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Waystar Holding Corp. (WAY)
NASDAQ:WAY
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Waystar Holding Corp.
(NASDAQ:WAY)
76Outperform
Positive Factors
Financial Performance
Waystar's 1Q report delivered 3.5% revenue and 9.8% adj-EBITDA upside to estimates, solidifying its status as a focus name with a favorable outlook.
Market Share
Waystar is expected to grow its market share in the hospital market over time.
Product Innovation
The introduction of AltitudeAI offers an opportunity to 'price to value', increasing confidence in sustained double-digit, high-margin revenue growth.
Negative Factors
Investor Sentiment
Updated revenue guidance suggests growth below 10%, which some investors question, but management remains conservative.
Revenue Growth
Updated revenue guidance contemplates only 6.6%-8.3% year-over-year growth, which factors in normalization of initial Change clients.
Waystar Holding Corp. (WAY) vs. S&P 500 (SPY)
Market Cap
$6.81B
Dividend YieldN/A
Average Volume (3M)1.69M
Price to Earnings (P/E)295.6
Beta (1Y)0.77
Revenue Growth18.25%
EPS GrowthN/A
CountryUS
Employees1,500
SectorGeneral
Sector StrengthN/A
IndustryInformation Technology Services
Share Statistics
EPS (TTM)0.32
Shares Outstanding173,019,000
10 Day Avg. Volume2,104,396
30 Day Avg. Volume1,691,934
Financial Highlights & Ratios
PEG Ratio1.22
Price to Book (P/B)2.20
Price to Sales (P/S)0.00
P/FCF Ratio35.29
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.83
Enterprise Value/Gross Profit11.10
Enterprise Value/Ebitda5.49
Forecast
1Y Price Target
$47.57Price Target Upside21.20% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering9
Waystar Holding Corp. Business Overview & Revenue Model
Company Descriptionnull
How the Company Makes Moneynull
Waystar Holding Corp. Financial Statement Overview
Summary
Waystar Holding Corp. has demonstrated strong financial performance characterized by consistent revenue growth, improved profitability metrics, a stable balance sheet with reduced leverage, and robust cash flow generation. These factors enhance the company's financial stability and position it well for potential growth and shareholder value creation.Income Statement
Waystar Holding Corp. has shown a positive revenue growth trend with revenues increasing from $578.6M in 2021 to $975.2M in TTM 2025. The gross profit margin remains strong, reflecting the company's effective cost management. The net profit margin improved significantly in the TTM period as net income turned positive, indicating profitability improvement. However, EBIT and EBITDA margins show some volatility, suggesting room for operational efficiency enhancements.78
Positive
Balance Sheet
The company's balance sheet indicates strong equity financing with a high equity ratio, suggesting low reliance on debt. The debt-to-equity ratio has improved significantly, reflecting better financial health and reduced leverage. Return on equity has turned positive in the TTM period, indicating enhanced shareholder value. Overall, the balance sheet portrays a stable financial position.82
Very Positive
Cash Flow
Waystar has demonstrated robust cash flow generation with a substantial increase in free cash flow over the periods analyzed. The operating cash flow to net income ratio is strong in the TTM period, indicating effective conversion of net income into cash. The positive free cash flow growth rate signifies efficient capital management and potential for reinvestment or shareholder returns.85
Very Positive
| Breakdown | ||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 975.19M | 943.55M | 791.01M | 704.87M | 578.57M | Gross Profit |
| 607.03M | 627.82M | 541.24M | 306.82M | 250.74M | EBIT |
| 158.16M | 123.72M | 142.08M | 104.34M | 71.60M | EBITDA |
| 330.96M | 318.93M | 318.58M | 287.50M | 247.66M | Net Income Common Stockholders |
| 26.08M | -19.13M | -51.33M | -51.45M | -47.12M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 70.81M | 182.13M | 45.43M | 72.64M | 54.50M | Total Assets |
| 4.58B | 4.58B | 4.58B | 4.81B | 4.89B | Total Debt |
| 2.28B | 1.26B | 2.25B | 2.26B | 2.30B | Net Debt |
| 2.20B | 1.08B | 2.21B | 2.19B | 2.24B | Total Liabilities |
| 2.54B | 1.50B | 2.53B | 2.70B | 2.77B | Stockholders Equity |
| 2.04B | 3.08B | 2.05B | 2.11B | 2.12B |
| Cash Flow | Free Cash Flow | |||
| 196.15M | 142.50M | 29.94M | 85.20M | 91.86M | Operating Cash Flow |
| 223.29M | 169.77M | 51.46M | 102.63M | 106.41M | Investing Cash Flow |
| -51.56M | -27.27M | -61.52M | -17.43M | -444.33M | Financing Cash Flow |
| 7.19M | 16.65M | -17.15M | -67.06M | 331.50M |
Waystar Holding Corp. Technical Analysis
Positive
39.25
Price Trends
37.65
Positive
38.84
Positive
33.52
Positive
Market Momentum
0.61
Positive
53.56
Neutral
36.65
Neutral
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 39.25 is above the 20-day moving average (MA) of 38.66, above the 50-day MA of 37.65, and above the 200-day MA of 33.52, indicating a bullish trend. The MACD of 0.61 indicates Positive momentum. The RSI at 53.56 is Neutral, neither overbought nor oversold. The STOCH value of 36.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.81B | 295.57 | 1.01% | ― | 18.25% | ― | |
72 Outperform | $5.73B | ― | -1.93% | 2.82% | 11.66% | ― | |
70 Outperform | $4.26B | 86.82 | 2.30% | ― | 23.40% | ― | |
67 Neutral | $14.93B | 386.02 | 4.47% | ― | 200.19% | ― | |
56 Neutral | $4.72B | 21.42 | -19.68% | 5.09% | 14.68% | -14.65% | |
54 Neutral | $11.34B | ― | -1252.79% | ― | 42.93% | -160.27% | |
53 Neutral | $16.50B | ― | 218.28% | ― | 41.19% | -220.59% |
* General Sector Average
Performance Comparison
WAY
Waystar Holding Corp.
39.34
17.24
78.01%
BTSG
BrightSpring Health Services, Inc.
24.43
12.98
113.36%
AHR
American Healthcare REIT, Inc.
35.51
21.71
157.32%
ALAB
Astera Labs, Inc.
90.56
18.05
24.89%
RBRK
Rubrik, Inc. Class A
85.31
49.24
136.51%
TEM
Tempus AI, Inc. Class A
65.49
29.01
79.52%
Waystar Holding Corp. Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 5.60%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Waystar demonstrated strong financial performance with significant revenue and EBITDA growth, driven by robust client retention and innovative AI solutions. While economic volatility presents challenges, the company remains confident in its recession-resistant business model and increased guidance for 2025.Q1-2025 Updates
Positive Updates
Strong Revenue and EBITDA Growth
Waystar delivered Q1 revenue growth of 14% year-over-year, totaling $256 million, and adjusted EBITDA growth of 16% year-over-year to $108 million.
Net Revenue Retention Rate
Waystar achieved a net revenue retention rate of 114%, reflecting strong client retention and expansion.
Platform Innovation and AI Adoption
Launch of AltitudeAI, Waystar’s comprehensive suite of AI capabilities, with early adopters reporting significant operational improvements, including an 85% auto approval rate and a 70% reduction in time spent on authorizations.
Increased 2025 Guidance
Waystar raised its revenue guidance to a range of $1.006 billion to $1.022 billion and adjusted EBITDA guidance to a range of $406 million to $414 million.
Client and Market Recognition
Waystar received multiple number one rankings in industry reports and maintained a net promoter score that exceeds industry benchmarks.
Negative Updates
Economic Volatility Challenges
Acknowledgment of macroeconomic uncertainties and potential recession risks affecting clients, with no immediate impact but careful monitoring required.
Dependence on Patient Payment Solutions
30% of revenue generated by patient payment solutions, which are subject to seasonality and patient ability to pay, though no degradation was observed in Q1.
Company Guidance
During the Waystar First Quarter 2025 Earnings Conference Call, the company reported a strong start to the fiscal year with a 14% increase in revenue and a 16% rise in adjusted EBITDA year-over-year. This performance has led Waystar to raise its full-year guidance. Specifically, the company generated $256 million in revenue, achieving a 114% net revenue retention rate, and expanded its client base with 1,244 clients generating over $100,000 in trailing 12-month revenue. The company also highlighted the successful launch of its AI-powered platform, AltitudeAI, which has significantly improved client operational efficiency and reimbursement outcomes. Additionally, Waystar sustained its adjusted EBITDA margin at 42%, aligning with its long-term target of approximately 40%, and reported an unlevered free cash flow of $79 million, with a conversion ratio of 73%. The company's net leverage ratio stood at 2.5x at the end of Q1. Furthermore, Waystar increased its revenue guidance for 2025 to a range of $1.006 billion to $1.022 billion and adjusted EBITDA guidance to between $406 million and $414 million.Waystar Holding Corp. Corporate Events
Executive/Board ChangesShareholder Meetings
Waystar Holding Corp. Expands Board with New Nominations
Neutral
May 12, 2025
On May 9, 2025, Waystar Holding Corp.‘s Board approved a grant of performance stock units to CEO Matt Hawkins, tied to the company’s shareholder return relative to the S&P SmallCap 600 Information Technology sector over a four-year period. Additionally, the company plans to expand its board from ten to twelve directors, contingent on shareholder approval to amend its Certificate of Incorporation, with Aashima Gupta and Michael Roman nominated for new director roles.
The most recent analyst rating on (WAY) stock is a Buy with a $42.0000 price target. To see the full list of analyst forecasts on Waystar Holding Corp. stock, see the WAY Stock Forecast page.
Spark’s Take on WAY Stock
According to Spark, TipRanks’ AI Analyst, WAY is a Outperform.
Waystar Holding Corp. exhibits strong financial performance and positive earnings call highlights, underpinned by consistent revenue growth, robust client retention, and innovative AI solutions. While the technical analysis indicates short-term positive trends, valuation concerns due to a negative P/E ratio and lack of dividend yield slightly weigh down the overall score.
To see Spark’s full report on WAY stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.