Weave Communications (WEAV)
NYSE:WEAV
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Weave Communications
(NYSE:WEAV)
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Rating:56Neutral
Price Target:
$5.50
▲(25.86% Upside)
Action:Reiterated
Date:06/11/26
The score is driven primarily by improving financial performance (expanding gross margins, narrowing losses, and recent positive operating/free cash flow) and a constructive earnings outlook with raised guidance. Offsetting factors are continued GAAP unprofitability (negative P/E), retention and near-term cash flow pressures highlighted on the call, and only mixed technical momentum (below the 200-day average and neutral oscillators).
Positive Factors
Margin Expansion
Sustained gross-margin expansion (mid-50s% to ~72% TTM) reflects a durable shift in product mix toward higher-margin payments and subscription offerings. Higher gross margins provide lasting operating-leverage potential, supporting path to sustained profitability and reinvestment capacity.
Negative Factors
Net Revenue Retention <100%
NRR below 100% indicates churn and downgrades offset expansion, a structural concern for SaaS-driven growth. Unless monthly retention improvements persist and translate to the trailing metric, sustained revenue growth will require higher new sales or materially better per-account expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion
Sustained gross-margin expansion (mid-50s% to ~72% TTM) reflects a durable shift in product mix toward higher-margin payments and subscription offerings. Higher gross margins provide lasting operating-leverage potential, supporting path to sustained profitability and reinvestment capacity.
Read all positive factors
Weave Communications (WEAV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$434.43M
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)―
Beta (1Y)1.71
Revenue Growth16.80%
EPS Growth21.61%
CountryUS
Employees854
SectorHealthcare
Sector Strength45
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.31
Shares Outstanding79,565,636
10 Day Avg. Volume2,587,177
30 Day Avg. Volume2,216,991
Financial Highlights & Ratios
PEG Ratio2.75
Price to Book (P/B)7.03
Price to Sales (P/S)2.42
P/FCF Ratio38.23
Enterprise Value/Market Cap1.12
Enterprise Value/Revenue1.96
Enterprise Value/Gross Profit2.71
Enterprise Value/Ebitda-65.10
Forecast
1Y Price Target
$9.00Price Target Upside105.95% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)0.14
Revenue Forecast (FY)$276.94M
Weave Communications Business Overview & Revenue Model
Company Description
Weave Communications, Inc. delivers a comprehensive software platform designed for customer communication and engagement across the United States and Canada. This platform empowers small and medium-sized businesses (SMBs) to elevate the effectiven...
How the Company Makes Money
Weave primarily makes money by selling subscriptions to its software platform (SaaS) to businesses, typically on a recurring basis (e.g., monthly or annual fees) for access to its communications, engagement, and practice/workflow features. Revenue...
Weave Communications Earnings Call Summary
Earnings Call Date:Apr 30, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: the company reported accelerating revenue growth (17.4% YoY), margin expansion (gross margin +110 bps to 73.2%; operating margin +380 bps to 3.9%), record location additions, strong payments momentum, rapid AI adoption (300%+ increase in AI interactions) and raised full-year guidance. Key challenges include negative free cash flow for the quarter, a sequential $9M decline in cash, dollar-based net revenue retention below 100% (92%), and elevated sales & marketing spend (40.6% of revenue). Management framed several of the short-term cash and expense items as seasonal or investment-related and emphasized improving monthly retention and product-led upsell opportunities. Overall, the strengths (growth, margin expansion, product traction, guidance raises) outweigh the near-term financial and retention headwinds.Positive Updates
Revenue Growth Acceleration
Total revenue of $65.5 million in Q1 2026, representing 17.4% year-over-year growth and coming in above the high end of guidance; the company has met or exceeded the high end of revenue guidance for 17 consecutive quarters.
Negative Updates
Negative Free Cash Flow and Sequential Cash Decline
Ended Q1 with $72.7 million in cash and short-term investments, a sequential decrease of $9.0 million. Cash used by operating activities was $5.7 million and free cash flow was negative $7.1 million in Q1 (seasonal disbursements cited, including annual bonuses and prepaid renewals).
Read all updates
Q1-2026 Updates
Positive
Negative
Revenue Growth Acceleration
Total revenue of $65.5 million in Q1 2026, representing 17.4% year-over-year growth and coming in above the high end of guidance; the company has met or exceeded the high end of revenue guidance for 17 consecutive quarters.
Read all positive updates
Company Guidance
Management guided Q2 2026 revenue of $67.2–$68.2 million and non‑GAAP operating income of $2.1–$3.1 million (noting Q2 operating expenses will increase sequentially for annual merit increases), and raised full‑year 2026 guidance to $275–$278 million in revenue with non‑GAAP operating income of $10.5–$13.5 million; they expect weighted average shares of ~79.6 million in Q2 and ~79.8 million for the full year, reiterated a long‑term gross margin target of 75%–80%, indicated free cash flow should be positive in February 2026, and provided this outlook after a strong Q1 that produced $65.5 million of revenue (17.4% YoY), $47.9 million gross profit (73.2% gross margin, +110 bps YoY) and $2.5 million operating income.Weave Communications Financial Statement Overview
Summary
Income Statement
46
Neutral
Balance Sheet
55
Neutral
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 248.72M | 239.02M | 204.31M | 170.47M | 142.12M | 115.87M |
| Gross Profit | 179.77M | 172.31M | 145.88M | 116.09M | 88.84M | 66.50M |
| EBITDA | -7.50M | -10.78M | -11.17M | -13.02M | -31.55M | -38.31M |
| Net Income | -25.00M | -28.05M | -28.35M | -31.03M | -49.74M | -51.69M |
Balance Sheet | ||||||
| Total Assets | 204.28M | 207.97M | 188.93M | 201.01M | 208.35M | 187.49M |
| Cash, Cash Equivalents and Short-Term Investments | 72.71M | 81.72M | 99.13M | 108.84M | 113.34M | 136.00M |
| Total Debt | 51.29M | 86.71M | 56.06M | 59.54M | 73.56M | 25.04M |
| Total Liabilities | 121.01M | 125.38M | 121.96M | 122.06M | 125.13M | 75.18M |
| Stockholders Equity | 83.28M | 82.38M | 66.97M | 78.96M | 83.22M | 112.30M |
Cash Flow | ||||||
| Free Cash Flow | 9.59M | 15.15M | 11.96M | 6.53M | -15.89M | -30.18M |
| Operating Cash Flow | 12.05M | 17.54M | 14.15M | 10.22M | -12.77M | -20.37M |
| Investing Cash Flow | -14.14M | -6.85M | 8.88M | -7.74M | -54.03M | -9.81M |
| Financing Cash Flow | -9.11M | -7.33M | -22.19M | -13.72M | -7.21M | 110.48M |
Weave Communications Technical Analysis
Negative
4.37
Price Trends
5.43
Positive
5.48
Negative
6.20
Negative
Market Momentum
0.04
Positive
46.12
Neutral
17.73
Positive
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 4.37 is below the 20-day moving average (MA) of 5.69, below the 50-day MA of 5.43, and below the 200-day MA of 6.20, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.12 is Neutral, neither overbought nor oversold. The STOCH value of 17.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEAV.
Weave Communications Risk Analysis
Weave Communications disclosed 77 risk factors in its most recent earnings report. Weave Communications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Weave Communications Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $785.58M | 55.36 | 13.98% | ― | 18.07% | 60.39% | |
75 Outperform | $737.90M | 44.74 | 6.97% | ― | 6.88% | 26.04% | |
69 Neutral | $731.36M | 76.51 | 16.65% | ― | 18.15% | 331.16% | |
61 Neutral | $771.84M | 54.91 | 3.79% | ― | 28.44% | -86.78% | |
58 Neutral | $488.03M | -24.37 | -12.77% | ― | 18.84% | 94.41% | |
56 Neutral | $434.43M | -17.35 | -30.94% | ― | 16.80% | 21.61% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WEAV
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Weave Communications Corporate Events
Executive/Board ChangesShareholder Meetings
Weave Communications Stockholders Back Board and Auditor Choices
Positive
Jun 10, 2026
On June 10, 2026, Weave Communications, Inc. held its 2026 Annual Meeting of Stockholders, where investors voted on director elections and the company’s external auditor. Stockholders elected Class I directors George Scanlon and Debra Tomlin...
Business Operations and StrategyExecutive/Board Changes
Weave Communications Reaches Activist Cooperation, Revamps Board Governance
Positive
Mar 30, 2026
On March 28, 2026, Weave Communications entered into a cooperation agreement with activist investors Engine Capital and 2717 Partners that expands its board from eight to ten members and adds independent directors Edward Robson and Ryan Dubin as C...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.