Waystar (NASDAQ:WAY) Posts Earnings Results, Misses Estimates By $0.03 EPS

Waystar (NASDAQ:WAY) issued its earnings results on Tuesday. The company reported $0.36 EPS for the quarter, missing the consensus estimate of $0.39 by ($0.03), FiscalAI reports. Waystar had a net margin of 10.69% and a return on equity of 6.83%. The firm had revenue of $303.54 million during the quarter, compared to analyst estimates of $294.72 million. During the same quarter in the prior year, the business earned $0.29 earnings per share. The business’s quarterly revenue was up 24.3% on a year-over-year basis. Waystar updated its FY 2026 guidance to 1.590-1.680 EPS.

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

• Waystar crossed $1 billion in revenue for FY2025, reporting Q4 revenue of $304M (+24% YoY, 12% organic) and adjusted EBITDA of $129M with roughly a 43% margin, beating guidance.
• The acquisition of Iodine added >1,000 hospitals (only ~35% overlap), meaningfully expanded the addressable market, and integration is ahead of plan with over 90% of the $15M cost synergies expected in fiscal 2026.
• Waystar highlighted AI leadership—Altitude AI prevented >$15 billion in denials, reduced appeal package generation time by 90%, ~30% of 2025 bookings were AI-related, and ~40% of revenue is driven by AI-embedded workflows.
• Momentum in sales continued with a record bookings quarter and more million-dollar+ deals, and management guided 2026 revenue of $1.274B–$1.294B (midpoint +17% YoY) and adjusted EBITDA of ~$535M (~42% margin).
• Balance sheet and cash flow: $86M cash, $1.5B gross debt and net leverage ~3x (down ~0.5x); management plans to run at or below 3x and continue deleveraging while reinvesting to drive growth.

Waystar Stock Up 8.5%

Shares of NASDAQ:WAY opened at $24.31 on Wednesday. Waystar has a 1 year low of $21.13 and a 1 year high of $48.11. The company has a market capitalization of $4.65 billion, a PE ratio of 39.21, a price-to-earnings-growth ratio of 0.28 and a beta of 0.75. The business has a fifty day moving average price of $29.54 and a two-hundred day moving average price of $34.20. The company has a debt-to-equity ratio of 0.38, a current ratio of 3.89 and a quick ratio of 3.89.

Key Waystar News

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Q4 results and 2026 guidance: Waystar reported Q4 revenue of ~$304M (+24% YoY) and net income of $20M, with FY2026 EPS guidance of $1.59–$1.68 and a revenue growth target ~17%, which underpins the bullish case on durable growth and margin leverage. Waystar Reports Fourth Quarter and Fiscal Year 2025 Results, Provides 2026 Guidance
• Positive Sentiment: Market reaction: Coverage notes the stock “climbed” after the quarter as investors rewarded the swing to GAAP profitability and the company’s double?digit growth outlook for 2026. Waystar (WAY) Climbs 8.5% on Swing to Profits, Double-Digit Outlook
• Positive Sentiment: AI recognition and product narrative: Waystar was named an Inc. Best in Business honoree for AI, supporting the company’s positioning around automation and AI?driven revenue cycle improvements—an element analysts cite as a multi?year growth driver. Waystar Recognized as Inc. Best in Business for AI
• Neutral Sentiment: Earnings call materials and transcripts are available for detail on order trends, churn, and product roadmap if you want to dig into management’s commentary on 2026 assumptions. Waystar Holding Corp. Q4 2025 Earnings Call Summary
• Neutral Sentiment: Analyst discussion: Several outlets published analyst takes and roundups after the print — useful for reconciling differing views on valuation vs. sector peers. Beyond The Numbers: 6 Analysts Discuss Waystar Holding Stock
• Negative Sentiment: EPS miss: Reported EPS of $0.36 missed consensus ~$0.39 — the bottom?line shortfall tempers the otherwise strong revenue beat and is a reason for some near?term caution. Waystar Holding (WAY) Q4 Earnings Lag Estimates
• Negative Sentiment: Price?target cuts and mixed analyst moves: Some firms trimmed targets (Mizuho lowered to $42 while keeping Outperform; Needham’s coverage shows a lower $33 target), signaling valuation and competitive risk concerns despite buy ratings from some shops. Mizuho Lowers Waystar Holding Corp. (WAY) Price Target to $42 Amid Competitive Healthcare Tech Risks
• Negative Sentiment: Put activity and AI?risk flags: Unusual put buying and analyst notes highlighting legal/operational/competitive risks from AI adoption add short?term downside risk and investor caution. AI Risks Loom Over Waystar Holding Corp.: Analyst Flags Legal, Operational, and Competitive Threats

Wall Street Analyst Weigh In

WAY has been the subject of several research reports. Zacks Research downgraded shares of Waystar from a “strong-buy” rating to a “hold” rating in a research report on Thursday, January 1st. Leerink Partners assumed coverage on shares of Waystar in a report on Monday, February 2nd. They set an “outperform” rating and a $43.00 price objective for the company. UBS Group initiated coverage on shares of Waystar in a research report on Monday, December 15th. They set a “buy” rating and a $41.00 target price for the company. Barclays set a $36.00 price target on shares of Waystar in a research report on Wednesday. Finally, Citigroup cut their price target on Waystar from $49.00 to $46.00 and set a “buy” rating for the company in a research note on Friday, January 9th. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock has an average rating of “Buy” and an average price target of $43.38.

Insider Activity at Waystar

In related news, CMO Melissa F. (Missy) Miller sold 3,400 shares of the stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $37.00, for a total transaction of $125,800.00. Following the completion of the transaction, the chief marketing officer owned 193,261 shares in the company, valued at approximately $7,150,657. This represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CTO Christopher L. Schremser sold 8,623 shares of the business’s stock in a transaction dated Wednesday, December 10th. The shares were sold at an average price of $30.41, for a total transaction of $262,225.43. Following the completion of the transaction, the chief technology officer owned 422,371 shares in the company, valued at approximately $12,844,302.11. The trade was a 2.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 71,650 shares of company stock worth $2,258,535. 4.10% of the stock is owned by company insiders.

Institutional Trading of Waystar

A number of large investors have recently bought and sold shares of WAY. Advent International L.P. purchased a new position in shares of Waystar during the 4th quarter valued at $362,212,000. State Street Corp lifted its holdings in Waystar by 4.0% during the fourth quarter. State Street Corp now owns 4,134,052 shares of the company’s stock valued at $135,390,000 after purchasing an additional 159,183 shares during the last quarter. Alliancebernstein L.P. lifted its holdings in Waystar by 3,883.4% during the second quarter. Alliancebernstein L.P. now owns 3,268,932 shares of the company’s stock valued at $133,601,000 after purchasing an additional 3,186,869 shares during the last quarter. Artisan Partners Limited Partnership boosted its position in Waystar by 25.7% during the fourth quarter. Artisan Partners Limited Partnership now owns 3,164,546 shares of the company’s stock worth $103,639,000 after purchasing an additional 646,156 shares during the period. Finally, Invesco Ltd. increased its stake in shares of Waystar by 63.0% in the third quarter. Invesco Ltd. now owns 3,130,230 shares of the company’s stock worth $118,698,000 after purchasing an additional 1,209,276 shares in the last quarter.

Waystar Company Profile

Waystar (NASDAQ:WAY) is a leading provider of cloud-based revenue cycle management and payment solutions for healthcare organizations. The company’s unified platform streamlines the entire financial continuum of patient care, from eligibility verification and claim submission to payment reconciliation and patient billing. By automating key processes and improving claim accuracy, Waystar helps providers reduce administrative overhead, accelerate cash flow and enhance overall revenue performance.

At the core of Waystar’s offering is a SaaS-based architecture that integrates seamlessly with existing electronic health record (EHR) systems and payer networks.