Waystar Holding 2025 Q2 Earnings Strong Comeback with 216.3% Net Income Surge

Waystar Holding (WAY) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company exceeded expectations by reversing from a loss to profitability, with earnings per share (EPS) of $0.19 compared to a loss of $0.21 in the same quarter last year. Waystar also raised its full-year revenue and adjusted EBITDA guidance, signaling confidence in its continued growth. The acquisition of Iodine Software is anticipated to enhance financial performance and expand market reach, further solidifying its positive outlook for the future.

Revenue
The total revenue of Waystar Holding increased by 15.4% to $270.65 million in 2025 Q2, up from $234.54 million in 2024 Q2.

Earnings/Net Income
Waystar Holding returned to profitability with EPS of $0.19 in 2025 Q2, reversing from a loss of $0.21 per share in 2024 Q2, marking a 190.5% positive change. The company achieved a remarkable turnaround with net income of $32.18 million, representing a 216.3% positive swing from the net loss of -$27.68 million in 2024 Q2. This EPS growth reflects a strong performance recovery.

Post-Earnings Price Action Review
Following Waystar Holding’s positive earnings report, a historically effective investment strategy has been to purchase shares after a revenue increase and hold them for 30 days. Over the past three years, this approach yielded a 99.26% return, significantly outpacing the benchmark return of 15.43%. This strategy, focusing on Waystar's positive earnings momentum, offered an excess return of 83.83%, underscoring its potential for substantial gains. Despite experiencing a peak-to-trough fluctuation of 39.48%, the strategy had a Sharpe ratio of 2.15, indicating acceptable risk-adjusted returns. However, investors should consider the higher volatility associated with this approach.

CEO Commentary
“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,” said Matt Hawkins, Chief Executive Officer of Waystar. “Our execution and momentum enable us to raise full-year revenue and adjusted EBITDA guidance. Waystar also recently announced an agreement to acquire Iodine Software, a leader in AI-powered clinical intelligence, which we expect will expand our total addressable market, be accretive to our financial profile, and position us to deliver even greater value to clients and shareholders.”

Guidance
As of July 30, 2025, Waystar expects total revenue for the full fiscal year 2025 to be between $1.030 billion and $1.042 billion, adjusted EBITDA to be between $418 million and $426 million, non-GAAP net income to be between $251 million and $257 million, and diluted non-GAAP net income per share to be between $1.36 and $1.40.

Additional News
Waystar Holding recently announced a definitive agreement to acquire Iodine Software for $1.25 billion, aiming to enhance its AI capabilities in healthcare payments. This strategic acquisition is expected to expand Waystar's total addressable market by more than 15% and be immediately accretive to its financial profile. Additionally, Waystar appointed Aashima Gupta and Michael Roman to its Board of Directors, bringing expertise in AI strategy and healthcare transformation. Furthermore, Waystar was recognized as a 2025-2026 Best Company to Work For by U.S. News & World Report, highlighting its culture of innovation and commitment to simplifying healthcare payments.