Waystar Holding Corp. (WAY)
NASDAQ:WAY
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Waystar Holding Corp.
(NASDAQ:WAY)
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Rating:72Outperform
Price Target:
$27.00
▲(18.11% Upside)
Action:ReiteratedDate:02/18/26
The score is driven primarily by improving fundamentals (profitability inflection and much stronger balance sheet) and a constructive earnings outlook (strong 2026 guidance, record bookings, and margin profile). These positives are tempered by weak technicals (price below major moving averages and negative MACD) and a relatively high P/E with no dividend yield provided.
Positive Factors
Revenue & profitability turnaround
Waystar has scaled revenue materially while re-establishing net profitability in 2025. Durable scale and positive net income improve reinvestment capacity, reduce execution risk, and underpin longer-term cash generation needed for product development, AI adoption, and integration of acquisitions.
Negative Factors
Residual leverage and liquidity concentration
Despite progress, substantial gross debt and relatively modest cash create ongoing financial risk. At ~3.0x net leverage, adverse cash-flow or execution slippage could constrain investment, slow deleveraging, or necessitate operational trade-offs, limiting flexibility during cyclical stress.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue & profitability turnaround
Waystar has scaled revenue materially while re-establishing net profitability in 2025. Durable scale and positive net income improve reinvestment capacity, reduce execution risk, and underpin longer-term cash generation needed for product development, AI adoption, and integration of acquisitions.
Read all positive factors
Waystar Holding Corp. (WAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.38B
Dividend YieldN/A
Average Volume (3M)2.21M
Price to Earnings (P/E)55.9
Beta (1Y)0.91
Revenue Growth14.75%
EPS GrowthN/A
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.36
Shares Outstanding191,681,600
10 Day Avg. Volume1,937,565
30 Day Avg. Volume2,213,224
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 Cap1.33
Enterprise Value/Revenue5.28
Enterprise Value/Gross Profit8.17
Enterprise Value/Ebitda14.31
Forecast
1Y Price Target
$37.11Price Target Upside62.34% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)1.63
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
Waystar generates revenue through a subscription-based model, offering its software solutions to healthcare providers, which include hospitals, clinics, and outpatient facilities. The company charges fees for access to its platform, which encompas...
Waystar Holding Corp. Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized substantial positive execution: record bookings, strong top-line growth (Q4 +24% YoY; FY +17% YoY), robust margins (adjusted EBITDA margin ~42–43%), meaningful cash conversion and deleveraging progress, rapid AI adoption and measurable AI outcomes (>$15B denials prevented). Acquisition of Iodine materially expands addressable market and AI/clinical data capabilities with synergies ahead of plan. Key risks discussed include seasonality and deductible timing impacting patient payment revenue, near-term cost step-ups from the acquisition, leverage and cash levels, some one-off tailwinds to retention, and the multi-quarter ramp of large deals. On balance the positives substantially outweigh the challenges.Positive Updates
Record Annual Revenue and Guidance
Full-year 2025 revenue reached $1,100,000,000, up 17% year-over-year (organic +13%). Management guided 2026 revenue of $1,274,000,000 to $1,294,000,000 (midpoint $1,284,000,000), implying ~17% year-over-year growth with ~10% normalized organic growth.
Negative Updates
Patient Payment Seasonality and Sequential Pressures
Volume-based revenue (Q4 $134,000,000) grew 11% YoY but was only +1% sequentially; patient payment solutions were lower Q4-to-Q3 due to seasonal deductible timing and high-deductible plan patients hitting deductibles, contributing to expected Q3 sequential softness in 2026 guidance.
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Q4-2025 Updates
Positive
Negative
Record Annual Revenue and Guidance
Full-year 2025 revenue reached $1,100,000,000, up 17% year-over-year (organic +13%). Management guided 2026 revenue of $1,274,000,000 to $1,294,000,000 (midpoint $1,284,000,000), implying ~17% year-over-year growth with ~10% normalized organic growth.
Read all positive updates
Company Guidance
Waystar guided 2026 revenue of $1,274,000,000 to $1,294,000,000 (midpoint $1,284,000,000), implying 17% year‑over‑year growth and roughly 10% normalized organic growth (with a similar implied rate for Iodine), and expects sequential revenue growth of 1%–3% through the year (Q3 at the low end due to patient‑payment seasonality); adjusted EBITDA guidance is $530,000,000 to $540,000,000 (midpoint $535,000,000), about 16% year‑over‑year growth and an adjusted EBITDA margin near 42% (gross margin ~68%), which includes ~1% margin uplift from realizing approximately $14,000,000 of acquisition cost synergies in 2026 (over 90% of the committed $15,000,000); management reiterated a long‑term adjusted EBITDA margin target of 40%, expects to run the business at or below ~3.0x net leverage (net leverage was ~3.0x at 12/31) and to delever roughly one turn annually, and assumed healthy patient utilization and that record bookings will ramp over six to eighteen months.Waystar Holding Corp. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
92
Very Positive
Cash Flow
74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.10B | 943.55M | 791.01M | 704.87M | 578.57M |
| Gross Profit | 710.67M | 627.82M | 541.24M | 489.98M | 426.80M |
| EBITDA | 405.85M | 310.36M | 318.55M | 272.62M | 236.37M |
| Net Income | 112.09M | -19.13M | -51.33M | -51.45M | -47.12M |
Balance Sheet | |||||
| Total Assets | 5.95B | 4.58B | 4.58B | 4.69B | 4.78B |
| Cash, Cash Equivalents and Short-Term Investments | 86.23M | 182.13M | 45.43M | 64.56M | 47.25M |
| Total Debt | 1.50B | 1.26B | 2.25B | 2.26B | 2.30B |
| Total Liabilities | 2.08B | 1.50B | 2.53B | 2.59B | 2.66B |
| Stockholders Equity | 3.88B | 3.08B | 2.05B | 2.11B | 2.12B |
Cash Flow | |||||
| Free Cash Flow | 283.19M | 142.50M | 29.94M | 85.20M | 91.86M |
| Operating Cash Flow | 309.67M | 169.77M | 51.46M | 102.63M | 106.41M |
| Investing Cash Flow | -680.90M | -27.27M | -61.52M | -17.43M | -444.33M |
| Financing Cash Flow | 243.45M | 16.65M | -17.15M | -67.06M | 331.50M |
Waystar Holding Corp. Technical Analysis
Negative
22.86
Price Trends
24.89
Negative
29.08
Negative
33.19
Negative
Market Momentum
-0.58
Positive
37.05
Neutral
25.73
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 22.86 is below the 20-day moving average (MA) of 24.19, below the 50-day MA of 24.89, and below the 200-day MA of 33.19, indicating a bearish trend. The MACD of -0.58 indicates Positive momentum. The RSI at 37.05 is Neutral, neither overbought nor oversold. The STOCH value of 25.73 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 58 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $6.36B | 14.72 | 21.81% | 1.41% | 7.40% | -14.45% | |
72 Outperform | $4.38B | 55.92 | 3.35% | ― | 14.75% | ― | |
72 Outperform | $4.81B | 27.23 | 25.50% | ― | 14.43% | 29.86% | |
70 Outperform | $3.13B | 61.03 | 12.67% | ― | 44.34% | 45.96% | |
68 Neutral | $7.27B | 30.32 | 10.27% | ― | 14.26% | -15.49% | |
64 Neutral | $4.38B | 13.47 | 23.73% | 1.69% | -0.38% | 31.38% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
WAY
Waystar Holding Corp.
22.86
-12.42
-35.20%
EPAM
Epam Systems
134.22
-9.11
-6.36%
EXLS
Exlservice Holdings
30.76
-11.09
-26.50%
G
Genpact
37.49
-6.85
-15.45%
SAIC
Science Applications
100.91
-6.64
-6.17%
PAY
Paymentus Holdings
24.87
0.50
2.05%
Waystar Holding Corp. Corporate Events
Executive/Board Changes
Waystar Chief Business Officer Announces Upcoming Resignation
Neutral
Feb 6, 2026
Waystar Holding Corp. announced that Chief Business Officer Eric (Ric) Sinclair III informed the company on February 2, 2026, that he will resign effective March 2, 2026, to take a role at another firm. The company stated that Sinclair’s dep...
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.