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Waystar

WAY Q2 2025 Earnings

Reported Jul 30, 2025 at 4:04 PM ET · SEC Source

Q2 25 EPS

$0.36

BEAT +6.19%

Est. $0.34

Q2 25 Revenue

$270.7M

BEAT +4.93%

Est. $257.9M

vs S&P Since Q2 25

-61.0%

TRAILING MARKET

WAY -45.7% vs S&P +15.3%

Market Reaction

Did WAY Beat Earnings? Q2 2025 Results

Waystar posted a clean beat across the board in the second quarter, with non-GAAP EPS of $0.36 clearing the $0.34 consensus by 6.19% and revenue of $270.65 million topping estimates by 4.93% on 15.4% year-over-year growth. The healthcare payments sof… Read more Waystar posted a clean beat across the board in the second quarter, with non-GAAP EPS of $0.36 clearing the $0.34 consensus by 6.19% and revenue of $270.65 million topping estimates by 4.93% on 15.4% year-over-year growth. The healthcare payments software company swung to GAAP net income of $32.18 million from a loss of $27.68 million a year ago, a shift driven largely by sharply lower stock-based compensation and meaningful reductions in interest expense following debt paydown that brought net leverage to 2.2x from 3.7x a year earlier. Adjusted EBITDA margin expanded to 41.6% from 40.0%, reflecting the operating leverage the company has been building as subscription revenue grew 17% and volume-based revenue rose 14%. A net revenue retention rate of 115% and a 14% increase in clients generating over $100,000 annually underscored the stickiness of the platform. Management raised full-year 2025 revenue guidance to between $1.03 billion and $1.04 billion, and the pending $1.25 billion acquisition of clinical AI firm Iodine Software signals an intent to push deeper into AI-powered healthcare workflows.

Key Takeaways

  • • 15% year-over-year revenue growth driven by AI-powered innovations and trusted client relationships
  • • Net revenue retention rate of 115%
  • • 1,268 clients contributing over $100,000 in LTM revenue, up 14% year-over-year
  • • Subscription revenue growth of 17% and volume-based revenue growth of 14%
  • • Adjusted EBITDA margin expansion to 41.6% from 40.0% year-over-year
  • • Significant reduction in interest expense following debt reduction
24/7 Wall St

WAY YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

WAY Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 26

“Waystar recorded strong Q2 results, including 15% revenue growth, driven by AI-powered innovations, trusted client relationships, and compelling and real ROI for healthcare providers.”

— Matt Hawkins, Q2 2025 Earnings Press Release

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