Waystar Holding Corp. (WAY) AI Stock Analysis

• Market Cap: $6.47B
• Dividend Yield: N/A
• Average Volume (3M): 1.68M
• Price to Earnings (P/E): 78.0
• Beta (1Y): 0.77
• 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: 1,503,976
• 30 Day Avg. Volume: 1,684,709
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.28
• Enterprise Value/Revenue: 8.22
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 22.06
• 1Y Price Target: $49.78
• Price Target Upside: 33.93% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 11

• Rating: 71 Outperform
• Price Target: $40.00 ▲(7.61% Upside)

Waystar Holding Corp. receives a solid overall stock score driven by strong financial performance and positive earnings call sentiment. The strategic acquisition and credit agreement amendment further bolster its growth prospects. However, the high P/E ratio and technical indicators suggest caution, as the stock may be overvalued and experiencing bearish momentum.

Positive Factors

Acquisition

Waystar's acquisition of Iodine Software is expected to be immediately accretive to gross margin and adjusted EBITDA margin.

Earnings

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

Revenue Growth

Waystar expects 2Q’25 revenue of $271MM, which is above consensus estimates and represents year-over-year growth of 15.5%.

Negative Factors

Cash Flow

The 2025 unlevered free cash flow estimate came down slightly, reflecting a more conservative approach to cash flow expectations.

Patient Revenue

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. 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 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. exhibits strong financial performance with significant improvements in profitability and cash flow generation. The company demonstrates efficient cost management and reduced leverage, although there is potential to further enhance return on equity.

Income Statement

Waystar Holding Corp. demonstrated a strong revenue growth trajectory with the latest TTM (Trailing-Twelve-Months) revenue increasing by 7.2% from the previous annual period. The company's gross profit margin stands at 67.3% TTM, indicating efficient cost management. The net profit margin improved significantly to 8.5% TTM, a positive turnaround from previous losses. EBIT and EBITDA margins also reflect strength at 20.8% and 33.8% TTM respectively, showing robust operating performance.

Balance Sheet

The balance sheet of Waystar Holding Corp. is characterized by a solid equity position with an equity ratio of 67.8% TTM, indicating financial stability. The company has successfully reduced its debt, reflected in a low debt-to-equity ratio of 0.01 TTM. Return on equity (ROE) has improved significantly to 2.7% TTM, signifying enhanced profitability. However, the relatively low ROE suggests there is room for further leveraging equity to drive profitability.

Cash Flow

Waystar Holding Corp. shows strong cash flow metrics, with a substantial free cash flow growth rate of 95.5% TTM. The operating cash flow to net income ratio is robust at 3.5, indicating effective conversion of income into cash. Free cash flow to net income ratio is also healthy at 3.2, demonstrating strong cash generation relative to earnings. Overall, the cash flow position supports future growth and financial flexibility.

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	376.92M	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	1.26B	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: Positive
• Last Price: 37.17
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WAY, the sentiment is Positive. The current price of 37.17 is above the 20-day moving average (MA) of 35.49, above the 50-day MA of 36.89, and below the 200-day MA of 37.37, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 57.92 is Neutral, neither overbought nor oversold. The STOCH value of 85.37 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WAY.

Waystar Holding Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
G	79 Outperform	$7.86B	14.96	21.86%	1.42%	7.37%	-14.64%
PAY	78 Outperform	$4.79B	87.67	11.59%	―	49.35%	72.05%
SAIC	78 Outperform	$5.61B	16.62	21.63%	1.24%	3.39%	-16.78%
EPAM	78 Outperform	$9.48B	24.28	11.36%	―	9.73%	-0.29%
EXLS	77 Outperform	$7.04B	30.17	24.70%	―	15.15%	34.33%
WAY	71 Outperform	$6.47B	78.00	2.81%	―	17.14%	―
Sector *	56 Neutral	$6.56B	-1.65	0.45%	6.25%	14.92%	10.98%

Waystar Holding Corp. Corporate Events

Waystar Holding Corp. Executes Eleventh Amendment to Credit Agreement

On August 12, 2025, Waystar Holding Corp. announced the execution of the Eleventh Amendment to its First Lien Credit Agreement, which involved refinancing its outstanding term loans with replacement loans at reduced interest rates. This repricing, driven by strong lender demand, enhances Waystar’s financial flexibility and supports its growth strategy, including the acquisition of Iodine Software. The transaction underscores lender confidence in Waystar’s financial health, with major credit rating agencies reaffirming its stable outlook.

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.

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.