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Waystar Holding Corp.
(NASDAQ:WAY)
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Rating:73Outperform
Price Target:
$30.00
▲(23.92% Upside)
Action:Reiterated
Date:09/16/26
The score is driven primarily by improved fundamentals (profitability and strong cash generation) and a constructive earnings update with raised full-year guidance and strong margins. Technicals are supportive with the stock trading above major moving averages, though momentum is only moderate. The main drag is valuation (P/E ~37) alongside execution/cash-conversion risks highlighted on the call (implementation timing, elevated AI investment, and meaningful gross debt).
Positive Factors
Subscription revenue momentum
Subscription revenue is a larger, faster-growing recurring stream, reaching 55% of Q2 revenue and growing 34% year over year. This mix can improve revenue visibility and deepen customer reliance on Waystar’s platform, supporting durable expansion over the next several quarters.
Negative Factors
Moderating revenue growth
Revenue growth slowed to near-flat in 2025 and only mid-single-digit in TTM, while Q2 volume-based revenue rose 3% year over year. Even with normalized growth near 8%, weaker core momentum could limit operating leverage and make guidance delivery more dependent on subscriptions.
Read all positive and negative factors
Positive Factors
Negative Factors
Subscription revenue momentum
Subscription revenue is a larger, faster-growing recurring stream, reaching 55% of Q2 revenue and growing 34% year over year. This mix can improve revenue visibility and deepen customer reliance on Waystar’s platform, supporting durable expansion over the next several quarters.
Read all positive factors
Waystar Holding Corp. Key Performance Indicators (KPIs)
Any
Revenue by Type
Breaks revenue into categories such as subscription/recurring, transaction fees, and one‑time services, revealing how much of Waystar’s income is stable versus lumpy. Higher recurring revenue supports predictable cash flow and easier long‑term growth, while reliance on one‑time sales makes performance more volatile.
Breaks revenue into categories such as subscription/recurring, transaction fees, and one‑time services, revealing how much of Waystar’s income is stable versus lumpy. Higher recurring revenue supports predictable cash flow and easier long‑term growth, while reliance on one‑time sales makes performance more volatile.
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The Fly
The FlyWaystar Holding Corp. (WAY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.74B
Dividend YieldN/A
Average Volume (3M)2.08M
Price to Earnings (P/E)35.8
Beta (1Y)1.11
Revenue Growth19.23%
EPS Growth44.44%
CountryUS
Employees1,700
SectorGeneral
Sector StrengthN/A
IndustryMedical - Healthcare Information Services
Share Statistics
EPS (TTM)0.72
Shares Outstanding191,748,410
10 Day Avg. Volume2,462,126
30 Day Avg. Volume2,077,340
Financial Highlights & Ratios
PEG Ratio-0.09
Price to Book (P/B)1.50
Price to Sales (P/S)5.30
P/FCF Ratio20.58
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$33.50Price Target Upside38.37% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering18
EPS Forecast (FY)1.67
Revenue Forecast (FY)$1.29B
Waystar Holding Corp. Business Overview & Revenue Model
Company Description
Waystar Holding Corp. is dedicated to developing a cloud-based software platform designed to streamline financial transactions within the healthcare industry. Their comprehensive system offers a suite of functionalities, including pre-approving fi...
How the Company Makes Money
Waystar makes money primarily by selling access to its software platform and related services to healthcare providers (e.g., hospitals and health systems) to manage and automate revenue cycle activities. Its revenue model is centered on recurring ...
Waystar Holding Corp. Earnings Call Summary
Earnings Call Date:Jul 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call portrayed a largely positive operational and financial picture: strong top-line growth (18% YoY revenue), robust adjusted EBITDA and margin expansion, healthy subscription momentum, large ACV bookings, early traction from the Iodine integration, and raised guidance. Challenges noted are mainly execution and investment related—longer implementation timelines for large deals, elevated capitalized software and AI compute investment, modest near-term pressure on volume-based revenue due to tough comps, and a sizable debt balance. Management communicated confidence in demand, execution, and disciplined reinvestment while preserving healthy margins and cash flow.Positive Updates
Revenue Growth
Total revenue of $320 million in Q2 2026, up 18% year-over-year; organic revenue growth of 7% YoY and normalized organic growth of ~10% excluding comparability items.
Negative Updates
Slower Volume-Based Growth and Tough Comparables
Volume-based revenue grew only 3% YoY in Q2 (optically impacted by large transactional implementations in 2025); management noted normalized volume growth closer to 8% YoY but comps remain challenging due to elevated 2025 utilization.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $320 million in Q2 2026, up 18% year-over-year; organic revenue growth of 7% YoY and normalized organic growth of ~10% excluding comparability items.
Read all positive updates
Company Guidance
Waystar raised the low end of full‑year revenue guidance by $2 million to a range of $1.276 billion–$1.294 billion (midpoint $1.285 billion, +17% YoY) and lifted adjusted EBITDA guidance to $535 million–$545 million (midpoint $540 million, +$5 million vs prior), with a full‑year adjusted EBITDA margin target around 42%; the raise follows a strong Q2 (revenue $320M, +18% YoY; adjusted EBITDA $137M, 43% margin), Q2 subscription revenue $176M (55% of total, +34% YoY; organic +12%), volume‑based revenue $142M (+3% YoY; normalized ~+8%), organic revenue growth +7% (normalized ~+10%), net revenue retention 108% (LTM), 1,453 clients >$100k TTM (+15% YoY), Q2 unlevered free cash flow $64M (47% conversion of adj. EBITDA), cash/short‑term investments $192M, gross debt $1.5B (net leverage 2.5x vs 2.7x quarter‑ago), Board‑authorized buyback up to $200M with $13M repurchased in Q2, and ramped investment in AI with capitalized software spend roughly doubled in H1 to support future growth.Waystar Holding Corp. Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.21B | 1.10B | 943.55M | 791.01M | 704.87M | 578.57M |
| Gross Profit | 833.24M | 751.12M | 627.82M | 541.24M | 489.98M | 426.80M |
| EBITDA | 432.42M | 389.85M | 310.36M | 318.55M | 272.62M | 236.37M |
| Net Income | 134.79M | 112.09M | -19.13M | -51.33M | -51.45M | -47.12M |
Balance Sheet | ||||||
| Total Assets | 5.87B | 5.79B | 4.58B | 4.58B | 4.69B | 4.78B |
| Cash, Cash Equivalents and Short-Term Investments | 191.60M | 86.23M | 182.13M | 35.58M | 64.56M | 47.25M |
| Total Debt | 1.48B | 1.49B | 1.26B | 2.25B | 2.26B | 2.30B |
| Total Liabilities | 1.88B | 1.91B | 1.50B | 2.53B | 2.59B | 2.66B |
| Stockholders Equity | 3.99B | 3.88B | 3.08B | 2.05B | 2.11B | 2.12B |
Cash Flow | ||||||
| Free Cash Flow | 246.26M | 283.19M | 142.50M | 29.94M | 85.20M | 91.86M |
| Operating Cash Flow | 292.99M | 309.67M | 169.77M | 51.46M | 102.63M | 106.41M |
| Investing Cash Flow | -801.26M | -680.90M | -27.27M | -61.52M | -17.43M | -444.33M |
| Financing Cash Flow | 242.22M | 243.45M | 16.65M | -17.15M | -67.06M | 331.50M |
Waystar Holding Corp. Technical Analysis
Neutral
24.21
Price Trends
24.26
Positive
22.21
Positive
24.54
Positive
Market Momentum
0.21
Positive
48.26
Neutral
26.54
Neutral
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 24.21 is below the 20-day moving average (MA) of 25.27, below the 50-day MA of 24.26, and below the 200-day MA of 24.54, indicating a neutral trend. The MACD of 0.21 indicates Positive momentum. The RSI at 48.26 is Neutral, neither overbought nor oversold. The STOCH value of 26.54 is Neutral, 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 (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | $4.74B | 35.75 | 3.59% | ― | 19.23% | 44.44% | |
68 Neutral | $87.11M | 29.37 | 16.56% | ― | 15.07% | ― | |
66 Neutral | $630.02M | 58.65 | 3.01% | ― | 12.93% | ― | |
56 Neutral | $2.52B | 88.35 | 0.01% | ― | 24.10% | 84.08% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | $130.95M | -0.48 | -129.70% | ― | -7.54% | -143.41% | |
52 Neutral | $408.14M | -0.81 | -99.16% | ― | -4.50% | -184.71% |
* General Sector Average
WAY
Waystar Holding Corp.
25.74
-11.75
-31.34%
CCLD
CareCloud
2.05
-1.33
-39.35%
EVH
Evolent Health
3.65
-5.12
-58.38%
PHR
Phreesia
10.10
-13.45
-57.11%
HCAT
Health Catalyst
1.77
-1.15
-39.38%
PRVA
Privia Health Group
19.87
-4.55
-18.63%
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.