Investing.com -- Waystar Holding Corp (NASDAQ:WAY) reported third quarter results that exceeded analyst expectations, but shares fell 7.3% in after-hours trading Monday as the company's full-year guidance disappointed investors.
The healthcare payment software provider posted adjusted earnings per share of $0.44 for the third quarter, beating the analyst consensus of $0.41. Revenue reached $325.6 million, up 21% YoY and slightly above the $323.41 million estimate. However, the company's fiscal 2026 guidance fell short of Wall Street expectations. Waystar projected full-year adjusted EPS of $1.63 to $1.71, with a midpoint of $1.67 that matched the analyst consensus of $1.67. The company forecast fiscal 2026 revenue of $1.277 billion to $1.287 billion, with a midpoint of $1.282 billion falling below the $1.29 billion consensus.
Net income for the quarter was $31.0 million, or $0.16 per diluted share, with a net income margin of 10%. Adjusted EBITDA reached $139.3 million, representing a 43% margin. The company generated $103.9 million in cash flow from operations and $114.8 million in unlevered free cash flow.
"Providers are increasingly consolidating more of the revenue cycle onto Waystar's connected platform, deepening relationships across both new and existing clients as they adopt more of our AI-powered capabilities," said Matt Hawkins, Chief Executive Officer.
The company reported 1,488 clients contributing over $100,000 in last twelve months revenue, up 14% YoY, with a net revenue retention rate of 108%. Subscription revenue grew 34% YoY to $180.7 million, while volume-based revenue increased 8% to $142.9 million. Provider revenue rose 28% to $243.4 million, and patient revenue grew 5% to $82.2 million.
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