Waystar (WAY) Financials

Waystar’s financial performance has generally improved over the available period, with revenue growth, positive earnings and strong operating cash flow marking a significant recovery from the losses reported in 2023 and early 2024. However, the company remains highly leveraged and its balance sheet is dominated by goodwill and intangible assets.

• Revenue growth remains strong. Q2 2026 revenue increased to $319.7 million from $270.7 million in Q2 2025, an 18.1% year-over-year gain. Revenue has risen from $196.0 million in Q2 2023, representing growth of approximately 63% over three years.
• Waystar has sustained quarterly profitability. Net income rose to $40.9 million in Q2 2026 from $32.2 million in the restated Q2 2025 period, while diluted EPS increased to $0.21 from $0.18. This compares with losses in Q2 and Q3 2023 and Q1 and Q2 2024.
• Operating cash flow remains firmly positive. Waystar generated $59.4 million of operating cash flow in Q2 2026 and $84.9 million in Q1. Although lower than the $96.8 million generated in Q2 2025, the company has produced positive operating cash flow in every quarter provided since Q1 2024.
• Liquidity improved during Q2. Cash, restricted cash and short-term investments totaled approximately $224.4 million at June 30, 2026, up from $187.3 million at March 31. Accounts receivable also increased to $185.9 million, supporting the company’s current asset base.
• Interest expense has declined substantially from earlier periods. Quarterly interest expense was $19.6 million in Q2 2026, compared with $50.5 million in Q2 2024 and $57.2 million in Q1 2024. Lower interest costs have helped Waystar move from pretax losses to consistent pretax profitability.
• Working capital was a cash-flow headwind in Q2. Changes in operating assets and liabilities reduced operating cash flow by $39.7 million, compared with a $12.8 million reduction in Q1. This may reflect timing in receivables, payables or other operating accounts rather than a permanent deterioration, but investors should monitor the trend.
• Investment activity is affecting reported cash balances. Waystar purchased $136.0 million of investments and sold or received maturities of $82.5 million in Q2. As a result, investing activities consumed $70.0 million despite positive operating cash flow. The company also spent $16.1 million on capital expenditures.
• Debt remains substantial. Total short- and long-term debt was approximately $1.47 billion at June 30, 2026, or more than six times quarterly operating cash flow. Debt has increased from approximately $1.23 billion in Q2 2024, leaving the company exposed to refinancing and interest-rate risks.
• Cash declined even as liquidity investments rose. Cash and equivalents fell to $12.6 million from $34.3 million in Q1, and total cash equivalents declined by $17.3 million during Q2. The broader liquid asset position improved because of short-term investment purchases, but much of that liquidity is not held as immediately available cash.
• The asset base carries significant goodwill and intangible-asset risk. Goodwill and intangible assets totaled approximately $5.24 billion, or nearly 90% of total assets at June 30, 2026. Any impairment could materially reduce reported equity, while the company’s large amortization expense continues to separate GAAP earnings from cash generation.

Investors should also use caution when comparing margins. The Q2 2026 standardized income statement reports zero cost of revenue and gross profit equal to revenue, while prior quarters include cost-of-revenue amounts or similarly unusual presentation changes. In addition, several historical periods were marked as restated. Revenue, earnings and cash-flow trends are therefore more reliable than direct quarter-to-quarter gross-margin comparisons in this dataset.