Waystar (WAY) Q2 2025 Earnings
How Did WAY Stock React to Q2 2025 Earnings?
S&P 500 over the same 30 days: +1.30%.
Did WAY Beat Earnings? Q2 2025 Results
Yes. Waystar reported Q2 2025 earnings of $0.36 a share on Jul 30, 2025, beating the $0.34 consensus estimate by 6.2%. Revenue was $270.7M against a $257.9M estimate.
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.
- 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
What Was Waystar's Outlook in Q2 2025?
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
| Metric | Q2 2025 | Q2 2024 | Year over year |
|---|---|---|---|
| Revenue | $270.7M | $234.5M | +15.4% |
| Gross Profit | $183.6M | $154.1M | +19.2% |
| Operating Income | $64.8M | $8.2M | +686.5% |
| Net Income | $32.2M | $10.2M | +216.3% |
WAY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.