WAY — Waystar Holding Corp.

Summary of Waystar Holding Corp. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• Q4 Revenue: $304 million, a 24% year-over-year increase; organic growth at 12%.
• Full Year Revenue: $1.1 billion, up 17% year-over-year; organic growth at 13%.
• Adjusted EBITDA: $129 million for Q4, a 29% increase year-over-year, with a margin of 42.5%. Full-year adjusted EBITDA reached $462 million (42% margin).
• Net Revenue Retention (NRR): 112%, with gross revenue retention at 97%.
• Client Growth: Added 85 clients with trailing twelve-month spend above $100,000, totaling 1,391 clients, a 16% year-over-year increase.

2. Strategic Updates and Business Highlights

• Acquisition of Iodine Software: Completed acquisition, adding over 1,000 hospitals and expanding addressable market. Iodine contributed $31 million to Q4 revenue.
• AI Leadership: Waystar Altitude AI prevented over $15 billion in denials and reduced appeal time by 90%. AI-driven solutions accounted for 30% of new bookings.
• Integration Progress: Integration of Iodine is ahead of schedule, with expectations to realize over 90% of committed cost synergies in fiscal 2026.
• Product Innovations: Launched new AI capabilities aimed at enhancing revenue cycle automation and improving operational efficiencies.

3. Forward Guidance and Outlook

• 2026 Revenue Guidance: Expected between $1.274 billion and $1.294 billion, representing 17% year-over-year growth. Normalized organic growth anticipated at approximately 10%.
• Adjusted EBITDA Guidance: Projected between $530 million and $540 million, with a margin of approximately 42%.
• Sales Pipeline: Entering 2026 with a robust sales pipeline and the largest implementation backlog in company history, indicating strong customer confidence.

4. Bad News, Challenges, or Points of Concern

• Integration Costs: Increased G&A, R&D, and D&A expenses due to the Iodine acquisition, which may impact margins in the short term.
• Market Competition: Concerns about competition from EHR vendors and new entrants in the AI space, although Waystar maintains strong win rates.
• Patient Payment Dynamics: Seasonal fluctuations in patient payment solutions revenue, particularly expected lower performance in Q3 due to high deductible health plans impacting patient volumes.

5. Notable Q&A Insights

• AI Adoption: Clients prefer integrated AI solutions within existing systems rather than standalone tools. Waystar's established history in deploying AI enhances client trust.
• Market Trends: There is a growing interest in AI across healthcare, with clients looking for comprehensive platform solutions rather than point solutions.
• Utilization of Healthcare Services: Management expects healthy patient utilization to continue, which is critical for revenue growth.
• Long-term Strategy: Waystar is exploring performance-based pricing models and is focused on maintaining a competitive edge through innovation and strategic partnerships, particularly with Google Cloud.

Overall, Waystar Holding Corp. demonstrated strong financial performance in Q4 2025, driven by strategic acquisitions and a robust AI offering, while navigating challenges related to integration costs and competitive pressures in the healthcare technology landscape.