| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 48 | 33.5x | 17.8x | Around median | |
Growth | 86 | 19.2% | 7.1% | Top tier | |
Quality | 70 | 4.4% | 4.5% | Top tier | |
Safety | 61 | 3.0x | 2.6x | Around median | |
Capital Return | 22 | — | 2.12% | Bottom tier | |
Momentum | 25 | -34.6% | 2.9% | Bottom tier | |
Sentiment | 82 | 14 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Waystar operates a software platform that connects healthcare providers and insurers across the payment cycle, from authorization and claims submission to reconciliation, collections, and payment. Its solutions help providers lower collection costs, accelerate reimbursement, and improve payment accuracy, while serving as an “execution system” integrated with more than 500 electronic health record system vendors and more than 200 active channel partners. The platform processes more than 7.5 billion transactions annually, while Waystar uses workflow data, Waystar Altitude AI models, and Iodine solutions to prevent claim denials, detect revenue leakage, and reduce manual work.
In Q2 fiscal 2026, Waystar reported revenue of $319.7 million according to EDGAR filings, with reported year-over-year growth of 18%, while net income reached $40.9 million and earnings per share were $0.21, equivalent to a net income margin of approximately 12.8%. Adjusted earnings before interest, taxes, depreciation, and amortization were $137 million, up 21.5%, with an adjusted margin of 43%, while management indicated that the calculated gross margin remained near 70%. For the twelve months ended in fiscal 2026, revenue was $1.2 billion and net income was $134.8 million.
Subscription revenue was $176 million, or 55% of Q2 fiscal 2026 revenue, and increased 34% year over year and 12% organically, compared with $142 million in transaction-volume-based revenue, which increased 3% on a reported basis and approximately 8% after adjusting for comparability factors. Net revenue retention was 108%, with gross retention of 97%, while the number of customers each generating more than $100,000 over the last 12 months increased to 1,453, up 15% year over year.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $32.43, within a wide range of $27 to $39, with a consensus rating of “Buy”; the average target is approximately 22% below the top of the 52-week range of $41.47, while the highest target is close to that peak. The 52-week range of $17.26–$41.47 reflects substantial variation in the market's valuation, while the gap between analysts' lowest and highest targets suggests meaningful disagreement over how quickly bookings and AI investments will translate into sustainable growth and profitability.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Waystar generates its revenue from software subscriptions and fees tied to transaction volume across the healthcare payment cycle. In Q2 fiscal 2026, subscription revenue was $176 million and represented 55% of the total, while volume-based revenue was $142 million. Subscriptions grew 34% year over year and 12% organically, compared with reported growth of 3% for volume-based revenue. The platform supports this revenue through more than 7.5 billion transactions annually and integrations with more than 500 electronic health record system vendors.
According to EDGAR, revenue was approximately $319.7 million, net income was $40.9 million, and earnings per share were $0.21 in Q2 fiscal 2026. Management reported year-over-year revenue growth of 18% and organic growth of 7%, or approximately 10% after adjusting for comparability factors. Adjusted earnings before interest, taxes, depreciation, and amortization were $137 million, with a margin of 43%. This was the ninth consecutive quarter in which the company exceeded analysts' expectations for revenue and adjusted earnings.
Iodine integrates clinical data with Waystar's revenue capture engine to prevent claim denials and detect anomalies before claims are submitted. In Q2 fiscal 2026, bookings of Iodine solutions among existing Waystar customers exceeded $6 million, and more than 12 customers committed during the first half to the next-generation anomaly detection solution. Early users demonstrated recoveries of approximately $3 million per 10,000 admissions, while a health system with more than 3,000 beds and 9,000 physicians used additional Waystar Altitude AI capabilities to reduce denials and manual work. AI-powered solutions represented approximately 40% of the quarter's bookings.
Waystar expects revenue of between $1.276 billion and $1.294 billion in fiscal 2026, with a midpoint of $1.285 billion and expected year-over-year growth of 17%. The company raised the lower end of its revenue range by $2 million following the first-half results. It also raised adjusted earnings before interest, taxes, depreciation, and amortization guidance to a range of $535–545 million, with a midpoint of $540 million. This represents an expected annual margin of approximately 42%, compared with the 43% margin recorded in Q2.
Healthcare utilization growth returned to a range of 1%–2%, and reported growth in transaction-volume-based revenue declined to 3% in Q2 fiscal 2026. Large deals also typically take 6 to 18 months to implement, so management expects a larger contribution from current bookings to emerge during fiscal 2027. Waystar faces competition from electronic health record vendors, point solutions, and broader platforms, although management said on July 29, 2026, that it had not observed a change in the competitive environment. Additional risks include total debt of $1.5 billion and increasing AI investments that may reduce the annual adjusted earnings margin to 42%.
Waystar announced that Steven Oreskovich would transition out of the chief financial officer role after eight years with the company. He will remain an adviser to Waystar during the months following the announcement to help ensure a smooth transition. The company also announced that Alpana Wegner would join during the week of July 29, 2026, as its next chief financial officer, drawing on her experience leading finance at public software companies. Management did not link this change to any adjustment in fiscal 2026 guidance; instead, it raised the adjusted earnings range and the lower end of revenue guidance.
