Waystar Reports Third Quarter 2026 Results
Quarterly diluted earnings per share declined despite higher revenue and net income.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Summary
Waystar (Nasdaq: WAY) reported third-quarter 2026 revenue of $325.6 million, up 21% year over year, alongside higher net income. Net income was $31.0 million versus $30.6 million a year earlier, while diluted earnings per share fell to $0.16 from $0.17. Operating expenses increased to $264.4 million from $208.4 million, leaving operating income at $61.3 million versus $60.2 million.
Adjusted EBITDA, a non-GAAP earnings measure, reached $139.3 million, with a 43% margin. Operating cash flow was $103.9 million. Subscription revenue rose 34%, and net revenue retention was 108%. Clients generating over $100,000 in trailing twelve-month revenue increased 14% to 1,488.
For full-year 2026, Waystar expects revenue of $1.277 billion to $1.287 billion, adjusted EBITDA of $543 million to $549 million, and non-GAAP diluted earnings per share of $1.63 to $1.71.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointQ3 revenue of $325.6 million increased 21% year over year.
- Moderate pointQ3 adjusted EBITDA of $139.3 million represented a 43% margin.
- Moderate pointQ3 operating cash flow totaled $103.9 million.
- Moderate point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance is $1.277 billion to $1.287 billion.
- Minor pointQ3 net income of $31.025 million rose from $30.648 million a year earlier.
14 minor points
- Minor pointQ3 operating income of $61.266 million increased from $60.232 million a year earlier.
- Minor pointQ3 unlevered free cash flow, operating cash flow plus cash interest less capital expenses, totaled $114.8 million.
- Minor point1,488 clients generated over $100,000 in trailing twelve-month revenue, up 14% year over year.
- Minor pointNet revenue retention of 108% reflected increased invoicing to the same client group.
- Minor pointQ3 subscription revenue of $180.7 million increased 34% year over year.
- Minor pointQ3 volume-based revenue of $142.9 million increased 8% year over year.
- Minor pointQ3 provider revenue of $243.4 million increased 28% year over year.
- Minor pointQ3 patient revenue of $82.2 million increased 5% year over year.
- Minor pointNine-month revenue of $959.172 million increased from $795.740 million in 2025.
- Minor pointNine-month net income of $115.175 million increased from $92.101 million in 2025.
- Minor pointNine-month diluted earnings per share of $0.59 increased from $0.51 in 2025.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EBITDA guidance is $543 million to $549 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 non-GAAP net income guidance is $322 million to $337 million.
- Minor point. Forward-looking: it has not happened yet and may not happen.2026 non-GAAP diluted earnings guidance is $1.63 to $1.71 per share.
Negative
- Moderate pointQ3 operating expenses of $264.358 million increased from $208.419 million a year earlier.
- Minor pointQ3 diluted earnings per share of $0.16 declined from $0.17 a year earlier.
- Minor pointQ3 net interest expense of $18.182 million increased from $16.613 million a year earlier.
- Minor pointQ3 related-party interest expense of $1.115 million increased from $0.902 million a year earlier.
- Minor pointQ3 diluted weighted-average shares of 195,913,142 increased from 181,240,033 a year earlier.
News Explained
For the nine months ended
Details
Market move: WAY -3.87% vs previous close. Q3 2026 earnings report
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Key Figures
- Q3 revenue
- $325.6 million; up 21% year over year
- Third quarter 2026
- GAAP net income
- $31.0 million
- Third quarter 2026
- Non-GAAP net income
- $87.1 million
- Third quarter 2026
- Adjusted EBITDA
- $139.3 million
- Third quarter 2026
- FY2026 revenue guidance
- $1.277 billion–$1.287 billion
- Full fiscal year 2026
- FY2026 adjusted EBITDA guidance
- $543 million–$549 million
- Full fiscal year 2026
- FY2026 non-GAAP net income guidance
- $322 million–$337 million
- Full fiscal year 2026
- FY2026 diluted non-GAAP EPS guidance
- $1.63–$1.71 per share
- Full fiscal year 2026
Previous Earnings Reports
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Revenue grew 18%, with higher adjusted EBITDA and raised full-year guidance.
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Revenue rose 22%, with adjusted EBITDA and non-GAAP net income reported.
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Q4 and FY2025 revenue growth accompanied raised 2026 guidance.
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Revenue grew 12%, and Waystar raised full-year 2025 guidance.
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Revenue grew 15%, and Waystar raised full-year guidance alongside an Iodine acquisition agreement.
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
gaap financial
non-gaap financial
adjusted ebitda financial
net revenue retention rate financial
unlevered free cash flow financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Q3 revenue of
Q3 net income of
Q3 net income margin of
"Waystar delivered another quarter of robust bookings and healthy demand across the business," said Matt Hawkins, Chief Executive Officer of Waystar. "Providers are increasingly consolidating more of the revenue cycle onto Waystar's connected platform, deepening relationships across both new and existing clients as they adopt more of our AI-powered capabilities. We are focused on executing against the opportunities in front of us and extending our market leadership as we leverage AI and agentic capabilities to reshape the revenue cycle."
Third Quarter 2026 Financial Highlights
- Revenue of
$325.6 million 21% year-over-year - Net income of
$31.0 million $0.16 10% - Non-GAAP net income of
$87.1 million $0.44 - Adjusted EBITDA of
$139.3 million 43% - Cash flow from operations of
$103.9 million $114.8 million
Key Performance Metrics and Revenue Disaggregation
- 1,488 clients contributed over
$100,000 14% year-over-year - Net revenue retention rate (NRR) of
108% - Third quarter 2026 subscription revenue of
$180.7 million 34% year-over-year - Third quarter 2026 volume-based revenue of
$142.9 million 8% year-over-year - Third quarter 2026 provider revenue of
$243.4 million 28% year-over-year - Third quarter 2026 patient revenue of
$82.2 million 5% year-over-year
Financial Outlook
As of November 2, 2026, Waystar provides the following guidance for its full fiscal year 2026.1
- Total revenue is expected to be between
$1.277 billion $1.287 billion - Adjusted EBITDA is expected to be between
$543 million $549 million - Non-GAAP net income is expected to be between
$322 million $337 million - Diluted non-GAAP net income per share is expected to be between
$1.63 $1.71
Webcast Information
Waystar will discuss its financial results on a conference call scheduled at 4:30 p.m. Eastern Time today, November 2, 2026. A live audio conference call will be available on Waystar's website at https://investors.waystar.com/news-events/events. Waystar will archive the webcast on its site for those unable to listen in real time. This earnings release and the related Current Report on Form 8-K, furnished November 2, 2026, are available on the Investor Relations page of Waystar'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,
Non-GAAP Financial Measures
To supplement the consolidated financial statements prepared and presented in accordance with
Adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share, non-GAAP operating expenses, unlevered free cash flow, net debt, gross debt, adjusted net leverage ratio and adjusted gross leverage ratio are not recognized terms under GAAP and should not be considered as an alternative to net income (loss), net income (loss) margin or the related GAAP expense line items as measures of financial performance, cash provided by operating activities as a measure of liquidity, total debt as a measure of indebtedness, 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. A quantitative reconciliation of the forward-looking non-GAAP financial measures included in our financial outlook is not provided for the reasons described under "Financial Outlook." 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, integration and transaction costs, asset and lease impairments, costs related to amended debt agreements, IPO and secondary offering costs and costs related to other unusual, non-recurring or otherwise notable items. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.
Non-GAAP Net Income and Non-GAAP Net Income Per Share
We define non-GAAP net income as GAAP net income excluding the impact of stock-based compensation, acquisition, integration and transaction costs, asset and lease impairments, costs related to our IPO, and the Secondary Offerings, costs related to amended debt agreements and amortization of intangibles, and costs related to other unusual, non-recurring or otherwise notable items. The tax effects of the adjustments are calculated using a management estimated annual effective non-GAAP tax rate of
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.
Gross Debt
We define gross debt as the sum of the current portion of long-term debt, long-term debt, and accounts receivable securitization.
Adjusted Gross Leverage Ratio
We define adjusted gross leverage ratio as gross 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
Customer Count with >
We regularly monitor and review our count of clients who generate more than
Our count of clients who generate more than
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; healthcare 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 certain investors may be different than the interests of other holders of our securities; and each of the other factors discussed under the heading of "Risk Factors" in the Company's 10-K 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 approximately 1.5 million distinct providers, including 16 of 20 institutions on the
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.
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Waystar Holding Corp. Unaudited Consolidated Statements of Operations (in thousands, except for share and per share data) |
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Three months ended |
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Nine months ended |
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2026 |
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2025 |
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2026 |
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2025 |
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Revenue |
$ 325,624 |
|
$ 268,651 |
|
$ 959,172 |
|
$ 795,740 |
|
Operating expenses |
|
|
|
|
|
|
|
|
Cost of revenue (exclusive of |
99,202 |
|
85,136 |
|
293,923 |
|
255,525 |
|
Sales and marketing |
51,998 |
|
45,158 |
|
148,207 |
|
128,805 |
|
General and administrative |
51,393 |
|
32,422 |
|
118,495 |
|
84,914 |
|
Research and development |
20,299 |
|
12,403 |
|
56,390 |
|
36,103 |
|
Depreciation and amortization |
41,466 |
|
33,300 |
|
124,384 |
|
100,106 |
|
Total operating expenses |
264,358 |
|
208,419 |
|
741,399 |
|
605,453 |
|
Income from operations |
61,266 |
|
60,232 |
|
217,773 |
|
190,287 |
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Other expense |
|
|
|
|
|
|
|
|
Interest expense, net |
(18,182) |
|
(16,613) |
|
(56,531) |
|
(52,195) |
|
Related party interest expense |
(1,115) |
|
(902) |
|
(3,059) |
|
(2,475) |
|
Income before income taxes |
41,969 |
|
42,717 |
|
158,183 |
|
135,617 |
|
Income tax expense |
10,944 |
|
12,069 |
|
43,008 |
|
43,516 |
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Net income |
$ 31,025 |
|
$ 30,648 |
|
$ 115,175 |
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$ 92,101 |
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Net income per share: |
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|
|
|
|
|
|
|
Basic |
0.16 |
|
0.18 |
|
0.60 |
|
0.53 |
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Diluted |
0.16 |
|
0.17 |
|
0.59 |
|
0.51 |
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Weighted-average shares outstanding: |
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|
|
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|
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|
Basic |
191,938,402 |
|
174,352,079 |
|
191,825,646 |
|
173,388,077 |
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Diluted |
195,913,142 |
|
181,240,033 |
|
195,743,104 |
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181,165,738 |
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Waystar Holding Corp. Unaudited Consolidated Balance Sheets (in thousands, except for share and per share data) |
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September 30, |
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December 31, |
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Assets |
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Current assets |
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Cash and cash equivalents |
$ 30,820 |
|
$ 61,355 |
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Restricted cash |
24,161 |
|
15,454 |
|
Investment securities |
246,075 |
|
24,877 |
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Accounts receivable, net of allowance of |
187,007 |
|
177,037 |
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Income tax receivable |
— |
|
6,437 |
|
Prepaid expenses |
22,834 |
|
20,078 |
|
Other current assets |
4,551 |
|
3,174 |
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Total current assets |
515,448 |
|
308,412 |
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Property, plant and equipment, net |
73,172 |
|
51,649 |
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Operating lease right-of-use assets, net |
11,922 |
|
12,972 |
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Intangible assets, net |
1,189,418 |
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1,292,839 |
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Goodwill |
4,014,868 |
|
4,016,818 |
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Deferred costs |
110,720 |
|
93,951 |
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Other long-term assets |
7,292 |
|
8,459 |
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Total assets |
$ 5,922,840 |
|
$ 5,785,100 |
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Liabilities and stockholders' equity |
|
|
|
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Current liabilities |
|
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|
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Accounts payable |
$ 68,078 |
|
$ 50,949 |
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Accrued compensation |
31,025 |
|
40,942 |
|
Aggregated funds payable |
23,369 |
|
15,104 |
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Other accrued expenses |
38,020 |
|
22,990 |
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Deferred revenue |
64,773 |
|
67,855 |
|
Current portion of long-term debt |
13,404 |
|
13,537 |
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Related party current portion of long-term debt |
790 |
|
657 |
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Current portion of operating lease liabilities |
5,713 |
|
6,029 |
|
Total current liabilities |
245,172 |
|
218,063 |
|
Long-term liabilities |
|
|
|
|
Deferred tax liability |
174,539 |
|
211,320 |
|
Long-term debt, net, less current portion |
1,374,057 |
|
1,394,523 |
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Related party long-term debt, net, less current portion |
75,468 |
|
64,186 |
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Operating lease liabilities, net of current portion |
11,163 |
|
11,994 |
|
Deferred revenue - long-term |
5,572 |
|
5,496 |
|
Other long-term liabilities |
278 |
|
692 |
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Total liabilities |
1,886,249 |
|
1,906,274 |
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Commitments and contingencies (Note 20) |
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|
|
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Stockholders' equity |
|
|
|
|
Preferred stock |
— |
|
— |
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Common stock |
1,938 |
|
1,916 |
|
Treasury stock, at cost |
(33,487) |
|
— |
|
Additional paid-in capital |
4,060,817 |
|
3,986,353 |
|
Accumulated other comprehensive income (loss) |
959 |
|
(632) |
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Retained earnings (accumulated deficit) |
6,364 |
|
(108,811) |
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Total stockholders' equity |
4,036,591 |
|
3,878,826 |
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Total liabilities and stockholders' equity |
$ 5,922,840 |
|
$ 5,785,100 |
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Waystar Unaudited Consolidated Statements of Cash Flows (in thousands) |
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Nine Months Ended September 30, |
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2026 |
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2025 |
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Cash flows from operating activities |
|
|
|
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Net income |
$ 115,175 |
|
$ 92,101 |
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Adjustments to reconcile net income to net cash provided by operating activities |
|
|
|
|
Depreciation and amortization |
124,384 |
|
100,106 |
|
Stock-based compensation |
49,691 |
|
29,871 |
|
Provision for bad debt expense |
2,884 |
|
2,605 |
|
Loss on extinguishment of debt |
113 |
|
711 |
|
Impairment expense |
1,990 |
|
— |
|
Deferred income taxes |
(37,490) |
|
22,959 |
|
Amortization of debt discount and issuance costs |
2,010 |
|
2,021 |
|
Other |
86 |
|
— |
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Changes in: |
|
|
|
|
Accounts receivable |
(12,854) |
|
(3,045) |
|
Income tax receivable |
6,437 |
|
2,838 |
|
Prepaid expenses and other current assets |
(4,898) |
|
(4,980) |
|
Deferred costs |
(16,282) |
|
(7,116) |
|
Other long-term assets |
705 |
|
(2,362) |
|
Accounts payable and accrued expenses |
20,824 |
|
10,580 |
|
Deferred revenue |
(3,006) |
|
(1,863) |
|
Operating lease right-of-use assets and lease liabilities |
(1,582) |
|
(1,387) |
|
Net cash provided by operating activities |
248,187 |
|
243,039 |
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Cash flows from investing activities |
|
|
|
|
Purchase of property and equipment and capitalization of internally developed software costs |
(41,359) |
|
(17,069) |
|
Purchase of investment securities |
(368,341) |
|
(206,444) |
|
Proceeds from sale or maturity of investment securities |
149,088 |
|
206,444 |
|
Measurement period adjustments related to prior year acquisition |
2,037 |
|
— |
|
Net cash used in investing activities |
(258,575) |
|
(17,069) |
|
Cash flows from financing activities |
|
|
|
|
Change in aggregated funds liability |
8,265 |
|
1,789 |
|
Repurchase of common stock |
(33,487) |
|
— |
|
Proceeds from issuance of common stock from employee equity plans |
24,628 |
|
22,439 |
|
Proceeds from issuances of debt, net of creditor fees |
19,800 |
|
— |
|
Payments on debt |
(30,646) |
|
(8,751) |
|
Finance lease liabilities paid |
— |
|
(672) |
|
Net cash provided by (used in) financing activities |
(11,440) |
|
14,805 |
|
Increase/(decrease) in cash and cash equivalents during the period |
(21,828) |
|
240,775 |
|
Cash and cash equivalents and restricted cash–beginning of period |
76,809 |
|
204,582 |
|
Cash and cash equivalents and restricted cash–end of period |
$ 54,981 |
|
$ 445,357 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
Interest paid |
$ 62,124 |
|
$ 59,303 |
|
Cash taxes paid (refunds received), net |
58,882 |
|
9,439 |
|
Non-cash investing and financing activities |
|
|
|
|
Fixed asset purchases in accounts payable |
996 |
|
539 |
|
Reconciliation of Balance Sheet Cash Accounts to Cash Flow Statement |
|
|
|
|
Balance sheet |
|
|
|
|
Cash and cash equivalents |
30,820 |
|
421,056 |
|
Restricted cash |
24,161 |
|
24,301 |
|
Total |
54,981 |
|
445,357 |
|
Waystar Reconciliation of Adjusted EBITDA (in thousands) (unaudited) |
||||||||
|
|
||||||||
|
|
|
Three months ended |
|
Nine months ended |
||||
|
($ in thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net income |
|
$ 31,025 |
|
|
|
$ 115,175 |
|
$ 92,101 |
|
Interest expense, net |
|
19,297 |
|
17,515 |
|
59,590 |
|
54,670 |
|
Income tax expense |
|
10,944 |
|
12,069 |
|
43,008 |
|
43,516 |
|
Depreciation and amortization |
|
41,466 |
|
33,300 |
|
124,384 |
|
100,106 |
|
Stock-based compensation expense |
|
24,442 |
|
11,597 |
|
49,691 |
|
29,871 |
|
Acquisition, integration and transaction costs |
|
9,629 |
|
5,313 |
|
13,236 |
|
6,197 |
|
Asset and lease impairments |
|
— |
|
— |
|
1,990 |
|
— |
|
Other (a) |
|
2,499 |
|
2,261 |
|
4,356 |
|
6,540 |
|
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
Revenue |
|
|
|
|
|
|
|
|
|
Net income margin |
|
9.5 % |
|
11.4 % |
|
12.0 % |
|
11.6 % |
|
Adjusted EBITDA margin |
|
42.8 % |
|
42.0 % |
|
42.9 % |
|
41.8 % |
|
|
|
|
(a) |
For the three and nine months ended September 30, 2026, adjustments reflect costs associated with a cybersecurity incident (see Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026) totaling |
|
Waystar Reconciliation of Non-GAAP Operating Expenses (in thousands) (unaudited) |
|||||||
|
|
|||||||
|
|
Three months ended |
|
Nine months ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Cost of revenue (exclusive of depreciation and amortization expenses) |
$ 99,202 |
|
$ 85,136 |
|
$ 293,923 |
|
$ 255,525 |
|
Less Stock-based compensation expense |
(1,072) |
|
(418) |
|
(2,101) |
|
(1,064) |
|
Less Acquisition, integration and transaction costs |
(1,011) |
|
(3) |
|
(3,266) |
|
(3) |
|
Less Other (a) |
(2) |
|
- |
|
(2) |
|
- |
|
Cost of revenue (exclusive of depreciation and amortization expenses), adjusted |
$ 97,117 |
|
$ 84,715 |
|
$ 288,554 |
|
$ 254,458 |
|
|
|
|
|
|
|
|
|
|
Sales and marketing |
51,998 |
|
45,158 |
|
148,207 |
|
128,805 |
|
Add/(Less) Stock-based compensation expense |
(2,520) |
|
(2,392) |
|
(4,867) |
|
(6,198) |
|
Add/(Less) Acquisition, integration and transaction costs |
- |
|
(79) |
|
54 |
|
(79) |
|
Less Other (a) |
(146) |
|
- |
|
(246) |
|
- |
|
Sales and marketing, adjusted |
$ 49,332 |
|
$ 42,687 |
|
$ 143,148 |
|
$ 122,528 |
|
|
|
|
|
|
|
|
|
|
General and administrative |
51,393 |
|
32,422 |
|
118,495 |
|
84,914 |
|
Less Stock-based compensation expense |
(18,182) |
|
(7,218) |
|
(36,499) |
|
(18,418) |
|
Less Acquisition, integration and transaction costs |
(7,681) |
|
(5,119) |
|
(8,878) |
|
(5,778) |
|
Less Asset and lease impairments |
- |
|
- |
|
(1,990) |
|
- |
|
Less Other (a) |
(2,347) |
|
(2,261) |
|
(4,104) |
|
(6,540) |
|
General and administrative, adjusted |
$ 23,183 |
|
$ 17,824 |
|
$ 67,024 |
|
$ 54,178 |
|
|
|
|
|
|
|
|
|
|
Research and development |
20,299 |
|
12,403 |
|
56,390 |
|
36,103 |
|
Less Stock-based compensation expense |
(2,668) |
|
(1,569) |
|
(6,224) |
|
(4,191) |
|
Less Acquisition, integration and transaction costs |
(937) |
|
(112) |
|
(1,146) |
|
(337) |
|
Less Other (a) |
(4) |
|
- |
|
(4) |
|
- |
|
Research and development, adjusted |
$ 16,690 |
|
$ 10,722 |
|
$ 49,016 |
|
$ 31,575 |
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
41,466 |
|
33,300 |
|
124,384 |
|
100,106 |
|
Less Intangible amortization |
(34,474) |
|
(27,851) |
|
(103,421) |
|
(84,081) |
|
Depreciation and amortization, adjusted |
$ 6,992 |
|
$ 5,449 |
|
$ 20,963 |
|
$ 16,025 |
|
|
|
|
|
|
|
|
|
|
Income tax expense |
10,944 |
|
12,069 |
|
43,008 |
|
43,516 |
|
Plus Tax effect of adjustments |
14,919 |
|
9,875 |
|
36,266 |
|
26,605 |
|
Income tax expense, adjusted |
$ 25,863 |
|
$ 21,944 |
|
$ 79,274 |
|
$ 70,121 |
|
|
|
|
(a) |
For the three and nine months ended September 30, 2026, adjustments reflect costs associated with a cybersecurity incident (see Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026) totaling |
|
Waystar Reconciliation of Non-GAAP Net Income (in thousands, except share and per share amounts) (unaudited) |
||||||||
|
|
||||||||
|
|
|
Three months ended |
|
Nine months ended |
||||
|
($ in thousands) |
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net income |
|
$ 31,025 |
|
$ 30,648 |
|
$ 115,175 |
|
$ 92,101 |
|
Stock-based compensation |
|
24,442 |
|
11,597 |
|
49,691 |
|
29,871 |
|
Acquisition, integration and transaction costs |
|
9,629 |
|
5,313 |
|
13,236 |
|
6,197 |
|
Asset and lease impairments |
|
— |
|
— |
|
1,990 |
|
— |
|
Other (a) |
|
2,499 |
|
2,261 |
|
4,356 |
|
6,540 |
|
Intangible amortization |
|
34,474 |
|
27,851 |
|
103,421 |
|
84,081 |
|
Tax effect of adjustments |
|
(14,919) |
|
(9,875) |
|
(36,266) |
|
(26,605) |
|
Non-GAAP net income |
|
$ 87,150 |
|
$ 67,795 |
|
$ 251,603 |
|
$ 192,185 |
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP net income per share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ 0.45 |
|
$ 0.39 |
|
$ 1.31 |
|
$ 1.11 |
|
Diluted |
|
$ 0.44 |
|
$ 0.37 |
|
$ 1.29 |
|
$ 1.06 |
|
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
Basic |
|
191,938,402 |
|
174,352,079 |
|
191,825,646 |
|
173,388,077 |
|
Diluted |
|
195,913,142 |
|
181,240,033 |
|
195,743,104 |
|
181,165,738 |
|
|
|
|
(a) |
For the three and nine months ended September 30, 2026, adjustments reflect costs associated with a cybersecurity incident (see Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026) totaling |
|
Waystar Reconciliation of Unlevered Free Cash Flow (in thousands) (unaudited) |
|||||||
|
|
|
||||||
|
|
Three months ended |
|
Nine months ended |
||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|
Net cash provided by operating activities |
$ 103,863 |
|
$ 82,030 |
|
$ 248,187 |
|
|
|
Interest paid |
20,834 |
|
19,558 |
|
62,124 |
|
59,303 |
|
Purchase of PP&E and capitalization of internally developed software costs |
(9,919) |
|
(5,876) |
|
(41,359) |
|
(17,069) |
|
Unlevered free cash flow |
$ 114,778 |
|
$ 95,712 |
|
$ 268,952 |
|
$ 285,273 |
|
Waystar Reconciliation of Net Debt (in thousands) (unaudited) |
|||
|
|
|||
|
|
September 30, |
||
|
|
2026 |
|
2025 |
|
First lien term loan facility outstanding debt, current |
$ 14,194 |
|
$ 11,668 |
|
First lien term loan facility outstanding debt, net of current portion |
1,356,407 |
|
1,143,127 |
|
Receivables facility outstanding debt |
100,000 |
|
80,000 |
|
Cash and cash equivalents |
(30,820) |
|
(421,056) |
|
Investment securities |
(246,075) |
|
- |
|
Net debt |
$ 1,193,706 |
|
$ 813,739 |
|
|
|
|
|
|
Trailing Twelve Months Adjusted EBITDA |
$ 540,575 |
|
$ 433,154 |
|
|
|
|
|
|
Adjusted gross leverage ratio |
2.7x |
|
2.9x |
|
Adjusted net leverage ratio |
2.2x |
|
1.9x |
|
Waystar Reconciliation of Trailing Twelve Months (TTM) Adjusted EBITDA (in thousands) (unaudited) |
||||||||||
|
|
||||||||||
|
|
Three Months Ended |
|
TTM |
|||||||
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
|
September 30, |
|
Net income |
$ 31,025 |
|
$ 40,867 |
|
$ 43,283 |
|
$ 19,988 |
|
|
$ 135,163 |
|
Interest expense, net |
19,297 |
|
19,646 |
|
20,647 |
|
22,872 |
|
|
82,462 |
|
Income tax expense |
10,944 |
|
15,529 |
|
16,535 |
|
16,158 |
|
|
59,166 |
|
Depreciation and amortization |
41,466 |
|
41,466 |
|
41,452 |
|
40,442 |
|
|
164,826 |
|
Stock-based compensation expense |
24,442 |
|
13,803 |
|
11,446 |
|
12,198 |
|
|
61,889 |
|
Acquisition, integration and transaction costs |
9,629 |
|
1,801 |
|
1,806 |
|
14,877 |
|
|
28,113 |
|
Asset and lease impairments |
- |
|
1,990 |
|
- |
|
- |
|
|
1,990 |
|
Other (a) |
2,499 |
|
1,623 |
|
234 |
|
2,610 |
|
|
6,966 |
|
Adjusted EBITDA |
$ 139,302 |
|
$ 136,725 |
|
$ 135,403 |
|
$ 129,145 |
|
|
$ 540,575 |
|
|
|
(a) Adjustments reflect costs associated with a cybersecurity incident (see Part II, Item 1A of our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026), costs related to amended debt agreements, secondary offering expenses, executive severance and lease-related costs associated with the relocation of our |
Media Contact
Kristin Lee
kristin.lee@waystar.com
Investor Contact
Edward Parker
investors@waystar.com
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SOURCE Waystar
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Waystar's third-quarter 2026 revenue and earnings?
Waystar reported $325.6 million in revenue, up 21% year over year, and $31.0 million in net income. GAAP diluted earnings per share were $0.16, compared with $0.17 a year earlier. Net income margin was 10%.
What is Waystar's full-year 2026 financial guidance?
Waystar expects revenue of $1.277 billion to $1.287 billion for 2026. It also expects adjusted EBITDA of $543 million to $549 million, non-GAAP net income of $322 million to $337 million, and non-GAAP diluted earnings per share of $1.63 to $1.71.
How does Waystar calculate net revenue retention?
Waystar calculates net revenue retention by dividing twelve-month invoices to the same clients at the current period-end by their invoices for the prior twelve-month period. The calculation includes pricing changes, additional purchases, reduced purchases and cancellations. Acquired businesses enter the measure in the ninth quarter after acquisition.