0001990354-25-000031
SEC filingWaystar operates as a single segment; net income $92.1M (9M 2025), RPO $75.4M, debt $1.23B, cash $421M.
As of September 30, 2025, Waystar held $421.1 million in cash and cash equivalents (plus $24.3 million restricted cash). Total assets were $4.75 billion, including $3.02 billion in goodwill. Shareholders' equity stood at $3.22 billion. Total debt was $1,234.8 million (net of $8.9 million unamortized issuance costs), consisting of a $1,154.8 million first lien term loan and an $80.0 million receivables facility. The debt maturity profile shows $91.7 million due in 2026 and a bullet payment of $1,116.9 million in 2029. The company has no outstanding revolver balance as of September 30, 2025. Subsequent to quarter end, the company amended its credit agreement to increase the term loan by $250 million and drew $30 million on the revolver to fund the Iodine acquisition.
No material purchase commitments are disclosed in the Notes. The company has operating and finance lease obligations totaling $19.3 million and $14.7 million, respectively, with weighted average remaining terms of 3.8 and 8.3 years. The company also has a $15.0 million lease settlement agreement reached after quarter end. Contingencies related to legal proceedings are not expected to be material.
Waystar did not repurchase shares or pay dividends during the period. Net debt decreased by $8.8 million as payments outpaced any new issuances. Capital expenditures (including capitalized software) totaled $17.1 million for the nine months, representing 2.1% of revenue. The company used $206.4 million in short-term investments (purchased and sold within the period) to help fund the Iodine acquisition post-period. Stock-based compensation was $29.9 million for the nine months.
Waystar operates as a single reportable segment. The chief operating decision maker (CEO) reviews consolidated profitability, with net income as the key metric. Segment revenue disaggregated by type: subscription $390.6 million, volume-based $400.6 million, and other $4.6 million for the nine months. No geographic mix is disclosed.
Operating cash flow (CFO) of $243M significantly exceeded net income of $92.1M, reflecting strong non-cash adjustments: depreciation/amortization ($100.1M), stock-based compensation ($29.9M), deferred income taxes ($23.0M), and loss on debt extinguishment ($0.7M). The cash conversion ratio (CFO/Net Income) is 2.6x, indicating high earnings quality.
Capex of $17.1M (7.0% of CFO) is moderate, suggesting low capital intensity. The company did not report free cash flow, but CFO minus capex would be $225.9M. Financing activities provided $14.8M, primarily from employee equity plans ($22.4M) offset by debt repayments ($8.8M). No share repurchases or dividends were paid.
Working capital changes were a net source: accounts receivable decline partially offset by deferred costs and prepaids. Income tax refunds and deferred tax adjustments were favorable. The investing activities also included $206.4M in purchases and sales of investment securities, netting to zero, so net investing was solely capex.
Overall, strong cash generation with improved profitability, low capex, and no capital returns, positioning the company for further investments or debt reduction.