Waystar Holding Stock Earnings Reports

Waystar reported strong Q2 2026 results: revenue of $320M (+18% YoY), adjusted EBITDA of $137M with a 43% margin (above consensus), and healthy bookings including a double-digit count of $1M+ ACV deals. Net revenue retention was 108% and clients generating >$100k TTM revenue grew 15% YoY to 1,453. Subscription revenue reached $176M (+34% YoY) and volume-based revenue was $142M (+3% YoY; normalized ~8%). The company is executing on its strategy to build an "autonomous revenue cycle" driven by AI, highlighted by the Iodine acquisition integration, cross-sell success (>$6M bookings from Iodine capabilities), and early traction on anomaly detection and payer-takeback solutions. Waystar processes >7.5B transactions annually, positioning it as a mission-critical platform. Financial position remains solid: $192M cash, $1.5B gross debt, net leverage 2.5x, $64M unlevered free cash flow in the quarter, and a $200M repurchase authorization (Q2 repurchases $13M). Capitalized software spend increased materially as management invests in AI capabilities. Leadership transition: CFO Steven Oreskovich will step down (remain as adviser) and Alpana Wegner joins as CFO. Guidance was modestly tightened: revenue raised $2M on the low end to $1.276B–$1.294B (midpoint $1.285B, +17% YoY) and adjusted EBITDA raised to $535M–$545M (midpoint $540M). Key investor takeaways: strong growth and margins, accelerating large-platform bookings, meaningful AI monetization and cross-sell potential (especially via Iodine), disciplined capital allocation with ongoing investments in AI, and a healthy balance sheet with buyback activity.