Weave Communications (WEAV) AI Stock Analysis

• Market Cap: $745.05M
• Dividend Yield: N/A
• Average Volume (3M): 767.83K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.84
• Revenue Growth: 19.58%
• EPS Growth: 6.58%
• Country: US
• Employees: 854
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 75,181,800
• 10 Day Avg. Volume: 715,802
• 30 Day Avg. Volume: 767,826
• PEG Ratio: 0.63
• Price to Book (P/B): 9.83
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 118.89
• Enterprise Value/Market Cap: 1.05
• Enterprise Value/Revenue: 0.98
• Enterprise Value/Gross Profit: 5.14
• Enterprise Value/Ebitda: -17.31
• 1Y Price Target: $14.67
• Price Target Upside: 48.03% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 62 Neutral
• Price Target: $10.00 ▲(0.91%Upside)

The overall stock score reflects strong earnings call highlights and positive corporate events that indicate future growth potential. However, financial challenges, bearish technical indicators, and valuation concerns temper the outlook.

Weave Communications Business Overview & Revenue Model

Company Description

Weave Communications, Inc. provides a customer communications and engagement software platform in the United States and Canada. Its platform enables small and medium-sized businesses to maximize the value of their customer interactions and minimize the time and effort spent on manual or mundane tasks. The company's products include Customized Phone System, a smarter phone system to identify whether incoming calls are from new or current customers, provide information at every call, and manages heavy call times; Weave Text Messaging to communicate with customers; Weave Missed Call Text to take action in real time upon notification of a missed call; Weave Team, a group messaging solution that helps businesses and their team members communicate with each other from their work stations; and Weave Mobile App to text customers, request payments, and receive and make calls. It also offers Weave Reviews to request, collect, monitor, and respond to reviews; Weave Email Marketing, an email system; Web Assistant Appointment Requests and Text Connect to interact with their existing and potential customers online directly through their websites; Weave Payments, a payment processing solution; Customer Insights to collect payments faster, improve personalized engagement with each customer, and recommend follow-up items; and Analytics to identify unscheduled treatments, canceled appointments, unpaid invoices, and other needs. In addition, the company provides Digital Forms to fill out critical information; and Scheduling to send automatic scheduling reminders through text message or email reminders. It serves customers in dental, optometry, veterinary, physical therapy, home services, audiology, medical specialty services, and podiatry industries. The company was formerly known as Recall Solutions, LLC and changed its name to Weave Communications, Inc. in October 2015. Weave Communications, Inc. was founded in 2008 and is headquartered in Lehi, Utah.

How the Company Makes Money

Weave Communications generates revenue primarily through a subscription-based model, offering its software solutions on a recurring monthly basis. Key revenue streams include subscription fees from its communication platform, which integrates phone systems, messaging services, and other customer engagement tools. The company may also earn revenue from additional services such as hardware sales or premium features offered to clients. Weave's earnings are influenced by the growth of its customer base, the retention of existing clients, and the expansion of its service offerings. Additionally, strategic partnerships with industry-specific associations or technology providers can contribute to its market reach and revenue growth.

Weave Communications Financial Statement Overview

Summary

Weave Communications shows strong revenue growth and improving cash flows, but faces challenges with ongoing net losses and moderate leverage. Continued focus on operational efficiency and debt management is crucial.

Income Statement

Weave Communications has shown consistent revenue growth over recent years, with a significant increase from $79.9M in 2020 to $213M in TTM (Trailing-Twelve-Months) 2025. Gross profit margin is strong at approximately 71.8%, indicating effective cost management. However, the company continues to face challenges in achieving profitability, with negative net profit and EBIT margins. The net profit margin stands at -14.1%, indicating ongoing losses despite revenue growth.

Balance Sheet

The balance sheet presents a mixed picture. While the company maintains a solid equity base with an equity ratio of 36.4%, the debt-to-equity ratio of 0.81 reflects moderate leverage. The return on equity is negative due to ongoing net losses, indicating a struggle to generate returns for shareholders. However, the company has managed to maintain a stable asset base and improve its cash position over time.

Cash Flow

Cash flow analysis reveals a positive trajectory, with significant improvement in operating cash flows, reaching $33.6M in TTM 2025. The free cash flow has also turned positive, showing a remarkable increase from negative figures in previous years. The operating cash flow to net income ratio is strong, reflecting better cash generation relative to net losses. This improvement in cash flows provides a positive outlook for liquidity and operational stability.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
212.95M	204.31M	170.47M	142.12M	115.87M	79.90M
	Gross Profit
152.84M	145.88M	116.09M	88.84M	66.50M	45.45M
	EBIT
-32.58M	-31.41M	-34.37M	-49.70M	-50.39M	-39.57M
	EBITDA
-14.21M	-11.17M	-13.02M	-31.55M	-38.31M	-29.90M
	Net Income Common Stockholders
-29.97M	-28.35M	-31.03M	-49.74M	-51.69M	-40.42M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
113.34M	99.13M	108.84M	113.34M	136.00M	55.70M
	Total Assets
208.35M	188.93M	201.01M	208.35M	187.49M	92.97M
	Total Debt
73.56M	56.06M	59.54M	73.56M	25.04M	18.44M
	Net Debt
11.57M	4.46M	8.79M	11.57M	-110.95M	-37.26M
	Total Liabilities
125.13M	121.96M	122.06M	125.13M	75.18M	54.98M
	Stockholders Equity
83.22M	66.97M	78.96M	83.22M	112.30M	37.99M
Cash Flow		Free Cash Flow
30.63M	11.96M	6.53M	-15.89M	-30.18M	-19.38M
	Operating Cash Flow
33.63M	14.15M	10.22M	-12.77M	-20.37M	-15.52M
	Investing Cash Flow
5.01M	8.88M	-7.74M	-54.03M	-9.81M	-3.86M
	Financing Cash Flow
-15.84M	-22.19M	-13.72M	-7.21M	110.48M	-5.15M

Weave Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.91
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEAV, the sentiment is Negative. The current price of 9.91 is below the 20-day moving average (MA) of 10.07, below the 50-day MA of 10.06, and below the 200-day MA of 12.78, indicating a bearish trend. The MACD of -0.18 indicates Negative momentum. The RSI at 47.47 is Neutral, neither overbought nor oversold. The STOCH value of 68.50 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEAV.

Weave Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
VMEO	72 Outperform	$747.11M	47.08	4.29%	―	-0.05%	23.22%
VTEX	71 Outperform	$1.22B	79.56	6.26%	―	7.71%	―
DSP	70 Outperform	$910.34M	470.76	4.15%	―	30.64%	―
WEAV	62 Neutral	$745.05M	―	-42.20%	―	19.58%	6.58%
Sector *	62 Neutral	$11.81B	10.34	-7.44%	2.91%	7.41%	-7.93%
BMBL	56 Neutral	$548.48M	―	-46.57%	―	-2.39%	-2961.26%
BIGC	54 Neutral	$421.32M	―	-64.59%	―	5.33%	58.41%

Weave Communications Corporate Events

Weave Communications Registers Shares Post TrueLark Acquisition

On June 4, 2025, Weave Communications filed a prospectus supplement with the SEC to register 981,405 shares of its common stock related to the acquisition of TrueLark. This filing is part of Weave’s obligations under a registration rights agreement following the merger, ensuring compliance with SEC regulations and facilitating the sale of these shares by stakeholders.

The most recent analyst rating on (WEAV) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Weave Communications stock, see the WEAV Stock Forecast page.

Weave Communications Holds 2025 Stockholders Meeting

On May 21, 2025, Weave Communications held its 2025 Annual Meeting of Stockholders, where stockholders voted to elect two Class I directors and ratify the appointment of PricewaterhouseCoopers LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The election of directors and ratification of the accounting firm are expected to impact the company’s governance and financial oversight positively, ensuring continued strategic alignment and transparency.

The most recent analyst rating on (WEAV) stock is a Hold with a $14.50 price target. To see the full list of analyst forecasts on Weave Communications stock, see the WEAV Stock Forecast page.

Weave Communications Acquires TrueLark for $35 Million

On May 4, 2025, Weave Communications announced its strategic acquisition of TrueLark, an AI-powered receptionist and front-desk automation platform, for $35 million. This acquisition aims to enhance Weave’s leadership in healthcare communications by integrating TrueLark’s AI capabilities, which will help automate front-office operations, improve patient engagement, and fill more appointments. The merger is expected to close in the second fiscal quarter of 2025, subject to customary closing conditions. This move positions Weave to address the growing demand for intelligent automation in multi-location healthcare practices, expanding its market reach and offering significant ROI to customers.

Weave Communications CTO Branden Neish Announces Retirement

On April 30, 2025, Branden Neish announced his retirement from Weave Communications, Inc., stepping down as Chief Product and Technology Officer effective May 16, 2025. He will continue in a consulting role until September 16, 2025, to aid in the transition of his responsibilities to Abhi Sharma and Marcus Bertilson. The company has entered into a Transition Agreement with Neish, allowing his unvested restricted stock units to continue vesting during his consulting term.