Waystar Holding Corp. (WAY) AI Stock Analysis

• Market Cap: $6.54B
• Dividend Yield: N/A
• Average Volume (3M): 3.62M
• Price to Earnings (P/E): 79.1
• Beta (1Y): 0.81
• 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: 2,007,084
• 30 Day Avg. Volume: 3,619,182
• 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: 1.27
• Enterprise Value/Revenue: 8.22
• Enterprise Value/Gross Profit: 12.21
• Enterprise Value/Ebitda: 22.15
• 1Y Price Target: $49.09
• Price Target Upside: 30.25% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 71 Outperform
• Price Target: $41.00 ▲(8.78% Upside)

Waystar's overall stock score reflects its strong financial performance and positive earnings call sentiment, which are the most significant factors. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals, slightly dampening the overall score.

Positive Factors

Strategic Acquisition

The acquisition of Iodine Software is expected to expand Waystar's total addressable market by over 15%, enhancing revenue growth and profitability by 2027. This strategic move aligns with Waystar's mission to simplify healthcare payments and improve operational efficiency, providing a durable competitive advantage.

Revenue Growth

Waystar's consistent revenue growth reflects its strong market position and effective business model. The 15% YoY increase demonstrates robust demand for its solutions, supporting long-term financial health and market leadership in healthcare payment solutions.

AI-Driven Innovations

Waystar's AI-driven solutions enhance client financial performance by improving productivity and denial prevention. This technological edge strengthens its competitive position and client retention, ensuring sustainable growth in the evolving healthcare industry.

Negative Factors

Regulatory Risks

Regulatory changes, such as the One Big Beautiful Bill Act, pose risks to Waystar's revenue streams. A potential reduction in Medicaid funding could impact revenue, highlighting the need for strategic adaptation to regulatory environments to maintain financial stability.

Revenue Seasonality

Waystar's forecasted revenue decline in Q3 due to seasonality and patient deductible resets indicates potential volatility in financial performance. This cyclical nature requires effective management to ensure consistent cash flow and operational efficiency throughout the year.

Low Return on Equity

Despite improvements, Waystar's low ROE suggests underutilization of equity to drive profitability. Enhancing ROE is crucial for maximizing shareholder value and ensuring long-term financial sustainability, requiring strategic initiatives to leverage equity more effectively.

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. 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	489.98M	426.80M
EBITDA	375.37M	310.36M	318.55M	272.62M	236.37M
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: 37.69
• 50DMA: Positive
• 100DMA: Positive
• 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 37.69 is above the 20-day moving average (MA) of 37.42, above the 50-day MA of 37.46, and below the 200-day MA of 38.30, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 55.12 is Neutral, neither overbought nor oversold. The STOCH value of 80.26 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
EXLS	77 Outperform	$6.67B	28.60	24.70%	―	15.15%	34.33%
G	76 Outperform	$6.93B	13.20	21.86%	1.67%	7.37%	-14.64%
WAY	71 Outperform	$6.54B	79.11	2.81%	―	17.14%	―
PAY	69 Neutral	$3.77B	69.23	11.59%	―	49.35%	72.05%
EPAM	68 Neutral	$8.71B	22.35	11.36%	―	9.73%	-0.29%
SAIC	60 Neutral	$4.62B	12.14	25.40%	1.47%	2.23%	48.38%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Waystar Holding Corp. Corporate Events

Waystar Completes Acquisition of Iodine Software

On October 1, 2025, Waystar Holding Corp. completed its acquisition of Iodine Software, enhancing its AI-powered healthcare payment platform by integrating Iodine’s clinical and financial intelligence. This acquisition expands Waystar’s market by over 15% and is expected to improve its financial profile through increased gross margin and revenue growth. The merger, valued at approximately $458.6 million in cash and stock, also led to the appointment of Lauren Young to Waystar’s board, reflecting the strategic importance of the acquisition in strengthening Waystar’s position in the healthcare industry.

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 Announces Underwriting Agreement with J.P. Morgan

On September 10, 2025, Waystar Holding Corp. announced an underwriting agreement with J.P. Morgan Securities LLC for an offering of 18,000,000 shares of its common stock. The company will not receive any proceeds from this offering, which is expected to close on September 12, 2025, indicating a strategic move that may impact stakeholders by altering the distribution of shares without affecting the company’s immediate financial position.

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. 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.

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’s Earnings Call Highlights Growth and Optimism

Waystar Holding Corp. recently held its second-quarter earnings call, which conveyed a predominantly positive sentiment. The company reported strong revenue and EBITDA growth, a strategic acquisition to broaden its market reach, and an optimistic financial outlook. Despite some regulatory uncertainties and seasonal revenue fluctuations, the overall tone of the call was upbeat, reflecting robust business momentum.

Waystar Reports Strong Q2 2025 Financial Results

Waystar Holding Corp. is a prominent provider of healthcare payment software, operating primarily in the healthcare technology sector, known for its AI-powered innovations and extensive client base. In its latest earnings report for the second quarter of 2025, Waystar announced a robust 15% year-over-year revenue growth, reaching $270.7 million. The company also reported a net income of $32.2 million, with a net income margin of 12% and an adjusted EBITDA margin of 42%. Waystar is raising its full-year revenue and adjusted EBITDA guidance for 2025, reflecting strong business momentum.