Home / Business and Economy / Waystar's AI-Driven Claims Denial Tools Propel Q3 Growth, Lifting Full-Year Outlook
Waystar's AI-Driven Claims Denial Tools Propel Q3 Growth, Lifting Full-Year Outlook
17 Nov
Summary
- Waystar's Q3 revenue up 12% to $268.7M, adjusted EBITDA at $112.7M with 42% margin
- Adoption of AI-driven claims denial tools a key contributor to above-consensus performance
- Management raises full-year revenue and adjusted EBITDA targets
On October 29, 2025, Waystar Holding Corp. (NASDAQ:WAY) released its Q3 financial results, showcasing impressive growth. The company reported a 12% increase in revenue to $268.7M, driven by steady transaction volume, expanding client adoption, and early success with the Iodine Software cross-sell. Adjusted EBITDA remained strong at $112.7M, with a healthy 42% margin.
Waystar's performance exceeded market expectations, with Mizuho Securities subsequently lifting its price target from $48 to $50 and reiterating an Outperform rating on October 30, 2025. The firm highlighted that the adoption of AI-driven claims denial tools was a key contributor to Waystar's above-consensus results.
Looking ahead, Waystar's management raised the company's full-year revenue and adjusted EBITDA targets, signaling confidence that the Iodine Software integration and a robust pipeline can carry the momentum into 2026. The revised guidance calls for revenue of $1.085-$1.093B and adjusted EBITDA of $451-$455M.
Waystar is a leading provider of healthcare payments and revenue cycle technology solutions, with its cloud-based software used by hospitals, physician groups, and other care organizations to manage various financial operations, including claims processing, billing, and patient interactions.
