Technical Analysis
ADX / Directional Indicators: ADX at 22.08 signals an emerging trend strength rather than a firmly established directional move. Both directional lines imply bearish pressure: DI+ shows a peak-and-reversal (bearish) while DI- shows a dip-and-reversal (bearish), indicating sellers currently exert greater influence and that trend strength sits at the threshold for further directional conviction.
MACD: MACD registers negative values and shows a peak-and-reversal, denoting bearish momentum overall; however the MACD sits slightly above its signal line, representing a short-lived crossover that may not invalidate the underlying momentum shift. Taken together, momentum indicators favor downside bias with potential brief counter-moves.
MRO (Momentum/Regression Oscillator): MRO reads 4.15 (positive), which implies current market price sits above the model target and the oscillator’s peak-and-reversal points toward a likely pullback toward fair-value levels; the magnitude suggests modest downside pressure rather than extreme reversion risk.
RSI: RSI at 45.67 with a peak-and-reversal indicates lost near-term upward momentum without reaching oversold territory; this supports a neutral-to-bearish short-term bias rather than a reversal signal.
Price vs Moving Averages & Volatility: Close at $41.94 lies below the 20-day average ($44.68), the 12-day EMA ($45.30), the 50-day average ($49.61) and the 200-day average ($47.91), which confirms short-to-intermediate term price pressure. Bollinger band levels show a lower 1σ at $39.19 and upper 1σ at $50.16, marking current price nearer the lower band. Beta metrics show a very high 42-day beta (5.23) and elevated 52-week beta (1.88), indicating amplified short-term swings and sensitivity to market moves; volume sits around recent averages, so moves have produced typical liquidity rather than outsized flows.
Fundamental Analysis
Revenue & Growth: Total revenue registers $414,671,000. Reported revenue growth stands at 4.78% on the rolling measure, with quarter-over-quarter revenue growth of 47.94% and year-over-year revenue growth of 317.73% as provided. The QoQ acceleration supports the narrative of product adoption and episodic revenue cadence.
Profitability: EBIT of $3,005,000 produces an EBIT margin of 0.73%, well below the industry peer mean of 48.26% and industry peer median of 60.27%. Operating income shows a loss (operating income negative $17,664,000) and operating margin at -4.26%, though operating margin QoQ improved by 42.29%, indicating recent operational leverage. Gross margin stands at 79.84% and declined slightly YoY by 2.19 percentage points, which maintains a structurally high gross-profit profile consistent with software and payment economics.
Cash Flow & Liquidity: Operating cash flow equals $105,317,000 and free cash flow equals $91,133,000; free cash flow yield measures 1.85%, above the industry peer mean of 0.143% for this metric. Cash and short-term investments total $2,241,500,000 with cash on hand of $1,094,530,000, and a current ratio of 1.65 compared with an industry peer mean current ratio of 1.34, reflecting a comfortable near-term liquidity position.
Capital Structure & Leverage: Total debt equals $1,887,090,000 with net debt of $739,070,000. Debt-to-equity sits at 49.57% and debt-to-assets at 18.64%, both consistent with a moderate leverage profile. Interest coverage sits at 0.59, which indicates a compressed cushion between operating earnings and interest but reflects the company’s low cost of debt.
Profitability Growth & Returns: Earnings growth reads 4.92% on the provided measure, though several return metrics (ROA, ROE) remain slightly negative. Cash conversion ratio stands at 14.32%, and cash conversion cycle days near 0.93 days, signaling efficient working capital mechanics for a payments platform.
Earnings Per Share & Valuation Metrics: Reported EPS of $0.64 beat the $0.56 estimate, an EPS surprise of 14.29%. Price multiples: PE ratio 77.04 and forward PE ~77.11; PEG around 15.66. Price-to-book 1.29 sits well below the industry peer mean of 12.16 and median of 9.18 for that metric. Enterprise value / revenue metrics show elevated enterprise multiple of 119.14 but WMDST’s current valuation assessment labels the stock as under-valued. The mix of high absolute multiples and operational improvements suggests the market prices premium growth optionality while fundamentals show early margin recovery.
Valuation Summary: Revenue momentum, operating-leverage improvement QoQ, and positive free cash flow combine with high gross margins to support the WMDST valuation that the stock presently categorizes as under-valued; margin levels still lag industry peer mean and median, leaving room for further EPS conversion if recent operational improvements persist.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-12-31 |
| REPORT DATE: | 2026-02-05 |
| NEXT REPORT DATE: | 2026-05-07 |
| CASH FLOW | Begin Period Cash Flow | $ 3.5 B |
| Operating Cash Flow | $ 105.3 M | |
| Capital Expenditures | $ -14.18 M | |
| Change In Working Capital | $ -4.94 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 128.9 M | |
| End Period Cash Flow | $ 3.7 B | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 414.7 M | |
| Forward Revenue | $ -2.69 B | |
| COSTS | ||
| Cost Of Revenue | $ 83.6 M | |
| Depreciation | $ 7.6 M | |
| Depreciation and Amortization | $ 35.4 M | |
| Research and Development | $ 82.8 M | |
| Total Operating Expenses | $ 432.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 331.1 M | |
| EBITDA | $ 38.4 M | |
| EBIT | $ 3.0 M | |
| Operating Income | $ -17.66 M | |
| Interest Income | $ 23.3 M | |
| Interest Expense | $ 5.1 M | |
| Net Interest Income | $ 16.6 M | |
| Income Before Tax | $ -2.07 M | |
| Tax Provision | $ 522.0 K | |
| Tax Rate | 21.0 % | |
| Net Income | $ -2.59 M | |
| Net Income From Continuing Operations | $ -2.59 M | |
| EARNINGS | ||
| EPS Estimate | $ 0.56 | |
| EPS Actual | $ 0.64 | |
| EPS Difference | $ 0.08 | |
| EPS Surprise | 14.286 % | |
| Forward EPS | $ 0.67 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 10.1 B | |
| Intangible Assets | $ 2.6 B | |
| Net Tangible Assets | $ 1.2 B | |
| Total Current Assets | $ 7.3 B | |
| Cash and Short-Term Investments | $ 2.2 B | |
| Cash | $ 1.1 B | |
| Net Receivables | $ 41.2 M | |
| Inventory | — | |
| Long-Term Investments | $ 33.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 5.0 M | |
| Short-Term Debt | — | |
| Total Current Liabilities | $ 4.4 B | |
| Net Debt | $ 739.1 M | |
| Total Debt | $ 1.9 B | |
| Total Liabilities | $ 6.3 B | |
| EQUITY | ||
| Total Equity | $ 3.8 B | |
| Retained Earnings | $ -1.73 B | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 38.08 | |
| Shares Outstanding | 99.967 M | |
| Revenue Per-Share | $ 4.15 | |
| VALUATION | Market Capitalization | $ 4.9 B |
| Enterprise Value | $ 4.6 B | |
| Enterprise Multiple | 119.143 | |
| Enterprise Multiple QoQ | -29.414 % | |
| Enterprise Multiple YoY | 11.05 % | |
| Enterprise Multiple IPRWA | high: 798.871 BILL: 119.143 mean: 69.158 median: 61.115 low: -442.099 |
|
| EV/R | 11.032 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.66 | |
| Asset To Liability | 1.602 | |
| Debt To Capital | 0.331 | |
| Debt To Assets | 0.186 | |
| Debt To Assets QoQ | -1.564 % | |
| Debt To Assets YoY | 5301.449 % | |
| Debt To Assets IPRWA | high: 0.687 BILL: 0.186 mean: 0.17 median: 0.087 low: 0.004 |
|
| Debt To Equity | 0.496 | |
| Debt To Equity QoQ | 0.156 % | |
| Debt To Equity YoY | 5558.79 % | |
| Debt To Equity IPRWA | high: 2.989 BILL: 0.496 mean: 0.199 median: 0.147 low: -1.778 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 1.295 | |
| Price To Book QoQ | 0.087 % | |
| Price To Book YoY | -42.932 % | |
| Price To Book IPRWA | high: 39.175 mean: 12.165 median: 9.178 BILL: 1.295 low: -16.001 |
|
| Price To Earnings (P/E) | 77.04 | |
| Price To Earnings QoQ | -104.685 % | |
| Price To Earnings YoY | -49.113 % | |
| Price To Earnings IPRWA | high: 522.411 mean: 128.513 median: 84.43 BILL: 77.04 low: -185.3 |
|
| PE/G Ratio | 15.665 | |
| Price To Sales (P/S) | 11.886 | |
| Price To Sales QoQ | -6.35 % | |
| Price To Sales YoY | -50.139 % | |
| Price To Sales IPRWA | high: 101.971 median: 44.141 mean: 43.853 BILL: 11.886 low: 4.135 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 77.109 | |
| Forward PE/G | 15.679 | |
| Forward P/S | -1.837 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 6.325 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.041 | |
| Asset Turnover Ratio QoQ | 4.47 % | |
| Asset Turnover Ratio YoY | 5.576 % | |
| Asset Turnover Ratio IPRWA | high: 0.373 median: 0.125 mean: 0.124 BILL: 0.041 low: 0.0 |
|
| Receivables Turnover | 11.318 | |
| Receivables Turnover Ratio QoQ | -7.832 % | |
| Receivables Turnover Ratio YoY | -5.028 % | |
| Receivables Turnover Ratio IPRWA | BILL: 11.318 high: 4.512 mean: 1.584 median: 1.485 low: 0.601 |
|
| Inventory Turnover | — | |
| Inventory Turnover Ratio QoQ | — | |
| Inventory Turnover Ratio YoY | — | |
| Inventory Turnover Ratio IPRWA | — | |
| Days Sales Outstanding (DSO) | 8.062 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 0.927 | |
| Cash Conversion Cycle Days QoQ | -113.22 % | |
| Cash Conversion Cycle Days YoY | — | |
| Cash Conversion Cycle Days IPRWA | high: 113.407 BILL: 0.927 mean: -54.259 median: -67.075 low: -67.09 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.143 | |
| CapEx To Revenue | -0.034 | |
| CapEx To Depreciation | -1.863 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 5.6 B | |
| Net Invested Capital | $ 5.6 B | |
| Invested Capital | $ 5.6 B | |
| Net Tangible Assets | $ 1.2 B | |
| Net Working Capital | $ 2.9 B | |
| LIQUIDITY | ||
| Cash Ratio | 0.506 | |
| Current Ratio | 1.654 | |
| Current Ratio QoQ | -1.233 % | |
| Current Ratio YoY | -0.348 % | |
| Current Ratio IPRWA | high: 5.255 BILL: 1.654 median: 1.386 mean: 1.34 low: 0.466 |
|
| Quick Ratio | — | |
| Quick Ratio QoQ | — | |
| Quick Ratio YoY | — | |
| Quick Ratio IPRWA | — | |
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 49.149 | |
| Cost Of Debt | 0.21 % | |
| Interest Coverage Ratio | 0.593 | |
| Interest Coverage Ratio QoQ | 1.816 % | |
| Interest Coverage Ratio YoY | -92.846 % | |
| Interest Coverage Ratio IPRWA | high: 147.069 median: 66.552 mean: 48.731 BILL: 0.593 low: -110.193 |
|
| Operating Cash Flow Ratio | 0.005 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 7.136 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | -0.244 % | |
| Revenue Growth | 4.783 % | |
| Revenue Growth QoQ | 47.943 % | |
| Revenue Growth YoY | 317.729 % | |
| Revenue Growth IPRWA | high: 14.586 % BILL: 4.783 % mean: 4.639 % median: 4.635 % low: -6.711 % |
|
| Earnings Growth | 4.918 % | |
| Earnings Growth QoQ | -104.655 % | |
| Earnings Growth YoY | -144.262 % | |
| Earnings Growth IPRWA | high: 100.0 % mean: 14.539 % BILL: 4.918 % median: 3.226 % low: -128.333 % |
|
| MARGINS | ||
| Gross Margin | 79.842 % | |
| Gross Margin QoQ | -0.869 % | |
| Gross Margin YoY | -2.188 % | |
| Gross Margin IPRWA | high: 91.096 % BILL: 79.842 % mean: 70.116 % median: 68.036 % low: 40.427 % |
|
| EBIT Margin | 0.725 % | |
| EBIT Margin QoQ | -26.768 % | |
| EBIT Margin YoY | -93.12 % | |
| EBIT Margin IPRWA | high: 60.268 % median: 60.268 % mean: 48.259 % BILL: 0.725 % low: -44.038 % |
|
| Return On Sales (ROS) | -4.26 % | |
| Return On Sales QoQ | 42.285 % | |
| Return On Sales YoY | -140.425 % | |
| Return On Sales IPRWA | high: 47.094 % median: 47.094 % mean: 37.243 % BILL: -4.26 % low: -31.502 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ 91.1 M | |
| Free Cash Flow Yield | 1.849 % | |
| Free Cash Flow Yield QoQ | 12.882 % | |
| Free Cash Flow Yield YoY | 131.125 % | |
| Free Cash Flow Yield IPRWA | high: 3.753 % BILL: 1.849 % median: 0.164 % mean: 0.143 % low: -1.998 % |
|
| Free Cash Growth | 10.784 % | |
| Free Cash Growth QoQ | -46.42 % | |
| Free Cash Growth YoY | -170.831 % | |
| Free Cash Growth IPRWA | high: 403.227 % BILL: 10.784 % mean: -34.195 % median: -77.08 % low: -132.549 % |
|
| Free Cash To Net Income | -35.214 | |
| Cash Flow Margin | 5.256 % | |
| Cash Flow To Earnings | -8.422 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.03 | |
| Return On Assets (ROA) | -0.026 % | |
| Return On Assets QoQ | -10.345 % | |
| Return On Assets YoY | -107.263 % | |
| Return On Assets IPRWA | high: 8.509 % median: 5.909 % mean: 4.591 % BILL: -0.026 % low: -10.846 % |
|
| Return On Capital Employed (ROCE) | 0.053 % | |
| Return On Equity (ROE) | -0.001 | |
| Return On Equity QoQ | -10.526 % | |
| Return On Equity YoY | -107.719 % | |
| Return On Equity IPRWA | high: 0.344 median: 0.098 mean: 0.095 BILL: -0.001 low: -0.138 |
|
| DuPont ROE | -0.067 % | |
| Return On Invested Capital (ROIC) | 0.042 % | |
| Return On Invested Capital QoQ | -22.222 % | |
| Return On Invested Capital YoY | -102.397 % | |
| Return On Invested Capital IPRWA | high: 13.9 % median: 9.056 % mean: 7.204 % BILL: 0.042 % low: -11.474 % |
|