Waystar Holding Corp. (WAY) AI Stock Analysis

Waystar Holding Corp. is a provider of cloud software solutions tailored for healthcare organizations. The company's platform simplifies healthcare payment and reimbursement processes by leveraging AI and proprietary algorithms to automate workflows and optimize billing operations. These solutions enhance claim accuracy, strengthen data integrity, and reduce administrative labor costs across care settings, from individual physician clinics to large hospital systems and surgical centers. Waystar serves approximately 30,000 clients representing roughly one million healthcare providers nationwide, including 18 of the top 22 U.S. News Best Hospitals.

Waystar grew revenue from $578.6M in FY2021 to $1.10B in FY2025, representing a 4-year revenue CAGR of 17.4%. Gross margin moved from 73.8% in FY2021 to 68.3% in FY2025, while operating margin expanded from 10.4% to 22.7%. After reporting net losses of -$47.1M in FY2021, -$51.5M in FY2022, -$51.3M in FY2023, and -$19.1M in FY2024, Waystar achieved positive net income of $112.1M in FY2025 with an EPS of $1.41. In the latest quarter ended June 30, 2026, revenue increased 18.1% year-over-year and quarterly earnings grew 16.7%. Trailing twelve month revenue reached $1.21B with a profit margin of 11.2% and EPS of $0.70.

As of June 30, 2026, Waystar held $191.6M in cash and short-term investments alongside total debt of $1.48B, yielding net debt of $1.29B. Shareholders' equity stood at $3.99B, total assets were $5.87B, and the current ratio was 1.85, paired with a debt-to-equity ratio of 0.37. Cash generation strengthened substantially in FY2025, as operating cash flow climbed to $309.7M and free cash flow reached $283.2M. Capital expenditures totaled $26.5M in FY2025, while the company's share count increased 16.7% over 5 years.

Waystar traded at $27.36 on October 16, 2026, giving it a market cap of $5.25B and enterprise value of $6.04B. Over the past year, the stock fell 25.7%, trailing the S&P 500 (SPY) return of 16.8%. The company trades at a trailing P/E of 39.1x, above the median of its US-listed Healthcare peers of 24.6x, but its forward P/E of 12.8x sits below the peer median of 17.3x. Waystar's price-to-sales ratio is 4.4x compared to the peer median of 4.1x, and its EV-to-EBITDA stands at 14.0x versus 12.0x for peers.

Wall Street sentiment includes 17 Strong Buy, 4 Buy, and 2 Hold recommendations, with no Sell ratings. The mean price target of $34.00 sits 24.3% above the last close of $27.36. For the current fiscal year ending December 31, 2026, consensus estimates project revenue of $1.29B and EPS of $1.67, representing 17.6% EPS growth. In the next fiscal year, 22 analysts expect revenue to reach $1.42B and EPS of $1.88. Waystar beat EPS estimates in 3 of the last 4 quarters, with its next earnings date scheduled for November 2, 2026.

This page is an AI-written research summary of Waystar Holding Corp. (WAY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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