0001990354-25-000012
SEC filingWaystar delivered strong revenue growth of 14.8% and swung to profitability, driven by subscription and volume-based expansion, with adjusted EBITDA margin improving to 41.8%.
For the six months ended June 30, 2025, Waystar reported revenue of $527.1 million, a 14.8% increase from $459.3 million in the prior year period. The growth was driven by subscription revenue (up 17.3% to $256.1M) and volume-based revenue (up 12.7% to $268.2M). The company swung to net income of $61.5 million from a net loss of $43.6 million, primarily due to a 66.1% reduction in interest expense from $1.0 billion debt repayment and improved operating leverage. Operating income surged 199.4% to $130.1 million, with operating margin expanding to 24.7% from 9.5%. Adjusted EBITDA rose 18.0% to $220.3 million, with margin improving 120 bps to 41.8%.
Revenue continues to be split roughly evenly between subscription (48.6%) and volume-based (50.9%) streams, with services immaterial. Subscription growth of 17.3% was attributed to new and existing clients, almost entirely from provider solutions. Volume-based growth of 12.7% was driven by expansion of existing client usage, with patient payment solutions contributing the majority. Cost of revenue (ex-D&A) increased 9.5%, slower than revenue, driven by higher transaction volumes and third-party costs; patient payment solutions saw cost growth offset by provider solution cost declines from synergy attainment. Sales and marketing expense increased only 5.2% due to lower stock-based compensation, while G&A and R&D declined 20.6% and 9.6% respectively, reflecting non-recurrence of IPO-related stock comp.
Management highlighted the pending Iodine acquisition (valued at $1.25B) expected to close by year-end 2025, which aims to bolster AI capabilities in clinical intelligence and utilization management. No specific financial guidance was provided, but the company emphasized its ability to drive recurring, predictable growth with Net Revenue Retention Rate at 114.6% and customer count >$100k up to 1,268. The company also noted it expects to recognize $17.9M per year in stock-based compensation from IPO grants. Liquidity remains strong with $161.0M operating cash flow in H1 2025, up from $26.2M, and the company believes existing cash and cash flows are sufficient for at least 12 months.
As of June 30, 2025, Waystar held $290.3M in cash and equivalents plus $50.5M in investment securities, totaling $340.8M. Restricted cash was $21.2M. Total debt stood at $1,237.7M, primarily a First Lien Term Loan ($1,157.7M) and an $80.0M receivables facility. Shareholders' equity was $3,173.1M, up from $3,079.8M at year-end 2024, driven by net income and stock option exercises. Deferred revenue (current and long-term) totaled $15.1M. The balance sheet remains solid with ample liquidity.
Note 20 discloses no material commitments or contingencies beyond standard indemnifications. No purchase commitments, lease obligations beyond those already recognized ($15.9M operating, $11.8M finance lease liabilities), or other contractual obligations are reported. The only significant future obligation is debt principal payments: $5.8M in 2025, $91.7M in 2026, and $1,116.9M in 2029 (the term loan maturity).
Waystar did not repurchase shares or pay dividends in H1 2025. Debt repayments totaled $5.8M, largely scheduled term loan installments. Capital expenditures and capitalized software totaled $11.2M (2.1% of revenue). The company also purchased $50.5M in investment securities (short-term debt instruments). No new buyback authorization or dividend program was announced.
Note 4 confirms a single reportable operating segment. The CODM (CEO) uses consolidated net income as the key metric. Revenue is disaggregated into subscription ($256.1M) and volume-based ($268.2M) for H1 2025, but no geographic or further segment detail is provided. All revenue is domestic (U.S. including Puerto Rico).