If you follow the healthcare sector and are familiar with the complexities of medical payments, you may be wondering how to invest in Waystar Holding Corp. (WAY -0.19%). Waystar Holding Corp. is a software-as-a-service (SaaS)-based company that allows healthcare providers to manage payments using a single cloud-based platform.
Established in 2017 through the merger of revenue cycle technology providers Navicure and Zirmed, the company says it facilitates 6 billion healthcare transactions annually, amounting to $1.8 trillion in annual gross claims.
Waystar Holding Corp. is a revenue cycle management (RCM) software company. RCM essentially includes all the processes healthcare providers use to get paid in a timely manner. Its many steps include confirming a patient's insurance eligibility when they schedule an appointment, assigning proper medical codes, billing insurance companies, collecting payments, and managing claim denials.
The labyrinth of steps is a time suck for providers and leaves lots of room for errors. Waystar says its internally developed artificial intelligence (AI) and proprietary algorithms allow doctors and medical facilities to automate many of their processes while improving efficiency and accuracy.
How to invest
How to buy Waystar Holding Corp. stock
Waystar Holding Corp. went public in June 2024, offering 45 million shares of its common stock at $21.50 per share. The Louisville, Kentucky-based company had initially planned to make its stock market debut in late 2023 but pushed back plans amid a shaky initial public offering (IPO) market. The company now trades on the Nasdaq exchange under the ticker WAY.
IPO
Key facts and statistics
Key facts and statistics about Waystar Holding Corp.
Here are some important facts and statistics you should know before investing in Waystar Holding Corp.:
- It processes about 6 billion healthcare claims each year, spanning about 50% of the U.S. patient population.
- The company serves more than 1 million providers, including 16 of the 20 hospitals on U.S. News and World Report's Best Hospitals List.
- Waystar had 1,244 clients that generated at least $100,000 in trailing 12-month revenue as of the first quarter of 2025.
How to invest
How to Buy Waystar Technologies Stock
Now, anyone can buy shares of Waystar Holdings Corp. by following these four steps.
- Open your brokerage app: Log in to your brokerage account where you handle your investments.
- Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Should I invest?
Should I invest in Waystar Holding Corp.?
You might want to consider investing in Waystar Holding Corp. if:
- You understand Waystar's products and believe they have the potential to simplify healthcare payment processing.
- You already have a well-diversified investment portfolio and are looking for additional healthcare technology exposure.
- You can afford to lose money, particularly in the short term.
- You're comfortable investing in a company that's not yet profitable.
- You plan to hold the stock for at least three to five years and believe it can outperform the S&P 500 index in the long term.
On the other hand, here are some reasons you may want to avoid Holding Corp.:
- You're seeking dividend income, as dividend payments are rare when you invest in software-as-a-service (SaaS) companies and IPO stocks.
- You want to earn a quick profit and don't plan to make the stock a long-term holding.
- You don't understand how the company makes money.
- You don't believe the company has a wide economic moat.
Profitability
Is Waystar Holding Corp. profitable?
While Waystar Holding Corp. didn't achieve full-year profitability in fiscal 2024, it was profitable in the final quarter of 2024 and the first quarter of 2025. In Q1 of 2025, the company posted net income of $29.3 million, with generally accepted accounting principles (GAAP) net income per diluted share of $0.16. First quarter revenue was $256 million, a 14% year-over-year increase.
The company also reported a net revenue retention rate of 114% for the 12-month period that ended March 31, 2025. Net revenue retention shows the rate at which existing customers are increasing their spending and tends to be an important metric for SaaS businesses.
The net revenue retention rate indicates whether the company can retain and upsell existing customers or if it needs to attract new customers for growth. Waystar's 114% net retention rate shows that its existing customers increased their spending by 14% in the 12 months leading up to March 2025.
Dividends
Does Waystar Holding Corp. pay a dividend?
Waystar Holding Corp. doesn't pay a dividend. Companies that have recently gone public rarely pay dividends because they often haven't reached profitability yet. Even if they are turning a profit, they typically need to reinvest their earnings into the business. Given that Waystar is a young company still losing money, people seeking investment income should pass on its stock.
ETF options
ETFs with exposure to Waystar Holdings Corp.
About 75 exchange-traded funds (ETFs) owned shares of Waystar Holdings Corp. as of mid-July 2025. Here are three ETFs that offer exposure to the company:
Exchange-Traded Fund (ETF)
Vanguard Total Stock Market ETF
The Vanguard Total Stock Market ETF (VTI 0.2%) owns more shares of Waystar Holdings Corp. than any other ETF, with about 3.07 million shares -- though the stock only accounts for 0.01% of its allocation. The fund's benchmark index is the CRSP US Total Market Index, which tracks the roughly 4,000 publicly traded companies in the U.S. The VTI's expense ratio is 0.03%, which translates to $0.30 in fees on a $1,000 investment.
iShares Russell 2000 ETF
The iShares Russell 2000 (IWM 0.12%) tracks the performance of the small-cap stocks that make up the Russell 2000 index. Waystar Holdings Corp. represents about 0.13% of the fund's holdings. The IWM has a 0.19% expense ratio.
Vanguard Health Care ETF
The Vanguard Health Care ETF (VHT 0.3%) has just over 400 holdings and tracks the MSCI US Investable Market Health Care 25/50 Index. Waystar Holdings Corp. shares make up around 0.05% of the fund's holdings. The ETF's expense ratio is 0.09%.
Stock splits
Will Waystar Holdings Corp. stock split?
Waystar Holdings Corp. hasn't split its stock in its short history and is unlikely to do so in the near future. Companies often split their stock to make it more affordable to retail investors. Unless the company's share price were to climb into the three- or four-figure range, a stock split probably is not on the horizon.
Related investing topics
The bottom line on Waystar Holdings Corp.
Healthcare in the U.S. is extraordinarily complex. If you believe Waystar Holdings Corp. has the potential to simplify revenue cycle management and the healthcare payment process in general, perhaps the stock deserves a look.
But keep in mind that investing in healthcare technology and stocks soon after their IPO is risky. Aim to build a diversified portfolio of index funds before you layer on a risky investment. Finally, limit your investment in any individual stock, whether Waystar Holdings Corp. or any other company, to no more than 5% of your portfolio.
FAQ
Waystar Holdings Corp. FAQ
What is Waystar Holdings Corp.'s revenue?
Waystar Holdings Corp. reported $256 million, a 14% year-over-year increase. In its guidance for full-year fiscal 2025, the company forecasts revenues between $1.006 billion and $1.022 billion.
Who are Waystar's competitors?
According to software marketplace G2, Waystar's top competitors include Essentials, TriZetto QNXT, Tebra, and NextGen Healthcare EHR.
Is Waystar a good stock to buy?
Waystar could be a good stock to buy if you want to invest in healthcare. The company has shown that it can grow its revenue, particularly recurring revenue, at a strong pace. One risk of investing in the company is that it depends heavily on a small number of large customers. Also, investing in any company that recently completed an IPO tends to be risky.
What factors influence Waystar’s stock price?
As with any company, Waystar's stock price fluctuates based on its reported revenue, profitability, and customer growth and retention. Waystar continues to build out its AI capabilities. If these tools prove successful at reducing providers' time and costs associated with revenue cycle management, the company's stock price could increase. Likewise, changes in the healthcare landscape, like increased digitization, could be good for Waystar stock, while potential regulatory changes pose a risk for the stock.
Does Waystar Holding Corp. have growth potential?
Yes, Waystar has significant growth potential, given the size of the U.S. healthcare market and its notorious inefficiencies. The company grew its revenue by 14% year over year in the first quarter of 2025. Waystar expects its total addressable market to grow to around $20 billion by 2027.
