Waystar (NASDAQ:WAY) Issues Quarterly Earnings Results, Beats Expectations By $0.03 EPS

Waystar (NASDAQ:WAY) posted its quarterly earnings results on Monday. The company reported $0.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.41 by $0.03, FiscalAI reports. The firm had revenue of $325.62 million for the quarter, compared to analysts’ expectations of $323.43 million. Waystar had a net margin of 11.18% and a return on equity of 7.03%. The firm’s quarterly revenue was up 21.2% on a year-over-year basis. During the same period in the prior year, the company posted $0.37 earnings per share.

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

Shares of WAY stock opened at $28.14 on Tuesday. The company has a market cap of $5.40 billion, a P/E ratio of 40.20, a PEG ratio of 1.13 and a beta of 0.18. The business has a 50 day moving average of $26.23 and a two-hundred day moving average of $23.97. Waystar has a 52 week low of $17.26 and a 52 week high of $37.71. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.36.

Analyst Ratings Changes

A number of equities analysts recently commented on WAY shares. Wells Fargo & Company decreased their price target on Waystar from $36.00 to $33.00 and set an “overweight” rating for the company in a research note on Thursday, July 30th. Citigroup restated a “buy” rating on shares of Waystar in a research note on Monday, July 20th. Royal Bank Of Canada restated an “outperform” rating on shares of Waystar in a research note on Tuesday, September 15th. BMO Capital Markets reaffirmed an “outperform” rating on shares of Waystar in a report on Thursday, August 27th. Finally, UBS Group decreased their target price on Waystar from $37.00 to $33.00 and set a “buy” rating for the company in a research report on Thursday, July 30th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average price target of $34.90.

Insider Buying and Selling at Waystar

In related news, CEO Matthew Hawkins sold 82,500 shares of the firm’s stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $26.23, for a total value of $2,163,975.00. Following the sale, the chief executive officer owned 1,804,794 shares of the company’s stock, valued at approximately $47,339,746.62. This trade represents a 4.37% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 247,500 shares of company stock worth $6,370,499. 3.50% of the stock is currently owned by corporate insiders.

Key Headlines Impacting Waystar

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Q3 earnings and revenue exceeded estimates. Waystar reported non-GAAP EPS of $0.44, above the $0.41 consensus estimate, while revenue reached $325.6 million versus expectations of $323.4 million. EPS increased from $0.37 a year earlier. Waystar Holding Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Growth remained robust. Third-quarter revenue rose 21.2% year over year to $325.6 million. Net income was $31.0 million, non-GAAP net income was $87.1 million, and adjusted EBITDA margin was 43%, highlighting continued operating leverage in Waystar’s healthcare payment software business. Waystar Reports Third Quarter 2026 Results
• Positive Sentiment: Full-year profitability guidance was raised. Waystar now expects 2026 adjusted EBITDA of approximately $543 million to $549 million, signaling greater confidence in earnings performance. The company forecast revenue of $1.277 billion to $1.287 billion. Waystar Raises Adjusted EBITDA Outlook
• Neutral Sentiment: Valuation remains a consideration. WAY trades at roughly 40 times earnings, so continued share-price gains may depend on sustaining its elevated growth rate and delivering against the upgraded outlook. The stock is trading above both its 50-day and 200-day moving averages, indicating strong recent momentum but also higher expectations.

About Waystar

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.