Waystar (NASDAQ:WAY – Get Free Report) issued its quarterly earnings results on Wednesday. The company reported $0.43 EPS for the quarter, beating analysts’ consensus estimates of $0.40 by $0.03, FiscalAI reports. Waystar had a return on equity of 7.18% and a net margin of 11.18%.The company had revenue of $319.67 million for the quarter, compared to analyst estimates of $316.21 million. During the same period in the previous year, the company posted $0.36 earnings per share. The company’s quarterly revenue was up 18.1% compared to the same quarter last year.
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 Trading Up 3.7%
Waystar stock traded up $0.78 during trading hours on Friday, hitting $21.72. The stock had a trading volume of 516,114 shares, compared to its average volume of 2,642,840. The stock has a market cap of $4.17 billion, a price-to-earnings ratio of 31.10, a P/E/G ratio of 0.96 and a beta of 0.08. The company has a quick ratio of 1.76, a current ratio of 1.76 and a debt-to-equity ratio of 0.37. The business’s 50 day simple moving average is $20.77 and its 200-day simple moving average is $23.22. Waystar has a one year low of $17.26 and a one year high of $41.47.
Hedge Funds Weigh In On Waystar
Analysts Set New Price Targets
A number of analysts have recently issued reports on the stock. Raymond James Financial reiterated a “strong-buy” rating and issued a $32.00 price objective on shares of Waystar in a report on Thursday, April 30th. Wells Fargo & Company dropped their price target on Waystar from $36.00 to $33.00 and set an “overweight” rating on the stock in a research note on Thursday. Bank of America reduced their price objective on shares of Waystar from $45.00 to $38.00 and set a “buy” rating for the company in a research report on Friday, April 10th. Wall Street Zen lowered shares of Waystar from a “buy” rating to a “hold” rating in a research report on Sunday, May 24th. Finally, KeyCorp began coverage on shares of Waystar in a research note on Wednesday, July 1st. They set an “overweight” rating and a $30.00 target price for the company. Three analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $35.05.
View Our Latest Research Report on Waystar
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.
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