Q2 2026 Waystar Holding Corp Earnings Call Transcript
Key Points
- Waystar Holding Corp (WAY) delivered strong Q2 2026 results with revenue of $320 million, up 18% year-over-year, and adjusted EBITDA of $137 million, exceeding consensus expectations.
- The company saw robust bookings momentum, including a double-digit number of $1 million-plus ACV deals, driven by large platform deployments and client expansion.
- Waystar's AI-powered solutions are gaining traction, with over a dozen clients committing to its next-generation anomaly detection solution and early adopters seeing approximately $3 million in incremental revenue recovered per 10,000 admissions.
- The acquisition of Iodine is proving successful, with more than $6 million in bookings from existing Waystar clients purchasing Iodine capabilities, highlighting a strong cross-sell opportunity.
- Waystar was named to the Time 100 Most Influential Companies list and earned the Time Impact in AI award, providing external validation of its AI strategy and market position.
- Net revenue retention (NRR) was 108%, at the low end of its historical range of 108% to 110%, indicating a slight deceleration in client expansion.
- Volume-based revenue growth was only 3% year-over-year, impacted by tough comparisons from large client implementations in the prior year and a return to long-term average utilization trends.
- The company faces a longer sales cycle for larger deals, with a 6- to 18-month lead time, which can delay revenue recognition from new bookings.
- Capitalized software development costs doubled year-over-year in the first half of 2026, reflecting increased investment in AI capabilities that may pressure near-term free cash flow conversion.
- The operating environment includes uncertainties such as changes in Medicaid coverage and uninsured populations, which could impact transaction volumes and provider demand.
Good day, and thank you for standing by. Welcome to the Waystar second quarter 2026 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Edward Parker, Head of Investor Relations. Please go ahead.
Thank you, operator. Good afternoon, everyone, and thank you for joining Waystar's Second Quarter 2026 Earnings Call. Joining me today are Matt Hawkins, Waystar's Chief Executive Officer; and Steve Oreskovich, Waystar's Chief Financial Officer. This afternoon, we issued a press release announcing our financial results and published an accompanying presentation deck. You can find these materials at investors.waystar.com.
Before we begin, I would like to remind you that this call contains forward-looking statements, which are predictions or beliefs about future events or performance. Examples of these statements include expectations of future financial results,
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