Waystar (NASDAQ:WAY) Announces Earnings Results

Waystar (NASDAQ:WAY) announced its quarterly earnings data on Wednesday. The company reported $0.43 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.40 by $0.03, FiscalAI reports. Waystar had a return on equity of 6.99% and a net margin of 10.90%.The business had revenue of $319.67 million during the quarter, compared to analysts’ expectations of $316.22 million.

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

• Q2 revenue rose 18% year over year to $320 million, while adjusted EBITDA increased 21.5% to $137 million, producing a 43% margin and exceeding consensus expectations.
• Bookings remained strong, including a double-digit number of engagements worth more than $1 million in annual contract value, while AI-enabled solutions represented approximately 40% of bookings for the quarter.
• Waystar raised its full-year outlook, increasing the revenue range to $1.276 billion-$1.294 billion and adjusted EBITDA guidance to $535 million-$545 million, citing healthy demand, favorable deal mix, and operating leverage.
• Net revenue retention was 108%, within the company’s historical range, while normalized organic growth was approximately 10%; volume-based revenue grew only 3% reported, though management said normalized growth was closer to 8%.
• CFO Steve Oreskovich will transition out of the role after eight years, with Alpana Wegner appointed as his successor; management also expects increased AI investment and capitalized software spending to pressure second-half cash flow and margins.

Waystar Stock Performance

Shares of Waystar stock traded up $0.83 during trading on Wednesday, reaching $24.52. The company’s stock had a trading volume of 3,615,860 shares, compared to its average volume of 2,632,448. The company has a 50-day moving average price of $20.62 and a two-hundred day moving average price of $23.37. Waystar has a fifty-two week low of $17.26 and a fifty-two week high of $41.47. The firm has a market cap of $4.70 billion, a PE ratio of 36.60, a P/E/G ratio of 0.91 and a beta of 0.08. The company has a current ratio of 1.76, a quick ratio of 1.76 and a debt-to-equity ratio of 0.37.

Analyst Upgrades and Downgrades

A number of brokerages have recently weighed in on WAY. Weiss Ratings lowered shares of Waystar from a “hold (c-)” rating to a “sell (d+)” rating in a report on Wednesday, June 24th. Raymond James Financial reaffirmed a “strong-buy” rating and set a $32.00 price objective on shares of Waystar in a research report on Thursday, April 30th. Bank of America decreased their target price on Waystar from $45.00 to $38.00 and set a “buy” rating for the company in a research note on Friday, April 10th. UBS Group set a $34.00 price target on shares of Waystar in a research note on Monday, July 20th. Finally, Wall Street Zen downgraded shares of Waystar from a “buy” rating to a “hold” rating in a research report on Sunday, May 24th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $35.23.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of WAY. Smartleaf Asset Management LLC increased its holdings in shares of Waystar by 6,005.3% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,160 shares of the company’s stock valued at $38,000 after purchasing an additional 1,141 shares during the period. EverSource Wealth Advisors LLC lifted its holdings in shares of Waystar by 3,219.0% during the second quarter. EverSource Wealth Advisors LLC now owns 1,394 shares of the company’s stock worth $57,000 after purchasing an additional 1,352 shares during the period. Los Angeles Capital Management LLC acquired a new position in Waystar during the fourth quarter worth $83,000. State of Wyoming raised its position in Waystar by 45.1% in the second quarter. State of Wyoming now owns 2,098 shares of the company’s stock worth $86,000 after acquiring an additional 652 shares in the last quarter. Finally, Pacer Advisors Inc. raised its position in Waystar by 22.1% in the fourth quarter. Pacer Advisors Inc. now owns 3,144 shares of the company’s stock worth $103,000 after acquiring an additional 569 shares in the last quarter.

About Waystar

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.