WAY·Healthcare payments and revenue-cycle management software - claims clearinghouse, denial and appeal automation, prior authorisation, patient financial engagement, and (post-Iodine) clinical documentation integrity

Waystar

ConvictionModerate

Two-engine B2B software network sold to providers. ENGINE 1, subscription: platform and module fees for denial prevention, prior authorisation, patient payments, analytics, and - since Iodine closed 1 Oct 2025 - clinical documentation integrity and appeal-letter generation. $176.287M in Q2 2026, +34.5%. ENGINE 2, volume-based: per-transaction pricing on claims, eligibility and remittance traffic. $142.149M, +2.8% (canon CF-WAY-10). The alternative cut of the same quarter is provider $231.804M (+23%) and patient $87.870M (+7%). Both engines are paid from money the provider RECOVERS - a denial overturned, a claim paid, a patient balance collected - which is the payer-identity property the board owns this name for, and is structurally different from software billed against a hospital IT budget in a year when hospital IT purchasing is under pressure.

Revenue

TTM $1.21B+19.2% to 30 Jun 2026 (canon CF-WAY-16 - aggregator roll-up of primary quarters; cite the Q2 10-Q alongside where load-bearing). Fiscal years at primary: FY2024 $943.549M, FY2025 $1,099.278M (+16.5% derived). Q2 2026 $319.7M, +18% as released (+18.1% at the 10-Q decimal - CF-WAY-09). 1H 2026 $633.5M. FY2026 guidance raised 29 Jul 2026 to $1.276B-$1.294B, ~+17% at the midpoint (CF-WAY-13).

Rev growth

+18% YoYin Q2 2026 at the total line - the least informative number Waystar prints. The split is the thesis: subscription $176.287M +34.5% against volume-based $142.149M +2.8% (CF-WAY-10), so ~55% of the quarter is now the fast half. Some of that 34.5% is Iodine, which closed 1 Oct 2025 and does not anniversary until Q4 2026. The single most important test on the calendar is whether subscription growth still starts with a 3 once the acquired revenue is in the base.

Gross margin

68-69% TTMCF-WAY-16; aggregator-sourced, so the one-point band is the precision available). This is what separates Waystar from a software comparable, and it is structural rather than a failure: a payments network carries transaction connectivity, payment-rail cost, hosting and implementation services. For contrast inside the board's own book, Doximity prints 89.09%. Waystar guided Iodine as immediately accretive to gross margin (1 Oct 2025) - testable in the FY2026/FY2027 prints and not yet visible as a sustained TTM step-up.

Op margin

No single verified GAAP operating margin is printed herethe disclosed profitability ladder runs through adjusted EBITDA and GAAP net income. Adjusted EBITDA margin: FY2024 40.65% -> FY2025 42.04% (+140bp) -> Q2 2026 42.76% (company-stated 43%) -> 1H 2026 42.95% (CF-WAY-05/06/07/08). GAAP net margin was 12.78% in Q2 2026 on $40.867M (CF-WAY-11); non-GAAP net income the same quarter was $83.283M. The ~30-point gap between adjusted EBITDA margin and GAAP net margin is where the roll-up lives: intangible amortisation from ten acquisitions since 2018, stock compensation, and interest on $1.47B of debt.

Capex intensity

Lowin the physical sense; not separately verified here, and deliberately not derived. Waystar owns no clinical hardware and no disclosed data centres - its capital is capitalised software development plus acquisition consideration. The acquisition line dominates: 89.3% of total assets at 30 Jun 2026 is goodwill ($4,014.8M) plus intangibles ($1,223.9M) on $5,868.8M of assets (CF-WAY-15) - a ten-deal roll-up's balance sheet, not an organic compounder's. A period capex figure is withheld on purpose: it could be inferred as a residual between $59.411M CFO and $63.908M unlevered FCF, but that also needs the cash-interest add-back, which is not verified here, so the derived number would be a guess wearing a decimal point.

Market cap

$4.05B at the 31 Jul 2026 close191.75M shares x $21.11), the board's vintage mark and the one every scenario price below is measured against (canon CF-WAY-02 / PB-017; the identity recomputes to $4.048B). Post-vintage: ~$4.56B at the 6 Aug 2026 close of $23.76 on the same share count (derived: 191.75M x $23.76 = $4.556B). Both are printed because the board's targets are anchored to the $21.11 mark and must not be silently re-based. Third-largest name in the board's ~$33.90B 17-name pure-play cohort (16 US-exchange-listed plus OTC-quoted Veradigm, Nasdaq-delisted 2024), behind Tempus ($7.92B) and Hinge Health ($5.78B) (canon CM-COH-01, CM-COH-02).

Across the boards

The thesis on this name

opportunityWeak

State of AI for Healthcare

Full context

position · longModerate

State of AI for Healthcare

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book · long

State of AI for Healthcare

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The read

Where our coverage leans

Coverage leans bearish

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Full financial intelligence for Waystar

Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.

Income statement & margin structure
SWOT, moats & dependency map
Supplier–customer ecosystem graph
Signals, trends & valuation range

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Not financial advice — analyst work product for a qualified professional.

Waystar

ConvictionModerate

Revenue

Rev growth

Gross margin

Op margin

Capex intensity

Market cap

Across the boards

The thesis on this name

opportunityWeak

State of AI for Healthcare

Full context

position · longModerate

State of AI for Healthcare

Full context

book · long

State of AI for Healthcare

Full context

The read

Where our coverage leans

Coverage leans bearish

Members only

Full financial intelligence for Waystar

Earnings, margins & COGS, the income-statement breakdown, SWOT, moats & dependencies, the supplier–customer ecosystem graph, top signals & trends, and the valuation range.

Income statement & margin structure
SWOT, moats & dependency map
Supplier–customer ecosystem graph
Signals, trends & valuation range

See plans

Not financial advice — analyst work product for a qualified professional.