Waystar (NASDAQ:WAY) Posts Earnings Results

Key Points

• Waystar beat quarterly expectations: EPS was $0.44 versus the $0.41 consensus, while revenue rose 21% year over year to $325.6 million.
• Commercial and product momentum remained strong: Year-to-date bookings increased 25%, larger-opportunity implementation backlog grew more than 50%, and AltitudeAI-powered products accounted for about 43% of third-quarter bookings.
• Outlook was mixed: Waystar lowered full-year revenue guidance to $1.277 billion-$1.287 billion due to implementation and revenue-conversion headwinds, but raised adjusted EBITDA guidance to $543 million-$549 million.

Waystar (NASDAQ:WAY - Get Free Report) issued its quarterly earnings results on Monday. The company reported $0.44 EPS for the quarter, beating the consensus estimate of $0.41 by $0.03, FiscalAI reports. Waystar had a net margin of 11.18% and a return on equity of 7.03%. The company had revenue of $325.62 million for the quarter, compared to the consensus estimate of $323.43 million.

Here are the key takeaways from Waystar's conference call:

• Strong third-quarter performance: Revenue grew 21% year over year to $326 million, adjusted EBITDA increased 24% with a 43% margin, and unlevered free cash flow reached $115 million.
• Commercial momentum remained robust, with year-to-date bookings up 25%, implementation backlog for larger opportunities up more than 50%, and the company securing its largest-ever client win—a health system representing approximately $7 billion in annual net patient revenue.
• Waystar reported growing traction for its AI and Iodine offerings. AltitudeAI-powered products represented about 43% of third-quarter bookings, while Iodine bookings exceeded plan by 74% and generated nearly $30 million year to date.
• The company reduced its full-year revenue outlook to $1.277 billion-$1.287 billion, implying approximately 6% fourth-quarter growth. Headwinds include faster-than-expected migration from printed to digital patient statements, longer implementation and revenue-conversion timelines for Iodine’s performance-based products, and difficult prior-year comparisons.
• Despite the near-term revenue pressure, Waystar raised its full-year adjusted EBITDA outlook to $543 million-$549 million, ended the quarter with 2.2x net leverage, and repurchased approximately $21 million of stock during the quarter.

Waystar Stock Performance

Waystar stock traded up $0.14 on Monday, reaching $28.14. 2,918,673 shares of the stock were exchanged, compared to its average volume of 2,540,471. The stock has a market cap of $5.40 billion, a PE ratio of 40.20, a PEG ratio of 1.09 and a beta of 0.11. The firm has a fifty day moving average price of $26.17 and a two-hundred day moving average price of $23.98. Waystar has a twelve month low of $17.26 and a twelve month high of $37.71. The company has a current ratio of 1.85, a quick ratio of 1.85 and a debt-to-equity ratio of 0.36.

Wall Street Analysts Forecast Growth

Several equities research analysts have commented on WAY shares. Wolfe Research upgraded Waystar to an "outperform" rating in a research note on Thursday, August 13th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $39.00 price objective on shares of Waystar in a research note on Friday, July 31st. UBS Group cut their price target on shares of Waystar from $37.00 to $33.00 and set a "buy" rating on the stock in a research note on Thursday, July 30th. Wells Fargo & Company lowered their target price on Waystar from $36.00 to $33.00 and set an "overweight" rating on the stock in a research note on Thursday, July 30th. Finally, Barclays cut shares of Waystar from an "overweight" rating to an "equal weight" rating and increased their price objective for the company from $27.00 to $30.00 in a research note on Tuesday, September 15th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have issued a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $34.90.

Insiders Place Their Bets

In related news, CEO Matthew Hawkins sold 82,500 shares of the business's stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $26.23, for a total transaction of $2,163,975.00. Following the transaction, the chief executive officer owned 1,804,794 shares of the company's stock, valued at approximately $47,339,746.62. The trade was a 4.37% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 247,500 shares of company stock worth $6,370,499. 3.50% of the stock is owned by corporate insiders.

Waystar Company Profile

Waystar Holding Corp. is a healthcare technology company that provides cloud-based software designed to simplify administrative and financial processes across the healthcare industry. Its platform connects healthcare providers, health plans and patients, helping organizations manage revenue cycle operations and improve the flow of information and payments.

The company's products and services include electronic claims management, eligibility and benefits verification, prior authorization, payment integrity, denial management, patient estimates and payments, billing automation, and healthcare analytics.

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