How to Invest in Waystar Holding Corp.

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 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.

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 Buy Waystar Technologies Stock

Now, anyone can buy shares of Waystar Holdings Corp. by following these four steps.

1. Open your brokerage app: Log in to your brokerage account where you handle your investments.
2. Search for the stock: Enter the ticker or company name into the search bar to bring up the stock's trading page.
3. Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
4. 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.
5. Submit your order: Confirm the details and submit your buy order.
6. Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.

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.

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.

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:

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