Waystar (WAY) Q4 2025 earnings summary

Executive summary

• Achieved record Q4 and FY2025 results, with Q4 revenue of $304M (up 24% YoY) and FY revenue of $1.1B (up 17% YoY), surpassing guidance and long-term targets.

• Adjusted EBITDA margin reached 43% in Q4 and 42% for FY2025, with Q4 adjusted EBITDA of $129M and FY adjusted EBITDA of $462M.

• Completed and integrated the Iodine Software acquisition, expanding the addressable market and clinical intelligence capabilities.

• Demonstrated strong demand for AI-powered revenue cycle software, with record bookings, robust client expansion, and accelerated AI innovation.

• Entering 2026 with a robust sales pipeline, record bookings, and the largest implementation backlog in company history.

Financial highlights

• Q4 revenue was $304M, up 24% YoY; organic growth was 12%.

• Full-year revenue grew 17% to $1.1B; organic revenue up 13%.

• Adjusted EBITDA for Q4 was $129M (43% margin), up 29% YoY; full-year adjusted EBITDA was $462M (42% margin), up 21%.

• Subscription revenue in Q4 was $168M, up 38% YoY; volume-based revenue was $134M, up 11%.

• Unlevered free cash flow for FY2025 was $365M, with a 79% conversion rate.

Outlook and guidance

• FY2026 revenue guidance: $1.274–$1.294B (midpoint $1.284B), representing 17% YoY growth.

• Adjusted EBITDA guidance: $530–$540M (midpoint $535M), 16% YoY growth, with ~42% margin.

• Non-GAAP net income projected at $317M–$335M; diluted non-GAAP EPS at $1.59–$1.68.

• Normalized organic growth expected at ~10% for both core and Iodine businesses.

• Sequential revenue growth of 1–3% expected throughout 2026, with Q3 at the low end due to seasonality.