Waystar 2Q26: Strong Bookings, Early Iodine Cross-Sell and Normalization of Utilization, but Step Up in AI Investments Pressuring FCF Generation

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Waystar 2Q26: Strong Bookings, Early Iodine Cross-Sell and Normalization of Utilization, but Step Up in AI Investments Pressuring FCF Generation

J P M O R G A N North America Equity Research

29 July 2026

Waystar

2Q26: Strong Bookings, Early Iodine Cross-Sell and Overweight

Normalization of Utilization, but Step Up in AI WAY, WAY US

Investments Pressuring FCF Generation Price (29 Jul 26):$24.52

▼Price Target (Dec-27):$32.00

Prior (Dec-27):$34.00

Waystar’s 2Q26 results came in modestly ahead of consensus and were paired with

a modest FY26 raise, with subscription strength continuing to do the heavy lifting Vertical SaaS & HealthTech

and management emphasizing (1) sustained bookings momentum (including a Alexei Gogolev AC

double-digit count of $1M+ ACV deals), (2) early Iodine cross-sell traction, and (1-212) 622-9391

(3) accelerating AI product rollout and investment. Management modestly lifted alexei.gogolev@jpmorgan.com

FY26 guidance across revenue and profitability, while reiterating that utilization Destiny Jackson

is reverting toward a more normal ~1–2% long-term baseline (after an elevated (1-212) 622-4360

destiny.jackson@jpmorgan.com

period) and framing evolving coverage dynamics (e.g., Medicaid/ACA churn) as

Ella Smith

incremental demand tailwinds for modules tied to coverage detection, payment

(1-212) 622-2451

yield, and lowering cost-to-collect. The call also highlighted stepped-up product ella.smith@jpmchase.com

investment (with capitalized software spend up materially vs. 2025 and potential Isabella A Camaj

to increase further), the recently authorized $200M buyback (with $13M executed (1-212) 834-2379

in 2Q), and an upcoming CFO transition (Steve Oreskovich to remain as advisor; bella.camaj@jpmorgan.com

Alpana Wegner named incoming CFO).