Waystar (NASDAQ:WAY) Hits New 1-Year Low on Disappointing Earnings

Waystar Holding Corp. (NASDAQ:WAY) hit a new 52-week low on Wednesday after the company announced weaker than expected quarterly earnings. The company traded as low as $21.13 and last traded at $24.31, with a volume of 12468627 shares trading hands. 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 during the quarter, compared to analyst estimates of $294.72 million. Waystar had a net margin of 10.20% and a return on equity of 6.86%. Waystar’s quarterly revenue was up 24.3% on a year-over-year basis. 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.

Key Waystar News

Here are the key news stories impacting Waystar this week:

• Positive Sentiment: Q4 top-line strength and guidance — Waystar reported Q4 revenue of ~$304M, up ~24% YoY, and issued FY2026 guidance calling for robust revenue growth and EPS of $1.590–$1.680; investors are focusing on the revenue beat and multi-year growth trajectory. PR Newswire: Waystar Reports Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: Swing to profitability and upbeat outlook — Commentary and coverage noted Waystar’s swing to GAAP profitability and a double-digit growth outlook for 2026, which supports investor confidence in operating leverage and margin expansion. InsiderMonkey: Waystar Climbs on Swing to Profits
• Neutral Sentiment: Mixed earnings print — EPS of $0.36 missed consensus by ~$0.03, but revenue topped estimates; management’s guidance was essentially in line with consensus, leaving the quarter mixed rather than clearly positive or negative. Benzinga: Waystar Q4 Earnings Assessment
• Negative Sentiment: Multiple price-target cuts — Several brokers trimmed targets after the report (Citigroup $46→$35, Truist $51→$38, Needham $46→$33; Mizuho also reduced its target earlier). While many kept Buy/Outperform ratings, lower targets signal moderated near-term expectations. Benzinga: Analysts Cut Forecasts on Waystar
• Negative Sentiment: Put buying spike — Unusual options activity showed a large volume of put purchases (5,167 contracts), which can indicate some traders are hedging or betting on downside volatility. (Market commentary noted the increase in puts around earnings.)
• Negative Sentiment: Analyst-flagged risks — Coverage highlighted emerging risks including competitive pressure and AI-related legal/operational concerns, which could weigh on sentiment if they affect execution or margins. TipRanks: AI Risks Loom Over Waystar
• Negative Sentiment: New 1-year low reported — Some outlets flagged that the stock tested a one-year low following the weak EPS print, underscoring short-term volatility around the report. AmericanBankingNews: Waystar Hits New 1-Year Low

Analysts Set New Price Targets

WAY has been the topic of several research analyst reports. Truist Financial dropped their target price on shares of Waystar from $51.00 to $38.00 and set a “buy” rating on the stock in a report on Wednesday. Weiss Ratings restated a “hold (c)” rating on shares of Waystar in a report on Wednesday, January 21st. Mizuho set a $42.00 target price on shares of Waystar in a research note on Wednesday, February 4th. Loop Capital set a $33.00 price target on Waystar in a research note on Wednesday. Finally, Wall Street Zen upgraded Waystar from a “hold” rating to a “buy” rating in a report on Saturday, February 7th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat.com, the company has an average rating of “Moderate Buy” and a consensus price target of $37.50.

Insider Activity at Waystar

In related news, CMO Melissa F. (Missy) Miller sold 3,400 shares of the firm’s stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $37.00, for a total value of $125,800.00. Following the completion of the transaction, the chief marketing officer directly owned 193,261 shares of the company’s stock, valued at approximately $7,150,657. This trade represents a 1.73% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CTO Christopher L. Schremser sold 8,623 shares of the business’s stock in a transaction on Wednesday, December 10th. The stock was sold at an average price of $30.41, for a total transaction of $262,225.43. Following the transaction, the chief technology officer owned 422,371 shares in the company, valued at approximately $12,844,302.11. The trade was a 2.00% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 61,949 shares of company stock valued at $1,916,380. 4.10% of the stock is owned by insiders.

Institutional Investors Weigh In On Waystar

A number of institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. increased its position in Waystar by 0.3% during the fourth quarter. Vanguard Group Inc. now owns 12,330,872 shares of the company’s stock worth $403,836,000 after buying an additional 41,062 shares during the last quarter. Advent International L.P. bought a new position in shares of Waystar during the 4th quarter worth approximately $362,212,000. William Blair Investment Management LLC increased its holdings in shares of Waystar by 0.4% during the 4th quarter. William Blair Investment Management LLC now owns 5,282,220 shares of the company’s stock worth $172,993,000 after acquiring an additional 19,033 shares during the last quarter. State Street Corp raised its stake in Waystar by 4.0% in the 4th quarter. State Street Corp now owns 4,134,052 shares of the company’s stock valued at $135,390,000 after acquiring an additional 159,183 shares during the period. Finally, Alliancebernstein L.P. lifted its holdings in Waystar by 4.5% during the 3rd quarter. Alliancebernstein L.P. now owns 3,415,442 shares of the company’s stock valued at $129,514,000 after purchasing an additional 146,510 shares during the last quarter.

Waystar Stock Performance

The stock has a market capitalization of $4.86 billion, a P/E ratio of 41.66, a PEG ratio of 0.31 and a beta of 0.75. The stock’s 50-day simple moving average is $29.44 and its 200 day simple moving average is $34.14. The company has a debt-to-equity ratio of 0.38, a current ratio of 1.41 and a quick ratio of 3.89.

About Waystar

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.