Waystar (WAY) investor relations material

Executive summary

• Q1 2026 revenue reached $314 million, up 22% year-over-year, with net income of $43.3 million and adjusted EBITDA of $135.4 million, driven by robust execution, innovation in AI-powered healthcare revenue cycle solutions, and strong client expansion.

• AI capabilities are a key differentiator, with 40% of new bookings and nearly 40% of revenue tied to AI-embedded workflows, further enhanced by the integration of Iodine.

• Client base expanded to 1,433 clients generating over $100,000 in trailing twelve-month revenue, up 15% year-over-year, with elevated win rates and a record sales pipeline.

• Over 99% of revenue is recurring, driven by subscription and volume-based fees.

• Continued platform expansion, successful integration of Iodine, and launch of new AI-powered recoupment solution.

Financial highlights

• Q1 2026 revenue was $313.9 million, up 22% year-over-year; organic revenue grew 11%.

• Adjusted EBITDA reached $135.4 million, up 26% year-over-year, with a 43% margin, slightly above expectations.

• Subscription revenue grew 38% year-over-year to $172.2 million (55% of total); volume-based revenue increased 7% to $139.5 million.

• Net income for Q1 2026 was $43.3 million, up from $29.3 million in Q1 2025; net income margin improved to 14%.

• Unlevered free cash flow was $90.3 million, converting 67% of adjusted EBITDA.

Outlook and guidance

• FY 2026 revenue guidance is $1.274–$1.294 billion (midpoint: $1.284 billion, 17% growth); adjusted EBITDA guidance is $530–$540 million.

• Adjusted EBITDA margin expected to remain at 42–43% for FY 2026.

• Non-GAAP net income projected at $317–$335 million; diluted non-GAAP EPS expected between $1.59 and $1.68.

• Sequential Q2 revenue growth expected to be flat to 1%, with Q3 at 1–3%, reflecting updated seasonality.