Waystar Holding Corp. (WAY)

Price$25.07Cached quoteAs of 2026-09-06 22:40 UTC

AI: Undervalued

Price checkThe shares look modestly undervalued given strong margins, recurring growth, and a reasonable forward earnings multiple.

Waystar's market value is about $4.9 billion and enterprise value, which includes net debt, is about $6.2 billion. Management's 2026 adjusted earnings guidance of $1.61-$1.70 per share implies roughly 16 times the midpoint, while enterprise value is about 11.5 times the $540 million midpoint of adjusted operating profit before interest, taxes, depreciation and selected charges. Those multiples look attractive for low-double-digit underlying growth and margins above 40%, although leverage and acquisition-related dilution reduce the margin of safety.

Big pictureRevenue, profits, and cash generation are improving rapidly, helped partly by the Iodine acquisition.

The supplied history shows revenue climbing from $705 million in 2022 to $1.10 billion in 2025, while net income moved from a $51 million loss to a $112 million profit. Operating cash flow reached $310 million in 2025. First-half 2026 revenue rose 20% to $634 million and operating income increased sharply. Iodine contributes meaningfully to reported growth, so the cleaner underlying rate is nearer 10%, still healthy for a software business with high recurring revenue and strong margins.

Business strengthSticky healthcare software and high margins support durability, while acquisition debt and dilution remain meaningful drawbacks.

Waystar serves more than 30,000 healthcare clients and processes trillions of dollars of claims, making its software deeply embedded in provider workflows. Second-quarter subscription revenue grew 34%, 1,453 clients generated more than $100,000 of trailing revenue, and customer spending retention was 108%. Adjusted operating profit before depreciation reached a 43% margin. However, net leverage was still 2.5 times, and shares outstanding increased from about 172 million at year-end 2024 to 192 million, largely reflecting shares issued for the $1.26 billion Iodine acquisition.

What could change the storySuccessful AI cross-selling could create upside; slower organic growth or poor acquisition returns would weaken it.

The bull case is that Iodine and Waystar's AI products expand cross-selling while the company maintains low-double-digit organic growth, margins above 40% and roughly 70% long-term conversion of adjusted operating profit before depreciation into cash flow. That combination could support steady debt reduction and higher per-share earnings. The bear case is that customer spending retention keeps slipping, volume-based revenue remains sluggish, or acquisition synergies disappoint after significant debt and new shares were issued. Sustained organic growth above 10% while leverage falls below two times would strengthen the thesis.

AI: News

Earnings beat, shares plungeWaystar raised guidance and delivered strong margins, yet investors sharply marked down the shares afterward.

On July 29, Waystar reported second-quarter revenue of $319.7 million, up 18%, adjusted operating profit before depreciation of $136.7 million and a 43% margin, while raising full-year revenue and profit guidance. Shares fell 14.6% the next session on unusually heavy volume. Customer spending retention had eased to 108% and volume-based revenue grew only 3%. Those figures may have contributed to concern about underlying growth, but the price timing alone does not establish the cause.

Long-term targets reaffirmedInvestor Day reinforced durable growth and cash targets, but the initial market response was cautious.

At its August 25 Investor Day, Waystar reiterated long-term goals of low-double-digit revenue growth, adjusted operating-profit-before-depreciation margins above 40%, and roughly 70% conversion of that profit into free cash flow. Management also emphasized AI-driven automation and cross-selling across its healthcare payment platform. Shares fell 4.5% that day and were nearly flat the next session before rebounding later in the week, so the immediate decline cannot confidently be attributed solely to the targets or presentation.

Loading local price history

Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$1.10B	$943.5M	$791.0M	$704.9M
Gross profit	$751.1M	$627.8M	$541.2M	$490.0M
Gross margin	68.33%	66.54%	68.42%	69.51%
Research & development	$54.6M	$48.8M	$35.3M	$32.8M
Operating expenses	$850.0M	$819.8M	$648.9M	$615.4M
Operating income	$249.3M	$123.7M	$142.1M	$89.5M
Operating margin	22.68%	13.11%	17.96%	12.69%
EBITDA	$389.9M	$310.4M	$318.6M	$272.6M
EBITDA margin	35.46%	32.89%	40.27%	38.68%
Net income	$112.1M	−$19.1M	−$51.3M	−$51.5M
Net profit margin	10.20%	−2.03%	−6.49%	−7.30%
Basic EPSper basic share	$0.63	-$0.13	-$0.42	-$0.42
Diluted EPSper diluted share	$0.61	-$0.13	-$0.42	-$0.42

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of WAY
Holder	Shares held
Derby LuxCo S.a r.l. / EQT Fund Management S.a r.l.	24.88M
CPP Investment Board Private Holdings (4) Inc. / CANADA PENSION PLAN INVESTMENT BOARD	19.03M
Bain Capital Fund XI, L.P. / BCPE Derby GP, LLC / Bain Capital Partners XI, L.P. / BCPE Derby Investor, LP / BAIN CAPITAL INVESTORS LLC / BCPE Derby (DE) SPV, LP / BCPE Derby (DE) SPV (GP), LLC	13.24M
Moskowitz Paul G	13.24M
Chan William	1.58M
Hawkins Matthew J.	926.82K
Bridge T. Craig	658.56K
Schremser Christopher L.	495.03K
Oreskovich Steven M	424.2K
Wittman Kimberly S.	270.23K
Miller Melissa F. (Missy)	252.08K
PACKER GREGORY R	196.96K
DRISCOLL JOHN PATRICK	100.06K
DeMichiei Robert	46.2K
MILLER HEIDI	40.92K
Hung Priscilla	23.13K
Riefberg Vivian E.	23.13K
Roman Michael F	14.44K
Gupta Aashima	14.44K
Sinclair III Eric L. (Ric)	—

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$189.0K disclosed value

Sells (SEC code S)79$2.72B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Mar 2, 2026Form 4	MILLER HEIDIDirector	BuyCommon Stock · indirect	7.2K	$26.25	$189.0K	7.2K
Jan 20, 2026Form 4 · 10b5-1	Sinclair III Eric L. (Ric)Chief Business Officer	SellCommon Stock	40.2K	$30.08	$1.21M	474.8K
Dec 22, 2025Form 4 · 10b5-1	Sinclair III Eric L. (Ric)Chief Business Officer	SellCommon Stock	9.7K	$32.82	$318.4K	474.8K
Dec 10, 2025Form 4	Schremser Christopher L.Chief Technology Officer	SellCommon Stock	8.6K	$30.41	$262.2K	422.4K
Nov 25, 2025Form 4 · 10b5-1	Miller Melissa F. (Missy)Chief Marketing Officer	SellCommon Stock	3.4K	$37.00	$125.8K	193.3K

Review ownership filings at SEC.gov ↗

Community posts

View community

It’s quiet here.

No posts about WAY yet. Start the conversation.

Write the first post

Waystar Holding Corp. (WAY)

Financial charts

Financial statements

Owners

Insider buys & sells

Community posts

It’s quiet here.