Waystar (NASDAQ:WAY) Hits New 1-Year Low Following Weak Earnings

Shares of Waystar Holding Corp. (NASDAQ:WAY) hit a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The stock traded as low as $21.13 and last traded at $24.31, with a volume of 12468627 shares. The stock had previously closed at $22.41.

The company reported $0.36 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.39 by ($0.03). The firm had revenue of $303.54 million for the quarter, compared to analyst estimates of $294.72 million. Waystar had a return on equity of 6.83% and a net margin of 10.69%.The company’s quarterly revenue was up 24.3% compared to the same quarter last year. During the same period last year, the firm earned $0.29 EPS. Waystar has set its FY 2026 guidance at 1.590-1.680 EPS.

More Waystar News

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Q4 revenue and full‑year growth beat expectations — Q4 revenue was ~$304M, up ~24% year‑over‑year, and FY‑2025 revenue was $1.099B (up ~17%), signaling strong top‑line momentum that investors rewarded. PR Newswire: Waystar Reports Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: Management issued 2026 guidance that implies ~17% revenue growth and EPS guidance of $1.59–$1.68, which matched or slightly beat investor hopes and supported the upbeat market reaction. Investing.com: Waystar shares rise as guidance impresses
• Positive Sentiment: Company is highlighting AI‑driven automation and integration as growth levers (and received AI recognition), which investors view as a durable driver of client ROI and future revenue expansion. PR Newswire: Waystar Recognized as Inc. Best in Business for AI
• Neutral Sentiment: Analysts largely remain constructive: Needham reiterated a Buy rating but cut its price target from $46 to $33 — a signal of valuation recalibration even as the analyst still sees upside. TipRanks: Needham reiterates Buy with $33 PT
• Neutral Sentiment: Company provided extensive investor materials and call/transcript coverage — useful for digging into margin drivers and client metrics; transcripts and slide deck are available for deeper review. Yahoo Finance: Q4 Earnings Call Summary
• Negative Sentiment: EPS missed consensus by $0.03 (reported $0.36 vs. $0.39 expected), which tempers the headline and could be cited by short‑term traders as a reason for caution. Zacks: Q4 earnings lag estimates
• Negative Sentiment: Unusual options activity showed a large jump in put buying (several thousand contracts), indicating some market participants are hedging or taking downside bets — a potential warning about near‑term volatility.

Analyst Upgrades and Downgrades

WAY has been the subject of several research reports. Canaccord Genuity Group set a $54.00 price objective on Waystar in a research report on Thursday, October 30th. Needham & Company LLC dropped their price target on Waystar from $46.00 to $33.00 and set a “buy” rating for the company in a research report on Tuesday. Wells Fargo & Company started coverage on Waystar in a research report on Thursday, January 8th. They issued an “overweight” rating and a $41.00 price objective on the stock. UBS Group initiated coverage on Waystar in a research report on Monday, December 15th. They set a “buy” rating and a $41.00 price objective for the company. Finally, Barclays lowered their price target on shares of Waystar from $56.00 to $42.00 and set an “overweight” rating for the company in a report on Monday, December 8th. Two equities research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat, Waystar presently has a consensus rating of “Buy” and a consensus price target of $44.31.

Insider Activity

In other news, insider Eric L. (Ric) Sinclair III sold 40,225 shares of the stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $30.08, for a total transaction of $1,209,968.00. Following the transaction, the insider directly owned 474,826 shares in the company, valued at $14,282,766.08. This represents a 7.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CMO Melissa F. (Missy) Miller sold 3,400 shares of the business’s stock in a transaction that occurred on Tuesday, November 25th. The shares were sold at an average price of $37.00, for a total transaction of $125,800.00. Following the completion of the sale, the chief marketing officer owned 193,261 shares of the company’s stock, valued at approximately $7,150,657. The trade was a 1.73% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 71,650 shares of company stock valued at $2,258,535 in the last 90 days. 4.10% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several large investors have recently made changes to their positions in WAY. Advent International L.P. purchased a new stake in Waystar during the fourth quarter valued at about $362,212,000. Vanguard Group Inc. grew its holdings in shares of Waystar by 35.5% during the 3rd quarter. Vanguard Group Inc. now owns 12,289,810 shares of the company’s stock worth $466,030,000 after purchasing an additional 3,219,586 shares during the period. Alliancebernstein L.P. grew its holdings in shares of Waystar by 3,883.4% during the 2nd quarter. Alliancebernstein L.P. now owns 3,268,932 shares of the company’s stock worth $133,601,000 after purchasing an additional 3,186,869 shares during the period. Artisan Partners Limited Partnership acquired a new stake in Waystar during the 3rd quarter worth approximately $95,497,000. Finally, Alyeska Investment Group L.P. lifted its position in Waystar by 4,717.4% during the third quarter. Alyeska Investment Group L.P. now owns 1,814,648 shares of the company’s stock valued at $68,811,000 after buying an additional 1,776,979 shares in the last quarter.

Waystar Trading Up 8.5%

The company has a debt-to-equity ratio of 0.38, a current ratio of 3.89 and a quick ratio of 3.89. The business’s 50-day simple moving average is $29.54 and its two-hundred day simple moving average is $34.20. The stock has a market capitalization of $4.65 billion, a price-to-earnings ratio of 39.21, a PEG ratio of 0.28 and a beta of 0.75.

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.