Waystar weighs potential sale, according to Reuters report, as analysts see M&A appeal

Healthcare payment software firm Waystar may be considering a potential sale, according to a Reuters report citing seven sources familiar with the matter. The company has engaged investment bank Evercore to guide the process, but Reuters notes that the situation is still in its early stages and plans could change. Waystar's stock surged more than 16% in pre-market trading after the report, and shares have been up 11% mid-morning on Tuesday.

The firm went public two years ago but has faced pressure, with its market value falling 24% this year to about $4.8 billion. Despite the stock's decline, Waystar's operations remain robust, demonstrating strong revenue growth and rapid adoption of its AI-powered revenue cycle management tools. The company serves 30,000 clients and processes over 7.5 billion healthcare payment transactions annually.

Waystar's second-quarter revenue increased 18% year-over-year, reaching $319.7 million, surpassing analyst estimates. Net income for the period was $40.9 million, with adjusted EBITDA of $136.7 million. The firm's revenue guidance for 2026 was raised to between $1.28 billion and $1.29 billion. Waystar's recent operations include the purchase of AI-driven revenue cycle management company Iodine Software in a $1.25 billion deal to create a fully autonomous revenue cycle in healthcare.

Analysts suggest that the company could attract interest from private equity investors, with former Iodine shareholders potentially playing a role in a potential sale.