Waystar (WAY) grows Q1 2026 revenue 22% with 43% EBITDA margin
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Waystar Holding Corp. reported strong first quarter 2026 results, highlighted by revenue of $313.9 million, up 22% year-over-year. Net income was $43.3 million, or $0.22 per diluted share, with a net income margin of 14%.
Non-GAAP net income reached $81.2 million, or $0.42 per diluted share, and adjusted EBITDA was $135.4 million, delivering a robust 43% adjusted EBITDA margin. Operating cash flow was $84.9 million, and unlevered free cash flow was $90.3 million, showing solid cash generation.
The company ended the quarter with $5.84 billion in total assets and reported a trailing twelve months adjusted EBITDA of $489.8 million. For full-year 2026, Waystar guided total revenue to $1.274–$1.294 billion, adjusted EBITDA to $530–$540 million, and non-GAAP net income to $317–$335 million.
Positive
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Negative
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Insights
Waystar posted 22% Q1 revenue growth with strong margins and raised-scale 2026 outlook.
Waystar delivered Q1 2026 revenue of $313.9M, up 22% year-over-year, driven by healthcare payment software demand. Adjusted EBITDA was $135.4M, a 43% margin, indicating high operating efficiency despite ongoing investment in sales, R&D, and integration activities.
Non-GAAP net income of $81.2M and unlevered free cash flow of $90.3M show strong profitability and cash generation. Net revenue retention of 111% and 1,433 clients above $100,000 in trailing revenue underscore traction with larger customers and expansion within the existing base.
Full-year 2026 guidance calls for total revenue of $1.274–$1.294B, adjusted EBITDA of $530–$540M, and non-GAAP net income of $317–$335M. These targets, together with trailing twelve months adjusted EBITDA of $489.8M and an adjusted net leverage ratio of 2.7x, frame the company’s capacity to balance growth investments and balance sheet management.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 revenue: $313.9M
Q1 2026 net income: $43.3M
Q1 2026 adjusted EBITDA: $135.4M
+5 more
8 metrics
Q1 2026 revenue
$313.9M
Three months ended March 31, 2026; up 22% year-over-year
Q1 2026 net income
$43.3M
Three months ended March 31, 2026; net income margin 14%
Q1 2026 adjusted EBITDA
$135.4M
Three months ended March 31, 2026; adjusted EBITDA margin 43%
Non-GAAP net income Q1 2026
$81.2M
Non-GAAP net income; diluted non-GAAP EPS $0.42
Operating cash flow Q1 2026
$84.9M
Net cash provided by operating activities for Q1 2026
Unlevered free cash flow Q1 2026
$90.3M
Three months ended March 31, 2026
Full-year 2026 revenue guidance
$1.274–$1.294B
Total revenue outlook as of April 29, 2026
Net revenue retention rate
111%
Net revenue retention rate for the period reported
Key Terms
Adjusted EBITDA, Non-GAAP net income, Unlevered free cash flow, Net revenue retention rate, +2 more
6 terms
Adjusted EBITDA financial
"Adjusted EBITDA of $135.4 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 $81.2 million and non-GAAP net income per diluted share of $0.42"
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 $84.9 million and unlevered free cash flow of $90.3 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 111%"
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.
Adjusted net leverage ratio financial
"Adjusted Net leverage ratio 2.7x"
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.
Trailing Twelve Months Adjusted EBITDA financial
"Trailing Twelve Months Adjusted EBITDA 489,803"
Trailing twelve months adjusted EBITDA measures a company’s core operating profit over the most recent 12 months, before interest, taxes, depreciation and amortization, and after removing one-time or irregular items so the number reflects recurring results. Investors use it like a rolling meter of underlying cash-earning power—helpful for comparing performance across companies or time by isolating ongoing business strength from temporary gains or losses.
Earnings Snapshot
Revenue: $313.9M · Guidance included
Q1 2026
Revenue
$313.9M
+22% YoY
Net income
$43.3M
Adjusted EBITDA
$135.4M
Non-GAAP net income
$81.2M
Guidance
For full-year 2026, Waystar expects total revenue of $1.274–$1.294 billion, adjusted EBITDA of $530–$540 million, and non-GAAP net income of $317–$335 million.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 29, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (844 ) 492-9782
Not applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Item 2.02 Results of Operations and Financial Condition.
On April 29, 2026, Waystar Holding Corp. (the “Company”) issued a press release announcing earnings and other financial results for the fiscal quarter ended March 31, 2026. A copy of the press release is attached hereto as Exhibit 99.1 and incorporated herein by reference.
The information in this Item 2.02, including the corresponding Exhibit 99.1, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section and shall not be deemed to be incorporated by reference into any filings under Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| Exhibit No. | Description | |||||||
99.1 | Waystar Holding Corp. Press Release, dated April 29, 2026 | |||||||
| 104 | Cover Page Interactive Data File (embedded within Inline XBRL document) | |||||||
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed by the undersigned hereunto duly authorized.
Date: | Waystar Holding Corp. | |||||||
| By: | /s/ Gregory R. Packer | |||||||
| Name: | Gregory R. Packer | |||||||
| Title: | Chief Legal Officer | |||||||
Waystar Reports First Quarter 2026 Results
Q1 revenue of $313.9M, up 22% YoY | ||
Q1 net income of $43.3M and non-GAAP net income of $81.2M | ||
Q1 net income margin of 14%; adjusted EBITDA margin of 43% | ||
LEHI, Utah and LOUISVILLE, Ky., April 29, 2026 — Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today reported results for the first quarter ended March 31, 2026.
"Waystar delivered a solid first quarter, driven by strong execution and continued expansion across our platform," said Matt Hawkins, Chief Executive Officer of Waystar. "We advanced the Iodine integration, launched new innovations such as our AI-powered recoupment solution, and saw bookings come in ahead of our internal expectations, reinforcing our confidence as providers increasingly standardize on Waystar."
First Quarter 2026 Financial Highlights
•Revenue of $313.9 million, up 22% year-over-year
•Net income of $43.3 million, GAAP net income per diluted share of $0.22, and net income margin of 14%
•Non-GAAP net income of $81.2 million and non-GAAP net income per diluted share of $0.42
•Adjusted EBITDA of $135.4 million and adjusted EBITDA margin of 43%
•Cash flow from operations of $84.9 million and unlevered free cash flow of $90.3 million
| Key Performance Metrics and Revenue Disaggregation | ||
•1,433 clients contributed over $100,000 in LTM revenue, up 15% year-over-year | ||
•Net revenue retention rate (NRR) of 111% | ||
•First quarter 2026 subscription revenue of $172.2 million, up 38% year-over-year | ||
•First quarter 2026 volume-based revenue of $139.5 million, up 7% year-over-year | ||
Financial Outlook
As of April 29, 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 4:30 p.m. Eastern Daylight Time today, April 29, 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 furnished April 29, 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
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.
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 uses non-GAAP net income and non-GAAP net income per share to evaluate our core operating profitability on an after-tax basis exclusive of certain non-cash and non-recurring items, and to facilitate comparison with peer companies that may have different capital structures, acquisition histories, or tax profiles. Management uses unlevered free cash flow to evaluate cash generation from our core business operations independent of our capital structure. 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 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 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; 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 the 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 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.
Waystar Holding Corp.
Unaudited Consolidated Statements of Operations
(in thousands, except for share and per share data)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Revenue | 313,874 | 256,435 | |||||||||
| Operating expenses | |||||||||||
| Cost of revenue (exclusive of depreciation and amortization expenses) | 97,035 | 83,345 | |||||||||
| Sales and marketing | 45,830 | 40,123 | |||||||||
| General and administrative | 30,724 | 23,300 | |||||||||
| Research and development | 18,368 | 11,078 | |||||||||
| Depreciation and amortization | 41,452 | 33,380 | |||||||||
| Total operating expenses | 233,409 | 191,226 | |||||||||
| Income from operations | 80,465 | 65,209 | |||||||||
| Other expense | |||||||||||
| Interest expense, net | (19,714) | (18,257) | |||||||||
| Related party interest expense | (933) | (643) | |||||||||
| Income before income taxes | 59,818 | 46,309 | |||||||||
| Income tax expense/(benefit) | 16,535 | 17,040 | |||||||||
| Net income | 43,283 | 29,269 | |||||||||
| Net income per share: | |||||||||||
| Basic | 0.23 | 0.17 | |||||||||
| Diluted | 0.22 | 0.16 | |||||||||
| Weighted-average shares outstanding: | |||||||||||
| Basic | 191,666,913 | 172,188,237 | |||||||||
| Diluted | 195,155,126 | 180,691,994 | |||||||||
Waystar Holding Corp.
Unaudited Consolidated Balance Sheets
(in thousands, except for share and per share data)
| March 31, 2026 | December 31, 2025 | ||||||||||
| Assets | |||||||||||
| Current assets | |||||||||||
| Cash and cash equivalents | $ | 34,337 | $ | 61,355 | |||||||
| Restricted cash | 28,363 | 15,454 | |||||||||
| Investment securities | 124,593 | 24,877 | |||||||||
Accounts receivable, net of allowance of $6,614 at March 31, 2026 and $6,170 at December 31, 2025 | 172,532 | 177,037 | |||||||||
| Income tax receivable | — | 6,437 | |||||||||
| Prepaid expenses | 23,461 | 20,078 | |||||||||
| Other current assets | 3,326 | 3,174 | |||||||||
| Total current assets | 386,612 | 308,412 | |||||||||
| Property, plant and equipment, net | 60,862 | 51,649 | |||||||||
| Operating lease right-of-use assets, net | 11,870 | 12,972 | |||||||||
| Intangible assets, net | 1,258,365 | 1,292,839 | |||||||||
| Goodwill | 4,014,781 | 4,016,818 | |||||||||
| Deferred costs | 98,414 | 93,951 | |||||||||
| Other long-term assets | 8,089 | 8,459 | |||||||||
| Total assets | $ | 5,838,993 | $ | 5,785,100 | |||||||
| Liabilities and stockholders’ equity | |||||||||||
| Current liabilities | |||||||||||
| Accounts payable | $ | 58,799 | $ | 50,949 | |||||||
| Accrued compensation | 17,799 | 40,942 | |||||||||
| Aggregated funds payable | 29,911 | 15,104 | |||||||||
| Other accrued expenses | 28,975 | 22,990 | |||||||||
| Deferred revenue | 64,680 | 67,855 | |||||||||
| Current portion of long-term debt | 13,493 | 13,537 | |||||||||
| Related party current portion of long-term debt | 701 | 657 | |||||||||
| Current portion of operating lease liabilities | 5,602 | 6,029 | |||||||||
| Total current liabilities | 219,960 | 218,063 | |||||||||
| Long-term liabilities | |||||||||||
| Deferred tax liability | 209,721 | 211,320 | |||||||||
| Long-term debt, net, less current portion | 1,388,238 | 1,394,523 | |||||||||
| Related party long-term debt, net, less current portion | 67,343 | 64,186 | |||||||||
| Operating lease liabilities, net of current portion | 10,852 | 11,994 | |||||||||
| Deferred revenue - long-term | 5,164 | 5,496 | |||||||||
| Other long-term liabilities | 277 | 692 | |||||||||
| Total liabilities | 1,901,555 | 1,906,274 | |||||||||
| Commitments and contingencies (Note 20) | |||||||||||
| Stockholders’ equity | |||||||||||
Preferred stock $0.01 par value - 100,000,000 shares authorized as of March 31, 2026 and December 31, 2025, respectively; zero shares issued or outstanding as of March 31, 2026 and December 31, 2025, respectively | — | — | |||||||||
Common stock $0.01 par value - 2,500,000,000 shares authorized at March 31, 2026 and December 31, 2025, respectively; 191,685,290 and 191,587,193 shares issued and outstanding at March 31, 2026 and December 31, 2025, respectively | 1,917 | 1,916 | |||||||||
| Additional paid-in capital | 4,000,203 | 3,986,353 | |||||||||
| Accumulated other comprehensive income (loss) | 846 | (632) | |||||||||
| Accumulated deficit | (65,528) | (108,811) | |||||||||
| Total stockholders’ equity | 3,937,438 | 3,878,826 | |||||||||
| Total liabilities and stockholders’ equity | $ | 5,838,993 | $ | 5,785,100 | |||||||
Waystar
Unaudited Consolidated Statements of Cash Flows
(in thousands)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cash flows from operating activities | |||||||||||
| Net income | $ | 43,283 | $ | 29,269 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||
| Depreciation and amortization | 41,452 | 33,380 | |||||||||
| Stock-based compensation | 11,446 | 6,744 | |||||||||
| Provision for bad debt expense | 1,267 | 1,255 | |||||||||
| Loss on extinguishment of debt | 113 | — | |||||||||
| Deferred income taxes | (2,104) | 4,569 | |||||||||
| Amortization of debt discount and issuance costs | 661 | 667 | |||||||||
| Changes in: | |||||||||||
| Accounts receivable | 3,237 | (3,284) | |||||||||
| Income tax refundable | 6,437 | 2,838 | |||||||||
| Prepaid expenses and other current assets | (3,176) | (1,460) | |||||||||
| Deferred costs | (4,346) | (2,222) | |||||||||
| Other long-term assets | 284 | 324 | |||||||||
| Accounts payable and accrued expenses | (9,667) | (8,130) | |||||||||
| Deferred revenue | (3,507) | 775 | |||||||||
| Operating lease right-of-use assets and lease liabilities | (467) | (476) | |||||||||
| Net cash provided by operating activities | 84,913 | 64,249 | |||||||||
| Cash flows from investing activities | |||||||||||
| Purchase of property and equipment and capitalization of internally developed software costs | (15,327) | (5,426) | |||||||||
| Purchase of investment securities | (124,195) | (24,431) | |||||||||
| Proceeds from sale or maturity of investment securities | 25,000 | — | |||||||||
| Measurement period adjustments related to prior year acquisition | 2,037 | — | |||||||||
| Net cash used in investing activities | (112,485) | (29,857) | |||||||||
| Cash flows from financing activities | |||||||||||
| Change in aggregated funds liability | 14,807 | 3,194 | |||||||||
| Proceeds from issuance of common stock from employee equity plans | 2,405 | 10,686 | |||||||||
| Proceeds from issuances of debt, net of creditor fees | 19,800 | — | |||||||||
| Payments on debt | (23,549) | (2,917) | |||||||||
| Finance lease liabilities paid | — | (219) | |||||||||
| Net cash provided by financing activities | 13,463 | 10,744 | |||||||||
| Increase/(decrease) in cash and cash equivalents during the period | (14,109) | 45,136 | |||||||||
| Cash and cash equivalents and restricted cash–beginning of period | 76,809 | 204,582 | |||||||||
| Cash and cash equivalents and restricted cash–end of period | $ | 62,700 | $ | 249,718 | |||||||
| Supplemental disclosures of cash flow information | |||||||||||
| Interest paid | $ | 20,680 | $ | 19,960 | |||||||
| Cash taxes paid (refunds received), net | 154 | 532 | |||||||||
| Non-cash investing and financing activities | |||||||||||
| Fixed asset purchases in accounts payable | 1,076 | 56 | |||||||||
| Reconciliation of Balance Sheet Cash Accounts to Cash Flow Statement | |||||||||||
| Balance sheet | |||||||||||
| Cash and cash equivalents | 34,337 | 223,995 | |||||||||
| Restricted cash | 28,363 | 25,723 | |||||||||
| Total | 62,700 | 249,718 | |||||||||
Waystar
Reconciliation of Adjusted EBITDA
(in thousands)
(unaudited)
| Three months ended March 31, | ||||||||||||||
| ($ in thousands) | 2026 | 2025 | ||||||||||||
| Net income | $ | 43,283 | $ | 29,269 | ||||||||||
| Interest expense, net | 20,647 | 18,900 | ||||||||||||
| Income tax expense | 16,535 | 17,040 | ||||||||||||
| Depreciation and amortization | 41,452 | 33,380 | ||||||||||||
| Stock-based compensation expense | 11,446 | 6,744 | ||||||||||||
| Acquisition and integration costs | 1,806 | 229 | ||||||||||||
| Costs related to amended debt agreements | 227 | — | ||||||||||||
| IPO and Secondary Offering related expenses | 7 | 1,430 | ||||||||||||
| Other (a) | — | 754 | ||||||||||||
| Adjusted EBITDA | $ | 135,403 | $ | 107,746 | ||||||||||
| Revenue | $ | 313,874 | $ | 256,435 | ||||||||||
| Net income margin | 13.8 | % | 11.4 | % | ||||||||||
| Adjusted EBITDA margin | 43.1 | % | 42.0 | % | ||||||||||
(a)Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.2 million and executive severance $0.5 million, respectively, for the three months ended March 31, 2025.
Waystar
Reconciliation of Non-GAAP Operating Expenses
(in thousands)
(unaudited)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Cost of revenue (exclusive of depreciation and amortization expenses) | 97,035 | 83,345 | |||||||||
| Less Stock-based compensation expense | (435) | (231) | |||||||||
| Less Acquisition and integration costs | (1,145) | - | |||||||||
| Cost of revenue (exclusive of depreciation and amortization expenses), adjusted | 95,455 | 83,114 | |||||||||
| Sales and marketing | 45,830 | 40,123 | |||||||||
| Add/(Less) Stock-based compensation expense | 391 | (1,392) | |||||||||
| Add/(Less) Acquisition and integration costs | 33 | - | |||||||||
| Sales and marketing, adjusted | 46,254 | 38,731 | |||||||||
| General and administrative | 30,724 | 23,300 | |||||||||
| Less Stock-based compensation expense | (8,752) | (4,106) | |||||||||
| Less Acquisition and integration costs | (538) | (107) | |||||||||
| Less Costs related to amended debt agreements | (227) | - | |||||||||
| Less IPO and Secondary Offering expenses | (7) | (1,430) | |||||||||
| Less Other (a) | - | (754) | |||||||||
| General and administrative, adjusted | 21,200 | 16,903 | |||||||||
| Research and development | 18,368 | 11,078 | |||||||||
| Less Stock-based compensation expense | (2,650) | (1,015) | |||||||||
| Less Acquisition and integration costs | (156) | (122) | |||||||||
| Research and development, adjusted | 15,562 | 9,941 | |||||||||
| Depreciation and amortization | 41,452 | 33,380 | |||||||||
| Less Intangible amortization | (34,474) | (28,115) | |||||||||
| Depreciation and amortization, adjusted | 6,978 | 5,265 | |||||||||
| Income tax expense | 16,535 | 17,040 | |||||||||
| Plus Tax effect of adjustments | 10,072 | 7,827 | |||||||||
| Income tax expense, adjusted | 26,607 | 24,867 | |||||||||
(a)Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.2 million and executive severance $0.5 million, respectively, for the three months ended March 31, 2025.
Waystar
Reconciliation of Non-GAAP Net Income
(in thousands, except share and per share amounts)
(unaudited)
| Three months ended March 31, | ||||||||||||||
| ($ in thousands) | 2026 | 2025 | ||||||||||||
| Net income | $ | 43,283 | $ | 29,269 | ||||||||||
| Stock based compensation | 11,446 | 6,744 | ||||||||||||
| Acquisition and integration costs | 1,806 | 229 | ||||||||||||
| Costs related to amended debt agreements | 227 | — | ||||||||||||
| IPO and Secondary Offering related expenses | 7 | 1,430 | ||||||||||||
| Other (a) | — | 754 | ||||||||||||
| Intangible amortization | 34,474 | 28,115 | ||||||||||||
| Tax effect of adjustments | (10,072) | (7,827) | ||||||||||||
| Non-GAAP net income | $ | 81,171 | $ | 58,714 | ||||||||||
| Non-GAAP net income per share: | ||||||||||||||
| Basic | $ | 0.42 | $ | 0.34 | ||||||||||
| Diluted | $ | 0.42 | $ | 0.32 | ||||||||||
| Weighted-average shares outstanding: | ||||||||||||||
| Basic | 191,666,913 | 172,188,237 | ||||||||||||
| Diluted | 195,155,126 | 180,691,994 | ||||||||||||
(a)Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.2 million and executive severance $0.5 million, respectively, for the three months ended March 31, 2025.
Waystar
Reconciliation of Unlevered Free Cash Flow
(in thousands)
(unaudited)
| Three months ended March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net cash provided by operating activities | 84,913 | 64,249 | |||||||||
| Interest paid | 20,680 | 19,960 | |||||||||
| Purchase of PP&E and capitalization of internally developed software costs | (15,327) | (5,426) | |||||||||
| Unlevered free cash flow | 90,266 | 78,783 | |||||||||
Waystar
Reconciliation of Net Debt
(in thousands)
(unaudited)
| March 31, | |||||||||||
| 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 | 1,363,504 | 1,148,960 | |||||||||
| Receivables facility outstanding debt | 100,000 | 80,000 | |||||||||
| Cash and cash equivalents | (34,337) | (223,995) | |||||||||
| Investment securities | (124,593) | (24,419) | |||||||||
| Net debt | 1,318,768 | 992,214 | |||||||||
| Trailing Twelve Months Adjusted EBITDA | 489,803 | 398,481 | |||||||||
| Adjusted Gross leverage ratio | 3.0x | 3.1x | |||||||||
| Adjusted Net leverage ratio | 2.7x | 2.5x | |||||||||
Waystar
Reconciliation of Trailing Twelve Months (TTM) Adjusted EBITDA
(in thousands)
(unaudited)
| Three Months Ended | TTM | ||||||||||||||||||||||||||||
| March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2026 | |||||||||||||||||||||||||
| Net income | 43,283 | 19,988 | 30,648 | 32,184 | 126,103 | ||||||||||||||||||||||||
| Interest expense, net | 20,647 | 22,872 | 17,515 | 18,255 | 79,289 | ||||||||||||||||||||||||
| Income tax expense | 16,535 | 16,158 | 12,069 | 14,407 | 59,169 | ||||||||||||||||||||||||
| Depreciation and amortization | 41,452 | 40,442 | 33,300 | 33,426 | 148,620 | ||||||||||||||||||||||||
| Stock-based compensation expense | 11,446 | 12,198 | 11,597 | 11,530 | 46,771 | ||||||||||||||||||||||||
| Acquisition and integration costs | 1,806 | 14,877 | 5,313 | 655 | 22,651 | ||||||||||||||||||||||||
| Costs related to amended debt agreements | 227 | 1,931 | 649 | - | 2,807 | ||||||||||||||||||||||||
| IPO and Secondary Offering expenses | 7 | 86 | 1,372 | 1,769 | 3,234 | ||||||||||||||||||||||||
| Other (a) | - | 593 | 240 | 326 | 1,159 | ||||||||||||||||||||||||
| Adjusted EBITDA | 135,403 | 129,145 | 112,703 | 112,552 | 489,803 | ||||||||||||||||||||||||
(a) Adjustments relate to additional lease costs due to the relocation of our Louisville office and executive severance.
Media Contact
Kristin Lee
kristin.lee@waystar.com
Investor Contact
investors@waystar.com
FAQ
How did Waystar (WAY) perform financially in Q1 2026?
Waystar reported Q1 2026 revenue of $313.9 million, up 22% year-over-year. Net income was $43.3 million, or $0.22 per diluted share, while adjusted EBITDA reached $135.4 million, delivering a strong 43% adjusted EBITDA margin.
What were Waystar’s key profitability metrics for Q1 2026?
Waystar posted a 14% GAAP net income margin and a 43% adjusted EBITDA margin in Q1 2026. Non-GAAP net income was $81.2 million, or $0.42 per diluted share, reflecting higher profitability after excluding stock-based compensation and other adjustments.
What full-year 2026 guidance did Waystar (WAY) provide?
For full-year 2026, Waystar expects total revenue between $1.274 billion and $1.294 billion. The company also guides adjusted EBITDA to $530–$540 million and non-GAAP net income to $317–$335 million, with diluted non-GAAP EPS of $1.59–$1.68.
How strong is Waystar’s customer and revenue retention in Q1 2026?
Waystar reported 1,433 clients contributing over $100,000 in trailing twelve-month revenue, up 15% year-over-year. Its net revenue retention rate was 111%, indicating that existing customers, on average, increased their spend compared with the prior twelve-month period.
What were Waystar’s main revenue streams in Q1 2026?
In Q1 2026, Waystar generated $172.2 million of subscription revenue, up 38% year-over-year, and $139.5 million of volume-based revenue, up 7%. This mix shows faster growth in recurring subscription revenue alongside continued contributions from transaction-driven revenue.
How much cash flow did Waystar (WAY) generate in Q1 2026?
Waystar produced $84.9 million in cash flow from operations and $90.3 million in unlevered free cash flow in Q1 2026. These figures highlight strong cash generation after factoring in interest and capital expenditures on property, equipment, and internally developed software.
What is Waystar’s leverage position based on the latest results?
At March 31, 2026, Waystar reported net debt of $1.32 billion and trailing twelve months adjusted EBITDA of $489.8 million. This translates to an adjusted net leverage ratio of 2.7x, reflecting moderate leverage relative to its adjusted earnings base.