Waystar Holding Corp. shares fell 4.1% in pre-market trading to $27, extending a selloff that began after the healthcare payment software company reported third-quarter results on Monday evening. Revenue rose 21% year over year to $325.6 million, while adjusted earnings per share of $0.44 exceeded analysts’ consensus estimate of $0.41.
Investors focused instead on the company’s 2026 revenue outlook. The midpoint of its guidance was $1.282 billion, below the $1.29 billion analyst consensus. The outlook also implies fourth-quarter revenue growth of about 6%, down from the 21% reported in the third quarter.
Management pointed to longer implementation and revenue ramp periods for large enterprise customers, a delayed launch of Iodine’s Pre-Bill Anomaly Detection product, and slower-than-expected conversion of bookings into recognized revenue as factors behind the anticipated slowdown.
Some analysts maintained a positive view. Canaccord raised its price target to $34 from $33 and kept a Buy rating, while BMO increased its target to $34 from $30. Truist reiterated its Buy rating and $33 target, citing 25% growth in bookings year to date and an implementation backlog that had expanded by more than 50%.
The broader market also weighed on sentiment. The Nasdaq Composite fell 1.1% on Monday, marking its third consecutive decline, as technology stocks faced pressure from concerns about AI infrastructure spending and high valuations. Nasdaq futures were modestly higher in pre-market trading, though the backdrop remained cautious for growth-focused software companies.
The revenue guidance and expected fourth-quarter slowdown outweighed Waystar’s third-quarter beat and supportive analyst commentary. Shares remained under pressure and were well below their 52-week high of $37.71.
Sources: Investing.com News.