Companies /Healthcare

Waystar Holding Corp. Common Stock

NASDAQ: WAY Health Information Services
$25.38
â–² $1.21 (+5.01%) today
Markets open · 3:01pm ET

Q2 2025 Earnings

Reported Jul 30, 2025, 4:04pm ET · SEC source
$0.36
Beat +6.19%
EPS · est. $0.34
$270.7M
Beat +4.93%
Revenue · est. $257.9M
−1.1%
Trailing market
WAY vs S&P since report
2 quarters
Consecutive EPS beats

Market Reaction

% change · around the report
−4%0+4%+8%Jul 30Jul 31report 4:04pm ETearnings−0.4%+3.5%
−4%0+4%+8%Jul 30Jul 31earnings−0.4%+3.5%
WAY +3.5%S&P 500 −0.4%
−4%0+4%+8%Jul 30Jul 31report 4:04pm ETearnings−0.5%+3.5%
−4%0+4%+8%Jul 30Jul 31earnings−0.5%+3.5%
WAY +3.5%NASDAQ −0.5%
−8%−4%0+4%Jul 29Aug 7report 4:04pm ETearnings−0.7%−8.8%
−8%−4%0+4%Jul 29Aug 7earnings−0.7%−8.8%
WAY −8.8%S&P 500 −0.7%
−8%−4%0+4%Jul 29Aug 7report 4:04pm ETearnings−0.4%−8.8%
−8%−4%0+4%Jul 29Aug 7earnings−0.4%−8.8%
WAY −8.8%NASDAQ −0.4%
+3.76%
Day of report
−3.76%
Next session
−8.30%
One week
+0.16%
30 days

S&P 500 over the same 30 days: +1.30%.

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 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

“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.”

Waystar CEO, on the earnings call

Forward Guidance & Outlook

For full fiscal year 2025 (excluding the pending Iodine Software acquisition), Waystar raised guidance: total revenue is expected between $1.030 billion and $1.042 billion; adjusted EBITDA between $418 million and $426 million; non-GAAP net income between $251 million and $257 million; and diluted non-GAAP net income per share between $1.36 and $1.40.

WAY YoY Financials

Q2 2025 vs Q2 2024 · SEC filings Q2 2024 Q2 2025
$0$80.0M$160.0M$240.0M$234.5M$270.7MRevenue$154.1M$183.6MGross Profit$8.2M$64.8MOperating Income$10.2M$32.2MNet Income
$0$80.0M$160.0M$240.0MRevenueGross ProfitOperating IncomeNet Income

WAY Revenue by Segment

Subscription Revenue$131.1M+17.0%
Volume-Based Revenue$138.3M+14.0%

Figures from SEC filings and company reports. Not investment advice.