Waystar (NASDAQ:WAY – Get Free Report) released its quarterly earnings results on Monday. The company reported $0.44 earnings per share for the quarter, topping analysts’ consensus estimates of $0.41 by $0.03, FiscalAI reports. The firm had revenue of $325.62 million during the quarter, compared to the consensus estimate of $323.43 million. Waystar had a return on equity of 7.03% and a net margin of 11.18%.
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 Price Performance
Shares of Waystar stock traded up $0.14 during trading on Monday, hitting $28.14. 2,918,673 shares of the stock traded hands, compared to its average volume of 2,540,471. The stock has a market cap of $5.40 billion, a price-to-earnings ratio of 40.20, a PEG ratio of 1.09 and a beta of 0.11. The firm’s fifty day moving average is $26.17 and its 200-day moving average is $23.98. The company has a quick ratio of 1.85, a current ratio of 1.85 and a debt-to-equity ratio of 0.36. Waystar has a 52 week low of $17.26 and a 52 week high of $37.71.
Insider Activity at Waystar
In other news, CEO Matthew Hawkins sold 82,500 shares of the business’s stock in a transaction that occurred on Tuesday, October 6th. The shares were sold at an average price of $26.23, for a total value of $2,163,975.00. Following the completion of the sale, the chief executive officer directly owned 1,804,794 shares in the company, valued at approximately $47,339,746.62. The trade was a 4.37% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 247,500 shares of company stock worth $6,370,499 over the last quarter. Company insiders own 3.50% of the company’s stock.
Analysts Set New Price Targets
WAY has been the topic of a number of recent research reports. Royal Bank Of Canada restated an “outperform” rating on shares of Waystar in a research note on Tuesday, September 15th. Wolfe Research raised Waystar to an “outperform” rating in a research note on Thursday, August 13th. Canaccord Genuity Group boosted their price target on shares of Waystar from $30.00 to $33.00 and gave the stock a “buy” rating in a report on Monday, August 31st. Citigroup restated a “buy” rating on shares of Waystar in a research note on Monday, July 20th. Finally, Weiss Ratings upgraded shares of Waystar from a “hold (c-)” rating to a “hold (c)” rating in a research note on Friday, October 2nd. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $34.90.
View Our Latest Stock Analysis on Waystar
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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