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Waystar Holding Corp. (WAY)
NASDAQ:WAY
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Waystar Holding Corp.
(NASDAQ:WAY)
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Rating:68Neutral
Price Target:
$33.00
▲(7.91% Upside)
Waystar Holding Corp. shows strong financial performance and positive earnings call highlights, particularly with its revenue growth and strategic acquisition. However, the stock's technical indicators suggest a bearish trend, and its high P/E ratio indicates potential overvaluation. These factors contribute to a balanced overall score.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business expansion, enhancing long-term financial stability.
AI-Powered Innovations
AI-driven innovations improve operational efficiency and client satisfaction, strengthening competitive advantage in healthcare solutions.
Strategic Acquisition
The acquisition expands the client base and enhances product offerings, positioning Waystar for sustained growth and market leadership.
Negative Factors
Data Fragmentation Challenges
Data fragmentation can hinder AI effectiveness, limiting the potential benefits of technological advancements and operational improvements.
Integration and Cybersecurity Concerns
Integration and cybersecurity issues pose risks to operational integrity and client trust, potentially affecting long-term business reliability.
Potential Seasonality Impact
Seasonal revenue fluctuations may lead to inconsistent cash flows, impacting financial planning and stability over time.
Waystar Holding Corp. (WAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.04B
Dividend YieldN/A
Average Volume (3M)1.95M
Price to Earnings (P/E)49.7
Beta (1Y)0.85
Revenue Growth14.75%
EPS GrowthN/A
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.37
Shares Outstanding191,316,590
10 Day Avg. Volume1,165,133
30 Day Avg. Volume1,950,907
Financial Highlights & Ratios
PEG Ratio4.95
Price to Book (P/B)1.79
Price to Sales (P/S)5.83
P/FCF Ratio38.61
Enterprise Value/Market Cap1.27
Enterprise Value/Revenue7.39
Enterprise Value/Gross Profit10.90
Enterprise Value/Ebitda20.18
Forecast
1Y Price Target
$46.50Price Target Upside52.06% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)1.63
Revenue Forecast (FY)$1.28B
Waystar Holding Corp. Business Overview & Revenue Model
Company DescriptionWaystar 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 and reporting solutions. The company primarily serves healthcare industry. Waystar Holding Corp. was founded in 2017 and is based in Lehi, Utah.
How the Company Makes MoneyWaystar 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 encompasses various services such as claims management, patient billing, and analytics. Key revenue streams include recurring subscription fees, transaction fees associated with payment processing, and additional services like consulting and support. Partnerships with healthcare organizations and technology providers also contribute significantly to its revenue, as they expand Waystar's market reach and enhance service offerings.
Waystar Holding Corp. Earnings Call Summary
Earnings Call Date:Oct 29, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 24, 2026
Earnings Call Sentiment Positive
Waystar demonstrated robust revenue growth, successful acquisition integration, and significant AI-driven innovations, although challenges remain in data integration and cybersecurity. The positive client feedback and increased financial guidance reflect strong market positioning.Q3-2025 Updates
Positive Updates
Strong Revenue Growth
Waystar reported a 12% year-over-year revenue growth, reaching $269 million, with an adjusted EBITDA margin of 42%.
Acquisition of Iodine Software
Waystar completed the acquisition of Iodine Software, expanding the total addressable market by more than 15% and adding nearly 150 health systems to its client base.
AI-Powered Platform Innovations
Waystar introduced new AI-powered capabilities focusing on denial prevention, denial recovery, and patient financial engagement, leading to significant efficiency improvements.
Positive Client Feedback
Waystar reported a 93% confidence level from clients as a trusted partner and received two prestigious awards: Best Workplaces for Innovators in North America and Healthcare Company of the Year.
Financial Guidance Increase
Waystar raised its full-year revenue guidance to $1.085 billion to $1.093 billion and adjusted EBITDA guidance to $451 million to $455 million.
Negative Updates
Challenges in Data Fragmentation
Waystar noted ongoing challenges with data fragmentation, impacting the effectiveness of AI initiatives due to incomplete or inconsistent data.
Integration and Cybersecurity Concerns
Despite advancements, integration with existing systems and cybersecurity remain critical challenges as AI becomes increasingly embedded in processes.
Potential Seasonality Impact
Volume-based revenue decreased 4% sequentially, attributed to seasonality and a reversion of patient utilization to historical growth rates.
Company Guidance
In the Waystar Third Quarter 2025 Earnings Conference Call, the company reported strong financial performance with revenue growing to $269 million, marking a 12% year-over-year increase, and achieving an adjusted EBITDA margin of 42%. The company surpassed its guidance on both revenue and margins. Waystar's strategic acquisition of Iodine Software expanded its total addressable market by over 15%, adding nearly 150 health systems and more than 1,000 hospitals to its client base. The integration of Iodine's AI-powered mid-cycle capabilities is expected to accelerate Waystar's product roadmap by nearly two years. Waystar's platform, which integrates with over 500 electronic health records, serves over one million providers nationwide, emphasizing its role in modernizing the healthcare payment process. The company showcased its AI-driven innovations at the Waystar True North conference, highlighting significant improvements in denial prevention and recovery, which are critical given the $20 billion annual denial issue in healthcare. The company also noted a net revenue retention rate of 113% and raised its full-year revenue guidance to a range of $1.085 billion to $1.093 billion, with an expected adjusted EBITDA margin of approximately 42%.Waystar Holding Corp. Financial Statement Overview
Summary
Waystar Holding Corp. demonstrates solid financial health with strong revenue growth and efficient cash flow management. While profitability metrics are strong, there is potential for enhancing net profit margins and return on equity to maximize shareholder value.Income Statement
Waystar Holding Corp. has shown a consistent revenue growth trajectory, with a TTM revenue growth rate of 2.82%. The company maintains strong gross and EBIT margins at 67.32% and 20.80% respectively, indicating efficient cost management and operational profitability. However, the net profit margin is relatively low at 8.50%, suggesting room for improvement in net profitability.Balance Sheet
The balance sheet reflects a stable financial position with a low debt-to-equity ratio of 0.40, indicating prudent leverage management. The equity ratio stands at 67.90%, showcasing a strong equity base. However, the return on equity is modest at 2.77%, suggesting limited returns on shareholder investments.Cash Flow
Cash flow analysis reveals robust free cash flow growth of 2.14% in the TTM, with a strong operating cash flow to net income ratio of 1.99. The free cash flow to net income ratio is high at 91.45%, indicating effective cash generation relative to net income.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.04B | 943.55M | 791.01M | 704.87M | 578.57M |
| Gross Profit | 704.77M | 627.82M | 541.24M | 489.98M | 426.80M |
| EBITDA | 380.67M | 310.36M | 318.55M | 272.62M | 236.37M |
| Net Income | 111.18M | -19.13M | -51.33M | -51.45M | -47.12M |
Balance Sheet | |||||
| Total Assets | 4.75B | 4.58B | 4.58B | 4.69B | 4.78B |
| Cash, Cash Equivalents and Short-Term Investments | 421.06M | 182.13M | 45.43M | 64.56M | 47.25M |
| Total Debt | 40.73M | 1.26B | 2.25B | 2.26B | 2.30B |
| Total Liabilities | 1.52B | 1.50B | 2.53B | 2.59B | 2.66B |
| Stockholders Equity | 3.22B | 3.08B | 2.05B | 2.11B | 2.12B |
Cash Flow | |||||
| Free Cash Flow | 284.52M | 142.50M | 29.94M | 85.20M | 91.86M |
| Operating Cash Flow | 307.81M | 169.77M | 51.46M | 102.63M | 106.41M |
| Investing Cash Flow | -23.29M | -27.27M | -61.52M | -17.43M | -444.33M |
| Financing Cash Flow | 16.49M | 16.65M | -17.15M | -67.06M | 331.50M |
Waystar Holding Corp. Technical Analysis
Negative
30.58
Price Trends
34.18
Negative
35.98
Negative
36.87
Negative
Market Momentum
-0.54
Negative
37.95
Neutral
43.74
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 30.58 is below the 20-day moving average (MA) of 32.63, below the 50-day MA of 34.18, and below the 200-day MA of 36.87, indicating a bearish trend. The MACD of -0.54 indicates Negative momentum. The RSI at 37.95 is Neutral, neither overbought nor oversold. The STOCH value of 43.74 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 |
|---|---|---|---|---|---|---|---|
79 Outperform | $6.70B | 28.23 | 25.96% | ― | 14.43% | 29.86% | |
78 Outperform | $8.13B | 14.99 | 22.32% | 1.41% | 7.40% | -14.45% | |
74 Outperform | $3.77B | 64.55 | 11.81% | ― | 44.34% | 45.96% | |
73 Outperform | $11.70B | 32.35 | 10.21% | ― | 14.26% | -15.49% | |
71 Outperform | $5.16B | 14.39 | 23.75% | 1.69% | -0.38% | 31.38% | |
68 Neutral | $6.04B | 49.74 | 3.54% | ― | 14.75% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
WAY
Waystar Holding Corp.
30.58
-7.11
-18.86%
EPAM
Epam Systems
211.99
-16.75
-7.32%
EXLS
Exlservice Holdings
41.68
-4.67
-10.08%
G
Genpact
46.52
2.86
6.55%
SAIC
Science Applications
112.74
-2.15
-1.87%
PAY
Paymentus Holdings
29.74
-0.60
-1.98%
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.