Waystar Q3 Earnings Beat, Guidance Raised

Snack-Sized Version:

In its recent Waystar Q3 earnings report, the healthcare payment software provider announced results that surpassed analyst expectations. The company posted revenue of $268.7 million, a 12% increase year-over-year, and non-GAAP earnings per share of $0.37, beating the consensus estimate of $0.35. Waystar delivered another quarter of double-digit revenue growth and strong margins, according to CEO Matt Hawkins. Citing focused execution and continued demand, the company raised its full-year 2025 guidance for both total revenue and adjusted EBITDA, signaling confidence in its business momentum heading into the end of the year.

Read the Full Meal:

Waystar Holding Corp. demonstrated strong operational performance in its third quarter, beating Wall Street estimates on both the top and bottom lines. A 113% net revenue retention rate and an 11% increase in clients contributing over $100,000 in annual revenue supported the 12% revenue growth. Profitability was also a key highlight, with the company achieving an adjusted EBITDA margin of 42%. Management noted that the integration of its recent acquisition, Iodine Software, is progressing well and enhances the company’s AI-powered platform. The decision to raise full-year guidance suggests that demand for its healthcare payment solutions remains robust despite broader economic uncertainty.

Strong Margins and Client Growth Drive Outlook

• Capital allocation: The company generated $96 million in unlevered free cash flow, demonstrating high cash conversion which can be used for debt reduction or reinvestment.
• Growth drivers: Growth is fueled by a 14% increase in subscription revenue and a 10% increase in volume-based revenue, alongside strong client retention.
• Margins: Waystar achieved a strong adjusted EBITDA margin of 42%, reflecting the company’s operational efficiency and scalable software model.
• Risks: Key risks include successfully integrating the recent Iodine Software acquisition to realize synergies and navigating the complex, evolving healthcare reimbursement landscape.

Why this can matter for NASDAQ:WAY holders

• Continuity: Beating earnings estimates and raising guidance provides investors with greater visibility into the company’s demand and execution.
• Cycle timing: The performance in the healthcare technology sector indicates that efficiency and payment simplification tools remain a priority for providers.
• Multiple support: Consistent double-digit growth and high margins support the case for a premium valuation multiple relative to slower-growing software peers.

What to watch next

1. Official filing: Read the official press release for full details on the Q3 2025 financial results.
2. Next event: Review upcoming events on Waystar’s investor relations website, including planned participation in investor conferences.
3. Board, governance, or roadmap: Investors should monitor future earnings reports for updates on the Iodine Software integration and its contribution to revenue growth.

Mini FAQ

What was the key takeaway from Waystar’s Q3 earnings?
Waystar beat analyst expectations for revenue and earnings and raised its full-year 2025 financial guidance.

How much did Waystar’s revenue grow in Q3 2025?
The company’s revenue grew 12% year-over-year to $268.7 million.

What is Waystar’s revised revenue forecast for fiscal 2025?
Waystar raised its full-year revenue guidance to a range of $1.085 billion to $1.093 billion.

Quick links

• Sources: Investor Relations News
• Waystar Holding Corporation News Hub