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Investing.com -- Waystar Holding Corp. (NASDAQ:WAY) saw its shares jump 6% after the healthcare payment software provider reported first-quarter earnings that beat analyst expectations and raised its full-year outlook.
The company posted adjusted earnings per share of $0.32 on revenue of $256.4 million for the quarter ended March 31, 2025. Revenue grew 14% year-over-year, marking Waystar’s fourth consecutive quarter of double-digit growth since going public.
Waystar raised its fiscal 2025 guidance, now expecting revenue between $1.006 billion and $1.022 billion, up from its previous forecast and above the $1.011 billion analyst consensus. The company also lifted its adjusted EPS outlook to $1.31-$1.34, compared to the $1.31 consensus estimate.
"Waystar sustained strong momentum in the first quarter of 2025, delivering net income margins exceeding 10%, adjusted EBITDA margins exceeding 40%, and our fourth consecutive quarter of double-digit revenue growth as a public company," said CEO Matt Hawkins (NASDAQ:HWKN).
The company reported net income of $29.3 million and an adjusted EBITDA of $107.7 million, representing margins of 11% and 42% respectively. Waystar’s client base paying over $100,000 in annual revenue grew 15% YoY to 1,244, while its net revenue retention rate reached 114%.
Subscription revenue rose 18% to $125.0 million, while volume-based revenue increased 11% to $129.9 million. The company also highlighted the launch of its new AI-powered product, Waystar AltitudeAI, aimed at streamlining client workflows and improving financial performance.
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