Waystar Holding Corp. (WAY) AI Stock Analysis

• Market Cap: $6.86B
• Dividend Yield: N/A
• Average Volume (3M): 3.24M
• Price to Earnings (P/E): 58.3
• Beta (1Y): 0.82
• Revenue Growth: 14.75%
• EPS Growth: N/A
• Country: US
• Employees: 1,500
• Sector: General
• Sector Strength: N/A
• Industry: Information Technology Services
• EPS (TTM): 0.37
• Shares Outstanding: 191,316,590
• 10 Day Avg. Volume: 2,598,716
• 30 Day Avg. Volume: 3,242,962
• PEG Ratio: 4.95
• Price to Book (P/B): 1.79
• Price to Sales (P/S): 5.83
• P/FCF Ratio: 38.61
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 7.39
• Enterprise Value/Gross Profit: 10.90
• Enterprise Value/Ebitda: 20.18
• 1Y Price Target: $50.17
• Price Target Upside: 39.94% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 14

• Rating: 72 Outperform
• Price Target: $41.00 ▲(14.37% Upside)

Waystar Holding Corp. scores well due to its strong financial performance and positive earnings call, which highlighted robust revenue growth and strategic acquisitions. However, the high P/E ratio suggests overvaluation, and technical indicators show mixed signals, contributing to a moderate overall score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and profitability.

Acquisition of Iodine Software

The acquisition enhances market reach and product offerings, positioning Waystar for accelerated growth and competitive advantage in the healthcare sector.

AI-Powered Platform Innovations

Innovations in AI enhance operational efficiency and client satisfaction, strengthening Waystar's market position and fostering sustainable growth.

Negative Factors

Challenges in Data Fragmentation

Data fragmentation can hinder AI effectiveness, potentially limiting the company's ability to fully leverage technological advancements for growth.

Integration and Cybersecurity Concerns

Ongoing integration and cybersecurity issues could pose risks to operational stability and client trust, impacting long-term business resilience.

Potential Seasonality Impact

Seasonal revenue fluctuations may affect financial predictability, challenging consistent cash flow and strategic planning efforts.

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, 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. 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	4.81B	4.89B
Cash, Cash Equivalents and Short-Term Investments	421.06M	182.13M	45.43M	72.64M	54.50M
Total Debt	40.73M	1.26B	2.25B	2.26B	2.30B
Total Liabilities	1.52B	1.50B	2.53B	2.70B	2.77B
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

• Technical Analysis Sentiment: Negative
• Last Price: 35.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: 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 35.85 is below the 20-day moving average (MA) of 37.58, below the 50-day MA of 37.78, and below the 200-day MA of 38.33, indicating a bearish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 38.79 is Neutral, neither overbought nor oversold. The STOCH value of 32.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WAY.

Waystar Holding Corp. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPAM	―	$9.11B	23.32	11.36%	―	9.73%	-0.29%
WAY	―	$6.86B	58.31	3.54%	―	14.75%	―
EXLS	―	$6.21B	26.48	25.96%	―	14.43%	29.86%
G	―	$6.65B	12.66	21.86%	1.74%	7.37%	-14.64%
PAY	―	$3.58B	65.52	11.59%	―	49.35%	72.05%
SAIC	―	$4.31B	11.33	25.40%	1.58%	2.23%	48.38%
Sector *	―	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%

Waystar Holding Corp. Corporate Events

Waystar’s Earnings Call: Growth and Innovation Shine

Waystar Holding Corp.’s recent earnings call painted a picture of robust growth and innovation, underscored by a positive market sentiment. The company showcased strong revenue growth, successful acquisition strategies, and significant advancements in AI-driven solutions. However, challenges in data integration and cybersecurity were also highlighted. Positive client feedback and increased financial guidance further cemented Waystar’s strong market positioning.

Waystar Holding Corp. Reports Strong Q3 2025 Results

Waystar Holding Corp., a prominent provider of healthcare payment software, has reported its financial results for the third quarter of 2025, showcasing significant growth and strong financial performance. The company, which operates in the healthcare technology sector, is known for its AI-powered platform that simplifies healthcare payments.

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.