Waystar Holding Corp. (WAY)
NASDAQ:WAY
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Waystar Holding Corp.
(NASDAQ:WAY)
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Rating:71Outperform
Price Target:
$28.00
▲(8.53% Upside)
Action:ReiteratedDate:04/30/26
The score is driven primarily by improving financial fundamentals (profitability turning positive, strong margins, and a significantly strengthened balance sheet) and a constructive earnings update with reaffirmed 2026 guidance and strong bookings/retention. These are partly offset by a high P/E valuation and only mixed technicals (short-term strength but still below longer-term moving averages), plus near-term volume/seasonality and implementation timing headwinds discussed on the call.
Positive Factors
De-risked balance sheet
Waystar’s dramatic reduction in debt materially lowers financial risk and interest burdens, increasing strategic optionality. A stronger balance sheet supports continued product investment and M&A, reduces refinancing pressure, and provides durable capacity to fund AI initiatives and longer implementation cycles.
Negative Factors
Implementation backlog and long ramps
Large deal implementation lead times create a durable timing mismatch between bookings and revenue, compressing near-term visibility and increasing execution risk. Prolonged ramps tie up deployment resources, delay cash conversion, and can magnify revenue volatility despite strong pipeline and bookings.
Read all positive and negative factors
Positive Factors
Negative Factors
De-risked balance sheet
Waystar’s dramatic reduction in debt materially lowers financial risk and interest burdens, increasing strategic optionality. A stronger balance sheet supports continued product investment and M&A, reduces refinancing pressure, and provides durable capacity to fund AI initiatives and longer implementation cycles.
Read all positive factors
Waystar Holding Corp. (WAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.93B
Dividend YieldN/A
Average Volume (3M)2.27M
Price to Earnings (P/E)55.9
Beta (1Y)0.96
Revenue Growth16.50%
EPS GrowthN/A
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.42
Shares Outstanding191,681,600
10 Day Avg. Volume2,559,045
30 Day Avg. Volume2,272,406
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 Cap0.98
Enterprise Value/Revenue4.40
Enterprise Value/Gross Profit6.81
Enterprise Value/Ebitda11.93
Forecast
1Y Price Target
$36.17Price Target Upside40.18% 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
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Waystar Holding Corp. Key Performance Indicators (KPIs)
Waystar Holding Corp. Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q1-2026)
| 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
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
Neutral
25.80
Price Trends
24.35
Positive
28.11
Negative
32.56
Negative
Market Momentum
-0.19
Negative
61.23
Neutral
91.23
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAY, the sentiment is Neutral. The current price of 25.8 is above the 20-day moving average (MA) of 23.66, above the 50-day MA of 24.35, and below the 200-day MA of 32.56, indicating a neutral trend. The MACD of -0.19 indicates Negative momentum. The RSI at 61.23 is Neutral, neither overbought nor oversold. The STOCH value of 91.23 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $4.75B | 17.71 | 25.50% | ― | 13.56% | 27.82% | |
73 Outperform | $5.74B | 14.72 | 21.81% | 1.41% | 6.60% | 10.28% | |
71 Outperform | $4.93B | 55.92 | 3.35% | ― | 16.50% | ― | |
70 Outperform | $3.49B | 61.03 | 12.67% | ― | 37.25% | 50.54% | |
68 Neutral | $6.14B | 30.32 | 10.27% | ― | 15.42% | -14.70% | |
68 Neutral | $4.07B | 13.47 | 23.73% | 1.69% | -2.90% | 6.89% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
WAY
Waystar Holding Corp.
25.23
-11.94
-32.12%
EPAM
Epam Systems
114.15
-42.76
-27.25%
EXLS
Exlservice Holdings
30.64
-17.84
-36.80%
G
Genpact
33.95
-15.49
-31.33%
SAIC
Science Applications
94.88
-24.45
-20.49%
PAY
Paymentus Holdings
28.00
-4.46
-13.74%
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.