Weave Communications (WEAV) AI Stock Analysis

• Market Cap: $538.30M
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.85
• Revenue Growth: 18.10%
• EPS Growth: 4.60%
• Country: US
• Employees: 854
• Sector: Technology
• Sector Strength: 92
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 75,181,800
• 10 Day Avg. Volume: 998,435
• 30 Day Avg. Volume: 1,013,047
• PEG Ratio: 3.09
• Price to Book (P/B): 17.03
• Price to Sales (P/S): 5.58
• P/FCF Ratio: 95.35
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 2.75
• Enterprise Value/Gross Profit: 3.83
• Enterprise Value/Ebitda: -56.97
• 1Y Price Target: $12.67
• Price Target Upside: 76.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 59 Neutral
• Price Target: $7.00 ▼(-2.23% Downside)

Weave Communications' overall score reflects significant strengths in revenue growth and operational enhancements, as highlighted during the earnings call. However, technical indicators point to bearish momentum, and valuation challenges persist with negative earnings. Improvements in profitability and technical recovery could enhance the stock's attractiveness.

Positive Factors

Acquisition

The company’s acquisition of TrueLark, an AI-powered receptionist and front-desk platform, enhances the company’s value proposition.

Market Positioning

Advanced hiring or new sales teams and guidance implying accelerating growth positions the company well for a higher growth trajectory.

Revenue Growth

Payments revenue growth continues to outstrip consolidated revenue growth and provides a new vector for ARPU growth and customer retention.

Negative Factors

Operating Income Guidance

WEAV also slightly lowered full-year 2025 non-GAAP operating income guidance by $2.5mn, also driven by TrueLark.

Revenue Retention

Net revenue retention of 96% fell sequentially, as was gross revenue retention of 90%.

Weave Communications Business Overview & Revenue Model

Company Description

Weave Communications (WEAV) is a technology company specializing in providing communications and customer engagement software solutions for small and medium-sized businesses. The company operates in the telecommunications and software-as-a-service (SaaS) sectors, offering a platform that integrates various communication channels such as phone, messaging, and email with customer relationship management (CRM) tools. Weave's core products and services are designed to enhance customer interactions, streamline office workflow, and improve client retention for businesses across industries including dental, optometry, and veterinary practices.

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 exhibits strong revenue growth and gross profit margins, but profitability remains a concern due to continued negative net income and EBIT. The balance sheet is stable with moderate leverage, but the declining equity ratio suggests increased liability dependency. Cash flow improvements are a positive sign, though financial sustainability will require operational and profitability enhancements.

Income Statement

Weave Communications has shown consistent revenue growth, with the most recent TTM (Trailing-Twelve-Months) revenue increasing by 8.1% compared to the previous year. However, profitability remains a challenge, as indicated by negative EBIT and Net Income across periods. The company exhibits strong gross profit margins (71.8% TTM), but the negative net profit margin (-13.6% TTM) highlights ongoing operational inefficiencies.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.69, indicating manageable leverage. Stockholders' equity has been improving, reflecting growing total assets. However, the equity ratio has declined over the years, now at 38.6%, suggesting a higher reliance on liabilities. The positive return on equity (ROE) remains elusive due to persistent net losses.

Cash Flow

Cash flows are improving, with a notable increase in free cash flow by 19.7% in the latest period. The operating cash flow to net income ratio is positive, indicating cash generation capability despite losses. However, the reliance on financing activities in past years and recent negative investing cash flows may pose future challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	220.83M	204.31M	170.47M	142.12M	115.87M	79.90M
Gross Profit	158.67M	145.88M	116.09M	88.84M	66.50M	45.45M
EBITDA	-10.67M	-11.17M	-13.02M	-31.55M	-38.31M	-29.90M
Net Income	-30.13M	-28.35M	-31.03M	-49.74M	-51.69M	-40.42M
Balance Sheet
Total Assets	204.34M	188.93M	201.01M	208.35M	187.49M	92.97M
Cash, Cash Equivalents and Short-Term Investments	77.84M	99.13M	108.84M	113.34M	136.00M	55.70M
Total Debt	54.77M	56.06M	59.54M	73.56M	25.04M	18.44M
Total Liabilities	125.47M	121.96M	122.06M	125.13M	75.18M	54.98M
Stockholders Equity	78.88M	66.97M	78.96M	83.22M	112.30M	37.99M
Cash Flow
Free Cash Flow	14.31M	11.96M	6.53M	-15.89M	-30.18M	-19.38M
Operating Cash Flow	16.40M	14.15M	10.22M	-12.77M	-20.37M	-15.52M
Investing Cash Flow	-10.76M	8.88M	-7.74M	-54.03M	-9.81M	-3.86M
Financing Cash Flow	-12.63M	-22.19M	-13.72M	-7.21M	110.48M	-5.15M

Weave Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.16
• 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 7.16 is below the 20-day moving average (MA) of 7.67, below the 50-day MA of 8.44, and below the 200-day MA of 12.08, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 36.19 is Neutral, neither overbought nor oversold. The STOCH value of 20.09 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	$680.39M	54.41	3.26%	―	-0.05%	23.22%
DSP	70 Neutral	$829.63M	448.84	4.15%	―	30.64%	―
VTEX	67 Neutral	$1.06B	71.46	6.26%	―	7.71%	―
CMRC	61 Neutral	$356.04M	―	-55.85%	―	4.06%	57.50%
WEAV	59 Neutral	$538.30M	―	-40.52%	―	18.10%	4.60%
BMBL	59 Neutral	$779.85M	―	-46.57%	―	-2.39%	-2961.26%
Sector *	50 Neutral	C$3.26B	5.39	-49.37%	9.08%	2.10%	-13.02%

Weave Communications Corporate Events

Weave Communications Appoints Adrian McDermott to Board

On June 22, 2025, Weave Communications announced the appointment of Adrian McDermott to its Board of Directors, effective August 1, 2025. McDermott, currently the Chief Technology Officer at Zendesk, brings extensive experience in technology and product development, particularly in AI-powered customer service solutions and platform scalability, which will aid Weave’s strategic technology initiatives. This appointment follows Weave’s acquisition of TrueLark and its recognition in G2’s 2025 Best Software Awards, reinforcing the company’s commitment to technological innovation and expansion in the healthcare market.

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 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.