Piedmont Healthcare, a Georgia-based health system, leverages AI capabilities across Waystar's platform. "We've been automating and leveraging more and more AI to get authorizations done without any human touch. When you're talking about trying to speed up processes or when you don't have enough people to get the job done, that makes a big difference," said Sheila Granda, Executive Director of Financial and Operational Effectiveness at Piedmont Healthcare. "Leveraging Waystar, our accuracy rate is in the 90 ...

Group 1 - Waystar Holding Corp reported mixed fourth-quarter results, with earnings of 36 cents per share, missing the analyst consensus estimate of 39 cents per share [1] - The company reported quarterly sales of $303.538 million, exceeding the analyst consensus estimate of $293.920 million [1] - Following the earnings announcement, Waystar shares rose by 3.9% to trade at $25.25 [2] Group 2 - For FY2026, Waystar expects adjusted EPS in the range of $1.59 to $1.68, compared to market estimates of $1.64 [2] - The company anticipates sales between $1.274 billion and $1.294 billion, slightly above estimates of $1.284 billion [2] - Analysts have adjusted their price targets for Waystar following the earnings announcement [2]

Core Viewpoint - Italian luxury group Brunello Cucinelli has resumed shipments to Saks Global at the end of January 2026, reporting no financial impact from Saks' bankruptcy filing in mid-January 2026 [1][1]. Company Performance - Cucinelli has a long-standing relationship with Saks, Neiman Marcus, and Bergdorf Goodman, having worked with them for over 30 years, and has not incurred any financial losses from these partnerships [1][1]. - The company reported that sales of its products at all associated chains continued to grow in early 2026, with clients spending more overall and per item [1][1]. Financial Impact - Cucinelli recorded an extraordinary provision of 8.1 million euros in 2025 related to Saks' bankruptcy but expects no impact on its 2026 financial performance, projecting around a 10% rise in revenue at constant exchange rates [1][1][1]. Distribution Strategy - The recent closure of some Saks Global stores has a marginal effect on Cucinelli's distribution, as the company has historically focused on key locations [1][1]. - Cucinelli welcomes Saks Global's shift towards a more selective retail network [1][1].

Core Viewpoint - Waystar Holding Corp. has demonstrated significant financial improvement, achieving profitability and a strong growth outlook, which has positively influenced its stock performance [1][4]. Financial Performance - Waystar reported a net income of $112 million for the last year, a turnaround from a net loss of $19 million in 2024 [1]. - The company's revenues exceeded $1 billion, reaching $1.099 billion, reflecting a 16% increase from $943.5 million year-on-year [2]. - In the fourth quarter, Waystar's net income was $19.99 million, up 4.8% from $19.08 million in the same quarter the previous year, with revenues of $303.5 million, a 24% increase from $244 million year-on-year [4]. Future Guidance - For 2026, Waystar aims for a non-GAAP net income increase of 20.6% to 27%, targeting $317 million to $335 million compared to $262.9 million in 2025 [5]. - Revenue projections for 2026 are set between $1.274 billion and $1.294 billion, indicating an implied growth of 16% to 17.7% year-on-year [5]. - Adjusted EBITDA is expected to be between $530 million and $540 million, representing a 14.7% to 16.8% increase from $462.1 million in the same comparable period [5]. Strategic Positioning - The company is positioning itself as a leader in healthcare's AI transformation, focusing on enhancing the autonomous revenue cycle through proprietary data and domain expertise [6].

Core Insights - Waystar Holding Corp. (NASDAQ:WAY) is recognized as one of the 15 innovative healthcare stocks to buy according to analysts [1] Group 1: Analyst Ratings and Price Targets - Mizuho has lowered its price target for Waystar to $42 from $50 while maintaining an Outperform rating, reflecting a reassessment of competitive risks in the healthcare technology sector [2] - Leerink initiated coverage of Waystar with an Outperform rating and a price target of $43, citing the company's broad market reach and growth potential [3] Group 2: Company Developments and Innovations - Waystar announced the resignation of Chief Business Officer Eric Sinclair III, effective March 2, 2026, with no disagreements involved and a 2025 annual bonus to be received [4] - The company has integrated agentic intelligence into its healthcare payment platform and upgraded its AltitudeAI system, which has prevented $15.5 billion in claim denials in under a year, showcasing its operational enhancements [4] Group 3: Company Overview - Waystar is a U.S. healthcare technology company that modernizes healthcare payments through a cloud-native, AI-powered revenue cycle management platform, improving claim accuracy and patient payment experiences [5]

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $304 million, growing 24% year-over-year and 12% organically, with full-year revenue increasing 17% to $1.1 billion [21][22] - Adjusted EBITDA for Q4 was $129 million, up 29% year-over-year, with an adjusted EBITDA margin of 42.5%, exceeding the long-term target of 40% [10][24] - Unlevered free cash flow was $80 million in Q4 and $365 million for the full year, converting 79% of adjusted EBITDA to unlevered free cash flow [25] Business Line Data and Key Metrics Changes - Subscription revenue for Q4 was $168 million, increasing 38% year-over-year, while volume-based revenue was $134 million, up 11% year-over-year [23] - For the full year, subscription revenue totaled $558 million, a 22% increase, and volume-based revenue reached $535 million, also up 11% year-over-year [24] Market Data and Key Metrics Changes - Waystar added 85 clients with trailing twelve-month spend above $100,000 in Q4, up from 30 a year ago, indicating strong market demand [9] - The company achieved a Net Revenue Retention rate of 112% and a Gross Revenue Retention rate of 97% [9][22] Company Strategy and Development Direction - The acquisition of Iodine Software expanded Waystar's addressable market and client base, adding over 1,000 hospitals and health systems [7][11] - Waystar aims to lead in AI-powered revenue cycle automation, with approximately 50% of its solutions leveraging AI [14][20] - The company is focused on delivering a fully autonomous revenue cycle, integrating clinical and financial data to enhance operational efficiency [12][87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the business model, anticipating continued low double-digit revenue growth [10][26] - The company expects revenue for 2026 to be between $1.274 billion and $1.294 billion, representing a 17% year-over-year growth [26][28] - Management highlighted strong customer confidence and a robust sales pipeline entering 2026 [10][27] Other Important Information - Waystar's partnership with Google Cloud's Gemini LLM is expected to accelerate innovation in AI capabilities [16] - The company is committed to maintaining a leverage ratio at or below 3x and continuing to reinvest in growth opportunities [25][29] Q&A Session Summary Question: AI and customer appetite for LLMs - Management noted that most clients prefer integrating AI capabilities into existing systems rather than building their own, highlighting a trend towards trusted partnerships in AI deployment [31][41] Question: New AI agents and revenue opportunities - New AI agents are expected to provide both incremental revenue opportunities and enhance the existing AI offerings, contributing to client retention and value [42][44] Question: Cost structure and margin guidance - The increase in G&A, R&D, and SG&A costs is attributed to the inclusion of Iodine, with expectations for continued margin improvement through cost synergies [47][49] Question: AI market growth in healthcare - Management sees significant opportunities in AI within healthcare, emphasizing the need for secure, scalable, and accurate solutions [60][62] Question: Patient utilization assumptions for 2026 - Management expects patient utilization to remain healthy, aligning with historical trends and supporting revenue growth [66] Question: Impact of high-deductible health plans on patient volumes - There was a sequential decrease in patient volumes as patients met their deductibles, but this was offset by growth in provider solutions [70][72] Question: Competitive landscape and ROI - Management emphasized the compelling ROI of their platform compared to point solutions, noting strong win rates and client preference for integrated solutions [83][84]

Financial Data and Key Metrics Changes - In Q4 2025, revenue reached $304 million, growing 24% year-over-year and 12% organically, with full-year revenue increasing 17% to $1.1 billion [21][22] - Adjusted EBITDA for Q4 was $129 million, up 29% year-over-year, with an adjusted EBITDA margin of 42.5%, exceeding the long-term target of 40% [10][24] - Unlevered free cash flow was $80 million in Q4 and $365 million for the full year, converting 79% of adjusted EBITDA to unlevered free cash flow [25] Business Line Data and Key Metrics Changes - Subscription revenue for Q4 was $168 million, increasing 38% year-over-year, while volume-based revenue was $134 million, up 11% year-over-year [23] - For the full year, subscription revenue totaled $558 million, a 22% increase, and volume-based revenue reached $535 million, also up 11% year-over-year [24] Market Data and Key Metrics Changes - Waystar added 85 clients with trailing twelve-month spend above $100,000 in Q4, a 16% year-over-year increase, with a net revenue retention rate of 112% [9][22] - The company processed over 7 billion transactions annually, touching approximately 60% of the U.S. patient population each year [17] Company Strategy and Development Direction - The acquisition of Iodine Software expanded Waystar's addressable market and client base, adding over 1,000 hospitals and health systems [7][11] - Waystar aims to lead in AI-powered revenue cycle automation, with approximately 50% of its solutions leveraging AI [14][20] - The company is focused on delivering a fully autonomous revenue cycle, integrating clinical and financial data to enhance operational efficiency [12][87] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of their business model, expecting normalized organic growth of approximately 10% for 2026 [26] - The company anticipates continued healthy patient utilization and strong demand for its platform, which is expected to insulate it from reimbursement rate pressures [26][66] Other Important Information - The company expects to realize over 90% of committed cost synergies from the Iodine acquisition in fiscal 2026 [11][29] - Waystar's commercial model aligns with consumption, directly matching how value is created in the revenue cycle [15] Q&A Session Summary Question: Customer appetite for AI integration - Management noted that most clients prefer to integrate AI capabilities into their existing systems rather than build their own, highlighting the importance of a trusted partner [41] Question: Incremental revenue opportunities from new AI agents - New AI agents are expected to provide both incremental revenue opportunities and enhance the existing AI offerings, contributing to client retention and value [43][44] Question: Impact of Iodine on margins and cost centers - The increase in G&A, R&D, and SG&A costs is attributed to the full quarter contribution from Iodine, with expectations for continued margin improvement through cost synergies [48][49] Question: AI market growth in healthcare - Management sees significant opportunities in AI within healthcare, emphasizing the need for secure, scalable, and accurate solutions [60][62] Question: Patient healthcare utilization assumptions - The company expects patient utilization to remain healthy, projecting growth above the historical baseline of 1%-2% [66] Question: Trends in patient deductible timelines - Management observed a decrease in patient volumes as patients hit their deductibles, but this was offset by growth in provider solutions [70][71] Question: Competitive landscape and ROI - Management highlighted robust win rates and the importance of a platform approach, which is increasingly preferred by clients over point solutions [83][84]

Financial Data and Key Metrics Changes - Q4 revenue reached $304 million, growing 24% year-over-year and 12% organically [6][20] - Full year revenue increased 17% year-over-year to $1.1 billion, with organic growth of 13% [20] - Adjusted EBITDA for Q4 was $129 million, up 29% year-over-year, with a margin of 42.5% [9][24] - Unlevered free cash flow was $80 million in Q4 and $365 million for the full year, converting 79% of adjusted EBITDA to unlevered free cash flow [25] Business Line Data and Key Metrics Changes - Subscription revenue for Q4 was $168 million, increasing 38% year-over-year and 25% sequentially, representing 55% of total revenue [23] - Volume-based revenue for Q4 was $134 million, up 11% year-over-year, with steady double-digit growth from both provider solution transactions and patient payment dollars [24] - The number of clients generating more than $100,000 of trailing twelve-month revenue increased by 85 in Q4, totaling 1,391 clients [21] Market Data and Key Metrics Changes - Waystar added 85 clients with trailing twelve-month spend above $100,000, reflecting strong demand and competitive momentum [7] - The company achieved a Net Revenue Retention rate of 112% and a Gross Revenue Retention rate of 97% [8][22] Company Strategy and Development Direction - The acquisition of Iodine Software expanded Waystar's addressable market and strengthened its competitive position [5] - The company aims to lead in AI-powered revenue cycle automation, with approximately 50% of its solutions leveraging AI [12] - Waystar's strategy focuses on delivering a unified financial and clinical platform to enhance operational efficiency and client value [10][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of the business model and the ability to sustain profitable growth [6] - The company anticipates revenue growth of $1.274 billion to $1.294 billion for 2026, representing 17% year-over-year growth [26] - Management expects continued healthy utilization of the healthcare system by patients throughout 2026 [26][65] Other Important Information - Waystar's platform is designed to integrate AI capabilities seamlessly, enhancing operational efficiency and client trust [39][61] - The company is focused on maintaining a leverage ratio at or below 3x and plans to continue deleveraging in line with historical rates [25] Q&A Session Summary Question: What is the appetite of customers to use LLMs versus buying from Waystar? - Management noted that most clients prefer to integrate AI capabilities into their existing systems rather than developing them independently due to a lack of engineering talent [39] Question: How do new AI agents impact revenue opportunities? - New AI capabilities will create both incremental revenue opportunities and enhance existing software modules, driving retention and elongation of client relationships [42] Question: What are the implications of increased G&A and R&D costs? - The increase is largely due to the inclusion of Iodine, and management expects to find additional opportunities for cost savings while focusing on long-term revenue growth [46][48] Question: How does Waystar's ROI compare to competitors? - Management emphasized that Waystar's ROI is compelling, supported by strong win rates and the benefits of a platform approach [81] Question: What is the outlook for AI market growth in healthcare? - Management believes the AI opportunity in healthcare is significant, with a focus on delivering secure, scalable, and accurate solutions [58][61]

分组1 - Waystar Holding reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.39 per share, but showing an increase from $0.29 per share a year ago, resulting in an earnings surprise of -8.37% [1] - The company posted revenues of $303.54 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 3.03%, and this represents a significant increase from year-ago revenues of $244.1 million [2] - Over the last four quarters, Waystar has surpassed consensus EPS estimates two times and topped consensus revenue estimates three times [2] 分组2 - Waystar shares have declined approximately 31.6% since the beginning of the year, contrasting with the S&P 500's slight decline of 0.1% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the upcoming quarter is $0.41 on revenues of $310.32 million, and for the current fiscal year, it is $1.67 on revenues of $1.28 billion [7] 分组3 - The Zacks Industry Rank indicates that the Internet - Software sector is currently in the top 36% of over 250 Zacks industries, suggesting that companies in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

4Q'25 Earnings Presentation February 17, 2026 INTRODUCTIONS F O R W A R D - L O O K I N G S T A T E M E N T S This presentation contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that reflect our current views with respect to, among other things, statements regarding Waystar's expectations relating to future operating results and financial position, including full year 2026, and future periods; anticipated future investments; our industry, busine ...