Waystar Holding Corp. (WAY)
NASDAQ:WAY
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Waystar Holding Corp.
(NASDAQ:WAY)
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Rating:71Outperform
Price Target:
$20.50
▼(-20.54% Downside)
Action:Reiterated
Date:05/01/26
The score is driven primarily by strong and improving financial performance (profitability and free-cash-flow strength plus sharp deleveraging) and a generally positive earnings outlook with reaffirmed guidance and strong AI-led demand signals. Offsetting these strengths are a weak technical trend (price below major moving averages) and a high P/E valuation that raises execution expectations.
Positive Factors
Recurring subscription revenue growth
A rising share of subscription revenue (55% of sales) with strong organic growth improves revenue predictability and customer lock-in. Recurring ARR expansion and 111% net revenue retention indicate durable customer monetization and lower churn risk, supporting longer-term margin sustainability.
Negative Factors
Elevated implementation backlog and long deal ramps
A growing backlog and extended ramp for big multi-product contracts can defer revenue and increase execution risk. Delays lengthen payback periods and make near-term cash and margin outcomes more sensitive to implementation efficiency and program management over the next several quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring subscription revenue growth
A rising share of subscription revenue (55% of sales) with strong organic growth improves revenue predictability and customer lock-in. Recurring ARR expansion and 111% net revenue retention indicate durable customer monetization and lower churn risk, supporting longer-term margin sustainability.
Read all positive factors
Waystar Holding Corp. Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks revenue into categories such as subscription/recurring, transaction fees, and one‑time services, revealing how much of Waystar’s income is stable versus lumpy. Higher recurring revenue supports predictable cash flow and easier long‑term growth, while reliance on one‑time sales makes performance more volatile.
Breaks revenue into categories such as subscription/recurring, transaction fees, and one‑time services, revealing how much of Waystar’s income is stable versus lumpy. Higher recurring revenue supports predictable cash flow and easier long‑term growth, while reliance on one‑time sales makes performance more volatile.
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The FlyWaystar Holding Corp. (WAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.56B
Dividend YieldN/A
Average Volume (3M)2.73M
Price to Earnings (P/E)26.7
Beta (1Y)0.95
Revenue Growth18.61%
EPS Growth373.77%
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.70
Shares Outstanding191,812,900
10 Day Avg. Volume2,403,683
30 Day Avg. Volume2,725,473
Financial Highlights & Ratios
PEG Ratio-0.10
Price to Book (P/B)1.62
Price to Sales (P/S)5.70
P/FCF Ratio22.13
Enterprise Value/Market Cap1.03
Enterprise Value/Revenue3.18
Enterprise Value/Gross Profit4.88
Enterprise Value/Ebitda8.58
Forecast
1Y Price Target
$33.60Price Target Upside30.23% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)1.64
Revenue Forecast (FY)$1.29B
Waystar Holding Corp. Business Overview & Revenue Model
Company Description
Waystar Holding Corp. develops a cloud-based software solution for healthcare payments. Its platform offers financial clearance, patient financial care, claim and payment management, denial prevention and recovery, revenue capture, and analytics a...
How the Company Makes Money
null...
Waystar Holding Corp. Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call highlighted robust top-line growth (22% YoY), strong adjusted EBITDA and margin expansion, solid cash generation, high retention, and accelerating AI adoption that is already driving bookings and early measurable ROI. Near-term headwinds center on patient payment volume dynamics driven by a faster-than-expected shift from print to digital, weather and utilization factors, plus elongated revenue ramp for larger deals and an elevated implementation backlog. Net debt improved and credit ratings were upgraded, mitigating some financial risk. Overall, the positives—especially the scale, AI traction, strong profitability and growing pipeline—outweigh the modest near-term volume/seasonality challenges.Positive Updates
Strong Revenue Growth
Revenue of $314 million in Q1 2026, up 22% year-over-year, driven by core execution and expansion across the platform.
Negative Updates
Patient Payment Volume Headwinds
Patient payment solutions (~25% of revenue) experienced pressure in Q1 due to accelerated conversion from print to digital statements, weather-related impacts, and changes in patient utilization/coverage; volume-based revenue grew 7% YoY (to $139M) but was affected by these offsets.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Revenue Growth
Revenue of $314 million in Q1 2026, up 22% year-over-year, driven by core execution and expansion across the platform.
Read all positive updates
Company Guidance
Waystar reaffirmed full-year 2026 guidance of $1.274–$1.294 billion in revenue (midpoint $1.284B, +17% YoY) and $530–$540 million in adjusted EBITDA (midpoint $535M), with the midpoint assuming ~10% normalized organic revenue growth; they expect Q2 sequential growth flat–1% and Q3 1–3% (vs. prior 1–3% quarterly cadence) and to operate at or below a 3.0x net leverage target (net leverage 2.7x at 3/31; $1.5B gross debt; $159M cash/equivalents). Q1 results underpinning guidance: revenue $314M (+22% YoY; organic +11%), subscription revenue $172M (55% of revenue; +38% YoY; organic +14%), volume-based revenue $139M (+7% YoY), adjusted EBITDA $135M (43% margin), unlevered free cash flow $90M (67% conversion of adjusted EBITDA), bookings ahead of expectations including a double-digit count of $1M+ ARR deals, net revenue retention ~111%, clients >$100k rose by 42 to 1,433 (+15% YoY), AI drove ~40% of new bookings and ~40% of revenue is from AI-embedded workflows (50% of solutions leverage AI), first-pass acceptance ~99%, and an elevated implementation backlog with the largest qualified pipeline in company history.Waystar Holding Corp. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
90
Very Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.16B | 1.10B | 943.55M | 791.01M | 704.87M | 578.57M |
| Gross Profit | 754.42M | 710.67M | 627.82M | 541.24M | 489.98M | 426.80M |
| EBITDA | 429.17M | 405.85M | 310.36M | 318.55M | 272.62M | 236.37M |
| Net Income | 126.10M | 112.09M | -19.13M | -51.33M | -51.45M | -47.12M |
Balance Sheet | ||||||
| Total Assets | 5.84B | 5.95B | 4.58B | 4.58B | 4.69B | 4.78B |
| Cash, Cash Equivalents and Short-Term Investments | 158.93M | 86.23M | 182.13M | 45.43M | 64.56M | 47.25M |
| Total Debt | 30.65M | 1.50B | 1.26B | 2.25B | 2.26B | 2.30B |
| Total Liabilities | 1.90B | 2.08B | 1.50B | 2.53B | 2.59B | 2.66B |
| Stockholders Equity | 3.94B | 3.88B | 3.08B | 2.05B | 2.11B | 2.12B |
Cash Flow | ||||||
| Free Cash Flow | 293.95M | 283.19M | 142.50M | 29.94M | 85.20M | 91.86M |
| Operating Cash Flow | 330.34M | 309.67M | 169.77M | 51.46M | 102.63M | 106.41M |
| Investing Cash Flow | -763.52M | -680.90M | -27.27M | -61.52M | -17.43M | -444.33M |
| Financing Cash Flow | 246.17M | 243.45M | 16.65M | -17.15M | -67.06M | 331.50M |
Waystar Holding Corp. Technical Analysis
Negative
25.80
Price Trends
23.07
Negative
25.47
Negative
30.88
Negative
Market Momentum
-1.44
Positive
40.07
Neutral
22.38
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAY, the sentiment is Negative. The current price of 25.8 is above the 20-day moving average (MA) of 21.54, above the 50-day MA of 23.07, and below the 200-day MA of 30.88, indicating a bearish trend. The MACD of -1.44 indicates Positive momentum. The RSI at 40.07 is Neutral, neither overbought nor oversold. The STOCH value of 22.38 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAY.
Waystar Holding Corp. Risk Analysis
Waystar Holding Corp. disclosed 116 risk factors in its most recent earnings report. Waystar Holding Corp. reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Waystar Holding Corp. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $3.07B | 38.22 | 13.47% | ― | 33.01% | 44.89% | |
72 Outperform | $4.43B | 17.71 | 27.16% | ― | 13.35% | 18.39% | |
71 Outperform | $3.56B | 26.69 | 3.55% | ― | 18.61% | 373.77% | |
71 Outperform | $5.44B | 10.72 | 22.44% | 1.41% | 6.47% | 10.82% | |
68 Neutral | $4.14B | 13.47 | 23.73% | 1.69% | -2.90% | 6.89% | |
63 Neutral | $5.25B | 22.07 | 10.67% | ― | 14.21% | -2.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
WAY
Waystar Holding Corp.
19.21
-20.09
-51.12%
EPAM
Epam Systems
104.30
-79.30
-43.19%
EXLS
Exlservice Holdings
29.43
-16.49
-35.91%
G
Genpact
32.12
-10.84
-25.22%
SAIC
Science Applications
96.54
-24.19
-20.04%
PAY
Paymentus Holdings
24.43
-14.23
-36.81%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.