Waystar Holding Corp. (WAY) AI Stock Analysis

• Market Cap: $6.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.69M
• Price to Earnings (P/E): 74.7
• Beta (1Y): 0.79
• Revenue Growth: 17.14%
• EPS Growth: N/A
• Country: US
• Employees: 1,500
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.36
• Shares Outstanding: 174,238,970
• 10 Day Avg. Volume: 1,987,062
• 30 Day Avg. Volume: 1,692,581
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.34
• Enterprise Value/Revenue: 8.22
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 24.36
• 1Y Price Target: $49.78
• Price Target Upside: 39.87% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 67 Neutral
• Price Target: $40.00 ▲(12.39%Upside)

Waystar's strong financial performance and positive earnings call sentiment are the primary strengths, supporting a solid overall score. However, the high P/E ratio and mixed technical indicators present notable risks, impacting the stock's attractiveness.

Positive Factors

Acquisition and Market Expansion

The acquisition of Iodine Software is expected to expand Waystar’s total addressable market by more than 15%.

Financial Performance

Momentum continues with record second-quarter results, indicating strong performance for Waystar Holding Corp.

Guidance and Future Growth

There is confidence in growth setup for the second half of 2025, suggesting potential for future financial improvement.

Negative Factors

Growth Moderation

The step down in growth for the second half is attributed to patient revenues declining as patients hit their deductibles.

Revenue Decline

A sequential decline in revenue is expected in the third quarter, mainly due to lower patient payment volume revenue.

Waystar Holding Corp. Business Overview & Revenue Model

Company Description

Waystar Holding Corp. is a technology company that specializes in providing revenue cycle management and healthcare payment solutions. The company operates primarily in the healthcare sector, catering to hospitals, physician practices, and other healthcare providers. Waystar's core products include software and services designed to streamline the billing and payment processes, enhance patient engagement, and ensure compliance with regulatory requirements.

How the Company Makes Money

Waystar generates revenue through a subscription-based model, where healthcare providers pay for access to its suite of software solutions. The company offers various pricing tiers based on the size of the healthcare provider and the specific services utilized. Key revenue streams include transaction fees from payment processing, software licensing fees, and professional services for implementation and support. Additionally, Waystar has formed strategic partnerships with other technology providers and healthcare organizations to expand its market reach and enhance its product offerings, contributing significantly to its earnings.

Waystar Holding Corp. Financial Statement Overview

Summary

Waystar Holding Corp. presents a strong financial position with consistent revenue growth and efficient cash flow management. The company exhibits robust operational efficiency and maintains a conservative balance sheet with low leverage. However, there is room for improvement in net profitability and return on equity to enhance overall financial performance.

Income Statement

Waystar Holding Corp. shows strong revenue growth with a TTM increase of 3.36% compared to the previous year. The gross profit margin is robust at 62.24%, indicating effective cost management. However, the net profit margin is low at 2.67%, suggesting room for improvement in controlling expenses or increasing revenue. The EBIT and EBITDA margins are healthy at 16.22% and 33.93% respectively, reflecting good operational efficiency.

Balance Sheet

The company maintains a solid equity ratio of 67.67%, showcasing financial stability. The debt-to-equity ratio is low at 0.01, reflecting minimal leverage and a conservative financial structure. Return on equity is modest at 0.83%, indicating potential for better profitability. Overall, the balance sheet is strong with low debt levels and substantial equity.

Cash Flow

Waystar demonstrates impressive free cash flow growth of 37.63%, highlighting strong cash generation capabilities. The operating cash flow to net income ratio is high at 8.56, indicating efficient conversion of income into cash. The free cash flow to net income ratio is also robust at 7.52, underscoring strong cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.01B	943.55M	791.01M	704.87M	578.57M
Gross Profit	680.83M	627.82M	541.24M	306.82M	250.74M
EBITDA	341.34M	318.93M	318.58M	287.50M	247.66M
Net Income	85.94M	-19.13M	-51.33M	-51.45M	-47.12M
Balance Sheet
Total Assets	4.68B	4.58B	4.58B	4.81B	4.89B
Cash, Cash Equivalents and Short-Term Investments	340.79M	182.13M	45.43M	72.64M	54.50M
Total Debt	39.32M	1.26B	2.25B	2.26B	2.30B
Total Liabilities	1.50B	1.50B	2.53B	2.70B	2.77B
Stockholders Equity	3.17B	3.08B	2.05B	2.11B	2.12B
Cash Flow
Free Cash Flow	278.56M	142.50M	29.94M	85.20M	91.86M
Operating Cash Flow	304.60M	169.77M	51.46M	102.63M	106.41M
Investing Cash Flow	-76.56M	-27.27M	-61.52M	-17.43M	-444.33M
Financing Cash Flow	2.97M	16.65M	-17.15M	-67.06M	331.50M

Waystar Holding Corp. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 35.59
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 35.59 is below the 20-day moving average (MA) of 36.83, below the 50-day MA of 38.29, and below the 200-day MA of 36.75, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 34.37 is Neutral, neither overbought nor oversold. The STOCH value of 34.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAY.

Waystar Holding Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	78 Outperform	$7.43B	14.46	22.21%	1.52%	7.31%	-15.86%
EXLS	75 Outperform	$6.81B	29.18	24.70%	―	15.15%	34.33%
SAIC	74 Outperform	$5.19B	15.51	21.63%	1.34%	3.39%	-16.78%
PAY	67 Neutral	$3.54B	71.42	11.59%	―	47.78%	74.61%
WAY	67 Neutral	$6.20B	74.71	2.81%	―	17.14%	―
EPAM	65 Neutral	$8.55B	21.11	11.57%	―	4.72%	-3.06%
Sector *	56 Neutral	$6.50B	15.33	-29.08%	6.35%	11.10%	-32.94%

Waystar Holding Corp. Corporate Events

Waystar Holding Corp. Acquires Iodine Software for $1.25B

On July 23, 2025, Waystar Holding Corp. announced a definitive agreement to acquire Iodine Software for $1.25 billion. This acquisition is expected to enhance Waystar’s AI capabilities in healthcare payments, expand its market by over 15%, and improve its financial profile. The merger will integrate Iodine’s AI-powered clinical intelligence software, which is trusted by many health systems, to reduce administrative costs and improve revenue cycle management. The transaction is anticipated to close by the end of 2025, subject to regulatory approvals.

The most recent analyst rating on (WAY) stock is a Buy with a $42.00 price target. To see the full list of analyst forecasts on Waystar Holding Corp. stock, see the WAY Stock Forecast page.

Waystar Holding Corp. Expands Board with New Directors

Waystar Holding Corp. announced changes to its board of directors following its annual meeting on June 4, 2025. The board expanded from ten to twelve members, appointing Aashima Gupta and Michael Roman as independent directors. Gupta, with a background in healthcare technology, and Roman, a former CEO of 3M, bring diverse expertise to the board. Additionally, the company’s stockholders approved an amendment to the Certificate of Incorporation and re-elected three directors, while also ratifying KPMG LLP as the independent auditor for the fiscal year ending December 31, 2025.

The most recent analyst rating on (WAY) stock is a Buy with a $45.00 price target. To see the full list of analyst forecasts on Waystar Holding Corp. stock, see the WAY Stock Forecast page.

Waystar Holding Corp. Expands Board with New Nominations

On May 9, 2025, Waystar Holding Corp.‘s Board approved a grant of performance stock units to CEO Matt Hawkins, tied to the company’s shareholder return relative to the S&P SmallCap 600 Information Technology sector over a four-year period. Additionally, the company plans to expand its board from ten to twelve directors, contingent on shareholder approval to amend its Certificate of Incorporation, with Aashima Gupta and Michael Roman nominated for new director roles.

The most recent analyst rating on (WAY) stock is a Buy with a $42.0000 price target. To see the full list of analyst forecasts on Waystar Holding Corp. stock, see the WAY Stock Forecast page.