Takeaways From Meetings With WAY's Senior Management

Research evidence excerpt

Takeaways From Meetings With WAY's Senior Management

TD Cowen Waystar Holding Corporation

Global Research May 22, 2026

■Mgmt. suggested its recent $200M share repo authorization was done with an

acknowledgment of where WAY shares are currently trading. We believe this indicates mgmt.

is likely to deploy meaningful capital toward share repo in the near-term. Beyond that, mgmt.

reiterated its capital priorities of 1) reinvest back in the business, 2) M&A opportunities (focus

on tuck-in variety, although currently a disconnect in valuations in private market), and 3)

pay down debt or return capital to shareholders.

■WAY believes the threat from AI-native companies is minimal as it doesn't see vibe coding

a highly regulated clearing house or pmt. facilitation tool as a practical endeavor for most

health systems. While there are a handful of health systems that have the resources to take

on the task of developing its own RCM solutions, WAY mgmt. believes the more difficult

problem to solve for a health system would be how to consistently maintain those solutions

to ensure that they are proactive or predictive, particularly if there is an AI-based arms race

w/ payors over the coming years. WAY noted that health systems see low-hanging fruit for

automation/investment in other areas within their ecosystems.

■Mgmt. sized the '26 rev H/W from quicker than expected "print to digital" conversion

in its Patient Statements business at $10-12M. This implies its 2026 rev guide ($1.274B-

$1.294B; reiterated at 1Q) now assumes ~11% organic rev, vs. initial guide of 10%. We find

this encouraging, as it implies strong underlying momentum, particularly given the lower

utilization environment in '26 (relative to '25). Given the shift from print to digital has a de

minimis impact to adj.