Waystar Holding Corp. (WAY -3.20%) builds software that helps hospitals and doctors get paid faster and with fewer headaches. Its cloud-based platform handles the complicated steps behind medical billing, from checking insurance coverage to submitting claims and collecting payments.
Founded in 2017 through the merger of Navicure and Zirmed, Waystar says it processes billions of healthcare transactions each year. By using automation and artificial intelligence, the company aims to reduce errors, save time, and improve cash flow for healthcare providers.
For investors interested in healthcare technology, Waystar is a newer public company worth a closer look. Before buying the stock, it helps to understand how the business works, where it fits in the healthcare system, and what to consider when investing.
How to buy Waystar Holding Corp. stock
Waystar Holding Corp. became a public company in June 2024, pricing its initial public offering at $21.50 per share. After delaying its debut amid a weak IPO market in 2023, the Louisville, Kentucky–based company now trades on the Nasdaq under the ticker WAY.
- Open your brokerage app: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for Waystar: Enter the ticker "WAY" 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 you 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.
NASDAQ: WAY
Key Data Points
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.
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.
How to invest in Waystar Holdings Corp. through ETFs
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)
The bottom line
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.
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