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 $1 billion in revenue and exceeding both revenue and EBITDA guidance.

• Adjusted EBITDA margin reached 43% in Q4 and 42% for FY 2025, exceeding long-term targets.

• Completed the acquisition and integration of Iodine Software, expanding the addressable market and enhancing clinical and financial data integration.

• Demonstrated strong AI leadership, with Altitude AI preventing $15 billion in denials and driving operational efficiencies.

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

Financial highlights

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

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

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

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

• Unlevered free cash flow for FY 2025 was $365M, with a conversion rate of 79%.

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 patient payment seasonality.