0001410578-25-001048 | 10-Q | XBRL Viewer

Derivative Financial Instruments (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of interest rate swap agreements designated as a hedging instruments

As of March 31, 2025 and December 31, 2024, we have the following interest rate swap agreement designated as a hedging instruments:


Effective Dates	Floating Rate Debt		Fixed Rates
January 31, 2023 through January 31, 2026	$	506.7 million	3.87	%

Schedule of effect of derivative instruments designated as hedging instruments on the accompanying consolidated financial statements

The effect of derivative instruments designated as hedging instruments on the accompanying consolidated financial statements is as follows (in thousands):


						Total interest
	Amount of Gain or		Location of Gain or	Amount of Gain or		Expense on
	(Loss) Recognized		(Loss) Reclassified	(Loss) Reclassified		Consolidated
	in AOCI/AOCL on		from AOCI/AOCL	from AOCI/AOCL		Statements of
Derivatives - Cash Flow Hedging Relationships	Derivative		into Income	into Income		Operations
Interest rate swaps:
Three months Ended March 31, 2025	$	(556)	Interest expense	$	573	$	(18,900)
Three months Ended March 31, 2024	$	(175)	Interest expense	$	8,601	$	(57,184)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References + Details

Accounts Receivable Securitization	3 Months Ended
Mar. 31, 2025
Accounts Receivable Securitization
Accounts Receivable Securitization	11. Accounts Receivable Securitization As of both March 31, 2025 and December 31, 2024, we had $80.0 million outstanding under a receivables financing agreement with a counterparty as the lender, which provides for a three-year receivables facility with a limit of $80 million (the “Receivables Facility”). Pursuant to the Receivables Facility, we sell and/or contribute current and future receivables to Waystar RC, LLC as the Special Purpose Entity (“SPE”). The SPE, in turn, pledges its interests in the receivables to the counterparty, which either makes loans or issues letters of credit on behalf of the SPE. All receivables remain on our balance sheet as they continue to be the property of our consolidated entities under the securitization. The interest rate under the Receivables Facility is 1.61% per annum above the SOFR rate with a minimum base of 0%. The SOFR is adjusted each thirty-day period to the thirty-day SOFR rate. Interest under the Receivables Facility is paid monthly in arrears. At March 31, 2025, the effective interest rate for the Receivables Facility is 5.93%. All principal under the Receivables Facility is due on October 31, 2026. The Receivables Facility contains certain covenants which, among other things, require we maintain certain collection thresholds with respect to our accounts receivable. We were in compliance with all such debt covenants during the periods presented.

Accounts Receivable Securitization

3 Months Ended

Mar. 31, 2025

Accounts Receivable Securitization

Accounts Receivable Securitization

11. Accounts Receivable Securitization

As of both March 31, 2025 and December 31, 2024, we had $80.0 million outstanding under a receivables financing agreement with a counterparty as the lender, which provides for a three-year receivables facility with a limit of $80 million (the “Receivables Facility”). Pursuant to the Receivables Facility, we sell and/or contribute current and future receivables to Waystar RC, LLC as the Special Purpose Entity (“SPE”). The SPE, in turn, pledges its interests in the receivables to the counterparty, which either makes loans or issues letters of credit on behalf of the SPE. All receivables remain on our balance sheet as they continue to be the property of our consolidated entities under the securitization.

The interest rate under the Receivables Facility is 1.61% per annum above the SOFR rate with a minimum base of 0%. The SOFR is adjusted each thirty-day period to the thirty-day SOFR rate. Interest under the Receivables Facility is paid monthly in arrears. At March 31, 2025, the effective interest rate for the Receivables Facility is 5.93%.

All principal under the Receivables Facility is due on October 31, 2026.

The Receivables Facility contains certain covenants which, among other things, require we maintain certain collection thresholds with respect to our accounts receivable. We were in compliance with all such debt covenants during the periods presented.

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 210
-Name Accounting Standards Codification
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+ Details

Derivative Financial Instruments (Details)	Jan. 13, 2023 DerivativeInstrument
Designated as hedging instruments \| Interest rate swap
Derivative financial instruments
Number of additional derivative financial instruments	1

Property and Equipment, Net

3 Months Ended

Mar. 31, 2025

Property and Equipment, Net

Property and Equipment, Net

7. Property and Equipment, Net

The balances of the major classes of property and equipment are as follows (in thousands):


	March 31, 2025		December 31, 2024
Computer hardware	$	39,922	$	39,833
Capitalized internal-use software		43,644		40,281
Purchased computer software		22,905		22,789
Furniture and fixtures		3,824		3,642
Office equipment		247		247
Leasehold improvements		4,111		3,778
Internal-use software in progress		16,457		15,361
		131,110		125,931
Accumulated depreciation		(84,465)		(79,200)
	$	46,645	$	46,731

Depreciation of fixed assets, including the amortization of capitalized software, for the three months ended March 31, 2025 and 2024 was $5.3 million and $5.1 million, respectively.

We capitalized $4.5 million and $3.8 million in software development costs for the three months ended March 31, 2025 and 2024, respectively. Amortization of capitalized software was $3.4 million and $2.4 million for the three months ended March 31, 2025 and 2024, respectively. The net book value of capitalized software development costs was $30.7 million and $29.6 million as of March 31, 2025 and December 31, 2024, respectively.

There were no impairments of property and equipment for the three months ended March 31, 2025 and 2024, respectively.

Debt

3 Months Ended

Mar. 31, 2025

Debt

Debt

12. Debt

Debt instruments consist primarily of term notes, revolving lines of credit, and a Receivables Facility as follows (in thousands):


	March 31,		December 31,
	2025		2024
First lien term loan facility outstanding debt	$	1,160,628	$	1,163,545
Revolving credit facility		—		—
Receivables facility outstanding debt		80,000		80,000
Total outstanding debt		1,240,628		1,243,545
Unamortized debt issuance costs		(10,725)		(11,255)
Current portion of long-term debt		(11,668)		(11,668)
Total long-term debt, net	$	1,218,235	$	1,220,622

The maturity of long-term principal payments (excluding debt discount) at March 31, 2025 is as follows (in thousands):


2025	$	8,751
2026		91,668
2027		11,668
2028		11,668
2029		1,116,873
	$	1,240,628

As of March 31, 2025 and December 31, 2024, there is no outstanding balance on our revolving credit facility. The interest rate under the revolving credit facility is 1.75% per annum above the SOFR rate with a minimum base of 0.00%. The SOFR is adjusted each thirty-day period to the thirty-day SOFR rate. At March 31, 2025, the effective interest rate for the revolving credit facility is 6.07%.

The interest rate under the amended First Lien Credit Facility is 2.25% per annum above the SOFR rate with a minimum base of 0.00%. The SOFR is adjusted each thirty-day period to the thirty-day SOFR rate. Interest under the First Lien Credit Facility is paid monthly in arrears. At March 31, 2025, the effective interest rate for First Lien Credit Facility is 6.82%.

Principal on the First Lien Credit Facility is payable in 20 equal quarterly installments with the remaining balance to be paid on October 22, 2029. As of March 31, 2025, there are 18 payments remaining. The First Lien Credit Agreement contains certain covenants which, among other things, restrict our ability to incur additional indebtedness. We were in compliance with such debt covenants as of March 31, 2025.

We had unamortized debt issuance costs of $10.7 million and $11.3 million as of March 31, 2025 and December 31, 2024, respectively.

In connection with the Revolving Credit Facility, unamortized debt issuance costs were $1.9 million and $2.1 million as of March 31, 2025 and December 31, 2024, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 6
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 470
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-URI https://asc.fasb.org/1943274/2147481544/470-10-50-6

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 405
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-URI https://asc.fasb.org/1943274/2147477092/405-40-50-1

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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-Section 50
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 235
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+ Details

Revenue Recognition - Transaction Price Allocated to Remaining Performance Obligations (Details) $ in Millions	Mar. 31, 2025 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01
Revenue Recognition
Period of revenue recognition related to unsatisfied performance obligations	12 months
Revenue to be recognized for unsatisfied performance obligations	$ 69.7
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-04-01
Revenue Recognition
Period of revenue recognition related to unsatisfied performance obligations	12 months
Revenue to be recognized for unsatisfied performance obligations	$ 18.7

Debt - Maturity of Long-term Principal Payments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt
2025	$ 8,751
2026	91,668
2027	11,668
2028	11,668
2029	1,116,873
Total outstanding debt	$ 1,240,628	$ 1,243,545

Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2025

Revenue Recognition

Schedule of revenues disaggregated by revenue type and the timing of revenue recognition

The following table presents revenues disaggregated by revenue type and the timing of revenue recognition (in thousands):


		Three months ended March 31,
	Recognition	2025		2024
Subscription revenue	Over time	$	125,041	$	106,079
Volume-based revenue	Over time		129,918		117,144
Implementation services and other revenue	Various		1,476		1,569
Total revenues		$	256,435	$	224,792

Leases - Supplemental Balance Sheet Information (Details)	Mar. 31, 2025	Dec. 31, 2024
Leases
Weighted average remaining lease term (years): Operating leases	3 years 10 months 24 days	4 years 1 month 6 days
Weighted average remaining lease term (years): Financing leases	8 years 9 months 18 days	9 years 1 month 6 days
Weighted average discount rate: Operating leases	4.70%	4.70%
Weighted average discount rate: Financing leases	5.90%	5.90%

Stock-based Compensation (Tables)

3 Months Ended

Mar. 31, 2025

Stock-based Compensation

Schedule of information pertaining to option activity (including rollover options)


				Weighted
		Weighted average		average
	Number of	exercise price per		remaining
	options	share		contractual life
Outstanding December 31, 2024	16,511,128	$	17.57	5.8
Granted	—		—
Exercised	(855,469)		12.49
Forfeited	(30,976)		23.63
Outstanding March 31, 2025	15,624,683		17.84	5.7


				Weighted
		Weighted average		average
	Number of	exercise price per		remaining
	options	share		contractual life
Outstanding December 31, 2023	13,032,541	$	15.20	5.7
Granted	205,700		37.20
Exercised	(2,420)		24.47
Forfeited	(29,040)		16.53
Outstanding March 31, 2024	13,206,781		15.53	5.5

Schedule of the significant assumptions used in estimating the fair value of options granted


	Three months ended March 31,
	2025	2024
Risk free interest rate	N/A	3.76% - 4.31%
Expected dividend yield	N/A	0%
Expected term of stock award	N/A	1.3 - 5
Expected volatility in stock price	N/A	51.54% - 51.89%

Schedule of RSU activity


		Weighted
	Number of	average grant
	shares	date fair value
Outstanding December 31, 2024	2,089,241	$	21.91
Granted	11,822		38.17
Vested	—		—
Forfeited	(7,607)		21.50
Outstanding March 31, 2025	2,093,456		22.00

Schedule of Stock-based compensation expense


	Three months ended March 31,
	2025		2024
Cost of revenue	$	231	$	122
General and administrative		4,106		1,540
Sales and marketing		1,392		478
Research and development		1,015		388
Total		6,744		2,528

Subsequent Events (Details) - Subsequent event - Designated as hedging instruments $ in Millions	Apr. 09, 2025 USD ($) DerivativeInstrument	Apr. 01, 2025 DerivativeInstrument
Subsequent events
Number of additional derivative financial instruments \| DerivativeInstrument	2	2
April 1, 2025 through January 30, 2026
Subsequent events
Floating Rate Debt	$ 80.0
Fixed Rates	3.59%
January 31, 2026 through March 31, 2027 - Fixed rate 3.59%
Subsequent events
Floating Rate Debt	$ 275.0
Fixed Rates	3.59%
January 31, 2026 through March 31, 2027 - Fixed rate 3.27%
Subsequent events
Floating Rate Debt	$ 275.0
Fixed Rates	3.27%

Other Accrued Expenses

3 Months Ended

Mar. 31, 2025

Other Accrued Expenses

Other Accrued Expenses

18. Other Accrued Expenses

Other accrued expenses consist of the following (in thousands):


	March 31, 2025		December 31, 2024
Other taxes payable	$	14,822	$	8,026
Accrued severance		536		—
Retirement plan payable		638		497
Accrued self insurance claims		2,396		1,064
Accrued interest		384		597
Other		6,870		5,746
Total	$	25,646	$	15,930

Revenue Recognition

3 Months Ended

Mar. 31, 2025

Revenue Recognition

Revenue Recognition

3. Revenue Recognition

Disaggregation of Revenue

The following table presents revenues disaggregated by revenue type and the timing of revenue recognition (in thousands):


		Three months ended March 31,
	Recognition	2025		2024
Subscription revenue	Over time	$	125,041	$	106,079
Volume-based revenue	Over time		129,918		117,144
Implementation services and other revenue	Various		1,476		1,569
Total revenues		$	256,435	$	224,792

Contract Liabilities

We derive our revenue from contracts with clients primarily through subscription fees and volume-based fees. Our payment terms with the client generally comprise an initial payment for implementation services, which includes client enrollment and the setup of contracted solutions on our platform. These implementation fees are due upon contract execution. Additionally, subscription fees are earned on an ongoing basis, which are invoiced monthly.

Client payments received in advance of fulfilling the corresponding performance obligations are recorded as contract liabilities. Implementation fees are recognized over the customer life, with any unrecognized amounts deferred as contract liabilities. These amounts are reported as deferred revenue on our consolidated balance sheet.

Revenue recognized from amounts included in deferred revenue as of the beginning of the period was $8.2 million and $8.7 million for the three months ended March 31, 2025 and 2024, respectively.

Transaction Price Allocated to Remaining Performance Obligations

At March 31, 2025, the transaction price related to unsatisfied performance obligations that are expected to be recognized for the next 12 months and greater than 12 months was $69.7 million and $18.7 million, respectively.

The transaction price allocated to performance obligations that are unsatisfied (or partially unsatisfied) for executed contracts does not include revenue related to performance obligations that are part of a contract with an original expected duration of one year or less. Additionally, the balance does not include variable consideration that is allocated entirely to wholly unsatisfied promises that form part of a single performance obligation comprised of a series of distinct daily services.

Remaining performance obligation estimates are subject to change and are affected by several factors, including terminations and changes in the timing and scope of contracts, arising from contract modifications.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-9

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 10
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-10

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 15
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-15

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-12

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Topic 606
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147479806/606-10-50-13

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Name Accounting Standards Codification
-Topic 606
-Publisher FASB
-URI https://asc.fasb.org/606/tableOfContent

+ Details

Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Leases
Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases	$ 1,614	$ 1,342
Cash paid for amounts included in the measurement of lease liabilities: Financing cash flows for financing leases	$ 399	$ 392

Other Accrued Expenses (Tables)

3 Months Ended

Mar. 31, 2025

Other Accrued Expenses

Schedule of other accrued expenses

Other accrued expenses consist of the following (in thousands):


	March 31, 2025		December 31, 2024
Other taxes payable	$	14,822	$	8,026
Accrued severance		536		—
Retirement plan payable		638		497
Accrued self insurance claims		2,396		1,064
Accrued interest		384		597
Other		6,870		5,746
Total	$	25,646	$	15,930

Segments (Tables)

3 Months Ended

Mar. 31, 2025

Segments

Reconciliation of revenue to consolidated net income


	Three months ended March 31,
($in thousands)	2025	2024

Total Revenue	$	256,435	$	224,792
Less:
Materials and connectivity		60,392		54,184
Labor and associated expenses		22,893		21,008
Research and development		11,078		10,320
Sales and marketing		40,123		33,780
General and administrative		23,300		26,135
Depreciation		5,265		5,094
Amortization		28,115		39,080
Interest and non-operating expenses, net		18,960		57,184
Income tax expense (benefit)		17,040		(6,061)
Segment Net income (loss)	$	29,269	$	(15,932)
Consolidated Net income (loss)	$	29,269	$	(15,932)

Leases - Lease Liability Maturities (Details) $ in Thousands	Mar. 31, 2025 USD ($)
Operating leases
2025	$ 4,728
2026	5,486
2027	3,191
2028	2,868
2029	1,404
Thereafter	1,360
Total future minimum lease payments	19,037
Less: Interest	1,714
Total	17,323
Finance leases
2025	1,204
2026	1,641
2027	1,678
2028	1,714
2029	1,752
Thereafter	7,557
Total future minimum lease payments	15,546
Less: Interest	3,571
Total	$ 11,975

Other Accrued Expenses (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Other Accrued Expenses
Other taxes payable	$ 14,822	$ 8,026
Accrued severance	536
Retirement plan payable	638	497
Accrued self insurance claims	2,396	1,064
Accrued interest	384	597
Other	6,870	5,746
Total	$ 25,646	$ 15,930

Stock-based Compensation - Stock Options Assumptions (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Significant assumptions
Risk free interest rate, minimum		3.76%
Risk free interest rate, maximum		4.31%
Expected dividend yield, percent		0.00%
Expected volatility in stock price, minimum		51.54%
Expected volatility in stock price, maximum		51.89%
Aggregate intrinsic value, options exercised	$ 25.0	$ 0.0
Total unrecognized stock-based compensation expense	$ 47.6
Expected compensation expense, weighted average period (in years)	3 years 6 months
Minimum
Significant assumptions
Expected term of stock award (in years)		1 year 3 months 18 days
Maximum
Significant assumptions
Expected term of stock award (in years)		5 years

Insider Trading Arrangements - Craig Bridge, Chief	3 Months Ended
Insider Trading Arrangements - Craig Bridge, Chief	Mar. 31, 2025 shares
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	On November 27, 2024, Craig Bridge, our Chief Transformation Officer, adopted a trading plan intended to satisfy the affirmative defense conditions of Rule 10b5-1 (c) under the Exchange Act. Mr. Bridge’s plan provides for (i) the sale of up to 306,831 shares of previously issued common stock, (ii) the exercise of up to 232,925 vested stock options and the associated sale of up to 232,925 shares of the Company’s common stock, (iii) the exercise of up to 242,000 options with performance-based vesting conditions and the associated sale of shares of the Company’s common stock, with the actual number of such options and associated shares to be determined based on level of achievement of the performance criteria associated with the award, and (iv) the sale of up to 30,434 shares of the Company’s common stock issuable upon vesting of time-based vesting restricted stock units. Mr. Bridge’s trading plan will expire on October 31, 2025 or upon the earlier sale of all of the shares subject to the plan.
Name	Craig Bridge
Title	Chief Transformation Officer
Rule 10b5-1 Arrangement Adopted	true
Adoption Date	On November 27, 2024
Expiration Date	October 31, 2025
vested stock options
Trading Arrangements, by Individual
Aggregate Available	232,925
Common Stock
Trading Arrangements, by Individual
Aggregate Available	232,925
Restricted Stock Units (RSUs)
Trading Arrangements, by Individual
Aggregate Available	30,434
Previously Issued Common Stock [Member]
Trading Arrangements, by Individual
Aggregate Available	306,831
Performance options
Trading Arrangements, by Individual
Aggregate Available	242,000

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2025	Apr. 21, 2025
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2025
Document Transition Report	false
Entity File Number	001-42125
Entity Registrant Name	Waystar Holding Corp.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	84-2886542
Entity Address, Address Line One	1550 Digital Drive, #300
Entity Address, City or Town	Lehi
Entity Address, State or Province	UT
Entity Address, Postal Zip Code	84043
City Area Code	844
Local Phone Number	492-9782
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	WAY
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		173,018,999
Entity Central Index Key	0001990354
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2025
Document Fiscal Period Focus	Q1
Amendment Flag	false

Fair Value Measurements and Disclosures (Tables)

3 Months Ended

Mar. 31, 2025

Fair Value Measurements and Disclosures

Schedule of fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis

The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis (in thousands):


	Balance Sheet Classification	Carrying Value		Level 1		Level 2		Level 3
March 31, 2025
Available-for-sale fixed-maturity securities
Commercial paper	Investment securities	$	19,383	$	—	$	19,383	$	—
Corporate notes	Investment securities	$	5,036	$	—	$	5,036	$	—
Money market funds	Cash and cash equivalents	$	25,629	$	25,629	$	—	$	—
Other financial assets:
Interest rate swaps	Other current assets	$	431	$	—	$	431	$	—
December 31, 2024
Other financial assets:
Interest rate swaps	Other current assets	$	1,127	$	—	$	1,127	$	—
Interest rate swaps	Other long-term assets	$	22	$	—	$	22	$	—

Business

3 Months Ended

Mar. 31, 2025

Business

Business

1.	Business

Waystar Holding Corp. (“Waystar”, “we” or “our”) is a provider of mission-critical cloud technology to healthcare organizations. Our enterprise-grade platform transforms the complex and disparate processes comprising healthcare payments received by healthcare providers from payers and patients, from pre-service engagement through post-service remittance and reconciliation. Our platform enhances data integrity, eliminates manual tasks, and improves claim and billing accuracy, which results in better transparency, reduced labor costs, and faster, more accurate reimbursement and cash flow. The market for our solutions extends throughout the United States and includes Puerto Rico and other U.S. Territories.

Risks and Uncertainties— We are subject to risks common to companies in similar industries, including, but not limited to, our operation in a highly competitive industry, our ability to retain our existing clients and attract new clients, our ability to establish and maintain strategic relationships, the growth and success of our clients and overall healthcare transaction volumes, consolidation in the healthcare industry, our selling cycle of variable length to secure new client agreements, our implementation cycle that is dependent on our clients’ timing and resources, our ability to develop and market new solutions, or enhance our existing solutions, to respond to technological changes or evolving industry standards, the interoperability, connectivity, and integration of our solutions with our clients’ and their vendors’ networks and infrastructures, the performance and reliability of internet, mobile, and other infrastructure, the consequences if we cannot obtain, process, use, disclose, or distribute the highly regulated data we require to provide our solutions, impact of government regulations on our market, and our reliance on certain third-party vendors and providers.

On occasion, we enter into standard indemnification arrangements in the ordinary course of business. Pursuant to these arrangements, we indemnify, hold harmless, and agree to reimburse the indemnified parties for losses suffered or incurred by the indemnified party, in connection with any trade secret, copyright, patent, or other intellectual property infringement claim by any third-party with respect to its technology. The terms of these indemnification agreements are generally perpetual any time after the execution of the agreement. The maximum potential future payments we could be required to make under these agreements is not determinable because it involves claims that may be made against us in the future but have not yet been made. Historically, we have not incurred costs to defend lawsuits or settle claims related to these indemnification agreements.

We have entered into agreements with our directors or officers that may require us to indemnify them against liabilities that may arise by reason of their status or service as directors or officers, other than liabilities arising from their willful misconduct.

No liability associated with such indemnifications was recorded as of March 31, 2025 and December 31, 2024.

Stock-based Compensation - Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Stock-based compensation
Stock-based compensation expense	$ 6,744	$ 2,528
Cost of revenue
Stock-based compensation
Stock-based compensation expense	231	122
General and administrative
Stock-based compensation
Stock-based compensation expense	4,106	1,540
Sales and marketing
Stock-based compensation
Stock-based compensation expense	1,392	478
Research and development
Stock-based compensation
Stock-based compensation expense	$ 1,015	$ 388

Income/ (Loss) Per Share (Tables)

3 Months Ended

Mar. 31, 2025

Income/ (Loss) Per Share

Schedule of reconciliation of the numerators and the denominators of the basic and diluted per share

A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows (in thousands, except for share and per share data):


	Three months ended March 31,
	2025		2024
Basic income/(loss) per share:
Net income/(loss)	$	29,269	$	(15,932)
Net income/(loss) attributable to common shares	$	29,269	$	(15,932)
Weighted average common stock outstanding–(voting)		172,188,237		121,238,497
Weighted average common stock outstanding–(non-voting)		—		436,801
Basic weighted average common stock outstanding		172,188,237		121,675,298
Basic income/(loss) per share	$	0.17	$	(0.13)

Diluted income/(loss) per share:
Net income/(loss)	$	29,269		(15,932)
Net income/(loss) attributable to common shares	$	29,269	$	(15,932)
Dilutive effect of stock options – (voting)		7,392,322		—
Dilutive effect of RSUs – (voting)		1,111,435		—
Weighted average common stock outstanding–(voting)		180,691,994		121,238,497
Weighted average common stock outstanding–(non-voting)		—		436,801
Diluted weighted average common stock outstanding		180,691,994		121,675,298
Diluted income/(loss) per share	$	0.16	$	(0.13)

Stock-based Compensation - RSU Activity (Details) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2025 USD ($) $ / shares shares
Weighted average grant date fair value
Expected compensation expense, weighted average period (in years)	3 years 6 months
Restricted Stock Units (RSUs)
Number of shares
Outstanding, Beginning balance (in shares) \| shares	2,089,241
Granted \| shares	11,822
Forfeited \| shares	(7,607)
Outstanding, ending balance (in shares) \| shares	2,093,456
Weighted average grant date fair value
Outstanding, beginning balance \| $ / shares	$ 21.91
Granted \| $ / shares	38.17
Forfeited \| $ / shares	21.5
Outstanding, ending balance \| $ / shares	$ 22
Compensation expense \| $	$ 37.7
Expected compensation expense, weighted average period (in years)	4 years 2 months 12 days

Property and Equipment, Net (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Property and Equipment, Net
Property and equipment, gross including capital lease	$ 131,110		$ 125,931
Accumulated depreciation	(84,465)		(79,200)
Property and equipment, net	46,645		46,731
Depreciation of fixed assets, including the amortization of capitalized software	5,300	$ 5,100
Capitalization of software development costs	4,500	3,800
Amortization of capitalized software	3,400	2,400
Net book value of capitalized software development costs	30,700		29,600
Impairments of property and equipment	0	$ 0
Computer hardware
Property and Equipment, Net
Property and equipment, gross	39,922		39,833
Capitalized internal-use software
Property and Equipment, Net
Property and equipment, gross	43,644		40,281
Purchased computer software
Property and Equipment, Net
Property and equipment, gross	22,905		22,789
Furniture and fixtures
Property and Equipment, Net
Property and equipment, gross	3,824		3,642
Office equipment
Property and Equipment, Net
Property and equipment, gross	247		247
Leasehold improvements
Property and Equipment, Net
Property and equipment, gross	4,111		3,778
Internal-use software in progress
Property and Equipment, Net
Property and equipment, gross	$ 16,457		$ 15,361

Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Leases
Finance lease cost, Amortization of right-of-use assets		$ 397
Finance lease cost, Interest on lease liabilities	$ 180	192
Operating lease cost	1,138	913
Variable lease cost	266	42
Short-term lease	196	207
Total lease cost	$ 1,780	$ 1,751

Subsequent Events

3 Months Ended

Mar. 31, 2025

Subsequent Events

Subsequent Events

21. Subsequent Events

We have evaluated subsequent events through the date of issuance.

On April 1, 2025 and April 9, 2025, we entered into two new interest rate swaps to further mitigate the risk of a rise in interest rates on our First Lien Credit Facility. The interest rate swaps result in the fixed interest rates shown below on the swapped portion of the First Lien Credit Facility. The following interest rate swap agreements are designated as a hedging instrument:


Effective Dates	Floating Rate Debt		Fixed Rates
April 1, 2025 through January 30, 2026	$	80.0 million	3.59	%
January 31, 2026 through March 31, 2027	$	275.0 million	3.59	%
January 31, 2026 through March 31, 2027	$	275.0 million	3.27	%

No other significant subsequent events have occurred through the date of issuance.

Common and Preferred Stock (Details)	12 Months Ended
Common and Preferred Stock (Details)	Dec. 31, 2023 Vote $ / shares shares	Mar. 31, 2025 $ / shares shares	Dec. 31, 2024 $ / shares shares	Jun. 10, 2024 $ / shares shares
Class of Stock [Line Items]
Shares authorized		2,500,000,000	2,500,000,000	2,500,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.01	$ 0.01	$ 0.01
Shares issued		172,963,709	172,108,240
Shares outstanding		172,963,709	172,108,240
Preferred stock, shares authorized (in shares)		100,000,000	100,000,000	100,000,000
Preferred stock, shares par value (in dollars per share) \| $ / shares		$ 0.01	$ 0.01	$ 0.01
Preferred stock, shares issued (in shares)		0	0
Preferred stock, shares outstanding (in shares)		0	0
Class A common stock
Class of Stock [Line Items]
Shares authorized	2,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01
Shares issued	436,801
Shares outstanding	436,801
Number of votes entitled \| Vote	1
No class common stock
Class of Stock [Line Items]
Shares authorized	225,000,000
Common stock, par value (in dollars per share) \| $ / shares	$ 0.01
Shares issued	121,243,101
Shares outstanding	121,243,101

Investment Securities (Tables)

3 Months Ended

Mar. 31, 2025

Investment Securities

Summary of unrealized positions for investment securities classified as available-for-sale fixed-maturity debt securities

The following table summarizes unrealized positions for our investment securities classified as available-for-sale fixed-maturity debt securities, disaggregated by class of instrument (in thousands) as of March 31, 2025.


					Total		Total
			Allowance for		Unrealized		Unrealized
	Amortized Cost		Credit Losses		Gains		Losses		Fair Value
Available-for-sale fixed-maturity securities
Commercial Paper	$	19,390	$	—	$	—	$	7	$	19,383
Corporate Notes		5,041		—		—		5	$	5,036
Total	$	24,431	$	—	$	—	$	12	$	24,419

- Definition

Tabular disclosure of investment in debt security measured at fair value with change in fair value recognized in other comprehensive income (available-for-sale).

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 9
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-9

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (aaa)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-2

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 320
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 3
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org/1943274/2147481800/320-10-50-3

+ Details

Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2025

Goodwill and Other Intangible Assets

Schedule of amortization for definite-lived intangible assets

Amortization for definite-lived intangible assets is as follows (in thousands, except useful life):


							Weighted-
					Net		Average
	Gross Carrying		Accumulated		Carrying		Remaining
	Amount		Amortization		Value		Useful Life
As of March 31, 2025
Customer relationships	$	1,429,400	$	(464,449)	$	964,951	10.8
Purchased developed technology		81,800		(54,173)		27,627	4.2
Tradenames and trademarks		40,700		(22,345)		18,355	4.5
Total	$	1,551,900	$	(540,967)	$	1,010,933
As of December 31, 2024
Customer relationships	$	1,429,400	$	(440,729)	$	988,671	11.1
Purchased developed technology		81,800		(50,875)		30,925	4.2
Tradenames and trademarks		40,700		(21,247)		19,453	4.7
Total	$	1,551,900	$	(512,851)	$	1,039,049

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Pay vs Performance Disclosure
Net Income (Loss)	$ 29,269	$ (15,932)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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+ Details

Income/ (Loss) Per Share (Details) - shares	3 Months Ended
Income/ (Loss) Per Share (Details) - shares	Mar. 31, 2025	Mar. 31, 2024
Income/ (Loss) Per Share
Anti-dilutive effect of stock option shares excluded from the diluted earning per share calculation	0	5,419,789

Stock-based Compensation (Details) - USD ($) $ in Thousands			3 Months Ended
Stock-based Compensation (Details) - USD ($) $ in Thousands	Jun. 06, 2024	Oct. 22, 2019	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024	Dec. 31, 2023
Stock-based compensation
Rollover options outstanding (in shares)			15,624,683	13,206,781	16,511,128	13,032,541
Stock-based compensation expense			$ 6,744	$ 2,528
Stock Incentive Plan 2019
Stock-based compensation
Maximum shares issuable		9,900,000
Contractual term (in years)		10 years
Vesting period of options with a service condition (in years)		5 years
Vesting percentage of options with a service condition (in percent)		20.00%
Rollover options outstanding (in shares)		3,100,000
Equity Incentive Plan 2024
Stock-based compensation
Maximum shares issuable	10,000,000
Vesting period of options with a service condition (in years)	5 years
Vesting percentage of options with a service condition (in percent)	20.00%
Common stock, capital shares reserved for future issuance			8,600,000
Percentage of outstanding stock maximum	5.00%
Equity Incentive Plan 2024 \| Maximum \| Restricted Stock Units (RSUs)
Stock-based compensation
Vesting period of options with a service condition (in years)	5 years
Vesting percentage of options with a service condition (in percent)	25.00%
Equity Incentive Plan 2024 \| Minimum \| Restricted Stock Units (RSUs)
Stock-based compensation
Vesting period of options with a service condition (in years)	4 years
Vesting percentage of options with a service condition (in percent)	20.00%
Employee Stock Purchase Plan 2024
Stock-based compensation
Stock-based compensation expense			$ 100	$ 0
Common stock, capital shares reserved for future issuance	3,250,000
Shares available for future grant (in shares)	27,000,000
Discount rate to employees under ESPP	15.00%		15.00%
Percentage of outstanding stock maximum	1.00%

Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Unaudited Condensed Consolidated Balance Sheets
Accounts receivable, allowance	$ 5,897	$ 5,885
Preferred stock, shares par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	100,000,000	100,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, shares par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	2,500,000,000	2,500,000,000
Common stock, shares issued (in shares)	172,963,709	172,108,240
Common stock, shares outstanding (in shares)	172,963,709	172,108,240

Segments (Details) - USD ($) $ in Thousands	3 Months Ended
Segments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Segments
Revenue	$ 256,435	$ 224,792
Research and development	11,078	10,320
Sales and marketing	40,123	33,780
General and administrative	23,300	26,135
Depreciation	5,300	5,100
Income tax expense (benefit)	17,040	(6,061)
Net income/(loss)	29,269	(15,932)
Single reportable segment \| Operating segments
Segments
Revenue	256,435	224,792
Materials and connectivity	60,392	54,184
Labor and associated expenses	22,893	21,008
Research and development	11,078	10,320
Sales and marketing	40,123	33,780
General and administrative	23,300	26,135
Depreciation	5,265	5,094
Amortization	28,115	39,080
Interest and non-operating expenses, net	18,960	57,184
Income tax expense (benefit)	17,040	(6,061)
Net income/(loss)	$ 29,269	$ (15,932)

Segments

3 Months Ended

Mar. 31, 2025

Segments

Segments

4. Segments

Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and assessing performance. We have one business activity and there are no segment managers who are held accountable for operations, operating results and plans for products or components below the consolidated unit level. The geographical location of our customers has no impact on strategy or products offered. The “chief operating decision maker,” or CODM, assesses performance and allocates resources using a consolidated profitability metric as discussed below. Accordingly, we have determined that we operate in a single reportable operating segment.

Our CODM is our Chief Executive Officer. On a monthly basis, our CODM reviews the following financial information presented on a consolidated basis. The key profitability metric used for purposes of making key personnel staffing decisions, approving operating budgets and forecasts, and making strategy decisions is Net Income as detailed below. See Note 3 for our disaggregated revenue by type.


	Three months ended March 31,
($in thousands)	2025	2024

Total Revenue	$	256,435	$	224,792
Less:
Materials and connectivity		60,392		54,184
Labor and associated expenses		22,893		21,008
Research and development		11,078		10,320
Sales and marketing		40,123		33,780
General and administrative		23,300		26,135
Depreciation		5,265		5,094
Amortization		28,115		39,080
Interest and non-operating expenses, net		18,960		57,184
Income tax expense (benefit)		17,040		(6,061)
Segment Net income (loss)	$	29,269	$	(15,932)
Consolidated Net income (loss)	$	29,269	$	(15,932)

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Subsequent Events (Tables)

3 Months Ended

Mar. 31, 2025

Subsequent Events

Schedule of subsequent events


Effective Dates	Floating Rate Debt		Fixed Rates
April 1, 2025 through January 30, 2026	$	80.0 million	3.59	%
January 31, 2026 through March 31, 2027	$	275.0 million	3.59	%
January 31, 2026 through March 31, 2027	$	275.0 million	3.27	%

Stock-based Compensation - Stock Options Activity (Details) - $ / shares	3 Months Ended		12 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024	Dec. 31, 2023
Number of options (in shares)
Beginning balance	16,511,128	13,032,541	13,032,541
Granted		205,700
Exercised	(855,469)	(2,420)
Forfeited	(30,976)	(29,040)
Ending balance	15,624,683	13,206,781	16,511,128	13,032,541
Weighted average exercise price per share (in dollars per share)
Beginning balance	$ 17.57	$ 15.2	$ 15.2
Granted		37.2
Exercised	12.49	24.47
Forfeited	23.63	16.53
Ending balance	$ 17.84	$ 15.53	$ 17.57	$ 15.2
Weighted average remaining contractual life	5 years 8 months 12 days	5 years 6 months	5 years 9 months 18 days	5 years 8 months 12 days

Revenue Recognition - Deferred Revenue Balances (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Deferred Revenue
Revenue recognized	$ 8.2	$ 8.7

Retirement Plans (Details) - USD ($) $ in Millions	3 Months Ended
Retirement Plans (Details) - USD ($) $ in Millions	Mar. 31, 2025	Mar. 31, 2024
Retirement Plans
Total Plan expense	$ 1.3	$ 1.2

Related Party Transactions

3 Months Ended

Mar. 31, 2025

Related Party Transactions

Related Party Transactions

14. Related Party Transactions

At March 31, 2025 and December 31, 2024, we had $43.8 million and $35.6 million, respectively, of outstanding debt as part of the first lien term loan facility from Bain Affiliated Funds and CPPIB Credit Investments III Inc., affiliates of Bain Capital LP and Canada Pension Plan Investment Board (“Affiliated Debtholders”). Interest expense associated with and paid to Affiliated Debtholders was $0.6 million and $1.4 million for the three months ended March 31, 2025 and 2024, respectively.

Canada Pension Plan Investment Board has an ownership interest in us and a significant interest in the landlord that leases us office space under an operating lease agreement in Houston, Texas. For the three months ended March 31, 2025 and 2024, we expensed zero and $0.1 million, respectively, for this office space lease in general and administrative expense.

Bain Capital LP has an ownership interest in us and a significant interest in some clients for whom we provide software solutions. For the three months ended March 31, 2025 and 2024, we earned revenue of $0.6 million from five clients and $0.4 million from four clients, respectively. They also have an ownership interest in us and a significant interest in two vendors that provide us with software solutions. For the three months ended March 31, 2025 and 2024, we expensed $0.6 million and $0.1 million, respectively, for software services from these vendors in cost of revenue expense.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

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+ Details

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Mar. 31, 2024
Income Taxes
Income tax expense/(benefit)	$ 17,040	$ (6,061)
Effective income tax rate	36.80%	27.40%
Federal Statutory Income tax rate	21.00%

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

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+ Details

Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)
Net income/(loss)	$ 29,269	$ (15,932)
Other comprehensive income/(loss), before tax:
Interest rate swaps	(718)	(240)
Available-for-sale securities	(12)
Income tax effect:
Interest rate swaps	162	65
Available-for-sale securities	3
Other comprehensive income/(loss), net of tax	(565)	(175)
Comprehensive income/(loss), net of tax	$ 28,704	$ (16,107)

Debt (Tables)

3 Months Ended

Mar. 31, 2025

Debt

Schedule of debt instruments

Debt instruments consist primarily of term notes, revolving lines of credit, and a Receivables Facility as follows (in thousands):


	March 31,		December 31,
	2025		2024
First lien term loan facility outstanding debt	$	1,160,628	$	1,163,545
Revolving credit facility		—		—
Receivables facility outstanding debt		80,000		80,000
Total outstanding debt		1,240,628		1,243,545
Unamortized debt issuance costs		(10,725)		(11,255)
Current portion of long-term debt		(11,668)		(11,668)
Total long-term debt, net	$	1,218,235	$	1,220,622

Schedule of maturity of long-term principal payments (excluding debt discount)

The maturity of long-term principal payments (excluding debt discount) at March 31, 2025 is as follows (in thousands):


2025	$	8,751
2026		91,668
2027		11,668
2028		11,668
2029		1,116,873
	$	1,240,628

Retirement Plans

3 Months Ended

Mar. 31, 2025

Retirement Plans

Retirement Plans

16. Retirement Plans

We maintain qualified 401(k) plans which cover substantially all employees meeting certain eligibility requirements. Participants may contribute a portion of their compensation to the plans, up to the maximum amount permitted under Section 401(k) of the Internal Revenue Code. Under these plans, we contribute various percentages of employees’ salaries to the plans. Total expenses included in operating expenses in the accompanying consolidated statement of operations related to the plans were $1.3 million and $1.2 million for the three months ended March 31, 2025 and 2024, respectively.

Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Goodwill and Other Intangible Assets
Goodwill	$ 3,019,999		$ 3,019,999
Additions to goodwill	0	$ 0
Disposals to goodwill	$ 0	$ 0

- Definition

Amount, after accumulated impairment loss, of asset representing future economic benefit arising from other asset acquired in business combination or from joint venture formation or both, that is not individually identified and separately recognized.

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+ Details

Investment Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Investment Securities
Amortized Cost	$ 24,431
Total Unrealized Losses	12
Available-for-sale fixed-maturity securities	24,419	$ 0
Commercial Paper
Investment Securities
Amortized Cost	19,390
Total Unrealized Losses	7
Available-for-sale fixed-maturity securities	19,383
Corporate Notes
Investment Securities
Amortized Cost	5,041
Total Unrealized Losses	5
Available-for-sale fixed-maturity securities	$ 5,036

- Definition

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+ Details

Summary of Significant Accounting Policies

3 Months Ended

Mar. 31, 2025

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Financial Statement Presentation

The financial statements include the consolidated balance sheets, statements of operations, statements of comprehensive income/(loss), statements of changes in stockholders’ equity, and statements of cash flows of Waystar and its subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”).

The accompanying unaudited consolidated financial statements and notes have been prepared in accordance with GAAP and applicable rules and regulations of the Securities and Exchange Commission (“SEC”) regarding interim financial reporting. Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. In the opinion of management, the interim financial information includes all adjustments of a normal recurring nature necessary for a fair presentation of the Company’s financial position, results of operations, changes in stockholders’ equity and cash flows. The results of operations for the three months ended March 31, 2025 are not necessarily indicative of the results for the full year or the results for any future periods. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and related notes for the year ended December 31, 2024 in the 2024 Annual Report on Form 10 - K filed with the SEC on February 18, 2025 (the “2024 Annual Report”).

Use of Estimates

The preparation of the consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the reporting periods. Significant estimates and assumptions are used for, but are not limited to: (1) revenue recognition, including estimated expected customer life; (2) recoverability of accounts receivable and taxes receivable; (3) impairment assessment of goodwill and long-lived intangible assets; (4) fair value of intangibles acquired in business combinations; (5) litigation reserves; (6) depreciation and amortization; (7) fair value of stock options issued to employees and assumed as part of business combinations; (8) fair value of interest rate swaps; and (9) leases, including incremental borrowing rate. Future events and their effects cannot be predicted with certainty, and accordingly, accounting estimates require the exercise of judgment. We evaluate and update assumptions and estimates on an ongoing basis and may employ outside experts to assist in evaluations. Actual results could differ from the estimates used.

Revenue Recognition

We derive revenue primarily from providing access to our solutions for use in the healthcare industry and in doing so generate two types of revenue: (i) subscription revenue and (ii) volume-based revenue, which account for 99% of total revenue for all periods presented. We also derive revenue from implementation fees for our software, as well as hardware sales to facilitate patient payments.

We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), through the following five steps:

●	identification of the contract, or contracts, with a client;

●	identification of the performance obligations in the contract;

●	determination of the transaction price;

●	allocation of the transaction price to the performance obligations in the contract; and

●	recognition of revenue when, or as, we satisfy a performance obligation

Our customers, referred to as clients elsewhere in this report, represent healthcare providers across all types of care settings, including physician practices, clinics, surgical centers, and laboratories, as well as large hospitals and health systems.

We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable. The length of our contracts vary but are typically two to three years and generally renew automatically for successive one-year terms. Our revenue is reported net of applicable sales and use tax and is recognized as, or when, control of these services or products are transferred to clients, in an amount that reflects the consideration we expect to be entitled to in exchange for the contract’s performance obligations.

Revenue from our subscription services as well as from our volume-based services represents a single promise to provide continuous access (i.e., a stand-ready obligation) to our software solutions in the form of a service. Our software products are made available to our clients via a cloud-based, hosted platform where our clients do not have the right or practical ability to take possession of the software. As each day of providing access to the software solutions is substantially the same and the client simultaneously receives and consumes the benefits as services are provided, these services are viewed as a single performance obligation comprised of a series of distinct daily services.

Revenue from our subscription services is recognized over time on a ratable basis over the contract term beginning on the date that the service is made available to the client. Volume-based services are priced based on transaction, dollar volume or provider count in a given period. Given the nature of the promise is based on unknown quantities or outcomes of services to be performed over the contract term, the volume-based fee is determined to be variable consideration. The volume-based transaction fees are recognized each day using a time- elapsed output method based on the volume or transaction count at the time the clients’ transactions are processed.

Our other services are generally related to implementation activities across all solutions and hardware sales to facilitate patient payments. Implementation services are not considered performance obligations as they do not provide a distinct service to clients without the use of our software solutions. As such, implementation fees related to our solutions are billed upfront and recognized ratably over the contract term. Implementation fees and hardware sales represent less than 1% of total revenue for all periods presented.

Our contracts with clients typically include various combinations of our software solutions. Determining whether such software solutions are considered distinct performance obligations that should be accounted for separately versus together requires significant judgment. Specifically, judgment is required to determine whether access to the Company’s SaaS solutions is distinct from other services and solutions included in an arrangement.

We follow the requirements of ASC 606-10-55-36 through -40, Revenue from Contracts with Customers, Principal Agent Considerations, in determining the gross versus net revenue presentations for our performance obligations in the contract with a client. Revenue recorded where we act in the capacity of a principal is reported on a gross basis equal to the full amount of consideration to which we expect in exchange for the good or service transferred. Revenue recorded where we act in the capacity of an agent is reported on a net basis, exclusive of any consideration provided to the principal party in the transaction.

The principal versus agent evaluation is a matter of judgment that depends on the facts and circumstances of the arrangement and is dependent on whether we control the good or service before it is transferred to the client or whether we are acting as an agent of a third party. This evaluation is performed separately for each performance obligation identified. For the majority of our contracts, we are considered the principal in the transaction with the client and recognize revenue gross of any related channel partner fees or costs. We have certain agency arrangements where third parties control the goods or services provided to a client and we recognize revenue net of any fees owed to these third parties.

Payment terms and conditions vary by contract type, although our standard payment terms generally require payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of payment, we have determined our contracts do not generally include a significant financing component. The primary purpose of our invoicing terms is to provide clients with simplified and predictable ways of purchasing our products and services, not to receive financing from our clients or to provide clients with financing.

Contract Costs

Incremental Costs of Obtaining a Contract

Incremental costs of obtaining a contract primarily include commissions paid to our internal sales personnel. We consider all such commissions to be both incremental and recoverable since they are only paid when a contract is secured. These capitalized costs are amortized on a straight-line basis over the expected period of benefit, which is determined based on the average customer life, which includes anticipated renewals of contracts. As of March 31, 2025 and December 31, 2024, the total unamortized costs reported as deferred costs on our balance sheet amounted to $29.4 million and $29.0 million, respectively, for internal sales commissions. For the three months ended March 31, 2025 and 2024, amortization related to the sales commission asset was $3.1 million and $2.4 million, respectively. The aforementioned amortization amounts are included in sales and marketing in our consolidated statements of operations.

Costs to Fulfill a Contract

We capitalize costs incurred to fulfill contracts that i) relate directly to the contract, ii) are expected to generate resources that will be used to satisfy performance obligations under the contract, and iii) are expected to be recovered through revenue generated under the contract. Costs incurred to implement clients on our solutions (e.g., direct labor) are capitalized and amortized on a straight-line basis over the estimated customer life if we expect to recover those costs. As of March 31, 2025 and December 31, 2024, the total unamortized costs reported as deferred costs on our balance sheet amounted to $55.7 million and $53.8 million, respectively, for fulfillment costs. For the three months March 31, 2025 and 2024, amortization related to the fulfillment cost asset was $3.7 million and $2.7 million, respectively. The aforementioned amortization amounts are included in the costs of revenue in our consolidated statements of operations.

There were no impairment losses relating to deferred costs during the periods presented.

Channel Partners

We account for fees paid to channel partners within sales and marketing expenses in the accompanying consolidated statements of operations. For the three months ended March 31, 2025 and 2024, we recorded fees to all channel partners of $18.2 million and $14.5 million, respectively. As we are primarily responsible for contracting with and fulfilling contracts for the end user, we record revenue gross of related channel partner fees.

Cash and cash equivalents

We consider highly liquid investments with an original maturity of three months or less to be cash equivalents. We maintain our cash in bank deposit accounts, which, at times, may exceed federally insured limits. We have not experienced any credit losses in such accounts.

Investment securities

Our short-term investments, which consist of debt securities, are stated at fair value. These debt securities have been categorized as available-for-sale and classified as current assets given their maturity date is twelve months or less. Unrealized holding gains and losses for debt securities, net of applicable deferred taxes, are included in other comprehensive income or loss as a component of stockholders’ equity until realized from a sale or an expected credit loss is recognized. For the purpose of determining realized gross gains and losses for debt securities sold, that are included as a component of interest income/(expense) in the consolidated statements of income, the cost of investment securities sold is based upon specific identification.

Under the current expected credit losses model expected losses on available for sale debt securities are recognized through an allowance for credit losses rather than as reductions in the amortized cost of securities. For debt securities whose fair value is less than their amortized cost which we do not intend to sell or are not required to sell, we evaluate the expected cash flows to be received as compared to amortized cost and determine if an expected credit loss has occurred. In the event of any expected credit loss, only the amount of impairment associated with the expected credit loss is recognized in income with the remainder, if any, of the loss recognized in other comprehensive income. To the extent we have the intent to sell the debt security, or it is more likely than not we will be required to sell the debt security before recovery of our amortized cost basis, we recognize an impairment loss in income in an amount equal to the full difference between the amortized cost basis and the fair value.

There were no impairment losses relating to our investment securities during the periods presented.

Recently Issued Accounting Pronouncements Not Yet Adopted

In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-09, “Improvements to Income Tax Disclosures”, which requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The standard is intended to benefit investors by providing more detailed income tax disclosures that would be useful in making capital allocation decisions. For public business entities, the ASU will be effective for annual periods beginning after December 15, 2024. The guidance will be applied on a prospective basis with the option to apply the standard retrospectively. Early adoption is permitted. We are currently evaluating the effect of the adoption of this amendment on our consolidated and condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-13, “Expense Disaggregation Disclosures.” The standard is intended to benefit investors by providing more detailed information about expenses that is critically important in understanding an entity’s performance, assessing an entity’s prospects for future cash flows, and comparing an entity’s performance over time and with that of other entities. For public business entities, this ASU will be effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this update should be applied either (1) prospectively to financial statements issued for reporting periods after the effective date of this update or (2) retrospectively to any or all prior periods presented in the financial statements. We are currently evaluating the effect of the adoption of this amendment on our consolidated financial statements.

Debt - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Debt
Total outstanding debt	$ 1,240,628	$ 1,243,545
Unamortized debt issuance costs	(10,725)	(11,255)
Current portion of long-term debt	(11,668)	(11,668)
Total long-term debt, net	1,218,235	1,220,622
First lien term loan facility outstanding debt
Debt
Total outstanding debt	1,160,628	1,163,545
Revolving credit facility
Debt
Total outstanding debt	0	0
Unamortized debt issuance costs	(1,900)	(2,100)
Receivables facility outstanding debt
Debt
Total outstanding debt	$ 80,000	$ 80,000

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References

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+ Details

Income/ (Loss) Per Share

3 Months Ended

Mar. 31, 2025

Income/ (Loss) Per Share

Income/ (Loss) Per Share

19. Income/ (Loss) Per Share

A reconciliation of the numerators and the denominators of the basic and diluted per share computations are as follows (in thousands, except for share and per share data):


	Three months ended March 31,
	2025		2024
Basic income/(loss) per share:
Net income/(loss)	$	29,269	$	(15,932)
Net income/(loss) attributable to common shares	$	29,269	$	(15,932)
Weighted average common stock outstanding–(voting)		172,188,237		121,238,497
Weighted average common stock outstanding–(non-voting)		—		436,801
Basic weighted average common stock outstanding		172,188,237		121,675,298
Basic income/(loss) per share	$	0.17	$	(0.13)

Diluted income/(loss) per share:
Net income/(loss)	$	29,269		(15,932)
Net income/(loss) attributable to common shares	$	29,269	$	(15,932)
Dilutive effect of stock options – (voting)		7,392,322		—
Dilutive effect of RSUs – (voting)		1,111,435		—
Weighted average common stock outstanding–(voting)		180,691,994		121,238,497
Weighted average common stock outstanding–(non-voting)		—		436,801
Diluted weighted average common stock outstanding		180,691,994		121,675,298
Diluted income/(loss) per share	$	0.16	$	(0.13)

Because of their anti-dilutive effect, zero and 5,419,789 common share equivalents comprised of stock options have been excluded from the diluted earnings per share calculation for the three months ended March 31, 2025 and 2024, respectively.

Stock-based Compensation

3 Months Ended

Mar. 31, 2025

Stock-based Compensation

Stock-based Compensation

17. Stock-based Compensation

Equity incentive plans

On October 22, 2019, the Board of Directors approved the Waystar Holding Corp. 2019 Stock Incentive Plan (“2019 Waystar Holding Plan”). Under this plan, we can issue up to 9.9 million options or other equity awards. The granted awards contain service criteria, performance criteria, market conditions, or a combination thereof for vesting and have a 10 year contractual term. Options with a service condition generally vest over 5 years with 20% vesting in equal vesting installments. Options with a performance condition and a market condition vest based upon a change in control, initial public offering, or a sponsor distribution or deemed return if the investors have achieved specified levels of return on investment. In addition, as part of a change in control in 2019, 3.1 million fully vested rollover options remain outstanding.

The Board of Directors approved the Waystar Holding Corp. 2024 Equity Incentive Plan (the “2024 Equity Incentive Plan”), effective as of June 6, 2024, the date of pricing of our IPO. Under this plan, we can issue non-qualified stock options, incentive stock options, stock appreciation rights, restricted shares of the Company’s Common Stock, restricted stock units, and other equity-based awards tied to the value of the Company’s shares. Under this plan, we can issue up to 10 million options and other equity awards, subject to annual increases as outlined under the plan. The number of shares available to be issued automatically increases on the first day of each fiscal year beginning next year by a number of shares equal to the lesser of the positive difference, if any, between 5% of the outstanding common stock on the last day of the immediately preceding fiscal year, minus the plan share reserve on the last day of the immediately preceding fiscal year or such lesser number of shares as may be determined by the Board of Directors. Options with a service condition generally vest over 5 years with 20% vesting in equal vesting installments. The restricted stock units (“RSUs”) under the 2024 Equity Incentive Plan generally vest over 4 or 5 years with 25% or 20% vesting, respectively, in equal vesting installments. As of March 31, 2025, 8.6 million shares were available for future grants under the plan.

The Board of Directors approved the Waystar Holding Corp. 2024 Employee Stock Purchase Plan (the “ESPP”), effective as of June 6, 2024, the date of pricing of our IPO. A total of 3,250,000 shares of common stock are initially reserved for the ESPP. The number of shares available to be issued for the ESPP will automatically increase each fiscal year beginning next year by a number of shares equal to the lesser of the positive difference, if any, between 1% of the outstanding common stock on the last day of the immediately preceding fiscal year and the number of shares of common stock available for the issuance of shares pursuant to the plan on the last day of the immediately preceding fiscal year or such lesser number of shares as may be determined by the Board of Directors. The number of shares available to be issued for the ESPP will not exceed 27,000,000 as outlined in the plan agreement. Our employees contribute funds via payroll deductions during the offering periods, which are used to buy Waystar common shares at a discount of up to 15% of the purchase price at the purchase date. The initial offering period is March 1, 2025 through June 30, 2025 with the purchase date of June 30, 2025. For the three months ending March 31, 2025 and 2024, expense of $0.1 million and zero, respectively, has been recorded which represents the 15% discount given to the employees under the ESPP.

Stock Options

We utilize the Black-Scholes option pricing model to estimate the fair value of the service condition options under all plans and the Monte Carlo pricing model to estimate the fair value of the performance condition options under the 2019 Waystar Holding Plan. We value both types of options at the grant date using the following assumptions:

●

Risk-free interest rate—reflects the average rate on the United States Treasury bond with maturity equal to the expected term of the option;

●

Expected dividend yield—as we do not currently pay dividends or expect to pay dividends in the near future, the expected dividend yield is zero;

●

Expected term of stock award – under the 2024 Equity Incentive Plan, we utilized the simplified method due to the lack of historical experience activity for Waystar. The simplified method calculates the expected term as the mid-point between the vesting date and the contractual expiration date of the award. Under the 2019 Waystar Holding Corp. Plan, it is based on historical experience that is modified based on expected future changes;

●

Expected volatility in stock price—reflects the historical volatility of comparable public companies over the expected term of the stock option.

No additional options were granted during the three months ended March 31, 2025. The weighted average grant date fair value of options granted during the three months ended March 31, 2024 was $18.43 per share. As of March 31, 2025, we had 6.9 million fully vested options with a weighted average exercise price of $12.26 per share, an aggregate intrinsic value of $172.8 million and an average remaining contractual term of 4.0 years. The total fair value of options vested for the three months ended March 31, 2025 and 2024 were $2.3 million and $1.3 million, respectively.

Information pertaining to option activity under all plans (including rollover options) during the three months ending March 31, 2025 and 2024 is as follows:


				Weighted
		Weighted average		average
	Number of	exercise price per		remaining
	options	share		contractual life
Outstanding December 31, 2024	16,511,128	$	17.57	5.8
Granted	—		—
Exercised	(855,469)		12.49
Forfeited	(30,976)		23.63
Outstanding March 31, 2025	15,624,683		17.84	5.7


				Weighted
		Weighted average		average
	Number of	exercise price per		remaining
	options	share		contractual life
Outstanding December 31, 2023	13,032,541	$	15.20	5.7
Granted	205,700		37.20
Exercised	(2,420)		24.47
Forfeited	(29,040)		16.53
Outstanding March 31, 2024	13,206,781		15.53	5.5

The following is a summary of the significant assumptions used in estimating the fair value of options granted during the three months ended March 31, 2025 and 2024:


	Three months ended March 31,
	2025	2024
Risk free interest rate	N/A	3.76% - 4.31%
Expected dividend yield	N/A	0%
Expected term of stock award	N/A	1.3 - 5
Expected volatility in stock price	N/A	51.54% - 51.89%

The aggregate intrinsic value of options exercised (the difference between the fair market value of our stock on the date of exercise and the exercise price) was approximately $25.0 million and $0.0 million for the three months ended March 31, 2025 and 2024, respectively.

We expect to incur compensation expense of approximately $47.6 million over a weighted average of 3.5 years for all unvested time-based awards outstanding on March 31, 2025.

RSUs

The RSUs granted on June 10, 2024 in conjunction with the IPO were valued at the IPO price. Subsequent RSU grants will be valued using our common stock price as of the grant date based on the publicly traded value per NASDAQ, and are expensed on a straight-line basis over the applicable vesting period. All vesting is contingent on continued service.

The following table summarizes RSU activity during the three months ended March 31, 2025. There was no RSU activity prior to the initial grant of RSUs on June 10, 2024.


		Weighted
	Number of	average grant
	shares	date fair value
Outstanding December 31, 2024	2,089,241	$	21.91
Granted	11,822		38.17
Vested	—		—
Forfeited	(7,607)		21.50
Outstanding March 31, 2025	2,093,456		22.00

We expect to incur compensation expense of $37.7 million over a weighted average of 4.2 years for all unvested RSUs outstanding on March 31, 2025.

Stock-based Compensation

We recorded $6.7 million and $2.5 million of stock-based compensation expense for the three months ended March 31, 2025 and 2024, respectively.

Stock-based compensation expense was recorded in the following cost and expense categories in the consolidated statements of operations:


	Three months ended March 31,
	2025		2024
Cost of revenue	$	231	$	122
General and administrative		4,106		1,540
Sales and marketing		1,392		478
Research and development		1,015		388
Total		6,744		2,528

Debt (Details) $ in Thousands	3 Months Ended
Debt (Details) $ in Thousands	Mar. 31, 2025 USD ($) installment	Dec. 31, 2024 USD ($)
Debt
Outstanding balance	$ 1,240,628	$ 1,243,545
Unamortized debt issuance costs	$ 10,725	11,255
First lien credit facility
Debt
Interest rate (in percent)	2.25%
Minimum base rate (in percent)	0.00%
30-day SOFR	us-gaap:SecuredOvernightFinancingRateSofrMember
Effective interest rate (in percent)	6.82%
Number of quarterly installments \| installment	20
Number of remaining payments \| installment	18
Revolving credit facility
Debt
Outstanding balance	$ 0	0
Interest rate (in percent)	1.75%
Minimum base rate (in percent)	0.00%
30-day SOFR	us-gaap:SecuredOvernightFinancingRateSofrMember
Effective interest rate (in percent)	6.07%
Unamortized debt issuance costs	$ 1,900	$ 2,100

Investment Securities

3 Months Ended

Mar. 31, 2025

Investment Securities

Investment Securities

5. Investment Securities


					Total		Total
			Allowance for		Unrealized		Unrealized
	Amortized Cost		Credit Losses		Gains		Losses		Fair Value
Available-for-sale fixed-maturity securities
Commercial Paper	$	19,390	$	—	$	—	$	7	$	19,383
Corporate Notes		5,041		—		—		5	$	5,036
Total	$	24,431	$	—	$	—	$	12	$	24,419

The Company did not own any available-for-sale fixed-maturity securities as of December 31, 2024.

Stock-based Compensation - Stock Options (Narratives) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Stock-based compensation
Expected dividend yield, percent		0.00%
Performance options
Stock-based compensation
Expected dividend yield, percent	0.00%
Weighted average grant date fair value (in dollars per share)		$ 18.43
Fully vested options outstanding (in shares)	6.9
Fully vested options, weighted average exercise price (in dollars per share)	$ 12.26
Fully vested options, aggregate intrinsic value	$ 172.8
Fully vested options, weighted average remaining contractual term (in years)	4 years
Total fair value of options	$ 2.3	$ 1.3

Leases (Tables)

3 Months Ended

Mar. 31, 2025

Leases

Schedule of components of lease expense

The following table presents components of lease expense for the three months ended March 31, 2025 and 2024, respectively (in thousands):


	Three months ended March 31,
	2025		2024
Finance lease cost
Amortization of right-of-use assets	$	—	$	397
Interest on lease liabilities		180		192
Operating lease cost		1,138		913
Variable lease cost		266		42
Short-term lease		196		207
Total lease cost	$	1,780	$	1,751

Schedule of maturity of operating leases

Maturities of lease liabilities as of March 31, 2025 are as follows (in thousands):


	Operating Leases		Finance Leases
2025	$	4,728	$	1,204
2026		5,486		1,641
2027		3,191		1,678
2028		2,868		1,714
2029		1,404		1,752
Thereafter		1,360		7,557
Total future minimum lease payments		19,037		15,546
Less: Interest		1,714		3,571
Total	$	17,323	$	11,975

Schedule of maturity of finance leases

Maturities of lease liabilities as of March 31, 2025 are as follows (in thousands):


	Operating Leases		Finance Leases
2025	$	4,728	$	1,204
2026		5,486		1,641
2027		3,191		1,678
2028		2,868		1,714
2029		1,404		1,752
Thereafter		1,360		7,557
Total future minimum lease payments		19,037		15,546
Less: Interest		1,714		3,571
Total	$	17,323	$	11,975

Schedule of supplemental cash flow information related to leases

Supplemental cash flow information related to leases for the three months ended March 31, 2025 and 2024 are as follows (in thousands):


	Three months ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,614	$	1,342
Financing cash flows for financing leases		399		392
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	—

Schedule of supplemental balance sheet information


	March 31, 2025	December 31, 2024
Weighted average remaining lease term (years):
Operating leases	3.9	4.1
Financing leases	8.8	9.1
Weighted average discount rate:
Operating leases	4.7	4.7
Financing leases	5.9	5.9

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenue Recognition
Total revenues	$ 256,435	$ 224,792
Subscription revenue
Revenue Recognition
Total revenues	125,041	106,079
Volume-based revenue
Revenue Recognition
Total revenues	129,918	117,144
Implementation services and other revenue
Revenue Recognition
Total revenues	$ 1,476	$ 1,569

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 280
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-Name Accounting Standards Codification
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Unaudited Condensed Consolidated Statements of Comprehensive Income/(Loss)
Amounts reclassified out of accumulated other comprehensive income/(loss) into net interest expense	$ 632	$ 8,601
Income tax effects of amounts reclassified out of accumulated other comprehensive income/(loss)	$ (156)	$ (2,088)

Income Taxes

3 Months Ended

Mar. 31, 2025

Income Taxes

Income Taxes

10. Income Taxes

We recognized income tax expense of $17.0 million and income tax benefit of $6.1 million for the three months ended March 31, 2025 and 2024, respectively, based on the year-to-date pre-tax income. The Company’s effective income tax rate was 36.8% and 27.4% for the three months ended March 31, 2025 and 2024, respectively. Differences in the effective tax rate and statutory federal income tax rate of 21% are primarily driven by the impact of certain limitations on the deductibility of stock-based compensation recognized for financial reporting purposes as well as state income taxes and research and development credits claimed.

- Definition

The entire disclosure for income tax.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 740
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 12
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Paragraph 2
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-Publisher FASB
-URI https://asc.fasb.org/1943274/2147482603/740-30-50-2

+ Details

Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Current assets
Cash and cash equivalents	$ 223,995	$ 182,133
Restricted cash	25,723	22,449
Investment securities	24,419	0
Accounts receivable, net of allowance of $5,897 at March 31, 2025 and $5,885 at December 31, 2024	147,264	145,235
Income tax receivable		2,838
Prepaid expenses	16,900	14,414
Other current assets	2,249	3,972
Total current assets	440,550	371,041
Property, plant and equipment, net	46,645	46,731
Operating lease right-of-use assets, net	9,896	10,820
Intangible assets, net	1,010,933	1,039,049
Goodwill	3,019,999	3,019,999
Deferred costs	85,088	82,815
Other long-term assets	6,067	6,549
Total assets	4,619,178	4,577,004
Current liabilities
Accounts payable	45,064	47,365
Accrued compensation	15,857	31,589
Aggregated funds payable	25,253	22,059
Other accrued expenses	25,646	15,930
Deferred revenue	11,348	10,527
Current portion of long-term debt	11,668	11,668
Current portion of operating lease liabilities	5,538	5,591
Current portion of finance lease liabilities	926	904
Total current liabilities	141,300	145,633
Long-term liabilities
Deferred tax liability	104,927	100,523
Long-term debt, net, less current portion	1,218,235	1,220,622
Operating lease liabilities, net of current portion	11,785	13,133
Finance lease liabilities, net of current portion	11,049	11,290
Deferred revenue-LT	5,692	5,739
Other long-term liabilities	278	278
Total liabilities	1,493,266	1,497,218
Commitments and contingencies (Note 20)
Stockholders' equity
Preferred stock $0.01 par value - 100,000,000 shares authorized as of March 31, 2025 and December 31, 2024, respectively; zero shares issued or outstanding as of March 31, 2025 and December 31, 2024, respectively
Common stock $0.01 par value - 2,500,000,000 shares authorized at March 31, 2025 and December 31, 2024, respectively; 172,963,709 and 172,108,240 shares issued and outstanding at March 31, 2025 and December 31, 2024, respectively	1,730	1,722
Additional paid-in capital	3,315,497	3,298,083
Accumulated other comprehensive income	316	881
Accumulated deficit	(191,631)	(220,900)
Total stockholders' equity	3,125,912	3,079,786
Total liabilities and stockholders' equity	4,619,178	4,577,004
Nonrelated Party
Current liabilities
Current portion of long-term debt	11,228	11,311
Long-term liabilities
Long-term debt, net, less current portion	1,174,879	1,185,411
Related Party
Current liabilities
Current portion of long-term debt	440	357
Long-term liabilities
Long-term debt, net, less current portion	$ 43,356	$ 35,211

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2025

Summary of Significant Accounting Policies

Basis of Financial Statement Presentation

Use of Estimates

Revenue Recognition

We recognize revenue in accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), through the following five steps:

●	identification of the contract, or contracts, with a client;

●	identification of the performance obligations in the contract;

●	determination of the transaction price;

●	allocation of the transaction price to the performance obligations in the contract; and

●	recognition of revenue when, or as, we satisfy a performance obligation

Contract Costs

Incremental Costs of Obtaining a Contract

Costs to Fulfill a Contract

There were no impairment losses relating to deferred costs during the periods presented.

Channel Partners

Cash and cash equivalents

Investment securities

There were no impairment losses relating to our investment securities during the periods presented.

Recently Issued Accounting Pronouncements Not Yet Adopted

- Definition

Disclosure of accounting policy for investment in financial asset.

+ References + Details

Derivative Financial Instruments - Effect of Derivative Instruments Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Derivative financial instruments
Net amount of accumulated other comprehensive income expected to be reclassified	$ 300
Designated as hedging instruments \| Interest rate swap
Derivative financial instruments
Amount of Gain or (Loss) Recognized in AOCI/AOCL on Derivative	(556)	$ (175)
Amount of Gain or (Loss) Reclassified from AOCI/AOCL into Income	573	8,601
Total interest Expense on Consolidated Statements of Operations	$ (18,900)	$ (57,184)

Summary of Significant Accounting Policies - Contract Costs (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Contract Costs
Impairment losses	$ 0.0	$ 0.0
Incremental costs of obtaining a contract
Contract Costs
Total unamortized costs	29.4		$ 29.0
Amortization related to contract costs	3.1	2.4
Costs to fulfill a contract
Contract Costs
Total unamortized costs	55.7		$ 53.8
Amortization related to contract costs	$ 3.7	$ 2.7

Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Total
Balance at the beginning (shares) at Dec. 31, 2023	121,679,902
Balance at the beginning at Dec. 31, 2023	$ 1,217	$ 2,234,688	$ 15,802	$ (201,775)	$ 2,049,932
Changes in stockholder's equity
Stock-based compensation		2,528			2,528
Settlement of common stock options, net of stock option exercises (shares)	2,420
Settlement of common stock options, net of stock option exercises	$ 1	(23)			(22)
Repurchase of shares (shares)	(22,688)
Repurchase of shares	$ (1)	(843)			(844)
Net Income (Loss)				(15,932)	(15,932)
Other comprehensive income/(loss)			(175)		(175)
Balance at the end (shares) at Mar. 31, 2024	121,659,634
Balance at the end at Mar. 31, 2024	$ 1,217	2,236,350	15,627	(217,707)	2,035,487
Balance at the beginning (shares) at Dec. 31, 2024	172,108,240
Balance at the beginning at Dec. 31, 2024	$ 1,722	3,298,083	881	(220,900)	3,079,786
Changes in stockholder's equity
Stock-based compensation		6,736			6,736
Settlement of common stock options, net of stock option exercises (shares)	855,469
Settlement of common stock options, net of stock option exercises	$ 8	10,678			10,686
Net Income (Loss)				29,269	29,269
Other comprehensive income/(loss)			(565)		(565)
Balance at the end (shares) at Mar. 31, 2025	172,963,709
Balance at the end at Mar. 31, 2025	$ 1,730	$ 3,315,497	$ 316	$ (191,631)	$ 3,125,912

Summary of Significant Accounting Policies - Investment securities (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Summary of Significant Accounting Policies
Impairment losses on debt securities, available for sale	$ 0.0	$ 0.0

Property and Equipment, Net (Tables)

3 Months Ended

Mar. 31, 2025

Property and Equipment, Net

Schedule of balances of the major classes of property and equipment

The balances of the major classes of property and equipment are as follows (in thousands):


	March 31, 2025		December 31, 2024
Computer hardware	$	39,922	$	39,833
Capitalized internal-use software		43,644		40,281
Purchased computer software		22,905		22,789
Furniture and fixtures		3,824		3,642
Office equipment		247		247
Leasehold improvements		4,111		3,778
Internal-use software in progress		16,457		15,361
		131,110		125,931
Accumulated depreciation		(84,465)		(79,200)
	$	46,645	$	46,731

Commitments and Contingencies

3 Months Ended

Mar. 31, 2025

Commitments and Contingencies.

Commitments and Contingencies

20. Commitments and Contingencies

We may be subject to legal proceedings, claims, asserted or unasserted, and litigation arising in the ordinary course of business. We do not, however, currently expect that the ultimate costs to resolve any pending matter will have a material effect on our consolidated financial position, results of operations, or cash flows.

Leases

3 Months Ended

Mar. 31, 2025

Leases

Leases

9. Leases

The following table presents components of lease expense for the three months ended March 31, 2025 and 2024, respectively (in thousands):


	Three months ended March 31,
	2025		2024
Finance lease cost
Amortization of right-of-use assets	$	—	$	397
Interest on lease liabilities		180		192
Operating lease cost		1,138		913
Variable lease cost		266		42
Short-term lease		196		207
Total lease cost	$	1,780	$	1,751

Maturities of lease liabilities as of March 31, 2025 are as follows (in thousands):


	Operating Leases		Finance Leases
2025	$	4,728	$	1,204
2026		5,486		1,641
2027		3,191		1,678
2028		2,868		1,714
2029		1,404		1,752
Thereafter		1,360		7,557
Total future minimum lease payments		19,037		15,546
Less: Interest		1,714		3,571
Total	$	17,323	$	11,975

Supplemental cash flow information related to leases for the three months ended March 31, 2025 and 2024 are as follows (in thousands):


	Three months ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,614	$	1,342
Financing cash flows for financing leases		399		392
Right-of-use assets obtained in exchange for new lease liabilities:
Operating leases	$	—	$	—

Supplemental balance sheet information related to leases as of March 31, 2025 and December 31, 2024 are as follows:


	March 31, 2025	December 31, 2024
Weighted average remaining lease term (years):
Operating leases	3.9	4.1
Financing leases	8.8	9.1
Weighted average discount rate:
Operating leases	4.7	4.7
Financing leases	5.9	5.9

Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

8. Goodwill and Other Intangible Assets

Goodwill has a balance of $3.0 billion as of both March 31, 2025 and December 31, 2024. There were no additions, disposals or impairments to goodwill during the three months ended March 31, 2025 and 2024.

Amortization for definite-lived intangible assets is as follows (in thousands, except useful life):


							Weighted-
					Net		Average
	Gross Carrying		Accumulated		Carrying		Remaining
	Amount		Amortization		Value		Useful Life
As of March 31, 2025
Customer relationships	$	1,429,400	$	(464,449)	$	964,951	10.8
Purchased developed technology		81,800		(54,173)		27,627	4.2
Tradenames and trademarks		40,700		(22,345)		18,355	4.5
Total	$	1,551,900	$	(540,967)	$	1,010,933
As of December 31, 2024
Customer relationships	$	1,429,400	$	(440,729)	$	988,671	11.1
Purchased developed technology		81,800		(50,875)		30,925	4.2
Tradenames and trademarks		40,700		(21,247)		19,453	4.7
Total	$	1,551,900	$	(512,851)	$	1,039,049

Amortization expense was $28.1 million and $39.1 million for the three months ended March 31, 2025 and 2024, respectively.

Unaudited Condensed Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Revenue	$ 256,435	$ 224,792
Operating expenses
Cost of revenue (exclusive of depreciation and amortization expenses)	83,345	75,192
Sales and marketing	40,123	33,780
General and administrative	23,300	26,135
Research and development	11,078	10,320
Depreciation and amortization	33,380	44,174
Total operating expenses	191,226	189,601
Income from operations	65,209	35,191
Other expense
Income/(loss) before income taxes	46,309	(21,993)
Income tax expense/(benefit)	17,040	(6,061)
Net income/(loss)	$ 29,269	$ (15,932)
Net income/(loss) per share:
Basic (in dollars per share)	$ 0.17	$ (0.13)
Diluted (in dollars per share)	$ 0.16	$ (0.13)
Weighted-average shares outstanding:
Basic (in shares)	172,188,237	121,675,298
Diluted (in shares)	180,691,994	121,675,298
Nonrelated Party
Other expense
Interest expense	$ (18,257)	$ (55,812)
Related Party
Other expense
Interest expense	$ (643)	$ (1,372)

Summary of Significant Accounting Policies - Revenue Recognition (Details)	3 Months Ended
	Mar. 31, 2025
Summary of Significant Accounting Policies
Revenue contract renewal term (in years)	1 year
Minimum
Summary of Significant Accounting Policies
Revenue contract term (in years)	2 years
Revenue payment term (in days)	30 days
Maximum
Summary of Significant Accounting Policies
Revenue contract term (in years)	3 years
Revenue payment term (in days)	60 days
Concentration of revenue \| Subscription and volume-based revenue \| Product
Summary of Significant Accounting Policies
Percentage of revenue	99.00%
Concentration of revenue \| Implementation fees and hardware sales \| Product
Summary of Significant Accounting Policies
Percentage of revenue	1.00%

Derivative Financial Instruments - Interest Rate Swaps Designated as Hedging Instruments (Details) - Designated as hedging instruments - January 31, 2023 through January 31, 2026 - USD ($) $ in Millions	Mar. 31, 2025	Dec. 31, 2024
Derivative financial instruments
Floating Rate Debt	$ 506.7	$ 506.7
Fixed Rates	3.87%	3.87%

Fair Value Measurements and Disclosures - Fair Value Hierarchy for Financial Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Mar. 31, 2025	Dec. 31, 2024
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	$ 24,419	$ 0
Commercial Paper
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	19,383
Corporate Notes
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	$ 5,036
Interest rate swap
Other financial assets:
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Other Assets, Current
Carrying value \| Recurring basis \| Commercial Paper
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	$ 19,383
Carrying value \| Recurring basis \| Corporate Notes
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	5,036
Carrying value \| Recurring basis \| Money Market Funds \| Cash and Cash Equivalents
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	25,629
Carrying value \| Recurring basis \| Interest rate swap
Other financial assets:
Interest rate swaps, Financial assets	431
Carrying value \| Recurring basis \| Interest rate swap \| Other current assets
Other financial assets:
Interest rate swaps, Financial assets		1,127
Carrying value \| Recurring basis \| Interest rate swap \| Other long-term assets
Other financial assets:
Interest rate swaps, Financial assets		22
Level 1 \| Recurring basis \| Commercial Paper
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	0
Level 1 \| Recurring basis \| Corporate Notes
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	0
Level 1 \| Recurring basis \| Money Market Funds \| Cash and Cash Equivalents
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	25,629
Level 1 \| Recurring basis \| Interest rate swap
Other financial assets:
Interest rate swaps, Financial assets	0
Level 1 \| Recurring basis \| Interest rate swap \| Other current assets
Other financial assets:
Interest rate swaps, Financial assets		0
Level 1 \| Recurring basis \| Interest rate swap \| Other long-term assets
Other financial assets:
Interest rate swaps, Financial assets		0
Level 2 \| Recurring basis \| Commercial Paper
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	19,383
Level 2 \| Recurring basis \| Corporate Notes
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	5,036
Level 2 \| Recurring basis \| Money Market Funds \| Cash and Cash Equivalents
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	0
Level 2 \| Recurring basis \| Interest rate swap
Other financial assets:
Interest rate swaps, Financial assets	431
Level 2 \| Recurring basis \| Interest rate swap \| Other current assets
Other financial assets:
Interest rate swaps, Financial assets		1,127
Level 2 \| Recurring basis \| Interest rate swap \| Other long-term assets
Other financial assets:
Interest rate swaps, Financial assets		22
Level 3 \| Recurring basis \| Commercial Paper
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	0
Level 3 \| Recurring basis \| Corporate Notes
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	0
Level 3 \| Recurring basis \| Money Market Funds \| Cash and Cash Equivalents
Available-for-sale fixed-maturity securities
Available-for-sale fixed-maturity securities	0
Level 3 \| Recurring basis \| Interest rate swap
Other financial assets:
Interest rate swaps, Financial assets	$ 0
Level 3 \| Recurring basis \| Interest rate swap \| Other current assets
Other financial assets:
Interest rate swaps, Financial assets		0
Level 3 \| Recurring basis \| Interest rate swap \| Other long-term assets
Other financial assets:
Interest rate swaps, Financial assets		$ 0

Goodwill and Other Intangible Assets - Amortization for Definite-lived Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024	Dec. 31, 2024
Goodwill and Other Intangible Assets
Gross Carrying Amount	$ 1,551,900		$ 1,551,900
Accumulated Amortization	(540,967)		(512,851)
Net Carrying Value	1,010,933		1,039,049
Amortization expense	28,100	$ 39,100
Customer relationships
Goodwill and Other Intangible Assets
Gross Carrying Amount	1,429,400		1,429,400
Accumulated Amortization	(464,449)		(440,729)
Net Carrying Value	$ 964,951		$ 988,671
Weighted- Average Remaining Useful Life	10 years 9 months 18 days		11 years 1 month 6 days
Purchased developed technology
Goodwill and Other Intangible Assets
Gross Carrying Amount	$ 81,800		$ 81,800
Accumulated Amortization	(54,173)		(50,875)
Net Carrying Value	$ 27,627		$ 30,925
Weighted- Average Remaining Useful Life	4 years 2 months 12 days		4 years 2 months 12 days
Tradenames and trademarks
Goodwill and Other Intangible Assets
Gross Carrying Amount	$ 40,700		$ 40,700
Accumulated Amortization	(22,345)		(21,247)
Net Carrying Value	$ 18,355		$ 19,453
Weighted- Average Remaining Useful Life	4 years 6 months		4 years 8 months 12 days

- Definition

Line items represent financial concepts included in a table. These concepts are used to disclose reportable information associated with domain members defined in one or many axes to the table.

+ References + Details

Fair Value Measurements and Disclosures - Additional Information (Details) - Recurring basis - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Fair Value Measurements and Disclosures
Transfers in or out of Level 3	$ 0.0	$ 0.0
Carrying value \| First lien term loan facility
Fair Value Measurements and Disclosures
Loan value	1,160.6	1,163.5
Fair value \| First lien term loan facility
Fair Value Measurements and Disclosures
Loan value	$ 1,153.3	$ 1,169.4

Accounts Receivable Securitization (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2025	Dec. 31, 2024
Accounts Receivable Securitization
Outstanding amount	$ 1,240,628	$ 1,243,545
Receivables facility
Accounts Receivable Securitization
Outstanding amount	$ 80,000	$ 80,000
Term of receivables facility	3 years	3 years
Maximum borrowing capacity	$ 80,000	$ 80,000
Interest rate (in percent)	1.61%
Debt Instrument, Variable Interest Rate, Type [Extensible Enumeration]	us-gaap:SecuredOvernightFinancingRateSofrMember
Effective interest rate (in percent)	5.93%
Receivables facility \| Minimum
Accounts Receivable Securitization
Base interest rate (%)	0%

Unaudited Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Cash flows from operating activities
Net income/(loss)	$ 29,269	$ (15,932)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities
Depreciation and amortization	33,380	44,174
Stock-based compensation	6,744	2,528
Provision for bad debt expense	1,255	556
Loss on extinguishment of debt		8,869
Deferred income taxes	4,569	(19,591)
Amortization of debt discount and issuance costs	667	1,680
Changes in:
Accounts receivable	(3,284)	(10,274)
Income tax refundable	2,838	6,811
Prepaid expenses and other current assets	(1,460)	(3,538)
Deferred costs	(2,222)	(4,230)
Other long-term assets	324	(325)
Accounts payable and accrued expenses	(8,130)	(1,280)
Deferred revenue	775	1,711
Operating lease right-of-use assets and lease liabilities	(476)	(429)
Net cash provided by operating activities	64,249	10,730
Cash flows from investing activities
Purchase of property and equipment and capitalization of internally developed software costs	(5,426)	(5,560)
Purchase of investment securities	(24,431)
Net cash used in investing activities	(29,857)	(5,560)
Cash flows from financing activities
Change in aggregated funds liability	3,194	3,538
Repurchase of shares		(225)
Proceeds from exercise of common stock options	10,686	71
Proceeds from issuances of debt, net of creditor fees		535,209
Payments on debt	(2,917)	(516,774)
Third-party fees paid in connection with issuance of new debt		(1,410)
Finance lease liabilities paid	(219)	(199)
Net cash provided by financing activities	10,744	20,210
Increase in cash and cash equivalents during the period	45,136	25,380
Cash and cash equivalents and restricted cash-beginning of period	204,582	45,428
Cash and cash equivalents and restricted cash-end of period	249,718	70,808
Supplemental disclosures of cash flow information
Interest paid	19,960	40,513
Cash taxes paid (refunds received), net	532	(54)
Non-cash investing and financing activities
Fixed asset purchases in accounts payable	56	518
Balance sheet
Cash and cash equivalents	223,995	57,337
Restricted cash	25,723	13,471
Total	$ 249,718	$ 70,808

Common and Preferred Stock

3 Months Ended

Mar. 31, 2025

Common and Preferred Stock

Common and Preferred Stock

15. Common and Preferred Stock

Prior to our initial public offering (“IPO”), we authorized the issuance of 225,000,000 shares of common stock, par value $0.01 per share and 2,000,000 shares of Class A common stock, par value $0.01 per share. There were 121,243,101 common stock shares issued and outstanding as of December 31, 2023. There were 436,801 Class A common stock shares issued and outstanding as of December 31, 2023. Both common stock and Class A common stock had the same dividend and liquidation rights. However, each share of common stock was entitled to one vote and each share of the Class A common stock was not entitled to a vote.

In connection with our IPO, the Company’s amended and restated certificate of incorporation became effective on June 10, 2024, which authorizes the issuance of 2,500,000,000 shares of common stock, par value $0.01 per share, and 100,000,000 shares of preferred stock, par value $0.01 per share. The shares of preferred stock have rights and preferences, including voting rights, designated from time to time by the Board of Directors. In connection with the amendment and restatement of the Company’s certificate of incorporation effective on the IPO date, the Class A common stock shares were automatically reclassified as, and became, one share of common stock. There were 172,963,709 and 172,108,240 common stock shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively. There were no shares of preferred stock issued and outstanding as of March 31, 2025 and December 31, 2024.

- Definition

The entire disclosure for equity.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Topic 505
-SubTopic 10
-Name Accounting Standards Codification
-Section 50
-Paragraph 13
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Income/ (Loss) Per Share - Reconciliation of The Numerators and The Denominators of The Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Basic income/(loss) per share:
Net Income (Loss)	$ 29,269	$ (15,932)
Net income/(loss) attributable to common shares	$ 29,269	$ (15,932)
Basic weighted average common stock outstanding	172,188,237	121,675,298
Basic income/(loss) per share	$ 0.17	$ (0.13)
Diluted income/(loss) per share:
Net Income (Loss)	$ 29,269	$ (15,932)
Net income/(loss) attributable to common shares	$ 29,269	$ (15,932)
Diluted weighted average common stock outstanding	180,691,994	121,675,298
Diluted income/(loss) per share	$ 0.16	$ (0.13)
Voting
Basic income/(loss) per share:
Basic weighted average common stock outstanding	172,188,237	121,238,497
Diluted income/(loss) per share:
Diluted weighted average common stock outstanding	180,691,994	121,238,497
Voting \| Employee Stock Option
Diluted income/(loss) per share:
Dilutive effect	7,392,322
Voting \| Restricted Stock Units (RSUs)
Diluted income/(loss) per share:
Dilutive effect	1,111,435
Non-voting
Basic income/(loss) per share:
Basic weighted average common stock outstanding		436,801
Diluted income/(loss) per share:
Diluted weighted average common stock outstanding		436,801

Fair Value Measurements and Disclosures

3 Months Ended

Mar. 31, 2025

Fair Value Measurements and Disclosures

Fair Value Measurements and Disclosures

6. Fair Value Measurements and Disclosures

The following table presents the fair value hierarchy for financial assets and liabilities measured at fair value on a recurring basis (in thousands):


	Balance Sheet Classification	Carrying Value		Level 1		Level 2		Level 3
March 31, 2025
Available-for-sale fixed-maturity securities
Commercial paper	Investment securities	$	19,383	$	—	$	19,383	$	—
Corporate notes	Investment securities	$	5,036	$	—	$	5,036	$	—
Money market funds	Cash and cash equivalents	$	25,629	$	25,629	$	—	$	—
Other financial assets:
Interest rate swaps	Other current assets	$	431	$	—	$	431	$	—
December 31, 2024
Other financial assets:
Interest rate swaps	Other current assets	$	1,127	$	—	$	1,127	$	—
Interest rate swaps	Other long-term assets	$	22	$	—	$	22	$	—

The fair values of our interest rate swaps are based on the sum of all future net present value cash flows. The future cash flows are derived based on the terms of our interest rate swaps, as well as considering published discount factors, and projected SOFR. The fair value of long-term debt was determined using the present value of future cash flows based on the borrowing rates currently available for debt with similar terms and maturities. The carrying value of our first lien term loan facility was $1,160.6 million and $1,163.5 million compared to a fair value of $1,153.3 million and $1,169.4 million at March 31, 2025 and December 31, 2024, respectively. There were no transfers in or out of Level 3 during the periods presented.

As of March 31, 2025 and December 31, 2024, the carrying value of cash equivalents, accounts receivable, accounts payable, accrued liabilities, and other current assets and liabilities approximates fair value due to the short maturities of these instruments. Swaps are Level 2 instruments whose fair value is derived from discounted cash flows adjusted for nonperformance risk. Investment securities are Level 2 instruments whose fair value is observed through market data of similar securities. Money market funds are Level 1 instruments whose fair value is observed through daily quoted prices of similar assets. Money market funds are considered cash equivalents because they have a maturity of less than three months and are highly liquid.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 820
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-Section 55
-Paragraph 107
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

Derivative Financial Instruments

3 Months Ended

Mar. 31, 2025

Derivative Financial Instruments

Derivative Financial Instruments

13. Derivative Financial Instruments

To mitigate the risk of a rise in interest rates on the First Lien Credit Facility, we entered into an interest rate swap on January 13, 2023. We attempt to minimize our interest risk exposure by fixing our rate through the utilization of interest rate swaps, which are derivative instruments. The interest rate swaps mitigate the exposure on the variable component of interest on our First Lien Credit Facility. The interest rate swap results in the fixed interest rate shown in the table below on the swapped portion of the First Lien Credit Facility. Our swap was entered into with a financial institution that participates in the First Lien Credit Facility. By using a derivative instrument to hedge exposures to changes in interest rates, we expose ourselves to credit risk due to the possible failure of the counterparty to perform under the terms of the derivative contract.

As of March 31, 2025 and December 31, 2024, we have the following interest rate swap agreement designated as a hedging instruments:


Effective Dates	Floating Rate Debt		Fixed Rates
January 31, 2023 through January 31, 2026	$	506.7 million	3.87	%

The gain or loss on the swap is recognized in accumulated other comprehensive income/(loss) and reclassified into earnings as adjustments to interest expense in the same period or periods during which the swap affects earnings. Gains or losses on the swap representing hedge components excluded from the assessment of effectiveness are recognized in current earnings.

The effect of derivative instruments designated as hedging instruments on the accompanying consolidated financial statements is as follows (in thousands):


						Total interest
	Amount of Gain or		Location of Gain or	Amount of Gain or		Expense on
	(Loss) Recognized		(Loss) Reclassified	(Loss) Reclassified		Consolidated
	in AOCI/AOCL on		from AOCI/AOCL	from AOCI/AOCL		Statements of
Derivatives - Cash Flow Hedging Relationships	Derivative		into Income	into Income		Operations
Interest rate swaps:
Three months Ended March 31, 2025	$	(556)	Interest expense	$	573	$	(18,900)
Three months Ended March 31, 2024	$	(175)	Interest expense	$	8,601	$	(57,184)

The net amount of accumulated other comprehensive income expected to be reclassified to interest income in the next twelve months is $0.3 million.

Related Party Transactions (Details) $ in Thousands	3 Months Ended
Related Party Transactions (Details) $ in Thousands	Mar. 31, 2025 USD ($) client	Mar. 31, 2024 USD ($) client	Dec. 31, 2024 USD ($)
Related party transactions
Outstanding amount	$ 1,240,628		$ 1,243,545
General and administrative	23,300	$ 26,135
Revenue	256,435	224,792
Operating lease agreement
Related party transactions
General and administrative	0	100
Provision of software solutions
Related party transactions
Revenue	$ 600	$ 400
Number of clients from whom revenue is earned \| client	5	4
Receipt of software services
Related party transactions
Cost of revenue expense	$ 600	$ 100
Related Party
Related party transactions
Interest expense related to First lien term loan facility from Affiliated Debtholders	643	$ 1,372
First lien term loan facility from Affiliated Debtholders
Related party transactions
Outstanding amount	$ 43,800		$ 35,600

Summary of Significant Accounting Policies - Channel Partners (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2025	Mar. 31, 2024
Summary of Significant Accounting Policies
Fees to channel partners	$ 18.2	$ 14.5