Waystar (NASDAQ:WAY) Posts Earnings Results, Beats Estimates 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, topping the consensus estimate of $0.41 by $0.03, FiscalAI reports. Waystar had a return on equity of 6.95% and a net margin of 10.70%. The business had revenue of $325.62 million for the quarter, compared to analyst estimates of $323.43 million. During the same period last year, the company earned $0.37 EPS. The firm’s revenue was up 21.2% on a year-over-year basis.

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 WAY stock opened at $27.66 on Wednesday. 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 12-month low of $17.26 and a 12-month high of $37.71. The firm has a fifty day moving average of $26.27 and a 200-day moving average of $23.96. The firm has a market capitalization of $5.30 billion, a price-to-earnings ratio of 40.09, a price-to-earnings-growth ratio of 1.10 and a beta of 0.11.

Insider Buying and Selling

In related news, CEO Matthew Hawkins sold 82,500 shares of the firm’s stock in a transaction on Tuesday, October 6th. The stock was sold at an average price of $26.23, for a total transaction 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 filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 247,500 shares of company stock worth $6,370,499. Company insiders own 3.50% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on WAY. Canaccord Genuity Group upped their price objective on Waystar from $33.00 to $34.00 and gave the company a “buy” rating in a report on Tuesday. BMO Capital Markets restated an “outperform” rating on shares of Waystar in a report on Thursday, August 27th. KeyCorp raised their target price on Waystar from $30.00 to $35.00 and gave the stock an “overweight” rating in a report on Friday, October 16th. Needham & Company LLC restated a “buy” rating and set a $33.00 target price on shares of Waystar in a research report on Wednesday, August 26th. Finally, UBS Group lowered their price target on Waystar from $37.00 to $33.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $35.14.

Key Stories Impacting Waystar

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Waystar beat Q3 estimates, posting adjusted EPS of $0.44 versus $0.41 expected and revenue of $325.6 million versus $323.4 million. Revenue grew 21% year over year, while net income was $31.0 million and adjusted EBITDA margin was 43%. Waystar Reports Third Quarter 2026 Results
• Positive Sentiment: The company raised its 2026 adjusted EBITDA outlook to $543 million–$549 million and guided to EPS of $1.63–$1.71. RBC said solid leading indicators could convert into revenue in 2027, offering a potential longer-term growth catalyst. RBC Capital Markets commentary
• Positive Sentiment: Deutsche Bank raised its price target to $42 from $39 and maintained a Buy rating. Canaccord also lifted its target, to $34 from $33, with a Buy rating. Deutsche Bank raises target
• Neutral Sentiment: Waystar’s 2026 revenue guidance of $1.277 billion–$1.287 billion was around analyst expectations, while EPS guidance starts at consensus. This signals continued growth but may offer less of an upside surprise than the quarterly results. 2026 outlook
• Negative Sentiment: TD Cowen lowered its price target to $39 from $42, although it retained a Buy rating. TD Cowen rating

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.