Why Is Waystar Holdings Stock Gaining Tuesday?

Healthcare payment software provider Waystar Holdings Corp. (NASDAQ:WAY) is reportedly exploring strategic alternatives, including a potential sale. A deal could take Waystar private just two years after its initial public offering.

Following the media report, the stock jumped nearly 8%.

Waystar Raises 2026 Outlook

Waystar recently reported second-quarter adjusted earnings of 43 cents per share, beating the 40-cent consensus estimate. Revenue of $319.67 million also topped Wall Street expectations of $316.16 million.

The company raised its fiscal 2026 adjusted earnings guidance to $1.61 to $1.70 per share, up from its prior outlook of $1.59 to $1.68. The revised range brackets Wall Street’s $1.64-per-share estimate.

Waystar also raised the low end of its 2026 revenue outlook, forecasting $1.276 billion to $1.294 billion, compared with its previous range of $1.274 billion to $1.294 billion. Wall Street expects $1.284 billion.

William Blair said deal pricing could be a key consideration. Waystar issued shares valued at about $37 to Iodine Software’s private equity owners when it announced that acquisition.

The firm estimates Advent International, Iodine’s largest shareholder, would likely need a potential offer in the low- to mid-$30s per share to support a transaction. It maintains an Outperform rating.

Sale Talks Remain Early

Reuters reported Tuesday that the company hired investment bank Evercore to advise on the process.

The discussions remain at an early stage, according to people familiar with the matter. The plans could change, and Waystar may ultimately decide against a sale.

A potential auction could also test investor appetite for software-focused businesses.

AI Concerns Pressure Shares

The company has positioned itself as a healthcare software company focused on automating administrative workflows.

However, Morgan Stanley analysts said in July that investors had grown increasingly concerned that artificial intelligence would disrupt software companies.

Those concerns, combined with a broader software selloff, have weighed heavily on Waystar shares this year.

WAY Price Action: Waystar shares rose 7.95% to $26.88 Tuesday at the time of publication, according to Benzinga Pro data.

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