Waystar Reports Third Quarter 2025 Results

Q3 revenue growth of 12% year-over-year

Q3 net income of $30.6 million and non-GAAP net income of $67.8 million

Q3 net income margin of 11%; adjusted EBITDA margin of 42%

Raising revenue and adjusted EBITDA guidance for 2025

LEHI, Utah and LOUISVILLE, Ky., Oct. 29, 2025 /PRNewswire/ -- Waystar Holding Corp. (Nasdaq: WAY), a provider of leading healthcare payment software, today reported results for the third quarter ended September 30, 2025.

"Waystar delivered another quarter of double-digit revenue growth and strong margins, outpacing our guidance on both measures," said Matt Hawkins, Chief Executive Officer of Waystar. "Our integration of Iodine Software is well underway, enhancing Waystar's AI-powered platform and unlocking new opportunities to drive profitable growth. Continuing demand and focused execution reinforce our confidence in raising our full-year guidance."

Third Quarter 2025 Financial Highlights

Key Metrics and Revenue Disaggregation

Financial Outlook

As of October 29, 2025, Waystar provides the following guidance for its full fiscal year 2025. 1

Webcast Information

Waystar's financial results will be discussed on a conference call scheduled at 4:30 p.m. Eastern Daylight Time today, October 29, 2025. A live audio conference call will be available on Waystar's website at https://investors.waystar.com/news-events/events. The webcast will be archived on the site for those unable to listen in real time. This earnings release and the related Current Report on Form 8-K filed October 29, 2025, can be accessed on the Investor Relations page of the company's website. We routinely post important information on our website, including corporate and investor presentations and financial information. We intend to use our website as a means of disclosing material, non-public information and for complying with our disclosure obligations under Regulation FD. Such disclosures will be included in the Investor Relations section of our website. Accordingly, investors should monitor this portion of our website, in addition to following our press releases, U.S. Securities and Exchange Commission ("SEC") filings, and public conference calls and webcasts.

Non-GAAP Financial Measures

To supplement the consolidated financial statements prepared and presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this press release contains certain non-GAAP financial measures as defined below. We present non-GAAP financial measures as supplemental measures of financial performance that are not required by, or presented in accordance with, GAAP. We believe they assist investors and analysts in comparing our operating performance across reporting periods on a consistent basis by excluding items that we do not believe are indicative of our core operating performance. Management believes these non-GAAP financial measures are useful to investors in highlighting trends in our operating performance, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the tax jurisdictions in which we operate, and capital investments. Management uses adjusted EBITDA and adjusted EBITDA margin to supplement GAAP measures of performance in the evaluation of the effectiveness of our business strategies, to make budgeting decisions, to establish discretionary annual incentive compensation, and to compare our performance against that of other peer companies using similar measures. Management supplements GAAP results with non-GAAP financial measures to provide a more complete understanding of the factors and trends affecting the business than GAAP results alone provide.

Adjusted EBITDA, adjusted EBITDA margin, non-GAAP net income, non-GAAP net income per share and unlevered free cash flow are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) or net income (loss) margin as measures of financial performance or cash provided by operating activities as a measure of liquidity, or any other performance measure derived in accordance with GAAP. Additionally, these measures are not intended to be a measure of free cash flow available for management's discretionary use, as they do not consider certain cash requirements such as interest payments, tax payments, and debt service requirements. The presentations of these measures have limitations as analytical tools and should not be considered in isolation, or as a substitute for analysis of our results as reported under GAAP. Because not all companies use identical calculations, the presentations of these measures may not be comparable to other similarly titled measures of other companies and can differ significantly from company to company. A reconciliation is provided below for our non-GAAP financial measures to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures, and not to rely on any single financial measure to evaluate our business.

The following non-GAAP financial measures and key performance metrics are defined below:

Adjusted EBITDA and adjusted EBITDA Margin

We define adjusted EBITDA as net income / (loss) before interest expense, net, income tax expense / (benefit), depreciation and amortization, and as further adjusted for stock-based compensation expense, acquisition and integration costs, asset and lease impairments, costs related to amended debt agreements and IPO and secondary offering costs. Adjusted EBITDA margin represents adjusted EBITDA as a percentage of revenue.

Non-GAAP Net Income / (loss) and Non-GAAP Net Income / (loss) Per Share

We define non-GAAP net income as GAAP net income / (loss) excluding the impact of stock-based compensation, acquisition and integration costs, asset and lease impairments, costs related to our IPO, and the Secondary Offerings, and costs related to amended debt agreements and amortization of intangibles. The tax effects of the adjustments are calculated using a management estimated annual effective non-GAAP tax rate of 21%, which is based on our statutory federal tax rate and provides consistency across interim reporting periods by eliminating the effects of non-recurring and period specific items. Due to the differences in the tax treatment of items excluded from non-GAAP net income, our estimate tax rate on non-GAAP net income may differ from our GAAP tax rate. Non-GAAP net income per share is shown on both a basic and diluted basis and is defined as non-GAAP net income divided by the basic or diluted weighted-average shares, respectively.

Unlevered Free Cash Flow

We define unlevered free cash flow as cash from operations plus cash interest paid less capital expenses.

Net Debt

We define net debt as the sum of the current portion of long-term debt, long-term debt, and accounts receivable securitization less cash and equivalents and investment securities.

Adjusted Net Leverage Ratio

We define adjusted net leverage ratio as net debt divided by adjusted EBITDA over the preceding twelve months.

Key Performance Metrics

Net Revenue Retention Rate

Our Net Revenue Retention Rate compares twelve months of client invoices for our solutions at two period end dates. To calculate our Net Revenue Retention Rate, we first accumulate the total amount invoiced during the twelve months ending with the prior period-end or Prior Period Invoices. We then calculate the total amount invoiced to those same clients for the twelve months ending with the current period-end, or Current Period Invoices. Current Period Invoices are inclusive of upsell, downsell, pricing changes, clients that cancel or chose not to renew, and discontinued solutions with continuing clients. The Net Revenue Retention Rate is then calculated by dividing the Current Period Invoices by the Prior Period Invoices. Our total invoices included in the analysis are greater than 98% of reported revenue. We use Net Revenue Retention Rate to evaluate our ongoing operations and for internal planning and forecasting purposes. Acquired businesses are included in the last-twelve-month Net Revenue Retention Rate in the ninth quarter after acquisition, which is the earliest point that comparable post-acquisition invoices are available for both the current and prior twelve-month period.

Customer Count with >$100,000 of Revenue

We regularly monitor and review our count of clients who generate more than $100,000 of revenue.

Our count of clients who generate more than $100,000 of revenue is based on an accumulation of the amounts invoiced to clients over the preceding twelve months. The invoices for acquired clients are included starting in the first full calendar quarter after the date of acquisition.

Forward-Looking Statements

This press release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, statements regarding Waystar's expectations relating to future operating results and financial position, including full year 2025, and future periods; the performance of our new product offerings; our industry and market opportunities, business strategy, goals, and expectations concerning our market position, future operations, margins and profitability, capital expenditures, liquidity, and capital resources and other financial and operating information. Forward-looking statements include all statements that are not historical facts. These statements may include words such as "anticipate," "assume," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "future," "will," "seek," "foreseeable," "outlook," the negative version of these words or similar terms and phrases to identify forward-looking statements in this press release, including the discussion of outlook for full fiscal year 2025.

The forward-looking statements contained in this press release are based on management's current expectations and are not guarantees of future performance. The forward-looking statements are subject to various risks, uncertainties, assumptions, or changes in circumstances that are difficult to predict or quantify. Our expectations, beliefs, and projections are expressed in good faith, and we believe there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs, and projections will result or be achieved. The following factors are among those that may cause actual results to differ materially from the forward-looking statements: our operation in a highly competitive industry; our ability to retain our existing clients and attract new clients; our ability to successfully execute on our business strategies in order to grow; our ability to accurately assess the risks related to acquisitions and successfully integrate acquired businesses (including the acquisition of Iodine Software); our ability to establish and maintain strategic relationships; the growth and success of our clients and overall healthcare transaction volumes; consolidation in the healthcare industry; our selling cycle of variable length to secure new client agreements; our implementation cycle that is dependent on our clients' timing and resources; our dependence on our senior management team and certain key employees, and our ability to attract and retain highly skilled employees; the accuracy of the estimates and assumptions we use to determine the size of our total addressable market; our ability to develop and market new solutions, or enhance our existing solutions, to respond to technological changes, or evolving industry standards; the interoperability, connectivity, and integration of our solutions with our clients' and their vendors' networks and infrastructures; the performance and reliability of internet, mobile, and other infrastructure; the consequences if we cannot obtain, process, use, disclose, or distribute the highly regulated data we require to provide our solutions; our reliance on certain third-party vendors and providers; any errors or malfunctions in our products and solutions; failure by our clients to obtain proper permissions or provide us with accurate and appropriate information; the potential for embezzlement, identity theft, or other similar illegal behavior by our employees or vendors, and a failure of our employees or vendors to observe quality standards or adhere to environmental, social, and governance standards; our compliance with the applicable rules of the National Automated Clearing House Association and the applicable requirements of card networks; increases in card network fees and other changes to fee arrangements; the effect of payer and provider conduct which we cannot control; privacy concerns and security breaches or incidents relating to our platform; the complex and evolving laws and regulations regarding privacy, data protection, and cybersecurity; our ability to adequately protect and enforce our intellectual property rights; our ability to use or license data and integrate third-party technologies; our use of "open source" software; legal proceedings initiated by third parties alleging that we are infringing or otherwise violating their intellectual property rights; claims that our employees, consultants, or independent contractors have wrongfully used or disclosed confidential information of third parties; the heavily regulated industry in which we conduct business; the uncertain and evolving healthcare regulatory and political framework; healthcare laws and data privacy and security laws and regulations governing our processing of personal information; reduced revenues in response to changes to the healthcare regulatory landscape; legal, regulatory, and other proceedings that could result in adverse outcomes; consumer protection laws and regulations; contractual obligations requiring compliance with certain provisions of the Bank Secrecy Act and anti-money laundering laws and regulations; existing laws that regulate our ability to engage in certain marketing activities; our full compliance with website accessibility standards; any changes in our tax rates, the adoption of new tax legislation, or exposure to additional tax liabilities; limitations on our ability to use our net operating losses to offset future taxable income; losses due to asset impairment charges; restrictive covenants in the agreements governing our credit facilities; interest rate fluctuations; unavailability of additional capital on acceptable terms or at all; the impact of general macroeconomic conditions; actions of certain of our significant investors, who may have different interests than the interests of other holders of our securities; our status as an "emerging growth company" and whether the reduced disclosure requirements applicable to "emerging growth companies" will make our common stock less attractive to investors; and each of the other factors discussed under the heading of "Risk Factors" in the Company's 10K filed with the Securities and Exchange Commission (the "SEC") on February 18, 2025, and in other reports filed with the SEC, all of which are available on the Investor Relations page of our website at investors.waystar.com.

Any forward-looking statements made by us in this press release speak only as of the date of this press release and are expressly qualified in their entirety by the cautionary statements included in this press release. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. You should not place undue reliance on our forward-looking statements. We undertake no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments, or otherwise, except as may be required by any applicable securities laws.

About Waystar

Waystar's mission-critical software is purpose-built to simplify healthcare payments so providers can prioritize patient care and optimize their financial performance. Waystar serves approximately 30,000 clients, representing over 1 million distinct providers, including 17 of 20 institutions on the U.S. News Best Hospitals list. Waystar's enterprise-grade platform annually processes over 6 billion healthcare payment transactions, including over $1.8 trillion in annual gross claims and spanning approximately 50% of U.S. patients. Waystar strives to transform healthcare payments so providers can focus on what matters most: their patients and communities. Discover the way forward at waystar.com.

1We have not reconciled the forward-looking adjusted EBITDA, non-GAAP net income, and non-GAAP net income per share guidance included above to the most directly comparable GAAP measure because this cannot be done without unreasonable effort due to the variability and low visibility with respect to certain costs, the most significant of which are incentive compensation (including stock-based compensation), transaction-related expenses, and certain fair value measurements, which are potential adjustments to future earnings. We expect the variability of these items to have a potentially unpredictable, and a potentially significant, impact on our future GAAP financial results.

Waystar Holding Corp.

Unaudited Condensed Consolidated Statements of Operations

(in thousands, except for share and per share data)

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

Revenue

268,651

240,112

795,740

699,447

Operating expenses

Cost of revenue (exclusive of depreciation and amortization expenses)

85,136

80,545

255,525

236,188

Sales and marketing

45,158

38,450

128,805

117,945

General and administrative

32,422

22,704

84,914

88,794

Research and development

12,403

11,082

36,103

37,303

Depreciation and amortization

33,300

60,185

100,106

148,635

Total operating expenses

208,419

212,966

605,453

628,865

Income from operations

60,232

27,146

190,287

70,582

Other expense

Interest expense

(16,613)

(17,752)

(52,195)

(122,759)

Related party interest expense

(902)

(707)

(2,475)

(3,425)

Income/(loss) before income taxes

42,717

8,687

135,617

(55,602)

Income tax expense/(benefit)

12,069

3,274

43,516

(17,398)

Net income/(loss)

30,648

5,413

92,101

(38,204)

Net income/(loss) per share:

Basic

0.18

0.03

0.53

(0.27)

Diluted

0.17

0.03

0.51

(0.27)

Weighted-average shares outstanding:

Basic

174,352,079

171,578,311

173,388,077

142,367,458

Diluted

181,240,033

176,181,511

181,165,738

142,367,458

Waystar Holding Corp.

Unaudited Condensed Consolidated Balance Sheets

(in thousands, except for share and per share data)

September 30, 2025

December 31, 2024

Assets

Current assets

Cash and cash equivalents

$ 421,056

$ 182,133

Restricted cash

24,301

22,449

Accounts receivable, net of allowance of $5,895 at September 30, 2025

and $5,885 at December 31, 2024

145,675

145,235

Income tax receivable

—

2,838

Prepaid expenses

20,557

14,414

Other current assets

1,993

3,972

Total current assets

613,582

371,041

Property, plant and equipment, net

48,172

46,731

Operating lease right-of-use assets, net

11,026

10,820

Intangible assets, net

954,967

1,039,049

Goodwill

3,019,999

Deferred costs

90,131

82,815

Other long-term assets

8,479

6,549

Total assets

$ 4,746,356

$ 4,577,004

Liabilities and stockholders' equity

Current liabilities

Accounts payable

$ 51,401

$ 47,365

Accrued compensation

28,300

31,589

Aggregated funds payable

23,848

22,059

Other accrued expenses

26,757

15,930

Deferred revenue

9,018

10,527

Current portion of long-term debt

11,099

11,311

Related party current portion of long-term debt

569

357

Current portion of operating lease liabilities

5,687

5,591

Current portion of finance lease liabilities

973

904

Total current liabilities

157,652

145,633

Long-term liabilities

Deferred tax liability

123,034

100,523

Long-term debt, net, less current portion

1,158,411

1,185,411

Related party long-term debt, net, less current portion

55,783

35,211

Operating lease liabilities, net of current portion

11,855

13,133

Finance lease liabilities, net of current portion

10,549

11,290

Deferred revenue - long-term

5,385

5,739

Other long-term liabilities

1,091

278

Total liabilities

1,523,760

1,497,218

Commitments and contingencies (Note 19)

Stockholders' equity

Preferred stock $0.01 par value - 100,000,000 and 100,000,000 shares

authorized as of September 30, 2025 and December 31, 2024, respectively;

zero shares issued or outstanding as of September 30, 2025 and December 31,

2024, respectively

—

Common stock $0.01 par value - 2,500,000,000 and 2,500,000,000 shares

authorized at September 30, 2025 and December 31, 2024, respectively;

174,667,840 and 172,108,240 shares issued and outstanding at September 30,

2025 and December 31, 2024, respectively

1,747

1,722

Additional paid-in capital

3,350,190

3,298,083

Accumulated other comprehensive income (loss)

(542)

881

Accumulated deficit

(128,799)

(220,900)

Total stockholders' equity

3,222,596

3,079,786

Total liabilities and stockholders' equity

$ 4,746,356

$ 4,577,004

Waystar

Unaudited Condensed Consolidated Statements of Cash Flows

(in thousands)

Nine months ended September 30,

2025

2024

Cash flows from operating activities

Net income/(loss)

$ 92,101

$ (38,204)

Adjustments to reconcile net income/(loss) to net cash provided by operating

activities

Depreciation and amortization

100,106

148,635

Stock-based compensation

29,871

47,400

Provision for bad debt expense

2,605

1,642

Loss on extinguishment of debt

711

20,277

Deferred income taxes

22,959

(57,984)

Amortization of debt discount and issuance costs

2,021

3,301

Other

—

(99)

Changes in:

Accounts receivable

(3,045)

(13,445)

Income tax refundable

2,838

2,227

Prepaid expenses and other current assets

(4,980)

(1,714)

Deferred costs

(7,116)

(14,389)

Other long-term assets

(2,362)

(515)

Accounts payable and accrued expenses

10,580

9,366

Deferred revenue

(1,863)

(1,256)

Operating lease right-of-use assets and lease liabilities

(1,387)

(244)

Net cash provided by operating activities

243,039

104,998

Cash flows from investing activities

Purchase of property and equipment and capitalization of internally developed

software costs

(17,069)

(21,044)

Purchase of investment securities

(206,444)

—

Proceeds from sale of investment securities

206,444

—

Net cash used in investing activities

(17,069)

(21,044)

Cash flows from financing activities

Change in aggregated funds liability

1,789

7,433

Proceeds from equity offering, net of underwriting discounts

—

1,017,074

Payments of third-party IPO issuance costs

—

(3,372)

Repurchase of shares

—

(844)

Proceeds from issuance of common stock from employee equity plans

22,439

1,488

Proceeds from issuances of debt, net of creditor fees

—

545,209

Payments on debt

(8,751)

(1,550,002)

Third-party fees paid in connection with issuance of new debt

—

(1,410)

Finance lease liabilities paid

(672)

(611)

Net cash provided by financing activities

14,805

14,965

Increase in cash and cash equivalents during the period

240,775

98,919

Cash and cash equivalents and restricted cash–beginning of period

204,582

45,428

Cash and cash equivalents and restricted cash–end of period

$ 445,357

$ 144,347

Supplemental disclosures of cash flow information

Interest paid

$ 59,303

$ 101,189

Cash taxes paid (refunds received), net

9,439

38,558

Non-cash investing and financing activities

Fixed asset purchases in accounts payable

539

586

Unpaid third-party IPO issuance costs

—

Reconciliation of Balance Sheet Cash Accounts to Cash Flow Statement

Balance sheet

Cash and cash equivalents

421,056

127,125

Restricted cash

24,301

17,222

Total

445,357

144,347

Waystar

Reconciliation of Adjusted EBITDA

(in thousands)

(unaudited)

Three months ended

September 30,

Nine months ended

September 30,

($ in thousands)

2025

2024

2025

2024

Net income/(loss)

$ 30,648

$ 5,413

$ 92,101

$ (38,204)

Interest expense

17,515

18,459

54,670

126,184

Income tax expense/(benefit)

12,069

3,274

43,516

(17,398)

Depreciation and amortization

33,300

60,185

100,106

148,635

Stock-based compensation expense

11,597

7,903

29,871

47,400

Acquisition and integration costs

5,313

188

6,197

696

Costs related to amended debt agreements

649

106

649

12,876

IPO related and Secondary Offering expenses

1,372

109

4,571

2,114

Other (a)

240

1,040

1,320

1,040

Adjusted EBITDA

$ 112,703

$ 96,677

$ 333,001

$ 283,343

Revenue

$ 268,651

$ 240,112

$ 795,740

$ 699,447

Net income/(loss) margin

11.4 %

2.3 %

11.6 %

(5.5) %

Adjusted EBITDA margin

42.0 %

40.3 %

41.8 %

40.5 %

(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office totaling $0.2 million and $0.7 million, respectively, and executive severance totaling $0.0 million and $0.6 million, respectively, for the three and nine months ended September 30, 2025. For the three and nine months ended September 30, 2024, adjustments relate to additional lease costs due to the relocation of our Louisville office.

Waystar

Reconciliation of Non-GAAP Operating Expenses

(in thousands)

(unaudited)

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

Cost of revenue (exclusive of depreciation and amortization expenses)

85,136

80,545

255,525

236,188

Less Stock-based compensation expense

(418)

(300)

(1,064)

(2,161)

Less Acquisition and integration costs

(3)

(31)

Less IPO and Secondary Offering expenses

(4)

(9)

Cost of revenue (exclusive of depreciation and amortization expenses), adjusted

84,715

80,241

254,458

233,987

Sales and marketing

45,158

38,450

128,805

117,945

Less Stock-based compensation expense

(2,392)

(1,587)

(6,198)

(10,958)

Less Acquisition and integration costs

(79)

Less IPO and Secondary Offering expenses

(141)

Sales and marketing, adjusted

42,687

36,957

122,528

106,846

General and administrative

32,422

22,704

84,914

88,794

Less Stock-based compensation expense

(7,218)

(4,832)

(18,418)

(27,043)

Less Acquisition and integration costs

(5,119)

(86)

(5,778)

(272)

Less Costs related to amended debt agreements

(649)

(106)

(649)

(12,876)

Less IPO and Secondary Offering expenses

(1,372)

(200)

(4,571)

(1,956)

Less Other (a)

(240)

(1,040)

(1,320)

(1,040)

General and administrative, adjusted

17,824

16,440

54,178

45,607

Research and development

12,403

11,082

36,103

37,303

Less Stock-based compensation expense

(1,569)

(1,184)

(4,191)

(7,238)

Less Acquisition and integration costs

(112)

(102)

(337)

(393)

Less IPO and Secondary Offering expenses

(8)

Research and development, adjusted

10,722

9,797

31,575

29,664

Depreciation and amortization

33,300

60,185

100,106

148,635

Less Other (a)

(15,776)

Less Intangible amortization

(27,851)

(39,080)

(84,081)

(117,240)

Depreciation and amortization, adjusted

5,449

5,329

16,025

15,619

Income tax expense/(benefit)

12,069

3,274

43,516

(17,398)

Plus Tax effect of adjustments

9,875

13,482

26,605

41,400

Income tax expense/(benefit), adjusted

21,944

16,756

70,121

24,002

(a)

Waystar

Reconciliation of Non-GAAP Net Income

(in thousands, except share and per share amounts)

(unaudited)

Three months ended

September 30,

Nine months ended

September 30,

($ in thousands)

2025

2024

2025

2024

Net income/(loss)

$ 30,648

$ 5,413

$ 92,101

$ (38,204)

Stock based compensation

11,597

7,903

29,871

47,400

Acquisition and integration costs

5,313

188

6,197

696

Costs related to amended debt agreements

649

106

649

12,876

IPO and Secondary Offering expenses

1,372

109

4,571

2,114

Other (a)

240

16,816

1,320

16,816

Intangible amortization

27,851

39,080

84,081

117,240

Tax effect of adjustments

(9,875)

(13,482)

(26,605)

(41,400)

Non-GAAP net income/(loss)

$ 67,795

$ 56,133

$ 192,185

$ 117,538

Non-GAAP net income/(loss) per share:

Basic

$ 0.39

$ 0.33

$ 1.11

$ 0.83

Diluted

$ 0.37

$ 0.32

$ 1.06

$ 0.80

Weighted-average shares outstanding:

Basic

174,352,079

171,578,311

173,388,077

142,367,458

Diluted

181,240,033

176,181,511

181,165,738

146,843,861

(a)

Waystar

Reconciliation of Unlevered Free Cash Flow

(in thousands)

(unaudited)

Three months ended

September 30,

Nine months ended

September 30,

2025

2024

2025

2024

Net cash provided by operating activities

82,030

78,818

243,039

104,998

Interest paid

19,558

18,925

59,303

101,189

Purchase of PP&E and capitalization of internally developed software costs

(5,876)

(8,616)

(17,069)

(21,044)

Unlevered free cash flow

95,712

89,127

285,273

185,143

Waystar

Reconciliation of Net Debt

(in thousands)

(unaudited)

September 30,

2025

2024

First lien term loan facility outstanding debt, current

11,668

12,909

First lien term loan facility outstanding debt, net of current portion

1,143,127

1,153,864

Receivables facility outstanding debt

80,000

Cash and cash equivalents

(421,056)

(127,125)

Net debt

813,739

1,119,648

Trailing Twelve Months Adjusted EBITDA

433,154

369,587

Adjusted Gross leverage ratio

2.9x

3.4x

Adjusted Net leverage ratio

1.9x

3.0x

Waystar

Reconciliation of Trailing Twelve Months (TTM) Adjusted EBITDA

(in thousands)

(unaudited)

Three Months Ended

TTM

September 30,

2025

June 30,

2025

March 31,

2025

December 31,

2024

September 30,

2025

Net income/(loss)

30,648

32,184

29,269

19,079

111,180

Interest expense

17,515

18,255

18,900

20,086

74,756

Income tax expense/(benefit)

12,069

14,407

17,040

13,978

57,494

Depreciation and amortization

33,300

33,426

33,380

37,996

138,102

Stock-based compensation expense

11,597

11,530

6,744

7,037

36,908

Acquisition and integration costs

5,313

655

229

163

6,360

Costs related to amended debt agreements

649

1,262

1,911

IPO and Secondary Offering expenses

1,372

1,769

1,430

4,597

Other (a)

240

326

754

526

1,846

Adjusted EBITDA

112,703

112,552

107,746

100,153

433,154

(a)

Adjustments relate to additional lease costs due to the relocation of our Louisville office and executive severance.

Media Contact

Kristin Lee

kristin.lee@waystar.com

Investor Contact

Sue Dooley

susan.dooley@waystar.com

SOURCE Waystar