Waystar (WAY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $313.9M, up 22–22.4% year-over-year, with net income of $43.3M, a 47.9% increase from Q1 2025, and adjusted EBITDA of $135.4M, representing a 43% margin.

• Over 99% of revenue is recurring, driven by subscription and volume-based fees, with net revenue retention rate at 110.5–111%.

• Strong client growth with 1,433 clients contributing over $100,000 in LTM revenue, up 15% year-over-year, with about half of the growth from the Iodine acquisition.

• Completed the $1.26B Iodine acquisition in October 2025, enhancing AI capabilities, expanding the client base, and contributing to revenue and client growth.

• Continued platform expansion and launch of AI-powered recoupment solution, reinforcing industry leadership.

Financial highlights

• Subscription revenue grew to $172.2M (up 38% YoY), and volume-based revenue to $139.5M (up 7% YoY), with subscription revenue comprising 54.9% of total.

• Adjusted EBITDA margin improved to 43.1% from 42.0% year-over-year.

• Net income margin improved to 13.8–14% from 11.4% YoY.

• Cash flow from operations was $84.9M; unlevered free cash flow totaled $90.3M, with a 67% conversion rate from adjusted EBITDA.

• Operating expenses rose to $233.4M from $191.2M YoY, with increases in R&D and G&A.

Outlook and guidance

• FY 2026 revenue guidance set at $1.284B at midpoint (range: $1.274B–$1.294B), representing 17% YoY growth.

• Adjusted EBITDA guidance for FY 2026 is $530M–$540M, with margin expected to remain at 42–43%.

• Non-GAAP net income projected at $317M–$335M and diluted non-GAAP EPS at $1.59–$1.68 for FY 2026.

• Management expects continued growth through client expansion, cross-selling, and increased adoption of AI-powered solutions.

• Sufficient liquidity is anticipated for at least the next 12 months, with ongoing investments in growth and technology.