Weave Communications (WEAV) AI Stock Analysis

• Market Cap: $707.81M
• Dividend Yield: N/A
• Average Volume (3M): 720.01K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 19.58%
• EPS Growth: 6.58%
• Country: US
• Employees: 854
• Sector: Technology
• Sector Strength: 65
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 74,900,260
• 10 Day Avg. Volume: 652,101
• 30 Day Avg. Volume: 720,012
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.32
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $14.67
• Price Target Upside: 55.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

Weave Communications' overall stock score reflects strong revenue growth and strategic initiatives, tempered by profitability challenges and technical weaknesses. The positive sentiment from the earnings call and strategic acquisitions are significant strengths, while valuation concerns due to negative earnings weigh on the score.

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 through a subscription-based model, where businesses pay recurring fees to access its integrated communication platform. The company's key revenue streams include monthly or annual subscription plans tailored to the size and specific needs of each client. Additional income is derived from offering premium features and add-ons, such as enhanced reporting tools, advanced analytics, and customer engagement solutions. Partnerships with other technology providers and third-party integrations also contribute to its revenue by enhancing the platform's capabilities and expanding its customer base.

Weave Communications Financial Statement Overview

Summary

Weave Communications has shown robust revenue growth and improved cash flows, indicating potential future profitability. However, ongoing net losses and moderate leverage remain challenges. Managing operational losses and debt is crucial for sustainable profitability.

Income Statement

Weave Communications has shown consistent revenue growth over recent years, with a significant increase from $79.9M in 2020 to $213M in TTM (Trailing-Twelve-Months) 2025. Gross profit margin is strong at approximately 71.8%, indicating effective cost management. However, the company continues to face challenges in achieving profitability, with negative net profit and EBIT margins. The net profit margin stands at -14.1%, indicating ongoing losses despite revenue growth.

Balance Sheet

The balance sheet presents a mixed picture. While the company maintains a solid equity base with an equity ratio of 36.4%, the debt-to-equity ratio of 0.81 reflects moderate leverage. The return on equity is negative due to ongoing net losses, indicating a struggle to generate returns for shareholders. However, the company has managed to maintain a stable asset base and improve its cash position over time.

Cash Flow

Cash flow analysis reveals a positive trajectory, with significant improvement in operating cash flows, reaching $33.6M in TTM 2025. The free cash flow has also turned positive, showing a remarkable increase from negative figures in previous years. The operating cash flow to net income ratio is strong, reflecting better cash generation relative to net losses. This improvement in cash flows provides a positive outlook for liquidity and operational stability.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
204.31M	170.47M	142.12M	115.87M	79.90M
	Gross Profit
145.88M	116.09M	88.84M	66.50M	45.45M
	EBIT
-31.41M	-34.37M	-49.70M	-50.39M	-39.57M
	EBITDA
-11.17M	-13.02M	-20.43M	-38.31M	-29.90M
	Net Income Common Stockholders
-28.35M	-31.03M	-49.74M	-51.69M	-41.77M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.13M	108.84M	113.34M	136.00M	55.70M
	Total Assets
188.93M	201.01M	208.35M	187.49M	92.97M
	Total Debt
56.06M	59.54M	73.56M	25.04M	18.44M
	Net Debt
4.46M	8.79M	11.57M	-110.95M	-37.26M
	Total Liabilities
121.96M	122.06M	125.13M	75.18M	54.98M
	Stockholders Equity
66.97M	78.96M	83.22M	112.30M	37.99M
Cash Flow		Free Cash Flow
11.96M	6.53M	-15.89M	-30.18M	-19.38M
	Operating Cash Flow
14.15M	10.22M	-12.77M	-20.37M	-15.52M
	Investing Cash Flow
8.88M	-7.74M	-54.03M	-9.81M	-3.86M
	Financing Cash Flow
-22.19M	-13.72M	-7.21M	110.48M	-5.15M

Weave Communications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.45
• 50DMA: Negative
• 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 Negative. The current price of 9.45 is below the 20-day moving average (MA) of 9.93, below the 50-day MA of 10.77, and below the 200-day MA of 12.82, indicating a neutral trend. The MACD of -0.16 indicates Negative momentum. The RSI at 47.48 is Neutral, neither overbought nor oversold. The STOCH value of 53.07 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
VTEX	75 Outperform	$1.01B	84.95	6.26%	―	7.71%	―
VMEO	72 Outperform	$764.41M	47.59	4.29%	―	-0.05%	23.22%
DSP	65 Neutral	$937.70M	438.53	4.15%	―	30.64%	―
Sector *	60 Neutral	$10.77B	10.41	-6.71%	2.99%	7.69%	-13.12%
WEAV	59 Neutral	$707.81M	―	-42.20%	―	19.58%	6.58%
BMBL	59 Neutral	$453.18M	―	-44.89%	―	1.88%	-11430.00%
BIGC	54 Neutral	$410.88M	―	-91.78%	―	7.61%	59.62%

Weave Communications Corporate Events

Weave Communications Acquires TrueLark for $35 Million

On May 4, 2025, Weave Communications announced its strategic acquisition of TrueLark, an AI-powered receptionist and front-desk automation platform, for $35 million. This acquisition aims to enhance Weave’s leadership in healthcare communications by integrating TrueLark’s AI capabilities, which will help automate front-office operations, improve patient engagement, and fill more appointments. The merger is expected to close in the second fiscal quarter of 2025, subject to customary closing conditions. This move positions Weave to address the growing demand for intelligent automation in multi-location healthcare practices, expanding its market reach and offering significant ROI to customers.

Spark’s Take on WEAV Stock

According to Spark, TipRanks’ AI Analyst, WEAV is a Neutral.

Weave Communications’ overall stock score reflects a mix of strong revenue growth and strategic initiatives, tempered by ongoing profitability challenges. The positive sentiment from the earnings call and planned strategic investments are significant strengths. However, the stock’s technical weakness and valuation concerns, due to negative earnings, weigh heavily on the score. The recent corporate event of a CFO transition, while positive with strategic growth plans, also adds a layer of uncertainty.

To see Spark’s full report on WEAV stock, click here.

Weave Communications CTO Branden Neish Announces Retirement

On April 30, 2025, Branden Neish announced his retirement from Weave Communications, Inc., stepping down as Chief Product and Technology Officer effective May 16, 2025. He will continue in a consulting role until September 16, 2025, to aid in the transition of his responsibilities to Abhi Sharma and Marcus Bertilson. The company has entered into a Transition Agreement with Neish, allowing his unvested restricted stock units to continue vesting during his consulting term.

Spark’s Take on WEAV Stock

According to Spark, TipRanks’ AI Analyst, WEAV is a Neutral.

Weave Communications’ overall stock score reflects a mix of strong revenue growth and strategic initiatives, tempered by ongoing profitability challenges. The positive sentiment from the earnings call and planned strategic investments are significant strengths. However, the stock’s technical weakness and valuation concerns, due to negative earnings, weigh heavily on the score. The recent corporate event of a CFO transition, while positive with strategic growth plans, also adds a layer of uncertainty.

To see Spark’s full report on WEAV stock, click here.

Weave Communications Announces CFO Retirement and Succession

On February 20, 2025, Weave Communications announced its CFO, Alan Taylor, will retire by the end of the first quarter of 2025, with Vice President Jason Christiansen set to succeed him. The company also released its financial results for the fourth quarter and full year 2024, reporting a significant increase in revenue and improvements in operating income. Weave’s strategic investments in medical vertical markets and partnerships are expected to expand its market leadership and revenue opportunities in 2025.