Waystar (WAY) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 21.2% YoY to $325.6M; adjusted EBITDA was $139.3M, up 24%, with a 42.8% margin.

• Strong bookings and demand reflected provider adoption of broader connected-platform and AI-enabled capabilities.

• 9M revenue reached $959.2M and adjusted EBITDA was $411.4M, supported by subscription revenue and higher client transaction volumes.

Financial highlights

• Q3 subscription revenue was $180.7M, up 34%; volume-based revenue was $142.9M, up 8%.

• Q3 operating income was $61.3M versus $60.2M; GAAP net income was $31.0M versus $30.6M, with diluted EPS of $0.16 versus $0.17.

• Q3 non-GAAP net income was $87.1M and diluted non-GAAP EPS was $0.44.

• Q3 operating cash flow was $103.9M and unlevered free cash flow was $114.8M; YTD UFCF conversion was 65%.

Outlook and guidance

• FY2026 revenue guidance is $1.277B–$1.287B, midpoint $1.282B, representing 17% YoY growth; normalized organic growth at midpoint is 11%.

• FY2026 adjusted EBITDA guidance is $543M–$549M, midpoint $546M, or 43% margin.

• Q4 revenue growth faces ~4 points of pressure from print-to-digital mix, slower Iodine revenue conversion and prior-year fast-ramping implementations; normalized growth is ~10%.

• Iodine is expected to be accretive in FY2027; formal 2027 guidance is expected next quarter.