Waystar reported third-quarter revenue of $325.6 million, up 21% from a year earlier, with growth in both subscription and transaction-based services. The healthcare payment software provider also posted $31 million in GAAP net income and raised its full-year outlook range for adjusted EBITDA and non-GAAP earnings.
Key details
- Profitability: GAAP net income was $31 million, or 16 cents per diluted share, producing a 10% net income margin. On a non-GAAP basis, net income was $87.1 million, or 44 cents per diluted share. Adjusted EBITDA was $139.3 million, with a 43% margin.
- Cash generation: Cash flow from operations was $103.9 million, while unlevered free cash flow was $114.8 million.
- Revenue mix: Subscription revenue rose 34% to $180.7 million. Volume-based revenue increased 8% to $142.9 million.
- Customer-related metrics: Waystar reported 1,488 clients that each contributed more than $100,000 in revenue over the trailing 12 months, up 14% year over year. Net revenue retention was 108%.
- Provider and patient revenue: Provider revenue grew 28% to $243.4 million; patient revenue rose 5% to $82.2 million.
- Full-year 2026 outlook: Waystar expects revenue of $1.277 billion to $1.287 billion, adjusted EBITDA of $543 million to $549 million, and non-GAAP net income of $322 million to $337 million. Its forecast for diluted non-GAAP earnings per share is $1.63 to $1.71.
The figures show faster growth in subscription revenue than in volume-based revenue, and faster growth in provider revenue than in patient revenue. Waystar’s reported 108% net revenue retention indicates that revenue from its existing customer base grew overall after accounting for customer losses and changes in spending.