WayStar Seeing Solid Leading Indicators, Likely Revenue Conversion in 2027, RBC Capital Markets Says

12:06 PM EST, 11/03/2026 (MT Newswires) -- WayStar's (WAY) leading indicators, like bookings and backlog growth, will likely set up 2027 as a show me catalyst, RBC Capital Markets said in a note emailed Tuesday. WayStar reported Q3 adjusted earnings late Monday of $0.44 per diluted share, up from $0.37 a year earlier and above FactSet consensus of $0.41. Revenue was $325.6 million, up from $268.7 million a year earlier and ahead of $323.4 million consensus. RBC highlighted that the company's year-to-date bookings rose 25% year on year, including the largest new client win, representing about $7 billion in net patient revenue. Also, the over $100,000 implementation backlog increased over 50% year on year, and bookings above $100,000 rose over 30% year to date, according to the note. The contracted relationships will likely start converting to revenue in 2027, the investment firm said, adding that the company's existing client expansion contributed about 60% to year-to-date bookings. Almost half of bookings growth is from demand for pre-bill anomaly detection products and WayStar is offering these products on a performance basis, moving away from its historical subscription-based pricing, RBC said. With performance-based contracts comes the potential for upside and the company has cited experiencing 2x the pre-bill revenue opportunity versus previous expectations in some early adopters, the firm said. RBC kept its outperform rating on Waystar, with a $44 price target. Price: 27.77, Change: -0.37, Percent Change: -1.31