Waystar’s temporary tax-driven selloff obscures a high-retention healthcare AI platform with $36.15 DCF value and a probability-weighted five-year target of $60.81.
Overview
Waystar Holding Corp. (WAY) is a cloud-native healthcare payment and revenue-cycle management platform serving approximately 30,000 clients and more than 1 million providers, including 17 of the 20 top U.S. News hospitals. Its integrated clearinghouse, patient-payments, denial-management, and clinical-AI products process over 7.5 billion annual transaction sequences and more than $2.4 trillion of claims. **The business combines mission-critical workflows, 108% NRR, and high switching costs with a growing subscription mix.** Q2 2026 revenue rose 18.1% to $319.67 million, Adjusted EBITDA increased 21.4% to $136.70 million, and non-GAAP EPS of $0.43 exceeded consensus by 8.3%. Management raised FY2026 revenue guidance to $1.276–$1.294 billion and Adjusted EBITDA guidance to $535–$545 million. The stock fell 14.6% after earnings to $20.94 as NOL burn-off reduced FCF margin, but recovered to $24.70 by August 10. The DCF indicates $36.15 intrinsic value per share, while the probability-weighted five-year target is $60.81. **Near-term catalysts are Iodine cross-selling, deleveraging, and the $200 million buyback; Epic Penny remains the central risk.**