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Weave Communications
(NYSE:WEAV)
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Rating:61Neutral
Price Target:
$7.50
▲(2.60% Upside)
Action:Reiterated
Date:09/22/26
WEAV scores as moderately attractive, led by improving fundamentals (strong gross margins, narrowing losses, positive EBITDA/FCF) and a supportive near-term acquisition setup (cash deal with a cleared regulatory hurdle). The score is held back by the still-unprofitable GAAP profile with slowed TTM growth, and limited valuation support given the negative P/E and no dividend yield.
Positive Factors
Recurring vertical SaaS platform
A subscription platform embedded in daily healthcare-practice workflows can create recurring revenue and expansion opportunities. Combining communications, payments, reminders, reputation tools, and digital intake also increases product breadth and customer utility, supporting retention and cross-selling over time.
Negative Factors
Modest customer retention
Retention below leading SaaS benchmarks limits the durability of recurring revenue and raises the burden on new customer acquisition. Modest GRR and NRR also constrain expansion within the installed base, potentially reducing lifetime value and slowing efficient growth.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring vertical SaaS platform
A subscription platform embedded in daily healthcare-practice workflows can create recurring revenue and expansion opportunities. Combining communications, payments, reminders, reputation tools, and digital intake also increases product breadth and customer utility, supporting retention and cross-selling over time.
Read all positive factors
Weave Communications (WEAV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$593.72M
Dividend YieldN/A
Average Volume (3M)1.78M
Price to Earnings (P/E)―
Beta (1Y)1.43
Revenue Growth16.73%
EPS Growth35.67%
CountryUS
Employees904
SectorHealthcare
Sector Strength45
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.25
Shares Outstanding80,450,450
10 Day Avg. Volume1,176,494
30 Day Avg. Volume1,779,649
Financial Highlights & Ratios
PEG Ratio2.74
Price to Book (P/B)7.03
Price to Sales (P/S)2.42
P/FCF Ratio38.23
Enterprise Value/Market Cap0.76
Enterprise Value/Revenue1.75
Enterprise Value/Gross Profit2.41
Enterprise Value/Ebitda-381.28
Forecast
1Y Price Target
$7.40Price Target Upside1.23% Upside
Rating ConsensusHold
Number of Analyst Covering5
EPS Forecast (FY)0.17
Revenue Forecast (FY)$274.18M
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 subscription access to its cloud software platform (software-as-a-service). Revenue is largely generated from recurring monthly or annual fees paid by practices for packaged plans and add-on modules (for exam...
Weave Communications Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presents a predominantly positive operational and financial picture: strong revenue growth (15.5% YoY), record location adds, accelerated AI adoption and monetization, improved gross profit and margin, expanding operating margin (4.7%) and positive free cash flow. These gains were partially offset by a temporary go-to-market transition disruption that reduced near-term bookings and lowered onboarding revenue, modest sequential gross margin pressure from specific cost items, and retention metrics that remain modest (GRR 89% / NRR 92%). Management has raised operating income guidance and taken steps to accelerate the sales model cutover, which supports confidence in recovery and continued efficiency gains. On balance, the highlights outweigh the lowlights.Positive Updates
Revenue Growth
Total revenue of $67.5 million in Q2 2026, representing 15.5% year-over-year growth; payments grew at roughly double the rate of total revenue (company stated ~2x).
Negative Updates
Go-to-Market Transition Disruption
A phased transition to a new go-to-market model (verticalized inbound + SDR-sourced outbound) caused booking shortfalls in May–July, resulting in near-term revenue impacts and a reduced full-year revenue cadence; management accelerated completion of the transition to August to compress the adjustment period.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue Growth
Total revenue of $67.5 million in Q2 2026, representing 15.5% year-over-year growth; payments grew at roughly double the rate of total revenue (company stated ~2x).
Read all positive updates
Company Guidance
Weave guided full‑year 2026 revenue of $273–$275 million and raised non‑GAAP operating income to $12–$14 million, saying the range reflects a short‑term bookings impact from a May–July go‑to‑market transition; for Q3 2026 they expect revenue of $68.6–$69.6 million and operating income of $3–$4 million, and noted weighted‑average share counts of ~80.2 million for Q3 and ~79.8 million for the full year. Management said the outlook assumes continued improvement in sales‑and‑marketing efficiency (Q2 S&M was $25.8M, 38% of revenue, down 160 bps YoY and 240 bps sequentially) and that the enhanced GTM model will support sustained revenue growth and greater operating leverage.Weave Communications Financial Statement Overview
Summary
Income Statement
48
Neutral
Balance Sheet
60
Neutral
Cash Flow
58
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 257.79M | 239.02M | 204.31M | 170.47M | 142.12M | 115.87M |
| Gross Profit | 186.47M | 172.31M | 145.88M | 116.09M | 88.84M | 66.50M |
| EBITDA | -1.18M | -10.78M | -11.17M | -13.02M | -31.55M | -38.31M |
| Net Income | -20.54M | -28.05M | -28.35M | -31.03M | -49.74M | -51.69M |
Balance Sheet | ||||||
| Total Assets | 208.59M | 207.97M | 188.93M | 201.01M | 208.35M | 187.49M |
| Cash, Cash Equivalents and Short-Term Investments | 78.47M | 81.72M | 99.13M | 108.84M | 113.34M | 136.00M |
| Total Debt | 51.38M | 52.15M | 56.06M | 59.54M | 73.56M | 25.04M |
| Total Liabilities | 123.62M | 125.38M | 121.96M | 122.06M | 125.13M | 75.18M |
| Stockholders Equity | 84.97M | 82.38M | 66.97M | 78.96M | 83.22M | 112.30M |
Cash Flow | ||||||
| Free Cash Flow | 14.29M | 15.15M | 11.96M | 8.53M | -15.89M | -30.18M |
| Operating Cash Flow | 16.85M | 17.54M | 14.15M | 10.22M | -12.77M | -20.37M |
| Investing Cash Flow | -3.52M | -6.85M | 8.88M | -7.74M | -54.03M | -9.81M |
| Financing Cash Flow | -10.37M | -7.33M | -22.19M | -13.72M | -7.21M | 110.48M |
Weave Communications Technical Analysis
Positive
7.31
Price Trends
6.98
Positive
6.56
Positive
6.14
Positive
Market Momentum
0.08
Positive
61.76
Neutral
45.97
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 7.31 is below the 20-day moving average (MA) of 7.35, above the 50-day MA of 6.98, and above the 200-day MA of 6.14, indicating a bullish trend. The MACD of 0.08 indicates Positive momentum. The RSI at 61.76 is Neutral, neither overbought nor oversold. The STOCH value of 45.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $666.95M | -22.00 | -14.05% | ― | 11.85% | 47.54% | |
62 Neutral | $304.76M | 63.94 | 3.34% | ― | 3.66% | ― | |
62 Neutral | $139.23M | 16.51 | 10.20% | ― | 3.06% | -72.26% | |
61 Neutral | $593.72M | -29.12 | -24.96% | ― | 16.73% | 35.67% | |
57 Neutral | $381.52M | 32.90 | 1.96% | ― | 13.62% | ― | |
53 Neutral | $62.66M | -3.81 | -7.36% | ― | -6.16% | 84.49% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
WEAV
Weave Communications
7.38
0.68
10.15%
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2.11
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14.67%
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11.00
0.04
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API
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4.08
0.51
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THRY
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1.41
-9.64
-87.24%
Weave Communications Corporate Events
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Weave Communications Clears Key Antitrust Hurdle in Acquisition
Positive
Sep 21, 2026
On August 18, 2026, Weave Communications, Inc. entered into a merger agreement with Willow Parent, LLC and Willow Merger Sub, Inc., affiliates of private equity firm Francisco Partners Management, L.P., under which Weave will be acquired and becom...
Delistings and Listing ChangesM&A Transactions
Weave Communications Agrees to Francisco Partners Take-Private Merger
Neutral
Aug 19, 2026
On August 18, 2026, Weave Communications entered into a merger agreement to be acquired by Willow Parent, LLC, an affiliate of Francisco Partners, through a cash transaction that will leave Weave as a wholly owned subsidiary. Under the deal, each ...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Weave Communications to be acquired by Francisco Partners
Positive
Aug 18, 2026
On August 18, 2026, Weave Communications, Inc. announced a definitive agreement to be acquired by Francisco Partners, a global technology-focused investment firm, in a deal valuing Weave’s equity at about $650 million. The transaction will s...
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.