Waystar Holding Corp. Reports 15.4% Revenue Growth and Net Income Turnaround in Q2 2025

Waystar Holding Corp. reported significant financial improvements in its latest quarterly results, with revenues reaching $270.7 million for the three months ended June 30, 2025, a 15.4% increase from $234.5 million in the same period last year. For the first half of 2025, the company generated $527.1 million in revenue, up 14.8% from $459.3 million in the prior year. The increase in revenue was primarily driven by a rise in subscription revenue, which grew by 16.7% to $131.1 million, and volume-based revenue, which increased by 14.4% to $138.3 million. The company also reported a net income of $32.2 million for the second quarter, a turnaround from a net loss of $27.7 million in the same quarter of 2024.

In terms of operational efficiency, Waystar's total operating expenses decreased by 9.1% to $205.8 million for the second quarter, compared to $226.3 million in the previous year. This reduction was attributed to lower general and administrative expenses, which fell by 26.9% to $29.2 million, and a significant decrease in depreciation and amortization costs, which dropped by 24.5% to $33.4 million. The company’s interest expenses also saw a notable decline, decreasing by 64.8% to $17.3 million, largely due to the repayment of $1 billion in debt following its initial public offering (IPO) in June 2024.

Waystar's customer base continues to expand, with over 30,000 clients, including 16 of the top 20 U.S. News Best Hospitals. The company reported a Net Revenue Retention Rate of 114.6% for the twelve months ending June 30, 2025, indicating strong client retention and growth. Additionally, the number of clients generating over $100,000 in revenue increased to 1,268, up from 1,117 in the previous year. The company facilitated over six billion healthcare payment transactions in 2024, reflecting its growing market presence.

Strategically, Waystar announced plans to acquire Iodine for $1.25 billion, which includes $625 million in cash and shares. This acquisition is expected to enhance Waystar's AI capabilities and improve operational efficiencies. The deal is subject to customary closing conditions and regulatory approvals, with an anticipated completion by the end of 2025. The company also continues to invest in its technology platform, leveraging AI to automate payment workflows and improve billing accuracy.

Looking ahead, Waystar remains optimistic about its growth trajectory, supported by its strong financial performance and strategic initiatives. The company expects to continue benefiting from its recurring revenue model and the increasing adoption of its solutions across healthcare providers. With a solid cash position of $290.3 million as of June 30, 2025, Waystar is well-positioned to fund its operations and pursue future growth opportunities.