Did Waystar Holding beat or miss consensus estimates last quarter?

What were the key takeaways from Waystar Holding’s earnings call?

What is the revenue and EPS growth rate for Waystar Holding year over year?

What is Waystar Holding's latest dividend and current dividend yield?

What factors drove the changes in Waystar Holding's revenue and profit?

What were the key takeaways from Waystar Holding's earnings call?

What is Waystar Holding's gross profit margin?

What does Waystar Holding do and what are its main business segments?

- **Revenue Growth**: Q3 revenue up 12% YoY to $269 million, driven by client retention and Iodine acquisition.
- **Iodine Impact**: Expanded TAM by 15% and accelerated product roadmap by 2 years, with $12 million EBITDA contribution in Q4.
- **AI Innovation**: AI-powered solutions reduce denials by 95% and enable 90% faster appeal processing, with 98.5% first-pass clean claims.
- **Financial Strength**: EBITDA margin 42%, free cash flow conversion 85%, and leverage ratio reduced to 1.9x.
- **Guidance Update**: 2025 revenue raised to $1.085–$1.093 billion (+15% YoY), with $30 million Iodine contribution in Q4.
- **Client Confidence**: 93% client confidence and NRR of 113%, reflecting strong retention and expansion.


**【CEO Summary Section】**
- **Revenue Growth and Profitability**: Q3 revenue reached $269 million, up 12% YoY, with adjusted EBITDA margin of 42%. The company outperformed guidance on both metrics.
- **Iodine Acquisition**: Completed acquisition of Iodine Software, expanding total addressable market (TAM) by 15% and adding 150 health systems. Iodine's AI capabilities accelerate Waystar's product roadmap by nearly 2 years.
- **Innovation Highlights**: Introduced AI-powered solutions like Waystar AltitudeAI for denial prevention (reducing time by 95%) and patient cost estimation tools to reduce uncompensated care. Client satisfaction metrics remain strong, with NRR at 113%.
- **Market Recognition**: Named Fast Company's Best Workplaces for Innovators and awarded 2025 Healthcare Company of the Year.

**【CFO Financial Commentary】**
- **Financial Performance**: GAAP revenue $269 million (+12% YoY), adjusted EBITDA $113 million (+17% YoY). Unlevered free cash flow $96 million (85% of EBITDA).
- **Guidance Update**: Raised 2025 full-year revenue to $1.085–$1.093 billion (+15% YoY) and EBITDA to $451–$455 million. Includes $30 million contribution from Iodine in Q4.
- **Leverage and Synergies**: Leverage ratio reduced to 1.9x (from 2.9x at year-start). On track to achieve $15 million cost synergies from Iodine within 18–24 months.
- **Cash Position**: $421 million in cash, with $1.2 billion gross debt post-acquisition.

**【Q&A Highlights】**
- **Iodine Integration**: Cross-sell opportunities with 35–40% client overlap. Iodine's clinical data enhances Waystar's AI for prior authorization and denial recovery (e.g., 90% faster appeal package creation).
- **Patient Utilization Trends**: Third-quarter patient utilization reverted to historical growth rates, impacting volume-based revenue (-4% sequentially).
- **AI Monetization**: Pricing AI solutions to value, with annual price uplift and new SKUs. Internal AI use (e.g., Copilot) improves operational efficiency and developer productivity.
- **Competitive Position**: Differentiated by cloud-native platform, data richness, and 98.5% first-pass clean claim rate. Go-to-market strategy focuses on ROI-driven conversations and long-term client relationships.
- **Cybersecurity and Trust**: Ranked #1 trusted vendor, with 93% client confidence in Waystar as a partner.


Waystar Holding Corp. (WAY) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

WAY

WAY fundamentals

You can ask Aime