Weave Communications (WEAV)
NYSE:WEAV
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Weave Communications
(NYSE:WEAV)
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Rating:56Neutral
Price Target:
$5.00
▲(14.42% Upside)
Action:ReiteratedDate:03/30/26
The score is primarily held back by weak technicals (price below key moving averages with negative momentum) and still-unproven GAAP profitability despite improving cash flow. Offsetting factors include solid gross margins and a positive earnings-call outlook with guidance for higher revenue and non-GAAP operating income, plus a potentially supportive governance reset from recent corporate events.
Positive Factors
High gross margins
Sustained ~72%+ gross margins indicate strong unit economics and pricing power in Weave’s SaaS and payments mix. High gross margins create durable capacity to fund R&D and sales, improve operating leverage as revenue scales, and support long-term margin expansion even before GAAP profit conversion.
Negative Factors
Lack of GAAP profitability
Sustained GAAP losses and negative margins constrain returns and can erode equity if prolonged. Until operating profitability is consistent, the company faces limited financial flexibility, higher stakeholder scrutiny, and greater sensitivity to adverse shocks despite improving non‑GAAP metrics and cash flow.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~72%+ gross margins indicate strong unit economics and pricing power in Weave’s SaaS and payments mix. High gross margins create durable capacity to fund R&D and sales, improve operating leverage as revenue scales, and support long-term margin expansion even before GAAP profit conversion.
Read all positive factors
Weave Communications (WEAV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$385.38M
Dividend YieldN/A
Average Volume (3M)2.22M
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth17.34%
EPS Growth-8.35%
CountryUS
Employees854
SectorHealthcare
Sector Strength45
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.03
Shares Outstanding78,648,610
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 Cap1.08
Enterprise Value/Revenue1.75
Enterprise Value/Gross Profit2.42
Enterprise Value/Ebitda-38.70
Forecast
1Y Price Target
$8.50Price Target Upside94.51% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.12
Revenue Forecast (FY)$274.72M
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 minimiz...
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:Feb 19, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Positive
The call emphasized strong, repeatable top-line growth (17% YoY), record gross margins, improving profitability and free cash flow, meaningful customer and product momentum (TrueLark acquisition, unified inbox, payments acceleration and a CareCredit partnership). At the same time, management acknowledged retention and churn headwinds tied to new vertical integrations, a high near-term sales & marketing cost base (40% of revenue), and that much of the AI-driven upside is phased into the back half of 2026. Overall, the positives around margin expansion, cash generation, product differentiation and a clear AI roadmap outweigh the manageable operational and timing challenges.Positive Updates
Consistent Revenue Growth
Q4 revenue of $63.4M, representing 17% year-over-year growth; full year 2025 revenue of $239M, also up 17% year-over-year.
Negative Updates
Retention Metrics Below Historical Peaks
Reported net revenue retention of 93% and gross revenue retention of 89% in Q4; management noted these metrics dipped due to lapping a 2024 price increase and integration-related churn, and expects gross retention to trend back toward historical 91%–93% over time.
Read all updates
Q4-2025 Updates
Positive
Negative
Consistent Revenue Growth
Q4 revenue of $63.4M, representing 17% year-over-year growth; full year 2025 revenue of $239M, also up 17% year-over-year.
Read all positive updates
Company Guidance
Weave guided Q1 2026 revenue of $64.2M–$64.8M with Q1 non‑GAAP operating income of $1M–$2M (noting seasonal Q1 expense items such as payroll tax resets, benefit renewals and audit fees), and for FY2026 expects total revenue of $273M–$276M and non‑GAAP operating income of $8M–$12M; weighted average shares are ~78.7M for Q1 and ~79.9M for the full year. Management said new AI Receptionist and other product releases (GA in H1 with expanded autonomous intake/payments in H2) should boost growth in the back half of 2026, they expect to improve operating income year‑over‑year, and plan to flow a larger percentage of incremental revenue into operating income.Weave Communications Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
60
Neutral
Cash Flow
71
Positive
| 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 | -10.78M | -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
Negative
4.37
Price Trends
5.35
Negative
6.03
Negative
6.74
Negative
Market Momentum
-0.12
Negative
48.27
Neutral
81.27
Negative
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 4.75, below the 50-day MA of 5.35, and below the 200-day MA of 6.74, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 48.27 is Neutral, neither overbought nor oversold. The STOCH value of 81.27 is Negative, 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 76 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $667.74M | 8.21 | 19.72% | ― | 22.97% | 49.49% | |
73 Outperform | $539.56M | 60.77 | 13.47% | ― | 22.27% | 117.93% | |
69 Neutral | $740.19M | -21.04 | 25.60% | ― | 10.54% | 115.36% | |
69 Neutral | $638.51M | 43.48 | 6.95% | ― | 4.42% | 165.42% | |
56 Neutral | $385.38M | -20.65 | -36.38% | ― | 17.34% | -8.35% | |
52 Neutral | $354.29M | -22.93 | 0.22% | ― | -24.05% | 96.90% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WEAV
Weave Communications
4.90
-5.58
-53.24%
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Weave Communications Corporate Events
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.