Operational efficiency is improving, with free cash flow margins expanding from 2.3% in 2024Q1 to 22.2% in 2026Q1, supported by a disciplined CapEx/Revenue ratio of 4.9%.
| Cash from Operations | 330.34M | 309.67M | 169.77M | 51.46M | 102.63M | 106.41M |
| Operating CF Margin % | - | 28.17% | 17.99% | 6.51% | 14.56% | 18.39% |
| Operating CF Growth % | 565.39% | 82.41% | 229.9% | -49.86% | -3.54% | - |
| Net Income | 126.1M | 112.09M | -19.13M | -51.33M | -51.45M | -47.12M |
| Depreciation & Amortization | 148.62M | 140.55M | 186.63M | 176.5M | 183.17M | 176.06M |
| Stock-Based Compensation | 34.57M | 42.07M | 54.44M | 8.85M | 8M | 6.83M |
| Deferred Taxes | 38.55M | 45.22M | -59.13M | -61.66M | -27.11M | -23.35M |
| Other Non-Cash Items | 20.15M | 7.83M | 27.13M | 13.73M | 24.81M | 12.79M |
| Working Capital Changes | -37.66M | -38.09M | -20.17M | -34.62M | -34.78M | -18.81M |
| Change in Receivables | -14.2M | -24.32M | -17.84M | -19.17M | -10.94M | -12.66M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 |
| Change in Payables | 7.39M | 8.93M | 18.23M | 11.92M | 0 | 0 |
| Cash from Investing | -763.52M | -680.9M | -27.27M | -61.52M | -17.43M | -444.33M |
| Capital Expenditures | -36.38M | -26.48M | -27.27M | -21.52M | -17.43M | -14.54M |
| CapEx % of Revenue | 3.15% | 2.41% | 2.89% | 2.72% | 2.47% | 2.51% |
| Acquisitions | -629.53M | -629.53M | 0 | -40M | 0 | -429.79M |
| Investments | - | - | - | - | - | - |
| Other Investing | 2.04M | 0 | 0 | 0 | 0 | 0 |
| Cash from Financing | 246.17M | 243.45M | 16.65M | -17.15M | -67.06M | 331.5M |
| Debt Issued (Net) | 224.01M | 224.63M | -1.01B | -18.77M | -65.81M | 349.29M |
| Equity Issued (Net) | 17.5M | 25.78M | 1.02B | -263K | -1.8M | -715K |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | -844K | -688K | -2.45M | -1.91M |
| Other Financing | 4.66M | -6.96M | 7.58M | 1.89M | 554K | -17.07M |
| Net Change in Cash | -187.02M | -127.77M | 159.15M | -27.21M | 18.14M | -6.43M |
| Free Cash Flow | 293.95M | 283.19M | 142.5M | 29.94M | 85.2M | 91.86M |
| FCF Margin % | 25.41% | 25.76% | 15.1% | 3.79% | 12.09% | 15.88% |
| FCF Growth % | 49.86% | 98.73% | 375.9% | -64.86% | -7.25% | - |
| FCF per Share | 1.51 | 1.44 | 0.95 | 0.18 | 0.51 | 0.55 |
| FCF Conversion (FCF/Net Income) | 2.33x | 2.76x | -8.88x | -1.00x | -1.99x | -2.26x |
| Interest Paid | 39.34M | 0 | 122.77M | 193M | 144.32M | 117.11M |
| Taxes Paid | 8.91M | 0 | 51.1M | 51.45M | 5.57M | 2.1M |
Payer consolidation and regulatory shifts
Based on reported financial statements, Waystar consistently generates operating cash flow significantly exceeding net income, with an OCF/NI ratio of 1.96 in 2026Q1, highlighting that non-cash charges like depreciation and amortization are the primary drivers of the company's reported cash-generative capacity relative to accounting profits.
The persistent gap between net income and operating cash flow suggests that Waystar's profitability is heavily influenced by the amortization of capitalized software and infrastructure assets. Investors should monitor whether this reliance on non-cash add-backs masks the true underlying cash costs required to maintain the platform's competitive edge.
As indicated by recent quarterly filings, Waystar's free cash flow margin has demonstrated a positive trajectory, reaching 22.2% in 2026Q1 compared to the 2.3% observed in 2024Q1, which suggests that the business is successfully scaling its operational efficiency as it matures within the public markets.
The significant improvement in FCF margins reflects the company's ability to convert revenue into cash more effectively as the initial costs of platform integration and public listing subside. This trend warrants further investigation into whether this margin expansion is sustainable or if it relies on deferred maintenance or aggressive working capital management.
According to the provided cash flow data, Waystar maintains a disciplined capital expenditure profile, with CapEx/Revenue ratios consistently hovering between 2.1% and 4.9% over the last ten quarters, indicating that the company's core clearinghouse infrastructure does not require heavy, recurring physical asset investment to support growth.
The relatively low capital intensity suggests that Waystar operates as a high-leverage software platform rather than a capital-heavy utility. This allows for a higher proportion of operating cash flow to be directed toward debt reduction or strategic acquisitions rather than sustaining existing operations.
Based on the quarterly cash flow breakdown, working capital changes have been inconsistent, ranging from a $15.5 million inflow in 2025Q2 to a $30.8 million outflow in 2025Q4, which suggests that the timing of client payments and vendor obligations creates periodic friction in cash conversion cycles.
The volatility in working capital appears to be a byproduct of the company's transactional revenue model, where claim processing volumes and associated payment cycles can fluctuate significantly. Investors should monitor these swings to determine if they represent structural inefficiencies or merely the seasonal nature of healthcare billing cycles.
As reported in recent financial disclosures, Waystar utilized $629.5 million for acquisitions in 2025Q4, signaling a clear management preference for inorganic growth to expand its platform capabilities, which stands in contrast to the minimal cash returned to shareholders through dividends or share repurchases during this period.
The aggressive use of cash for acquisitions suggests that management views consolidation as a key lever for maintaining its competitive moat. However, this strategy requires careful monitoring for integration fatigue, as the company must prove that these acquired assets can generate returns exceeding their initial cash outlay.
Quick answers to the most common questions about buying WAY stock.
Waystar Holding Corp. (WAY) generated $309.7M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Waystar Holding Corp. (WAY) generated $283.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Waystar Holding Corp. (WAY) spent $26.5M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.