report.
Nov 06	Q3 2024 earnings	Positive	+7.7%	22% Q3 2024 revenue growth and robust margins with upbeat outlook.

Pattern Detected

Earnings releases with solid growth and guidance have usually seen modest positive price moves, though one prior year-end report drew a slight negative reaction.

Recent Company History

Over the last five earnings cycles, Waystar has consistently reported double-digit revenue growth, expanding adjusted EBITDA and strong net revenue retention. Prior quarters often included guidance raises and milestones like the Iodine Software acquisition and AltitudeAI launch. Price reactions were mostly positive, though the prior Q4/FY 2024 report saw a small decline. Today’s Q4/FY 2025 results and 2026 guidance continue that pattern of steady top-line and profitability expansion.

Historical Comparison

+3.5% avg move · In the past five earnings releases, WAY moved an average of 3.48%, usually upward on strong growth a...

earnings

+3.5%

Average Historical Move earnings

In the past five earnings releases, WAY moved an average of 3.48%, usually upward on strong growth and guidance. Today’s 3.08% move sits close to that typical post-earnings reaction range.

Sequential 2024–2025 earnings show sustained double-digit revenue growth, expanding adjusted EBITDA, rising client counts, and recurring guidance raises into FY 2025 and FY 2026.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-07-14

WAY has an effective S-3ASR shelf filed on 2025-07-14, with at least one usage via a 424B7 on 2025-09-11. Specific capacity amounts are not provided in this context.

Market Pulse Summary

This announcement details strong Q4 and FY 2025 performance, with revenue exceeding $1.09B, healthy ...

Analysis

This announcement details strong Q4 and FY 2025 performance, with revenue exceeding $1.09B, healthy net income, and adjusted EBITDA margins above 40%. Net revenue retention of 112% and 1,391 large clients underscore a sticky, expanding base. The 2026 guidance calling for up to $1.294B in revenue and higher non-GAAP earnings continues a pattern of raised outlooks. Investors may watch execution on AI initiatives, integration of Iodine, and any use of the existing shelf registration.

Key Terms

adjusted EBITDA, non-GAAP net income, unlevered free cash flow, net revenue retention rate, +3 more

7 terms

adjusted EBITDA financial

"Adjusted EBITDA of $129.1 million and adjusted EBITDA margin of 43%"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

non-GAAP net income financial

"Non-GAAP net income of $70.7 million and non-GAAP net income per diluted share"

Non-GAAP net income is a company's profit figure that excludes certain costs or income that are included in standard accounting methods. Companies often use it to show what their earnings might look like without one-time expenses or other unusual items, helping investors see the company's core performance more clearly.

unlevered free cash flow financial

"Cash flow from operations of $67 million and unlevered free cash flow of $80 million"

Unlevered free cash flow is the cash a company generates from its core business after paying operating costs and reinvesting in the business, but before any interest or debt repayments. It shows how much cash would be available to all providers of capital—owners and lenders alike—and helps investors compare underlying business performance and value companies without the distortion of different debt levels, like judging a car’s fuel efficiency before adding cargo weight.

net revenue retention rate financial

"Net revenue retention rate (NRR) of 112%"

Net revenue retention rate shows how much money a company keeps from its existing customers over time, after accounting for growth or losses. It helps measure if current customers are staying loyal and spending more or less, which is important for understanding the company's ongoing success and stability. Think of it like tracking how much your favorite subscription service keeps and grows its members' payments each year.

IPO financial

"costs related to amended debt agreements and IPO and secondary offering costs"

An initial public offering (IPO) is the process by which a private company sells its shares to the public for the first time, making its ownership available on the stock market. This allows the company to raise money from a wide range of investors to fund growth or other goals. For investors, an IPO offers a chance to buy into a company early in its public journey, potentially benefiting if the company grows in value.

net debt financial

"We define net debt as the sum of the current portion of long-term debt"

Net debt is the total amount a company owes after subtracting the cash and assets it has that can be used to pay off that debt. It shows how much debt is truly a burden, helping investors understand if a company is financially healthy or heavily borrowed. Think of it like calculating how much money you owe after using your savings to pay part of it.

adjusted net leverage ratio financial

"We define adjusted net leverage ratio as net debt divided by adjusted EBITDA"

A measure of a company's debt burden that compares the amount of debt left after subtracting cash to its regular, adjusted operating cash profit; think of it as the remaining mortgage balance divided by annual take‑home pay. It shows how many years of that adjusted cash profit would be needed to pay off net debt, so investors use it to gauge financial risk, creditworthiness and how easily a company can afford interest and principal payments.

AI-generated analysis. Not financial advice.

Q4 revenue of $304M, up 24% YoY

Q4 net income of $20.0M and non-GAAP net income of $70.7M

Q4 net income margin of 7%; adjusted EBITDA margin of 43%

FY 2025 revenue of $1,099M, up 17% YoY

FY net income of $112.1M and non-GAAP net income of $262.9M

FY net income margin of 10%; adjusted EBITDA margin of 42%

LEHI, Utah and LOUISVILLE, Ky., Feb. 17, 2026 /PRNewswire/ -- Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today reported results for the fourth quarter and full year ended December 31, 2025.

"Waystar is delivering strong growth and momentum—driving record bookings, integrating the Iodine acquisition ahead of plan, and accelerating AI-powered innovation across our platform," said Matt Hawkins, Chief Executive Officer of Waystar. "We are leading healthcare's AI transformation by advancing the autonomous revenue cycle, leveraging unmatched proprietary data and deep domain expertise to deliver meaningful outcomes for providers. Our 2026 guidance reflects a robust pipeline, accelerating demand for an end-to-end AI-powered platform, and disciplined execution to sustain durable, profitable growth."

Fourth Quarter 2025 Financial Highlights

• Revenue of $303.5 million, up 24% year-over-year
• Net income of $20.0 million, GAAP net income per diluted share of $0.10, and net income margin of 7%
• Non-GAAP net income of $70.7 million and non-GAAP net income per diluted share of $0.36
• Adjusted EBITDA of $129.1 million and adjusted EBITDA margin of 43%
• Cash flow from operations of $67 million and unlevered free cash flow of $80 million

Fiscal Year 2025 Financial Highlights

• Revenue of $1,099.3 million, up 17% year-over-year
• Net income of $112.1 million, GAAP net income per diluted share of $0.61, and net income margin of 10%
• Non-GAAP net income of $262.9 million and non-GAAP net income per diluted share of $1.42
• Adjusted EBITDA of $462.1 million and adjusted EBITDA margin of 42%
• Cash flow from operations of $310 million and unlevered free cash flow of $365 million

Key Performance Metrics and Revenue Disaggregation

• 1,391 clients contributed over $100,000 in LTM revenue, up 16% year-over-year
• Net revenue retention rate (NRR) of 112%
• Fourth quarter 2025 subscription revenue of $167.8 million, up 38% year-over-year
• Fourth quarter 2025 volume-based revenue of $134.2 million, up 11% year-over-year
• Fiscal year 2025 subscription revenue of $558.4 million, up 22% year-over-year
• Fiscal year 2025 volume-based revenue of $534.8 million, up 11% year-over-year

Financial Outlook

As of February 17, 2026, Waystar provides the following guidance for its full fiscal year 2026.¹

• Total revenue is expected to be between $1.274 billion and $1.294 billion
• Adjusted EBITDA is expected to be between $530 million and $540 million
• Non-GAAP net income is expected to be between $317 million and $335 million
• Diluted non-GAAP net income per share is expected to be between $1.59 and $1.68

Webcast Information

Waystar's financial results will be discussed on a conference call scheduled at 8:30 a.m.  Eastern Standard Time today, February 17, 2026. A live audio conference call will be available on Waystar's website at https://investors.waystar.com/news-events/events. The webcast will be archived on the site for those unable to listen in real time. This earnings release and the related Current Report on Form 8-K filed February 17, 2026, are available on the Investor Relations page of the company's website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases, U.S. Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts.

Non-GAAP Financial Measures

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures as defined below. We present non-GAAP financial measures as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses adjusted EBITDA and adjusted EBITDA margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.

Adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) or net income (loss) margin as measures of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management's discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. A reconciliation is provided below for our non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

The following non-GAAP financial measures and key performance metrics are defined below:

Adjusted EBITDA and adjusted EBITDA Margin

We define adjusted EBITDA as net income / (loss) before interest expense, net, income tax expense / (benefit), depreciation and amortization, and as further adjusted for stock-based compensation expense, acquisition and integration costs, asset and lease impairments, costs related to amended debt agreements and IPO and secondary offering costs. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Non-GAAP Net Income / (loss) and Non-GAAP Net Income / (loss) Per Share

We define non-GAAP net income as GAAP net income / (loss) excluding the impact of stock-based compensation, acquisition and integration costs, asset and lease impairments, costs related to our IPO, and the Secondary Offerings, and costs related to amended debt agreements and amortization of intangibles. The tax effects of the adjustments are calculated using a management estimated annual effective non-GAAP tax rate of 21%, which is based on our statutory federal tax rate and provides consistency across interim reporting periods by eliminating the effects of non-recurring and period specific items. Due to the differences in the tax treatment of items excluded from non-GAAP net income, our estimate tax rate on non-GAAP net income may differ from our GAAP tax rate. Non-GAAP net income per share is shown on both a basic and diluted basis and is defined as non-GAAP net income divided by the basic or diluted weighted-average shares, respectively.

Unlevered Free Cash Flow

We define unlevered free cash flow as cash from operations plus cash interest paid less capital expenses.

Net Debt

We define net debt as the sum of the current portion of long-term debt, long-term debt, and accounts receivable securitization less cash and equivalents and investment securities.

Adjusted Net Leverage Ratio

We define adjusted net leverage ratio as net debt divided by adjusted EBITDA over the preceding twelve months.

Key Performance Metrics

Net Revenue Retention Rate

Our Net Revenue Retention Rate compares twelve months of client invoices for our solutions at two period end dates. To calculate our Net Revenue Retention Rate, we first accumulate the total amount invoiced during the twelve months ending with the prior period-end or Prior Period Invoices. We then calculate the total amount invoiced to those same clients for the twelve months ending with the current period-end, or Current Period Invoices. Current Period Invoices are inclusive of upsell, downsell, pricing changes, clients that cancel or chose not to renew, and discontinued solutions with continuing clients. The Net Revenue Retention Rate is then calculated by dividing the Current Period Invoices by the Prior Period Invoices. Our total invoices included in the analysis are greater than 98% of reported revenue. We use Net Revenue Retention Rate to evaluate our ongoing operations and for internal planning and forecasting purposes. Acquired businesses are included in the last-twelve-month Net Revenue Retention Rate in the ninth quarter after acquisition, which is the earliest point that comparable post-acquisition invoices are available for both the current and prior twelve-month period.

Customer Count with >$100,000 of Revenue

We regularly monitor and review our count of clients who generate more than $100,000 of revenue.

Our count of clients who generate more than $100,000 of revenue is based on an accumulation of the amounts invoiced to clients over the preceding twelve months. The invoices for acquired clients are included starting in the first full calendar quarter after the date of acquisition.

Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, statements regarding Waystar's expectations relating to future operating results and financial position, including full year 2026, and future periods; the performance of our new product offerings; our industry and market opportunities, business strategy, goals, and expectations concerning our market position, future operations, margins and profitability, capital expenditures, liquidity, and capital resources and other financial and operating information. Forward-looking statements include all statements that are not historical facts. These statements may include words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," "outlook," the negative version of these words or similar terms and phrases to identify forward-looking statements in this press release, including the discussion of outlook for full fiscal year 2026.

The forward-looking statements contained in this press release are based on management's current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will result or be achieved. The following factors are among those that may cause actual results to differ materially from the forward-looking statements: our operation in a highly competitive industry; our ability to retain our existing clients and attract new clients; our ability to successfully execute on our business strategies in order to grow; our ability to accurately assess the risks related to acquisitions and successfully integrate acquired businesses, including the acquisition of Iodine; our ability to establish and maintain strategic relationships; the growth and success of our clients and overall healthcare transaction volumes; consolidation in the healthcare industry; our selling cycle of variable length to secure new client agreements; our implementation cycle that is dependent on our clients' timing and resources; our dependence on our senior management team and certain key employees, and our ability to attract and retain highly skilled employees; the accuracy of the estimates and assumptions we use to determine the size of our total addressable market; our ability to develop and market new solutions, or enhance our existing solutions, to respond to technological changes or evolving industry standards; the interoperability, connectivity, and integration of our solutions with our clients' and their vendors' networks and infrastructures; the performance and reliability of internet, mobile, and other infrastructure; the consequences if we cannot obtain, process, use, disclose, or distribute the highly regulated data we require to provide our solutions; our reliance on certain third-party vendors and providers; any errors or malfunctions in our products and solutions; failure by our clients to obtain proper permissions or provide us with accurate and appropriate information; the potential for embezzlement, identity theft, or other similar illegal behavior by our employees or vendors, and a failure of our employees or vendors to observe quality standards or adhere to environmental, social, and governance standards; our compliance with the applicable rules of the National Automated Clearing House Association and the applicable requirements of card networks; increases in card network fees and other changes to fee arrangements; the effect of payer and provider conduct which we cannot control; privacy concerns and security breaches or incidents relating to our platform or data (including personal information and other regulated data); the complex and evolving laws and regulations regarding privacy, data protection, and cybersecurity; our ability to adequately protect and enforce our intellectual property rights; our ability to use or license data and integrate third-party technologies; the development, deployment, and use of AI; our use of "open source" software; legal proceedings initiated by third parties alleging that we are infringing or otherwise violating their intellectual property rights; claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties; the heavily regulated industry in which we conduct business; the uncertain and evolving healthcare regulatory and political framework; health care laws and data privacy and security laws and regulations governing our Processing of personal information (which may also be referred to as "personal data" or "personally identifiable information"); reduced revenues in response to changes to the healthcare regulatory landscape; legal, regulatory, and other proceedings that could result in adverse outcomes; contractual obligations requiring compliance with certain provisions of the Bank Secrecy Act/anti-money laundering laws and regulations; existing laws that regulate our ability to engage in certain marketing activities; our full compliance with website accessibility standards; any changes in our tax rates, the adoption of new tax legislation, or exposure to additional tax liabilities; limitations on our ability to use our net operating losses to offset future taxable income; losses due to asset impairment charges; our substantial debt and restrictive covenants in the agreements governing our Credit Facilities; interest rate fluctuations; unavailability of additional capital on acceptable terms or at all; the impact of general macroeconomic conditions; our history of net losses and our ability to achieve or maintain profitability; the interests of the certain investors may be different than the interests of other holders of our securities; and; and each of the other factors discussed under the heading of "Risk Factors" in the Company's 10K filed with the Securities and Exchange Commission (the "SEC") on February 17, 2026, and in other reports filed with the SEC, all of which are available on the Investor Relations page of our website at investors.waystar.com.

Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. You should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws.

About Waystar

Waystar's mission-critical software is purpose-built to simplify healthcare payments so providers can prioritize patient care and optimize their financial performance. Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 16 of 20 institutions on the U.S. News Best Hospitals list. Waystar's enterprise-grade platform annually processes over 7.5 billion healthcare payment transactions, including over $2.4 trillion in annual gross claims and spanning approximately 60% of U.S. patients. Waystar strives to transform healthcare payments so providers can focus on what matters most: their patients and communities. Discover the way forward at waystar.com.

________________________

1We have not reconciled the forward-looking adjusted EBITDA, non-GAAP net income, and non-GAAP net income per share guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

 

Waystar Holding Corp. Unaudited Consolidated Statements of Operations (in thousands, except for share and per share data)
	Three months ended December 31,				Twelve months ended December 31,
	2025		2024		2025		2024
Revenue	303,538		244,102		1,099,278		943,549
Operating expenses
Cost of revenue (exclusive of depreciation and amortization expenses)	92,637		79,542		348,162		315,730
Sales and marketing	49,212		38,990		178,017		156,935
General and administrative	43,709		22,959		128,623		111,753
Research and development	18,520		11,472		54,623		48,775
Depreciation and amortization	40,442		37,996		140,548		186,631
Total operating expenses	244,520		190,959		849,973		819,824
Income from operations	59,018		53,143		249,305		123,725
Other expense
Interest expense	(21,868)		(19,003)		(74,063)		(141,762)
Related party interest expense	(1,004)		(1,083)		(3,479)		(4,508)
Income/(loss) before income taxes	36,146		33,057		171,763		(22,545)
Income tax expense/(benefit)	16,158		13,978		59,674		(3,420)
Net income/(loss)	19,988		19,079		112,089		(19,125)
Net income/(loss) per share:
Basic	0.10		0.11		0.63		(0.13)
Diluted	0.10		0.11		0.61		(0.13)
Weighted-average shares outstanding:
Basic	191,394,748		172,526,776		177,926,745		149,915,839
Diluted	197,336,164		179,112,559		184,783,285		149,915,839

 

Waystar Holding Corp. Consolidated Balance Sheets (in thousands, except for share and per share data)
	December 31, 2025		December 31, 2024
Assets
Current assets
Cash and cash equivalents	$       61,355		$         182,133
Restricted cash	15,454		22,449
Investment securities	24,877		—
Accounts receivable, net of allowance of $6,170 at December 31, 2025 and $5,885 at December 31, 2024	177,037		145,235
Income tax receivable	6,437		2,838
Prepaid expenses	20,078		14,414
Other current assets	3,174		3,972
Total current assets	308,412		371,041
Property, plant and equipment, net	51,649		46,731
Operating lease right-of-use assets, net	12,972		10,820
Intangible assets, net	1,292,839		1,039,049
Goodwill	4,016,818		3,019,999
Deferred costs	93,951		82,815
Other long-term assets	8,459		6,549
Total assets	$    5,785,100		$       4,577,004
Liabilities and stockholders' equity
Current liabilities
Accounts payable	$      50,949		$         47,365
Accrued compensation	40,942		31,589
Aggregated funds payable	15,104		22,059
Other accrued expenses	22,990		15,930
Deferred revenue	67,855		10,527
Current portion of long-term debt	13,537		11,311
Related party current portion of long-term debt	657		357
Current portion of operating lease liabilities	6,029		5,591
Current portion of finance lease liabilities	—		904
Total current liabilities	218,063		145,633
Long-term liabilities
Deferred tax liability	211,320		100,523
Long-term debt, net, less current portion	1,394,523		1,185,411
Related party long-term debt, net, less current portion	64,186		35,211
Operating lease liabilities, net of current portion	11,994		13,133
Finance lease liabilities, net of current portion	—		11,290
Deferred revenue - long-term	5,496		5,739
Other long-term liabilities	692		278
Total liabilities	1,906,274		1,497,218
Commitments and contingencies (Note 19)
Stockholders' equity
Preferred stock $0.01 par value - 100,000,000 shares authorized as of   December 31, 2025 and December 31, 2024, respectively; zero shares issued or   outstanding as of December 31, 2025 and December 31, 2024, respectively	—		—
Common stock $0.01 par value - 2,500,000,000 shares authorized at   December 31, 2025 and December 31, 2024, respectively; 191,587,193 and   172,108,240 shares issued and outstanding at December 31, 2025 and   December 31, 2024, respectively	1,916		1,722
Additional paid-in capital	3,986,353		3,298,083
Accumulated other comprehensive income (loss)	(632)		881
Accumulated deficit	(108,811)		(220,900)
Total stockholders' equity	3,878,826		3,079,786
Total liabilities and stockholders' equity	$    5,785,100		$       4,577,004

 

Waystar Consolidated Statements of Cash Flows (in thousands)
	Year ended December 31,
	2025		2024
Cash flows from operating activities
Net income/(loss)	$       112,089		$       (19,125)
Adjustments to reconcile net income/(loss) to net cash provided by operating     activities
Depreciation and amortization	140,548		186,631
Stock-based compensation	42,069		54,437
Provision for bad debt expense	3,320		2,669
Loss on extinguishment of debt	821		20,611
Loss on lease termination	838		—
Deferred income taxes	45,222		(59,135)
Amortization of debt discount and issuance costs	2,697		3,946
Other	154		(99)
Changes in:
Accounts receivable	(7,324)		(21,816)
Income tax refundable	(16,993)		3,973
Prepaid expenses and other current assets	(1,947)		(2,322)
Deferred costs	(10,866)		(16,497)
Other long-term assets	(2,376)		(472)
Accounts payable and accrued expenses	8,932		18,228
Deferred revenue	(4,658)		(842)
Operating lease right-of-use assets and lease liabilities	(2,853)		(419)
Net cash provided by operating activities	309,673		169,768
Cash flows from investing activities
Purchase of property and equipment and capitalization of internally developed    software costs	(26,481)		(27,268)
Acquisitions, net of cash and cash equivalents acquired	(629,535)		—
Purchase of investment securities	(231,324)		—
Proceeds from sale of investment securities	206,444		—
Net cash used in investing activities	(680,896)		(27,268)
Cash flows from financing activities
Change in aggregated funds liability	(6,955)		12,399
Proceeds from equity offering, net of underwriting discounts	—		1,017,074
Payments of third-party IPO issuance costs	—		(3,407)
Repurchase of shares	—		(844)
Proceeds from issuance of common stock from employee equity plans	25,779		1,683
Proceeds from issuances of debt, net of creditor fees	390,140		576,060
Payments on debt	(152,440)		(1,584,080)
Third-party fees paid in connection with issuance of new debt	(42)		(1,410)
Finance lease liabilities paid	(13,032)		(821)
Net cash provided by (used in) financing activities	243,450		16,654
Increase/(decrease) in cash and cash equivalents during the period	(127,773)		159,154
Cash and cash equivalents and restricted cash–beginning of period	204,582		45,428
Cash and cash equivalents and restricted cash–end of period	$       76,809		$      204,582
Supplemental disclosures of cash flow information
Interest paid	$        81,666		$       122,771
Cash taxes paid (refunds received), net	32,418		51,100
Non-cash investing and financing activities
Fixed asset purchases in accounts payable	280		283
Unpaid third-party IPO issuance costs	—		15
Common stock issued in connection to acquisitions (see Note 7)	620,835		—
Reconciliation of Balance Sheet Cash Accounts to Cash Flow Statement
Balance sheet
Cash and cash equivalents	61,355		182,133
Restricted cash	15,454		22,449
Total	76,809		204,582

 

Waystar Reconciliation of Adjusted EBITDA (in thousands)  (unaudited)
		Three months ended December 31,				Twelve months ended December 31,
($ in thousands)		2025		2024		2025		2024
Net income/(loss)		$ 19,988		$ 19,079		$ 112,089		$ (19,125)
Interest expense		22,872		20,086		77,542		146,270
Income tax expense/(benefit)		16,158		13,978		59,674		(3,420)
Depreciation and amortization		40,442		37,996		140,548		186,631
Stock-based compensation expense		12,198		7,037		42,069		54,437
Acquisition and integration costs		14,877		163		21,074		859
Costs related to amended debt agreements		1,931		1,262		2,580		14,138
IPO related and Secondary Offering expenses		86		26		4,657		2,140
Other (a)		593		526		1,913		1,566
Adjusted EBITDA		$ 129,145		$ 100,153		$ 462,146		$ 383,496
Revenue		$ 303,538		$ 244,102		$ 1,099,278		$ 943,549
Net income/(loss) margin		6.6 %		7.8 %		10.2 %		(2.0) %
Adjusted EBITDA margin		42.5 %		41.0 %		42.0 %		40.6 %

(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.6 million and $1.3 million, respectively, and executive severance totaling $0.0 million and $0.6 million, respectively, for the three and twelve months ended December 31, 2025. For the three and twelve months ended December 31, 2024, adjustments relate to additional lease costs due to the relocation of our Louisville office.

 

Waystar Reconciliation of Non-GAAP Operating Expenses (in thousands) (unaudited)
	Three months ended December 31,				Twelve months ended December 31,
	2025		2024		2025		2024
Cost of revenue (exclusive of depreciation and amortization expenses)	92,637		79,542		348,162		315,730
Less Stock-based compensation expense	(450)		(242)		(1,514)		(2,403)
Less Acquisition and integration costs	(1,771)		-		(1,774)		(31)
Less IPO and Secondary Offering expenses	-		-		-		(9)
Less Other (a)	-		(33)		-		(33)
Cost of revenue (exclusive of depreciation and amortization expenses), adjusted	90,416		79,267		344,874		313,254
Sales and marketing	49,212		38,990		178,017		156,935
Less Stock-based compensation expense	(2,364)		(1,482)		(8,562)		(12,440)
Less Acquisition and integration costs	(1,131)		-		(1,210)		-
Less IPO and Secondary Offering expenses	-		(7)		-		(148)
Sales and marketing, adjusted	45,717		37,501		168,245		144,347
General and administrative	43,709		22,959		128,623		111,753
Less Stock-based compensation expense	(7,260)		(4,245)		(25,678)		(31,288)
Less Acquisition and integration costs	(11,338)		(157)		(17,116)		(429)
Less Costs related to amended debt agreements	(1,931)		(1,262)		(2,580)		(14,138)
Less IPO and Secondary Offering expenses	(86)		(19)		(4,657)		(1,975)
Less Other (a)	(593)		(493)		(1,913)		(1,533)
General and administrative, adjusted	22,501		16,783		76,679		62,390
Research and development	18,520		11,472		54,623		48,775
Less Stock-based compensation expense	(2,124)		(1,068)		(6,315)		(8,306)
Less Acquisition and integration costs	(637)		(6)		(974)		(399)
Less IPO and Secondary Offering expenses	-		-		-		(8)
Research and development, adjusted	15,759		10,398		47,334		40,062
Depreciation and amortization	40,442		37,996		140,548		186,631
Less Other (a)	-		(2,103)		-		(17,879)
Less Intangible amortization	(34,528)		(30,647)		(118,609)		(147,887)
Depreciation and amortization, adjusted	5,914		5,246		21,939		20,865
Income tax expense/(benefit)	16,158		13,978		59,674		(3,420)
Plus Tax effect of adjustments	13,485		8,770		40,089		50,170
Income tax expense/(benefit), adjusted	29,643		22,748		99,763		46,750

(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.6 million and $1.3 million, respectively, and executive severance totaling $0.0 million and $0.6 million, respectively, for the three and twelve months ended December 31, 2025. For the three and twelve months ended December 31, 2024, adjustments relate to additional lease costs due to the relocation of our Louisville office.

 

Waystar Reconciliation of Non-GAAP Net Income  (in thousands, except share and per share amounts) (unaudited)
		Three months ended December 31,				Twelve months ended December 31,
($ in thousands)		2025		2024		2025		2024
Net income/(loss)		$    19,988		$    19,079		$    112,089		$    (19,125)
Stock based compensation		12,198		7,037		42,069		54,437
Acquisition and integration costs		14,877		163		21,074		859
Costs related to amended debt agreements		1,931		1,262		2,580		14,138
IPO and Secondary Offering expenses		86		26		4,657		2,140
Other (a)		593		2,629		1,913		19,445
Intangible amortization		34,528		30,647		118,609		147,887
Tax effect of adjustments		(13,485)		(8,770)		(40,089)		(50,170)
Non-GAAP net income/(loss)		$    70,716		$    52,073		$   262,902		$    169,611
Non-GAAP net income/(loss) per share:
Basic		$      0.37		$      0.30		$      1.48		$       1.13
Diluted		$      0.36		$      0.29		$      1.42		$      1.09
Weighted-average shares outstanding:
Basic		191,394,748		172,526,776		177,926,745		149,915,839
Diluted		197,336,164		179,112,559		184,783,285		155,677,094

(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.6 million and $1.3 million, respectively, and executive severance totaling $0.0 million and $0.6 million, respectively, for the three and twelve months ended December 31, 2025. For the three and twelve months ended December 31, 2024, adjustments relate to additional lease costs of $0.5 million and $1.6 million, respectively, and accelerated depreciation of $2.1 million and $17.9 million, respectively, due to the relocation of our Louisville office.

 

Waystar Reconciliation of Unlevered Free Cash Flow (in thousands) (unaudited)
	Three months ended December 31,			Twelve months ended December 31,
	2025		2024	2025		2024
Net cash provided by operating activities	66,631		64,770	309,673		169,768
Interest paid	22,363		21,582	81,666		122,771
Purchase of PP&E and capitalization of internally developed software costs	(9,411)		(6,224)	(26,481)		(27,268)
Unlevered free cash flow	79,583		80,128	364,858		265,271

 

Waystar Reconciliation of Net Debt (in thousands) (unaudited)
	December 31,
	2025		2024
First lien term loan facility outstanding debt, current	14,194		11,668
First lien term loan facility outstanding debt, net of current portion	1,387,052		1,151,878
Receivables facility outstanding debt	80,000		80,000
Cash and cash equivalents	(61,355)		(182,133)
Investment securities	(24,877)		-
Net debt	1,395,014		1,061,413
Trailing Twelve Months Adjusted EBITDA	462,146		383,496
Adjusted Gross leverage ratio	3.2x		3.2x
Adjusted Net leverage ratio	3.0x		2.8x

 

Waystar Reconciliation of Trailing Twelve Months (TTM) Adjusted EBITDA (in thousands) (unaudited)
	Three Months Ended								TTM
	December 31, 2025		September 30, 2025		June 30, 2025		March 31, 2025		December 31, 2025
Net income/(loss)	19,988		30,648		32,184		29,269		112,089
Interest expense	22,872		17,515		18,255		18,900		77,542
Income tax expense/(benefit)	16,158		12,069		14,407		17,040		59,674
Depreciation and amortization	40,442		33,300		33,426		33,380		140,548
Stock-based compensation expense	12,198		11,597		11,530		6,744		42,069
Acquisition and integration costs	14,877		5,313		655		229		21,074
Costs related to amended debt agreements	1,931		649		-		-		2,580
IPO and Secondary Offering expenses	86		1,372		1,769		1,430		4,657
Other (a)	593		240		326		754		1,913
Adjusted EBITDA	129,145		112,703		112,552		107,746		462,146

(a)	Adjustments relate to additional lease costs due to the relocation of our Louisville office of $1.3 million, and executive severance $0.6 million, for the twelve months ended December 31, 2025.

 

Media Contact
Kristin Lee
kristin.lee@waystar.com

Investor Contact
investors@waystar.com

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SOURCE Waystar

FAQ

What were Waystar (WAY) Q4 2025 revenue and margins?

Waystar reported Q4 2025 revenue of $303.5M, with a GAAP net income margin of 7%. According to Waystar, adjusted EBITDA was $129.1M representing an adjusted EBITDA margin of 43%, highlighting higher profitability on a non‑GAAP basis.

How did Waystar perform for fiscal year 2025 (WAY)?

Waystar posted FY2025 revenue of $1,099.3M, up 17% year‑over‑year. According to Waystar, FY net income was $112.1M and adjusted EBITDA was $462.1M, with an adjusted EBITDA margin of 42%.

What guidance did Waystar (WAY) provide for fiscal 2026 revenue?

Waystar guided full‑year 2026 revenue between $1.274B and $1.294B. According to Waystar, this outlook reflects a robust pipeline, AI demand, and the ongoing integration of recent acquisitions like Iodine.

What 2026 profitability metrics did Waystar (WAY) forecast?

Waystar expects adjusted EBITDA of $530–540M and non‑GAAP net income of $317–335M in 2026. According to Waystar, diluted non‑GAAP EPS is projected at $1.59–1.68, indicating continued margin strength.

How much of Waystar's revenue is subscription vs volume (2025)?

In Q4 2025, subscription revenue was $167.8M and volume revenue was $134.2M. According to Waystar, full‑year subscription revenue reached $558.4M, while volume‑based revenue was $534.8M.

What cash flow and free cash flow did Waystar (WAY) report for 2025?

Waystar reported FY2025 cash flow from operations of $310M and unlevered free cash flow of $365M. According to Waystar, Q4 operating cash flow was $67M with unlevered free cash flow of $80M.