Waystar (WAY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $320 million, up 18% year-over-year, with adjusted EBITDA of $137 million and a 43% margin, and net income of $40.9 million, exceeding consensus expectations.

• Strong client growth with 1,453 clients generating over $100,000 in trailing 12-month revenue, up 15% year-over-year, driven by large provider organizations and demand for AI-powered solutions.

• Over 99% of revenue is recurring, supported by robust subscription and volume-based fees, with net revenue retention at 108%.

• Platform consolidation and AI-powered solutions are accelerating, with providers seeking integrated offerings and significant ROI.

• Announced CFO transition: Steve Oreskovich to advisor role, Alpana Wegner appointed as new CFO.

Financial highlights

• Q2 2026 revenue was $319.7 million, up 18.1% year-over-year, with adjusted EBITDA of $136.7 million and a 43% margin.

• Subscription revenue reached $176.3 million (34% year-over-year growth), 55% of total revenue; volume-based revenue was $142.1 million, up 3%.

• Net income for Q2 2026 was $40.9 million, with diluted EPS of $0.21.

• Unlevered free cash flow for Q2 was $63.9 million, with a 57% conversion rate from adjusted EBITDA.

• Ended quarter with $12.6 million in cash, $179 million in investment securities, and $1.47 billion in total debt.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $1.276–$1.294 billion (midpoint $1.285 billion, 17% year-over-year growth).

• Adjusted EBITDA guidance increased to $535–$545 million (midpoint $540 million), with margin guidance at 42%.

• Non-GAAP net income forecasted at $322–$340 million, with diluted non-GAAP EPS of $1.61–$1.70.

• Continued investment in AI and automation, balancing margin expansion with growth initiatives.

• Seasonality expected in Q4 due to patient deductible dynamics; visibility into 2027 revenue from large deals and cross-sell opportunities.