Abstract
Waystar Holding Corp. will post quarterly results on February 17, 2026 Pre-Market, with current projections pointing to revenue of $293.92 million and adjusted EPS near $0.39 as investors evaluate growth durability, margin resilience, and progress on new AI-enabled workflow initiatives.
Market Forecast
Analysts expect Waystar Holding Corp. to deliver revenue of $293.92 million this quarter, up 26.63% year over year, with adjusted EPS around $0.39, projecting 179.77% year-over-year growth; EBIT is estimated at $93.88 million, implying 87.61% year-over-year growth. The company has not issued an explicit gross margin or net margin outlook for the quarter; recent benchmarks include a 68.31% gross margin and 11.41% net margin, and investors will watch for stability around these levels as scale and product mix evolve.
Subscriptions and volume-linked services remain the central revenue engines following recent platform enhancements, with the product roadmap signaling continued upgrades to authorization and denial-prevention workflows that can sustain demand and pricing mix. Within the portfolio, subscription revenue stood at $134.45 million last quarter and appears best placed to compound via ongoing customer adoption of new modules and automation features that can expand wallet share over time.
Last Quarter Review
Waystar Holding Corp. reported revenue of $268.65 million last quarter, a gross profit margin of 68.31%, GAAP net profit attributable to shareholders of $30.65 million, a net profit margin of 11.41%, and adjusted EPS of $0.37, with revenue up 11.89% year over year and adjusted EPS up 164.29% year over year. A key highlight was a top-line beat versus the prior revenue estimate by $11.90 million, accompanied by an adjusted EPS that exceeded projections by $0.02 despite sequential net profit dipping 4.77% from the previous quarter.
By line of business, subscription revenue was $134.45 million, volume-based revenue was $132.34 million, and services and other contributed $1.86 million, underscoring a balanced mix with subscriptions marginally larger than volume-driven activity. The combination suggests a favorable recurring component that, alongside scaling workflows, can provide support for margin consistency and predictability in the near term.
Current Quarter Outlook (with major analytical insights)
Core subscriptions and platform economics
Subscription activity is positioned to anchor performance this quarter, with a carryover from the $134.45 million recorded last quarter and a supportive demand backdrop for automation that can enhance yield per client. The projected revenue increase to $293.92 million implies solid broad-based expansion, and the subscription base is a principal contributor to that trajectory through renewals, upsell of modules, and workflow additions. Given the 68.31% gross margin benchmark last quarter, steadiness in subscription mix and disciplined support costs will be key to maintaining margin quality even as the company scales new features.
The forecast adjusted EPS of $0.39, if achieved, would reflect meaningful operating leverage from the subscription backbone as revenue scales faster than certain fixed platform investments. Investors should monitor conversion of contracted wins into live revenue as well as the cadence of new module attach rates, which can lift net revenue retention and support margin consistency. While quarter-to-quarter seasonality can alter the exact pacing of results, the subscription-led mix is well suited to drive high visibility if churn remains contained and implementations track to plan.
With EBIT estimated at $93.88 million for the quarter, there is an expectation that expense growth remains measured relative to top-line momentum. Areas that could amplify profitability include favorable mix toward premium subscription capabilities and improved efficiency in customer success and support. Conversely, if implementation timelines extend or require elevated onboarding effort, the near-term cost intensity could trim the flow-through, making the subscription mix metrics and deferred revenue trends notable line items to watch.
AI-enabled authorizations and denials prevention as a growth vector
The recent introduction of agentic AI within the cloud-native platform is set to expand automated workflows that expedite prior authorizations and reduce claims denials. This capability enhances the value proposition of new and existing modules, potentially lifting subscription attach rates and reducing manual workloads for clients. The proposition also has implications for volume-based activity by increasing the accuracy and speed of upstream processes that ultimately influence downstream collections and processing.
For this quarter, the primary question is less about immediate revenue recognition from nascent AI features and more about signals of adoption: new logo wins citing AI workflows, existing client expansions referencing authorization automation, and measured reductions in time-to-value. These markers can indicate the early shape of the contribution curve, even if the bulk of revenue benefit accrues over several quarters as customers deploy at scale. As these tools gain traction, they may also incrementally enhance gross margin through improved platform utilization and lower variable handling costs per transaction.
The feedback loop between the AI road map and commercial success—demonstrated through cross-sell and upsell—can also shape the forward view on the EBIT trajectory. If adoption is robust, operating leverage may benefit from higher average revenue per account without commensurate increases in delivery costs. On the other hand, if the commercialization curve proves more gradual, the revenue contribution may be weighted later in the year, making the pace of bookings, module penetration, and customer testimonials in this report essential qualitative indicators alongside the quantitative guideposts.
Key swing factors for this quarter’s stock performance
The headline pivot is whether revenue and earnings outperform the $293.92 million and $0.39 anchors and whether management updates point to sustained double-digit growth in the near term. Any upside surprise could be reinforced if gross margin remains near or above the 68.31% level and if net margin trends upward from the 11.41% reference point, signaling healthier mix and cost discipline as the platform scales. Conversely, if revenue growth under-shoots or if expenses outpace top-line expansion due to heavier go-to-market or implementation costs, EPS could track toward the lower bound of expectations, prompting investors to reassess near-term operating leverage.
Secondary swing factors include the balance between subscription and volume-based revenue, which influences margin quality and predictability. A tilt toward subscription can support steadier margins and recurring economics, while heavier volume-driven contributions may introduce more variability tied to client activity levels. Further, watch the cadence of new bookings and expansions; while not necessarily fully recognized in the current quarter, a robust bookings narrative can underpin confidence in subsequent revenue periods and sustain elevated growth expectations.
Another focal point is the sequential pattern following last quarter’s 4.77% quarter-on-quarter decline in net profit. A reacceleration that lifts net profit closer to or above the prior peak, alongside confirmation of controlled operating expenses, would align with the projected 87.61% year-over-year increase in EBIT and 179.77% year-over-year uplift in adjusted EPS this quarter. In the absence of explicit margin guidance, disclosures on pricing discipline, module attach, and support cost trajectories will help refine how much of the revenue growth translates to earnings in the near term.
Analyst Opinions
Bullish opinions outnumber bearish opinions during the current window, with the consensus leaning positive. Recent views include a Buy rating from Evercore ISI on January 13, 2026 with a $40.00 price target and an Outperform initiation from Leerink Partners on February 2, 2026 with a $43.00 price target. The broader sell-side stance indicates an average rating of Buy and a mean price target of $46.73, framing expectations for continued execution and expansion.
The bullish tilt is grounded in the double-digit revenue growth expected this quarter, led by a projected 26.63% year-over-year increase to $293.92 million, and in the potential for operating leverage as platform enhancements scale across the customer base. Analysts highlight the pathway to higher-margin mix through automation and modular adoption, which can compress manual workflows for clients and support elevated net revenue retention over time. The elevated adjusted EPS projection near $0.39, representing a 179.77% year-over-year gain, also suggests leverage from the cost base as revenue expands, a point that resonates with optimistic price targets.
A key thread in supportive coverage is that the AI-enabled workflow additions serve as a catalyst for both new customer acquisition and expansion into existing accounts. Positive commentary around prior authorization acceleration and denial prevention aligns with clients’ needs to improve administrative throughput and financial performance, potentially increasing the stickiness of the platform. As these capabilities disseminate, the revenue flywheel can benefit from broader adoption of advanced modules, contributing to subscription growth and sustained top-line momentum.
Bullish analysts also emphasize the importance of execution signals in the upcoming report. Many expect that clarity on subscription mix, attach rates for newly released capabilities, and the translation of bookings into revenue will reinforce the upward trajectory implied by current estimates. If management pairs a revenue and EPS beat with a constructive near-term outlook, the discrepancy between the mean price target and the prevailing share price could narrow, validating the positive stance.
Should the company’s commentary indicate that gross margin remains near recent levels, the market may infer that product mix is trending favorably and that new features are not exerting undue pressure on delivery costs. Confirmation that the net margin can scale from the 11.41% benchmark would further support the view that operating leverage is materializing as expected. In this context, investors will look for evidence that spending on research and development and commercial initiatives is calibrated to growth ambitions without eroding near-term profitability targets.
Overall, the majority opinion anticipates a constructive print supported by revenue growth, emerging benefits from automation, and a margin profile that holds at or near recent levels as mix improves. Price targets in the $40–$47 range reflect confidence in the multi-quarter growth runway implied by current estimates and in the company’s ability to translate platform upgrades into improved financial outcomes. If the company’s guidance and qualitative commentary substantiate these themes, bullish views are likely to remain in the majority for the near term.
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