Weave Communications (WEAV) AI Stock Analysis

• Market Cap: $446.31M
• Dividend Yield: N/A
• Average Volume (3M): 2.04M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: 17.34%
• EPS Growth: -8.35%
• Country: US
• Employees: 854
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Application
• EPS (TTM): 0.03
• Shares Outstanding: 78,025,760
• 10 Day Avg. Volume: 2,162,911
• 30 Day Avg. Volume: 2,037,263
• PEG Ratio: 2.75
• Price to Book (P/B): 7.03
• Price to Sales (P/S): 2.42
• P/FCF Ratio: 38.23
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 1.74
• Enterprise Value/Gross Profit: 2.42
• Enterprise Value/Ebitda: -33.54
• 1Y Price Target: $9.00
• Price Target Upside: 66.05% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $6.00 ▲(10.70% Upside)
• Action: Reiterated Date: 02/20/26
• Date: Action: Reiterated 02/20/26

Score is primarily driven by improving financial quality (strong gross margins and positive free cash flow) and supportive guidance for further operating-income improvement. Offsetting these are weak technicals (below key moving averages with negative MACD) and loss-based valuation signals (negative P/E), plus retention/churn and execution timing risk around the AI ramp.

Positive Factors

Gross margin strength

Sustained ~72%+ gross margins indicate durable unit economics in Weave's SaaS offerings. High gross margins give structural leverage: they fund R&D and product development, allow absorption of S&M while expanding operating income, and underpin long-term free cash flow generation as revenue scales.

Positive cash generation

Consistent positive operating and free cash flow marks a durable shift from prior negative cash periods. Reliable cash generation supports organic product investment, reduces reliance on external financing, and increases resilience to execution risk while management pushes toward sustained non‑GAAP profitability.

AI/product & TAM expansion

Acquisition and AI roadmap meaningfully broaden addressable market and product differentiation. Embedding autonomous intake, payments and unified inbox drives new monetization vectors, supports higher payments revenue growth, and creates structural upsell and stickiness versus peers over the next several quarters.

Negative Factors

GAAP profitability weakness

Persisting GAAP losses and a deeply negative ROE signal that economic returns remain below cost of capital. If GAAP profitability does not convert sustainably, accumulated losses could constrain reinvestment, pressure equity cushions, and limit long‑term shareholder returns despite operational improvements.

High sales & marketing spend

Sustained S&M at ~40% of revenue impairs operating leverage and makes profitability contingent on efficient customer acquisition and strong retention. If payback on these investments lags or churn persists in new cohorts, high S&M levels could prevent durable margin expansion.

Retention and upsell constraints

Below‑peak retention and limited historical upsell reduce recurring revenue durability. High single‑location mix and integration-related churn mean expansion revenue is constrained; structural improvements are required for sustained ARR growth and to justify elevated acquisition spend.

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 subscription-based pricing models for its software services. The company offers tiered subscription plans that allow businesses to choose the level of features and services they need, which creates a steady stream of recurring revenue. Additionally, Weave earns money from add-on services, such as enhanced analytics and premium support options. The company has formed strategic partnerships with various industry players, including CRM and marketing software providers, which not only expand its reach but also create integrated solutions that add value for its customers. This integration helps drive customer retention and attracts new users, contributing significantly to its overall earnings.

Weave Communications Financial Statement Overview

Summary

Improving fundamentals led by sustained positive operating cash flow ($17.5M) and free cash flow ($15.2M) plus strong ~72% gross margins. Key offset is ongoing GAAP profitability weakness (TTM net margin -11.7% and very negative ROE around -45%), with growth decelerating to ~4% TTM revenue growth.

Income Statement

TTM (Trailing-Twelve-Months) revenue grew 4.0% to $239.0M, showing continued top-line expansion (though growth has slowed meaningfully versus earlier years). Gross margin remains strong at ~72% and has improved steadily since 2020, indicating solid unit economics. However, profitability is still the key weakness: TTM net margin is -11.7% with negative operating profit and negative EBITDA margins, meaning the company is not yet operating at scale despite narrowing losses versus prior years.

Balance Sheet

Leverage appears manageable with TTM debt-to-equity at ~0.63, improving from 2024 (~0.84), and equity of $82.4M provides a reasonable cushion relative to $208.0M in assets. The main concern is continued losses driving weak returns on equity (TTM return on equity around -45%), which can pressure the balance sheet over time if profitability does not improve.

Cash Flow

Cash generation is a relative strength: TTM operating cash flow is positive at $17.5M and free cash flow is also positive at $15.2M, a notable improvement from the negative cash flow profile seen in 2020–2022. That said, TTM free cash flow declined ~6.2% versus the prior period, and operating cash flow remains modest relative to revenue (about 0.21x), suggesting cash conversion is improving but not yet consistently strong.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	239.02M	204.31M	170.47M	142.12M	115.87M
Gross Profit	172.31M	145.88M	116.09M	88.84M	66.50M
EBITDA	-12.42M	-11.17M	-13.02M	-31.55M	-38.31M
Net Income	-28.05M	-28.35M	-31.03M	-49.74M	-51.69M
Balance Sheet
Total Assets	207.97M	188.93M	201.01M	208.35M	187.49M
Cash, Cash Equivalents and Short-Term Investments	81.72M	99.13M	108.84M	113.34M	136.00M
Total Debt	86.71M	56.06M	59.54M	73.56M	25.04M
Total Liabilities	125.38M	121.96M	122.06M	125.13M	75.18M
Stockholders Equity	82.38M	66.97M	78.96M	83.22M	112.30M
Cash Flow
Free Cash Flow	15.15M	11.96M	6.53M	-15.89M	-30.18M
Operating Cash Flow	17.54M	14.15M	10.22M	-12.77M	-20.37M
Investing Cash Flow	-6.85M	8.88M	-7.74M	-54.03M	-9.81M
Financing Cash Flow	-7.33M	-22.19M	-13.72M	-7.21M	110.48M

Weave Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 5.42 is below the 20-day moving average (MA) of 6.21, below the 50-day MA of 6.70, and below the 200-day MA of 7.51, indicating a bearish trend. The MACD of -0.33 indicates Positive momentum. The RSI at 31.45 is Neutral, neither overbought nor oversold. The STOCH value of 25.03 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
DJCO	69 Neutral	$672.33M	7.61	32.20%	―	10.54%	115.36%
MITK	67 Neutral	$608.60M	38.19	7.45%	―	4.42%	165.42%
DSP	65 Neutral	$575.64M	349.24	4.45%	―	22.97%	49.49%
RDVT	64 Neutral	$596.21M	54.96	11.58%	―	22.27%	117.93%
WEAV	58 Neutral	$446.31M	-13.00	-37.56%	―	17.34%	-8.35%
CRNC	52 Neutral	$365.10M	-301.49	0.25%	―	-24.05%	96.90%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%