Should You Invest in Waystar Holding Corp. (WAY)?

Artisan Partners, an investment management company, released its “Artisan Small Cap Fund” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. Global equities continue to rally in the third quarter, the period with double-digit YTD gains. Major US indices like Russell 1000®, Russell Midcap®, and Russell 2000® reached record highs in the period. In the quarter, the fund’s Investor Class fund ARTSX returned 8.69%, Advisor Class fund APDSX posted a return of 8.75%, and Institutional Class fund APHSX returned 8.73%, compared to a return of 12.19% for the Russell 2000 Growth Index. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.

In its third-quarter 2025 investor letter, Artisan Small Cap Fund highlighted stocks such as Waystar Holding Corp. (NASDAQ:WAY). Waystar Holding Corp. (NASDAQ:WAY) is a cloud-based software solution developer for healthcare payments. The one-month return of Waystar Holding Corp. (NASDAQ:WAY) was -8.61%, and its shares gained 9.80% of their value over the last 52 weeks. On November 17, 2025, Waystar Holding Corp. (NASDAQ:WAY) stock closed at $34.29 per share, with a market capitalization of $6.56 billion.

Artisan Small Cap Fund stated the following regarding Waystar Holding Corp. (NASDAQ:WAY) in its third quarter 2025 investor letter:

“During the quarter, we initiated new GardenSM positions in Cognex, Waystar Holding Corp. (NASDAQ:WAY) and Ollie’s Bargain Outlet. Waystar is a leading cloud-based revenue cycle management platform that supports over 30,000 health care organizations, including 16 of the top 20 U.S. hospitals. We initiated a position based on our view that Waystar is well positioned to benefit from the fallout of last year’s cyberattack on its largest competitor, Change Healthcare. While provider switching takes time, early signs indicate this shift is underway. Additionally, we believe Waystar stands to gain from integrating AI capabilities into its software, delivering measurable ROI by automating denial management and prior authorizations, helping providers overcome staffing constraints and improve claims performance.”

Waystar Holding Corp. (NASDAQ:WAY) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 48 hedge fund portfolios held Waystar Holding Corp. (NASDAQ:WAY) at the end of the second quarter, up from 41 in the previous quarter. In the third quarter of 2025, Waystar Holding Corp. (NASDAQ:WAY) recorded revenue of $269 million, reflecting a 12% increase compared to the same period last year, along with an adjusted EBITDA margin of 42%. While we acknowledge the risk and potential of Waystar Holding Corp. (NASDAQ:WAY) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Waystar Holding Corp. (NASDAQ:WAY) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Waystar Holding Corp. (NASDAQ:WAY) and shared the list of best digital health stocks to buy. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.