Weave Communications (WEAV) AI Stock Analysis

• Market Cap: $570.84M
• Dividend Yield: N/A
• Average Volume (3M): 1.14M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.88
• Revenue Growth: 17.34%
• EPS Growth: -8.35%
• Country: US
• Employees: 854
• Sector: Healthcare
• Sector Strength: 45
• Industry: Software - Application
• EPS (TTM): 0.02
• Shares Outstanding: 77,036,190
• 10 Day Avg. Volume: 1,133,958
• 30 Day Avg. Volume: 1,137,876
• 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: 0.86
• Enterprise Value/Revenue: 2.13
• Enterprise Value/Gross Profit: 2.96
• Enterprise Value/Ebitda: -36.90
• 1Y Price Target: $10.67
• Price Target Upside: 43.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 55 Neutral
• Price Target: $7.50 ▲(1.21% Upside)

Weave Communications' overall stock score is driven by strong earnings call results, showcasing revenue growth and product advancements. However, financial performance challenges, particularly in profitability and valuation, weigh down the score. Technical indicators suggest weak momentum, further impacting the overall assessment.

Positive Factors

Revenue Growth

Consistent revenue growth over 15 consecutive quarters indicates strong market demand and effective business strategy, enhancing long-term prospects.

AI and Product Advancements

Innovations in AI and automation enhance product offerings, improving customer engagement and operational efficiency, crucial for sustained competitive advantage.

Payments Growth

Strong growth in payments revenue highlights successful diversification and expansion of revenue streams, contributing to financial resilience.

Negative Factors

Profitability Challenges

Persistent profitability issues could hinder reinvestment and growth opportunities, affecting long-term financial stability and shareholder value.

Retention Challenges

Declining retention metrics indicate potential customer dissatisfaction or competitive pressures, which could impact future revenue growth.

Staffing Challenges in Healthcare

Staffing issues in key customer segments may disrupt service delivery and customer satisfaction, potentially affecting market position.

Weave Communications Business Overview & Revenue Model

Company Description

Weave Communications (WEAV) is a technology company specializing in communication and customer engagement solutions for small and medium-sized businesses. The company operates primarily in the telecommunications and software sectors, providing an integrated platform that includes voice, text, email, and marketing automation services. Weave's core products focus on enhancing customer interactions and streamlining business operations, enabling clients to manage appointments, collect reviews, and engage with customers through multiple channels seamlessly.

How the Company Makes Money

Weave Communications generates revenue through a subscription-based model, offering tiered pricing plans for its communication platform. Key revenue streams include monthly subscription fees from businesses utilizing its services, as well as additional charges for premium features such as advanced analytics, additional call minutes, and marketing tools. Partnerships with telecommunications providers and integrations with industry-specific software also contribute to its earnings, enhancing the value of its platform and expanding its customer base. The company's focus on customer retention and upselling additional services further bolsters its revenue growth.

Weave Communications Financial Statement Overview

Summary

Weave Communications shows positive revenue growth and improving cash flow, but continues to face challenges with profitability and return on equity. The company's financial stability is supported by a manageable debt level, yet ongoing losses highlight the need for strategic improvements to achieve sustainable profitability.

Income Statement

Weave Communications has shown consistent revenue growth, with a 4.06% increase in the TTM period. However, the company continues to operate at a loss, reflected in negative net profit and EBIT margins. The gross profit margin remains strong at over 71%, indicating effective cost management in production. Despite these strengths, the persistent negative profitability metrics highlight ongoing challenges in achieving operational efficiency.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.67 in the TTM period, indicating manageable leverage. However, the company has negative return on equity, reflecting ongoing losses and challenges in generating returns for shareholders. The equity ratio is not explicitly calculated, but the company maintains a reasonable level of equity relative to its assets, suggesting some financial stability.

Cash Flow

Weave Communications has improved its cash flow position, with a 12.84% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is positive, indicating some ability to convert earnings into cash. However, the free cash flow to net income ratio remains below 1, suggesting that while cash flow is improving, it is not yet sufficient to cover net losses fully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	229.79M	204.31M	170.47M	142.12M	115.87M	79.90M
Gross Profit	165.28M	145.88M	116.09M	88.84M	66.50M	45.45M
EBITDA	-13.26M	-11.17M	-13.02M	-31.55M	-38.31M	-29.90M
Net Income	-32.91M	-28.35M	-31.03M	-49.74M	-51.69M	-40.42M
Balance Sheet
Total Assets	206.46M	188.93M	201.01M	208.35M	187.49M	92.97M
Cash, Cash Equivalents and Short-Term Investments	80.29M	99.13M	108.84M	113.34M	136.00M	55.70M
Total Debt	53.05M	56.06M	59.54M	73.56M	25.04M	18.44M
Total Liabilities	127.85M	121.96M	122.06M	125.13M	75.18M	54.98M
Stockholders Equity	78.62M	66.97M	78.96M	83.22M	112.30M	37.99M
Cash Flow
Free Cash Flow	16.15M	11.96M	6.53M	-15.89M	-30.18M	-19.38M
Operating Cash Flow	17.97M	14.15M	10.22M	-12.77M	-20.37M	-15.52M
Investing Cash Flow	5.10M	8.88M	-7.74M	-54.03M	-9.81M	-3.86M
Financing Cash Flow	-9.78M	-22.19M	-13.72M	-7.21M	110.48M	-5.15M

Weave Communications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.41
• 50DMA: Positive
• 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 Positive. The current price of 7.41 is above the 20-day moving average (MA) of 6.79, above the 50-day MA of 7.20, and below the 200-day MA of 9.84, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 59.70 is Neutral, neither overbought nor oversold. The STOCH value of 42.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEAV.

Weave Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDVT	―	$749.63M	89.07	9.45%	―	22.14%	-45.14%
MITK	―	$420.41M	27.95	6.94%	―	6.98%	―
DJCO	―	$557.91M	5.77	32.20%	―	10.54%	115.36%
DSP	―	$559.01M	264.29	5.20%	―	30.92%	―
WEAV	―	$570.84M	―	-44.64%	―	17.34%	-8.35%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
CRNC	―	$464.82M	―	-16.63%	―	-31.20%	95.56%

Weave Communications Corporate Events

Weave Communications Q3 2025 Earnings Call Highlights

The recent earnings call for Weave Communications, Inc. showcased a positive sentiment, highlighting strong revenue growth, profitability, and notable advancements in AI and payment solutions. Despite these achievements, the company acknowledged challenges in retention metrics and staffing within healthcare practices, which they are actively addressing through product innovation.

Weave Communications Reports Strong Q3 2025 Results

Weave Communications, Inc. is a prominent vertical SaaS platform that provides AI-driven patient engagement and payment solutions tailored for small and medium-sized healthcare practices. The company is recognized for its comprehensive software solutions that enhance patient interaction and streamline payment processes, contributing to the profitability of healthcare practices.

Weave Communications Reports Strong Earnings and Growth

Weave Communications recently held an earnings call that highlighted a robust performance, marked by record revenue growth and improved margins. The sentiment during the call was overwhelmingly positive, with significant achievements overshadowing the few challenges mentioned. The successful acquisition of TrueLark further underscored the company’s strong momentum.

Weave Communications Reports Strong Q2 2025 Growth

Weave Communications, Inc. is a leading provider of customer experience and payments software tailored for small and medium-sized healthcare businesses, offering solutions that enhance patient engagement and streamline practice operations.