📊 WAY Key Takeaways
Is Waystar Holding Corp. (WAY) a Good Investment?
Waystar demonstrates strong operational fundamentals with solid revenue growth (16.5% YoY), excellent operating margins (25.6%), and exceptional free cash flow generation (22.2% FCF margin), indicating a high-quality business model in the growing healthcare IT sector. However, concerning returns on equity (1.1%) and assets (0.7%), combined with a thin cash position relative to debt levels, suggest capital efficiency issues that require monitoring.
Why Buy Waystar Holding Corp. Stock? WAY Key Strengths
- Strong revenue growth (16.5% YoY) in healthcare IT services sector with solid operating leverage
- Excellent operating margin (25.6%) and net margin (13.8%) demonstrating operational efficiency and profitability
- Exceptional free cash flow generation ($69.6M) representing 22.2% FCF margin, exceeding net income and indicating high-quality earnings
- Conservative capital structure with 0.37x debt-to-equity ratio and healthy 1.76x current ratio
- Significant insider activity (9 Form 4 filings in 90 days) suggesting management engagement
WAY Stock Risks: Waystar Holding Corp. Investment Risks
- Severely depressed ROE (1.1%) and ROA (0.7%) despite strong profitability indicates capital inefficiency or excess asset base from recent acquisitions
- Thin cash position ($34.3M) relative to $1.5B long-term debt creates refinancing risk and limits financial flexibility
- Extreme EPS growth (+569.2% YoY) appears unsustainable and likely driven by share count reduction rather than organic earnings growth
- Missing gross margin data limits visibility into cost structure and unit economics reliability
- Unknown direction and motivation behind insider Form 4 filings prevents assessment as bullish or bearish signal
Key Metrics to Watch
- Return on Equity trend - critical to determine if 1.1% reflects temporary investment phase or structural inefficiency
- Free cash flow sustainability and conversion rate relative to operating income
- Cash balance and debt refinancing needs - monitor liquidity given current $34.3M cash against $1.5B debt
- Gross margin and operating margin expansion potential as company scales revenue
- Debt-to-EBITDA ratio to assess leverage relative to cash generation capacity
Waystar Holding Corp. (WAY) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 22.2% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
WAY Profit Margin, ROE & Profitability Analysis
WAY vs Technology Sector: How Waystar Holding Corp. Compares
How Waystar Holding Corp. compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Waystar Holding Corp. Stock Overvalued? WAY Valuation Analysis 2026
Based on fundamental analysis, Waystar Holding Corp. has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Waystar Holding Corp. Balance Sheet: WAY Debt, Cash & Liquidity
WAY Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Waystar Holding Corp.'s revenue has grown significantly by 17% over the 5-year period, indicating strong business expansion. The most recent EPS of $-0.42 indicates the company is currently unprofitable.
WAY Revenue Growth, EPS Growth & YoY Performance
WAY Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $256.4M | $29.3M | $0.16 |
| Q3 2025 | $240.1M | $5.4M | $0.03 |
| Q2 2025 | $234.5M | -$27.7M | $0.18 |
| Q1 2025 | $224.8M | -$15.9M | $-0.13 |
| Q3 2024 | $197.3M | $5.4M | $0.03 |
| Q2 2024 | $196.0M | -$10.8M | $-0.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Waystar Holding Corp. Dividends, Buybacks & Capital Allocation
WAY SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Waystar Holding Corp. (CIK: 0001990354)
📋 Recent SEC Filings
❓ Frequently Asked Questions about WAY
What is the AI rating for WAY?
Waystar Holding Corp. (WAY) has an AI rating of BUY with 68% confidence, based on fundamental analysis of SEC EDGAR filings.
What are WAY's key strengths?
Claude: Strong revenue growth (16.5% YoY) in healthcare IT services sector with solid operating leverage. Excellent operating margin (25.6%) and net margin (13.8%) demonstrating operational efficiency and profitability.
What are the risks of investing in WAY?
Claude: Severely depressed ROE (1.1%) and ROA (0.7%) despite strong profitability indicates capital inefficiency or excess asset base from recent acquisitions. Thin cash position ($34.3M) relative to $1.5B long-term debt creates refinancing risk and limits financial flexibility.
What is WAY's revenue and growth?
Waystar Holding Corp. reported revenue of $313.9M.
Does WAY pay dividends?
Waystar Holding Corp. does not currently pay dividends.
Where can I find WAY SEC filings?
Official SEC filings for Waystar Holding Corp. (CIK: 0001990354) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is WAY's EPS?
Waystar Holding Corp. has a diluted EPS of $0.22.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is WAY a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Waystar Holding Corp. has a BUY rating with 68% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is WAY stock overvalued or undervalued?
Valuation metrics for WAY: ROE of 1.1% (sector avg: 22%), net margin of 13.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy WAY stock in 2026?
Our dual AI analysis gives Waystar Holding Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is WAY's free cash flow?
Waystar Holding Corp.'s operating cash flow is $84.9M, with capital expenditures of $15.3M. FCF margin is 22.2%.
How does WAY compare to other Technology stocks?
Vs Technology sector averages: Net margin 13.8% (avg: 18%), ROE 1.1% (avg: 22%), current ratio 1.76 (avg: 2.5).