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Waystar Reports Second Quarter 2025 Results

By PR Newswire | July 30, 2025, 4:05 PM

Q2 revenue growth of 15% year-over-year

Q2 net income of $32.2 million and non-GAAP net income of $65.7 million

Q2 net income margin of 12%; adjusted EBITDA margin of 42%

Raising revenue and adjusted EBITDA guidance for 2025

LEHI, Utah and LOUISVILLE, Ky., July 30, 2025 /PRNewswire/ -- Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today reported results for the second quarter ended June 30, 2025.

"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."

Second Quarter 2025 Financial Highlights

  • Revenue of $270.7 million, up 15% year-over-year
  • Net income of $32.2 million, GAAP net income per diluted share of $0.18, and net income margin of 12%
  • Non-GAAP net income of $65.7 million and non-GAAP net income per diluted share of $0.36
  • Adjusted EBITDA of $112.6 million and adjusted EBITDA margin of 42%
  • Cash flow from operations of $97 million and unlevered free cash flow of $111 million

Key Metrics and Revenue Disaggregation

  • 1,268 clients contributed over $100,000 in LTM revenue, up 14% year-over-year
  • Net revenue retention rate (NRR) of 115%
  • Subscription revenue of $131.1 million, up 17% year-over-year
  • Volume-based revenue of $138.3 million, up 14% year-over-year

Financial Outlook

As of July 30, 2025, Waystar provides the following guidance for its full fiscal year 2025.[1]

  • Total revenue is expected to be between $1.030 billion and $1.042 billion
  • Adjusted EBITDA is expected to be between $418 million and $426 million
  • Non-GAAP net income is expected to be between $251 million and $257 million
  • Diluted non-GAAP net income per share is expected to be between $1.36 and $1.40

Webcast Information

Waystar's financial results will be discussed on a conference call scheduled at 4:30 p.m. Eastern Daylight Time today, July 30, 2025. A live audio conference call will be available on Waystar's website at https://investors.waystar.com/news-events/events. The webcast will be archived on the site for those unable to listen in real time. This earnings release and the related Current Report on Form 8-K filed July 30, 2025, can be accessed on the Investor Relations page of the company's website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases, U.S. Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts.

Non-GAAP Financial Measures

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures as defined below. We present non-GAAP financial measures as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses adjusted EBITDA and adjusted EBITDA margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.

Adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) or net income (loss) margin as measures of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management's discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. A reconciliation is provided below for our non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

The following non-GAAP financial measures and key performance metrics are defined below:

Adjusted EBITDA and adjusted EBITDA Margin

We define adjusted EBITDA as net income / (loss) before interest expense, net, income tax expense / (benefit), depreciation and amortization, and as further adjusted for stock-based compensation expense, acquisition and integration costs, asset and lease impairments, costs related to amended debt agreements and IPO and secondary offering costs. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Non-GAAP Net Income / (loss) and Non-GAAP Net Income / (loss) Per Share

We define non-GAAP net income as GAAP net income / (loss) excluding the impact of stock-based compensation, acquisition and integration costs, asset and lease impairments, costs related to our IPO, and the Secondary Offering, and costs related to amended debt agreements and amortization of intangibles. The tax effects of the adjustments are calculated using a management estimated annual effective non-GAAP tax rate of 21%, which is based on our statutory federal tax rate and provides consistency across interim reporting periods by eliminating the effects of non-recurring and period specific items. Due to the differences in the tax treatment of items excluded from non-GAAP net income, our estimate tax rate on non-GAAP net income may differ from our GAAP tax rate. Non-GAAP net income per share is shown on both a basic and diluted basis and is defined as non-GAAP net income divided by the basic or diluted weighted-average shares, respectively.

Unlevered Free Cash Flow

We define unlevered free cash flow as cash from operations plus cash interest paid less capital expenses.

Net Debt

We define net debt as the sum of the current portion of long-term debt, long-term debt, and accounts receivable securitization less cash and equivalents and investment securities.

Adjusted Net Leverage Ratio

We define adjusted net leverage ratio as net debt divided by adjusted EBITDA over the preceding twelve months.

Key Performance Metrics

Net Revenue Retention Rate

Our Net Revenue Retention Rate compares twelve months of client invoices for our solutions at two period end dates. To calculate our Net Revenue Retention Rate, we first accumulate the total amount invoiced during the twelve months ending with the prior period-end or Prior Period Invoices. We then calculate the total amount invoiced to those same clients for the twelve months ending with the current period-end, or Current Period Invoices. Current Period Invoices are inclusive of upsell, downsell, pricing changes, clients that cancel or chose not to renew, and discontinued solutions with continuing clients. The Net Revenue Retention Rate is then calculated by dividing the Current Period Invoices by the Prior Period Invoices. Our total invoices included in the analysis are greater than 98% of reported revenue. We use Net Revenue Retention Rate to evaluate our ongoing operations and for internal planning and forecasting purposes. Acquired businesses are included in the last-twelve-month Net Revenue Retention Rate in the ninth quarter after acquisition, which is the earliest point that comparable post-acquisition invoices are available for both the current and prior twelve-month period.

Customer Count with >$100,000 of Revenue

We regularly monitor and review our count of clients who generate more than $100,000 of revenue.

Our count of clients who generate more than $100,000 of revenue is based on an accumulation of the amounts invoiced to clients over the preceding twelve months. The invoices for acquired clients are included starting in the first full calendar quarter after the date of acquisition.

Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, statements regarding Waystar's expectations relating to future operating results and financial position, including full year 2025, and future periods; the performance of our new product offerings; our industry and market opportunities, business strategy, goals, and expectations concerning our market position, future operations, margins and profitability, capital expenditures, liquidity, and capital resources and other financial and operating information. Forward-looking statements include all statements that are not historical facts. These statements may include words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," "outlook," the negative version of these words or similar terms and phrases to identify forward-looking statements in this press release, including the discussion of outlook for full fiscal year 2025.

The forward-looking statements contained in this press release are based on management's current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will result or be achieved. The following factors are among those that may cause actual results to differ materially from the forward-looking statements: our operation in a highly competitive industry; our ability to retain our existing clients and attract new clients; our ability to successfully execute on our business strategies in order to grow; our ability to accurately assess the risks related to acquisitions and successfully integrate acquired businesses (including the previously announced acquisition of Iodine Software); our ability to establish and maintain strategic relationships; the growth and success of our clients and overall healthcare transaction volumes; consolidation in the healthcare industry; our selling cycle of variable length to secure new client agreements; our implementation cycle that is dependent on our clients' timing and resources; our dependence on our senior management team and certain key employees, and our ability to attract and retain highly skilled employees; the accuracy of the estimates and assumptions we use to determine the size of our total addressable market; our ability to develop and market new solutions, or enhance our existing solutions, to respond to technological changes, or evolving industry standards; the interoperability, connectivity, and integration of our solutions with our clients' and their vendors' networks and infrastructures; the performance and reliability of internet, mobile, and other infrastructure; the consequences if we cannot obtain, process, use, disclose, or distribute the highly regulated data we require to provide our solutions; our reliance on certain third-party vendors and providers; any errors or malfunctions in our products and solutions; failure by our clients to obtain proper permissions or provide us with accurate and appropriate information; the potential for embezzlement, identity theft, or other similar illegal behavior by our employees or vendors, and a failure of our employees or vendors to observe quality standards or adhere to environmental, social, and governance standards; our compliance with the applicable rules of the National Automated Clearing House Association and the applicable requirements of card networks; increases in card network fees and other changes to fee arrangements; the effect of payer and provider conduct which we cannot control; privacy concerns and security breaches or incidents relating to our platform; the complex and evolving laws and regulations regarding privacy, data protection, and cybersecurity; our ability to adequately protect and enforce our intellectual property rights; our ability to use or license data and integrate third-party technologies; our use of "open source" software; legal proceedings initiated by third parties alleging that we are infringing or otherwise violating their intellectual property rights; claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties; the heavily regulated industry in which we conduct business; the uncertain and evolving healthcare regulatory and political framework; healthcare laws and data privacy and security laws and regulations governing our processing of personal information; reduced revenues in response to changes to the healthcare regulatory landscape; legal, regulatory, and other proceedings that could result in adverse outcomes; consumer protection laws and regulations; contractual obligations requiring compliance with certain provisions of the Bank Secrecy Act and anti-money laundering laws and regulations; existing laws that regulate our ability to engage in certain marketing activities; our full compliance with website accessibility standards; any changes in our tax rates, the adoption of new tax legislation, or exposure to additional tax liabilities; limitations on our ability to use our net operating losses to offset future taxable income; losses due to asset impairment charges; restrictive covenants in the agreements governing our credit facilities; interest rate fluctuations; unavailability of additional capital on acceptable terms or at all; the impact of general macroeconomic conditions; actions of certain of our significant investors, who may have different interests than the interests of other holders of our securities; our status as an "emerging growth company" and whether the reduced disclosure requirements applicable to "emerging growth companies" will make our common stock less attractive to investors; and each of the other factors discussed under the heading of "Risk Factors" in the Company's 10K filed with the Securities and Exchange Commission (the "SEC") on February 18, 2025, and in other reports filed with the SEC, all of which are available on the Investor Relations page of our website at investors.waystar.com.

Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. You should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws.

About Waystar

Waystar's mission-critical software is purpose-built to simplify healthcare payments so providers can prioritize patient care and optimize their financial performance. Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 16 of 20 institutions on the U.S. News Best Hospitals list. Waystar's enterprise-grade platform annually processes over 6 billion healthcare payment transactions, including over $1.8 trillion in annual gross claims and spanning approximately 50% of U.S. patients. Waystar strives to transform healthcare payments so providers can focus on what matters most: their patients and communities. Discover the way forward at waystar.com.

_____________________________________

1 Excludes the impact of our previously announced acquisition of Iodine Software. We have not reconciled the forward-looking adjusted EBITDA, non-GAAP net income, and non-GAAP net income per share guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

 

Waystar Holding Corp.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except for share and per share data)

 



Three months ended

June 30,



Six months ended

June 30,



2025



2024



2025



2024

Revenue

270,654



234,543



527,089



459,335

Operating expenses















Cost of revenue (exclusive of depreciation and amortization expenses)

87,044



80,451



170,389



155,643

Sales and marketing

43,524



45,715



83,647



79,495

General and administrative

29,192



39,955



52,492



66,090

Research and development

12,622



15,901



23,700



26,221

Depreciation and amortization

33,426



44,276



66,806



88,450

Total operating expenses

205,808



226,298



397,034



415,899

Income from operations

64,846



8,245



130,055



43,436

Other expense















Interest expense

(17,325)



(49,195)



(35,582)



(105,007)

Related party interest expense

(930)



(1,346)



(1,573)



(2,718)

Income/(loss) before income taxes

46,591



(42,296)



92,900



(64,289)

Income tax expense/(benefit)

14,407



(14,611)



31,447



(20,672)

Net income/(loss)

32,184



(27,685)



61,453



(43,617)

Net income/(loss) per share:















Basic

0.19



(0.21)



0.36



(0.34)

Diluted

0.18



(0.21)



0.34



(0.34)

Weighted-average shares outstanding:















Basic

173,358,382



133,527,766



172,467,988



127,601,532

Diluted

181,599,133



133,527,766



181,076,149



127,601,532

 

Waystar Holding Corp.

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except for share and per share data)

 



June 30, 2025



December 31, 2024









Assets







Current assets







Cash and cash equivalents

$     290,300



$         182,133

Restricted cash

21,169



22,449

Investment securities

50,493



Accounts receivable, net of allowance of $6,104 at June 30, 2025 and $5,885 at December 31, 2024

143,498



145,235

Income tax receivable



2,838

Prepaid expenses

15,942



14,414

Other current assets

3,077



3,972

Total current assets

524,479



371,041

Property, plant and equipment, net

47,387



46,731

Operating lease right-of-use assets, net

8,960



10,820

Intangible assets, net

982,818



1,039,049

Goodwill

3,019,999



3,019,999

Deferred costs

88,083



82,815

Other long-term assets

6,196



6,549

Total assets

$    4,677,922



$       4,577,004

Liabilities and stockholders' equity







Current liabilities







Accounts payable

$       46,737



$         47,365

Accrued compensation

22,413



31,589

Aggregated funds payable

20,888



22,059

Other accrued expenses

35,314



15,930

Deferred revenue

9,540



10,527

Current portion of long-term debt

11,102



11,311

Related party current portion of long-term debt

566



357

Current portion of operating lease liabilities

5,330



5,591

Current portion of finance lease liabilities

950



904

Total current liabilities

152,840



145,633

Long-term liabilities







Deferred tax liability

107,557



100,523

Long-term debt, net, less current portion

1,160,234



1,185,411

Related party long-term debt, net, less current portion

55,628



35,211

Operating lease liabilities, net of current portion

10,575



13,133

Finance lease liabilities, net of current portion

10,801



11,290

Deferred revenue - long-term

5,545



5,739

Other long-term liabilities

1,602



278

Total liabilities

1,504,782



1,497,218

Commitments and contingencies (Note 20)







Stockholders' equity







Preferred stock $0.01 par value - 100,000,000 and 100,000,000 shares authorized as of June 30, 2025

     and December 31, 2024, respectively; zero shares issued or outstanding as of June 30, 2025 and

     December 31, 2024, respectively



Common stock $0.01 par value - 2,500,000,000 and 2,500,000,000 shares authorized at June 30, 2025

     and December 31, 2024, respectively; 174,146,070 and 172,108,240 shares issued and outstanding

     at June 30, 2025 and December 31, 2024, respectively

1,741



1,722

Additional paid-in capital

3,331,277



3,298,083

Accumulated other comprehensive income (loss)

(431)



881

Accumulated deficit

(159,447)



(220,900)

Total stockholders' equity

3,173,140



3,079,786

Total liabilities and stockholders' equity

$    4,677,922



$       4,577,004

 

Waystar

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

 



Six months ended June 30,



2025



2024

Cash flows from operating activities







Net income/(loss)

$       61,453



$      (43,617)

Adjustments to reconcile net income/(loss) to net cash provided by operating activities







Depreciation and amortization

66,806



88,450

Stock-based compensation

18,274



39,497

Provision for bad debt expense

1,872



1,055

Loss on extinguishment of debt



19,016

Deferred income taxes

7,437



(42,377)

Amortization of debt discount and issuance costs

1,346



2,646

Other



(99)

Changes in:







Accounts receivable

(135)



(22,932)

Income tax refundable

2,838



(4,371)

Prepaid expenses and other current assets

(968)



(2,319)

Deferred costs

(5,140)



(10,945)

Other long-term assets

58



(442)

Accounts payable and accrued expenses

9,308



4,392

Deferred revenue

(1,181)



(910)

Operating lease right-of-use assets and lease liabilities

(959)



(864)

Net cash provided by operating activities

161,009



26,180

Cash flows from investing activities







Purchase of property and equipment and capitalization of internally developed software costs

(11,193)



(12,428)

Purchase of investment securities

(50,525)



Net cash used in investing activities

(61,718)



(12,428)

Cash flows from financing activities







Change in aggregated funds liability

(1,171)



2,327

Proceeds from equity offering, net of underwriting discounts



914,288

Payments of third-party IPO issuance costs



(1,982)

Repurchase of shares



(844)

Proceeds from exercise of common stock options

15,045



(33)

Proceeds from issuances of debt, net of creditor fees



535,209

Payments on debt

(5,834)



(1,425,874)

Third-party fees paid in connection with issuance of new debt



(1,410)

Finance lease liabilities paid

(444)



(403)

Net cash provided by financing activities

7,596



21,278

Increase in cash and cash equivalents during the period

106,887



35,030

Cash and cash equivalents and restricted cash–beginning of period

204,582



45,428

Cash and cash equivalents and restricted cash–end of period

$      311,469



$      80,458

Supplemental disclosures of cash flow information







Interest paid

$       39,745



$       82,264

Cash taxes paid (refunds received), net

8,346



26,141

Non-cash investing and financing activities







Fixed asset purchases in accounts payable

195



363

Unpaid third-party IPO issuance costs



1,354

Reconciliation of Balance Sheet Cash Accounts to Cash Flow Statement







Balance sheet







Cash and cash equivalents

290,300



68,375

Restricted cash

21,169



12,083

Total

311,469



80,458

 

Waystar

Reconciliation of Adjusted EBITDA

 (in thousands)

(unaudited)

 





Three months ended

June 30,



Six months ended

June 30,

($ in thousands)



2025



2024



2025



2024

Net income/(loss)



$ 32,184



$ (27,685)



$  61,453



$  (43,617)

Interest expense



18,255



50,541



37,155



107,725

Income tax expense/(benefit)



14,407



(14,611)



31,447



(20,672)

Depreciation and amortization



33,426



44,276



66,806



88,450

Stock-based compensation expense



11,530



36,969



18,274



39,497

Acquisition and integration costs



655



206



884



508

Costs related to amended debt agreements





2,368





12,770

IPO related and Secondary Offering expenses



1,769



1,841



3,199



2,005

Other (a)



326





1,080



Adjusted EBITDA



$ 112,552



$ 93,905



$ 220,298



$ 186,666

Revenue



$ 270,654



$ 234,543



$ 527,089



$ 459,335

Net income/(loss) margin



11.9 %



(11.8) %



11.7 %



(9.5) %

Adjusted EBITDA margin



41.6 %



40.0 %



41.8 %



40.6 %





(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.2 million and $0.4 million, respectively, and executive severance totaling $0.0 million and $0.5 million, respectively, for the three and six months ended June 30, 2025

 

Waystar

Reconciliation of Non-GAAP Operating Expenses

(in thousands)

(unaudited)

 



Three months ended

June 30,



Six months ended

June 30,



2025



2024



2025



2024

Cost of revenue (exclusive of depreciation and amortization expenses)

87,044



80,451



170,389



155,643

Less Stock-based compensation expense

(415)



(1,739)



(646)



(1,861)

Less Acquisition and integration costs

-



-



-



(31)

Less IPO and Secondary Offering expenses

-



(5)



-



(5)

Cost of revenue (exclusive of depreciation and amortization expenses), adjusted

86,629



78,707



169,743



153,746

















Sales and marketing

43,524



45,715



83,647



79,495

Less Stock-based compensation expense

(2,414)



(8,892)



(3,806)



(9,370)

Less Acquisition and integration costs

-



-



-





Less IPO and Secondary Offering expenses

-



(235)



-



(235)

Sales and marketing, adjusted

41,110



36,588



79,841



69,890

















General and administrative

29,192



39,955



52,492



66,090

Less Stock-based compensation expense

(7,094)



(20,672)



(11,200)



(22,212)

Less Acquisition and integration costs

(552)



(103)



(659)



(186)

Less Costs related to amended debt agreements

-



(2,368)



-



(12,770)

Less IPO and Secondary Offering expenses

(1,769)



(1,592)



(3,199)



(1,756)

Less Other (a)

(326)



-



(1,080)



-

General and administrative, adjusted

19,451



15,220



36,354



29,166

















Research and development

12,622



15,901



23,700



26,221

Less Stock-based compensation expense

(1,607)



(5,666)



(2,622)



(6,054)

Less Acquisition and integration costs

(103)



(103)



(225)



(291)

Less IPO and Secondary Offering expenses

-



(9)



-



(9)

Research and development, adjusted

10,912



10,123



20,853



19,867

















Depreciation and amortization

33,426



44,276



66,806



88,450

Less Intangible amortization

(28,115)



(39,080)



(56,230)



(78,160)

Depreciation and amortization, adjusted

5,311



5,196



10,576



10,290

















Income tax expense/(benefit)

14,407



(14,611)



31,447



(20,672)

Plus Tax effect of adjustments

8,903



16,897



16,730



27,917

Income tax expense/(benefit), adjusted

23,310



2,286



48,177



7,245





(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.2 million and $0.4 million, respectively, and executive severance totaling $0.0 million and $0.5 million, respectively, for the three and six months ended June 30, 2025

 

Waystar

 Reconciliation of Non-GAAP Net Income

(in thousands, except share and per share amounts)

(unaudited)

 





Three months ended

June 30,



Six months ended

June 30,

($ in thousands)



2025



2024



2025



2024

Net income/(loss)



$    32,184



$   (27,685)



$    61,453



$    (43,617)

Stock based compensation



11,530



36,969



18,274



39,497

Acquisition and integration costs



655



206



884



508

Costs related to amended debt agreements





2,368





12,770

IPO and Secondary Offering expenses



1,769



1,841



3,199



2,005

Other (a)



326





1,080



Intangible amortization



28,115



39,080



56,230



78,160

Tax effect of adjustments



(8,903)



(16,897)



(16,730)



(27,917)

Non-GAAP net income/(loss)



$    65,676



$    35,882



$   124,390



$    61,406



















Non-GAAP net income/(loss) per share:

















Basic



$      0.38



$      0.27



$      0.72



$      0.48

Diluted



$      0.36



$      0.26



$      0.69



$      0.47

Weighted-average shares outstanding:

















Basic



173,358,382



133,527,766



172,467,988



127,601,532

Diluted



181,599,133



137,294,656



181,076,149



131,332,872





(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.2 million and $0.4 million, respectively, and executive severance totaling $0.0 million and $0.5 million, respectively, for the three and six months ended June 30, 2025

 

Waystar

Reconciliation of Unlevered Free Cash Flow

(in thousands)

(unaudited)

 



Three months ended

June 30,

Six months ended

June 30,



2025



2024

2025



2024

Net cash provided by operating activities

96,760



15,450

161,009



26,180

Interest paid

19,785



41,751

39,745



82,264

Purchase of PP&E and capitalization of internally developed software costs

(5,767)



(6,868)

(11,193)



(12,428)

Unlevered free cash flow

110,778



50,333

189,561



96,016

 

Waystar

Reconciliation of Net Debt

 (in thousands)

(unaudited)

 



June 30,



2025



2024

First lien term loan facility outstanding debt, current

11,668



12,909

First lien term loan facility outstanding debt, net of current portion

1,146,044



1,277,991

Receivables facility outstanding debt

80,000



70,000

Cash and cash equivalents

(290,300)



(68,375)

Investment securities

(50,493)



-

Net debt

896,919



1,292,525









Trailing Twelve Months Adjusted EBITDA

417,128



353,900









Adjusted Gross leverage ratio

3.0x



3.8x

Adjusted Net leverage ratio

2.2x



3.7x

 

Waystar

Reconciliation of Trailing Twelve Months (TTM) Adjusted EBITDA

(in thousands)

(unaudited)

 



Three Months Ended



TTM



June 30,

2025



March 31,

2025



December 31,

2024



September 30,

2024



June 30,

2025

Net income/(loss)

32,184



29,269



19,079



5,413



85,945

Interest expense

18,255



18,900



20,086



18,459



75,700

Income tax expense/(benefit)

14,407



17,040



13,978



3,274



48,699

Depreciation and amortization

33,426



33,380



37,996



60,185



164,987

Stock-based compensation expense

11,530



6,744



7,037



7,903



33,214

Acquisition and integration costs

655



229



163



188



1,235

Costs related to amended debt agreements

-



-



1,262



106



1,368

IPO and Secondary Offering expenses

1,769



1,430



26



109



3,334

Other (a)

326



754



526



1,040



2,646

Adjusted EBITDA

112,552



107,746



100,153



96,677



417,128





(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office and executive severance.

 

Media Contact

Kristin Lee

[email protected]

Investor Contact

[email protected]

502-238-9511

 

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SOURCE Waystar

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