Waystar Explores Potential Sale
Healthcare Software Provider Waystar Weighs Potential Sale to Return to Private Ownership
Anonymous
Waystar Holding is exploring strategic alternatives, including a potential sale that could return the healthcare payments software company to private ownership about two years after its 2024 public listing. The company has hired Evercore to advise on the early-stage process, which could change or end without a transaction. Waystar’s market value has fallen to roughly $4.8 billion after its shares declined 24% this year amid broader weakness in software stocks and concerns about artificial intelligence disrupting the industry. The company’s recurring subscription revenue and high customer retention provide support, but moderating growth, lengthy implementations and significant debt could limit its flexibility. Major shareholders include EQT, the Canada Pension Plan Investment Board and BlackRock, while analysts remain divided between confidence in the underlying business and concern over its valuation and execution risks.
Key Points
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Waystar is based in Lehi, Utah, and Louisville, Kentucky, and its shares rose from about $20 to a 2025 peak of $45 before falling sharply.
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The company has emphasized that it is a technology provider automating and managing healthcare administrative work, rather than a labor-intensive healthcare services business—a positioning intended to command higher software-sector valuations.
3
Waystar’s insider transactions over the past 12 months show $10.4 million in sales compared with only $0.2 million in purchases, indicating substantial net insider selling.
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Waystar’s trailing price-to-earnings ratio is 38.06, below its five-year median of 53.08, while GuruFocus assigned the company a GF Score of 14 out of 100.
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Evercore ISI analysts said they were surprised by the strategic-review announcement but viewed it as a logical response to the stock’s decline; they maintained an Outperform rating and a $28 price target.
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