Waystar Holding Corp. (NASDAQ:WAY) is possibly approaching a major achievement in its business, so we would like to shine some light on the company. Waystar Holding Corp. develops a cloud-based software solution for healthcare payments. The US$5.6b market-cap company posted a loss in its most recent financial year of US$51m and a latest trailing-twelve-month loss of US$53m leading to an even wider gap between loss and breakeven. The most pressing concern for investors is Waystar Holding's path to profitability – when will it breakeven? Below we will provide a high-level summary of the industry analysts’ expectations for the company.

View our latest analysis for Waystar Holding

Consensus from 8 of the American Healthcare Services analysts is that Waystar Holding is on the verge of breakeven. They expect the company to post a final loss in 2024, before turning a profit of US$71m in 2025. The company is therefore projected to breakeven just over a year from now. What rate will the company have to grow year-on-year in order to breakeven on this date? Using a line of best fit, we calculated an average annual growth rate of 117%, which is extremely buoyant. Should the business grow at a slower rate, it will become profitable at a later date than expected.

We're not going to go through company-specific developments for Waystar Holding given that this is a high-level summary, though, take into account that generally healthcare tech companies, depending on the stage of product development, have irregular periods of cash flow. This means that a high growth rate is not unusual, especially if the company is currently in an investment period.

One thing we would like to bring into light with Waystar Holding is its relatively high level of debt. Generally, the rule of thumb is debt shouldn’t exceed 40% of your equity, which in Waystar Holding's case is 41%. Note that a higher debt obligation increases the risk in investing in the loss-making company.

Next Steps:

This article is not intended to be a comprehensive analysis on Waystar Holding, so if you are interested in understanding the company at a deeper level, take a look at Waystar Holding's company page on Simply Wall St. We've also put together a list of relevant factors you should further examine:

1. Valuation: What is Waystar Holding worth today? Has the future growth potential already been factored into the price? The intrinsic value infographic in our free research report helps visualize whether Waystar Holding is currently mispriced by the market.
2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on Waystar Holding’s board and the CEO’s background.
3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.