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1. Company Snapshot

1.a. 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.

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1.b. Last Insights on WEAV

Weave Communications' recent performance was negatively impacted by the executive leadership transition, with Chief Financial Officer Alan Taylor planning to retire at the end of Q1 2025. This change in leadership may lead to a disruption in the company's financial management and strategy. Additionally, the recent announcement of the integration with Practice Fusion, while potentially beneficial in the long term, may not have had a significant impact on the company's recent performance. The lack of recent earnings release makes it challenging to assess the company's current financial health.

1.c. Company Highlights

2. Weave's Q3 2025 Earnings: Strong Revenue Growth and Expanding Margins

Weave's third-quarter 2025 financial results demonstrated a robust performance, with revenue reaching $61.3 million, representing a 17.1% year-over-year growth rate, marking the 15th consecutive quarter of exceeding the top end of revenue guidance. The company achieved a record gross margin of 73% and an operating income of $1.7 million, surpassing guidance by $700,000. Earnings per share (EPS) came in at $0.02, beating estimates of $0.01. The company's cash and short-term investments stood at $80.3 million, with $5 million in free cash flow generated during the quarter.

Publication Date: Dec -02

📋 Highlights
  • Revenue Growth: $61.3M in Q3 2025, up 17.1% YoY, surpassing guidance for the 15th consecutive quarter.
  • Gross Margin & Operating Income: Achieved record 73% gross margin and $1.7M operating income, exceeding guidance by $700K.
  • Payments Expansion: Payments revenue grew over double the rate of total revenue, driven by surcharging and bulk collections.
  • Specialty Medical Growth: Outpaced overall revenue growth, with record medical location additions and expansion into med spas/aesthetics.
  • AI-Driven Efficiency: AI receptionist adoption reduced low-value tasks, while call intelligence identified revenue opportunities, boosting team productivity.

Business Momentum

Weave is capitalizing on the rapidly evolving SMB healthcare market, driven by increasing adoption of technology for patient attraction, engagement, and retention. The company's AI-powered patient engagement and payment solutions are uniquely positioned to lead this transformation. Key growth drivers include specialty medical, mid-market, and payments, with specialty medical delivering record results and payments revenue growing more than double the rate of total revenue.

AI Strategy and Innovation

Weave's AI strategy is a key differentiator, with features such as the AI receptionist, call intelligence, and in-app assistant enhancing patient engagement and operational efficiency. The AI receptionist delivers always-on engagement, while call intelligence analyzes call recordings to detect customer sentiment and identify revenue opportunities. The company is integrating TrueLark capabilities to further enhance payment and revenue cycle management processes.

Guidance and Outlook

Weave is raising the midpoint of its full-year guidance, reflecting strong demand and a proven platform. The company now expects revenue of $238-239 million and non-GAAP operating income of $3.3-4.3 million for the full year. For Q4, revenue is expected to be $62.4-63.4 million, with non-GAAP operating income of $1.5-2.5 million. Analysts estimate revenue growth of 15.1% for the next year.

Valuation

Weave's current valuation metrics indicate a P/S Ratio of 2.14 and an EV/EBITDA of -36.26. The stock's P/E Ratio stands at -14.51, reflecting the company's current loss-making position. The ROE and ROIC are also negative, at -44.93% and -25.92%, respectively. The Free Cash Flow Yield is 3.28%, indicating a relatively attractive cash return for investors.

3. NewsRoom

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Irish heritage festivals in Britain weave old traditions with new connections

Dec -04

Source: proactiveinvestors.co.uk

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NASA, industry weave data fabric with AI

Nov -18

Source: techxplore.com

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All You Need to Know About Weave Communications (WEAV) Rating Upgrade to Buy

Nov -06

Source: zacks.com

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Weave Bio Launches HAQ Manager, Extending AI-Native Regulatory Automation into Critical Review Phase

Nov -06

Source: businesswire.com

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Y Intercept Hong Kong Ltd Has $1.50 Million Position in Weave Communications, Inc. $WEAV

Nov -03

Source: defenseworld.net

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Weave Communications, Inc. (WEAV) Q3 2025 Earnings Call Transcript

Oct -30

Source: seekingalpha.com

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Weave Announces Third Quarter 2025 Financial Results

Oct -30

Source: businesswire.com

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Weave Communications (WEAV) to Release Earnings on Thursday

Oct -23

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.04%)

6. Segments

Subscription and Payment Processing

Expected Growth: 12.0%

Weave Communications, Inc.'s 12.0% growth in Subscription and Payment Processing is driven by increasing demand for integrated payment solutions, expansion into new markets, and strategic partnerships. Additionally, the company's focus on customer retention, upselling, and cross-selling have contributed to the growth. Furthermore, the shift towards digital payments and the need for secure, efficient payment processing have also fueled the segment's growth.

Hardware (Embedded Lease)

Expected Growth: 14.0%

Weave Communications' Embedded Lease hardware segment growth of 14.0% is driven by increasing demand for cloud-based communication solutions, expansion into new markets, and strategic partnerships. Additionally, the growing need for secure and reliable communication infrastructure, particularly in the healthcare and finance industries, contributes to the segment's growth.

Onboarding

Expected Growth: 11.0%

Weave Communications, Inc.'s 11.0% onboarding growth driven by increasing demand for cloud-based customer communication platforms, expansion into new markets, and strategic partnerships. Additionally, the company's focus on innovation, customer satisfaction, and user experience has led to high retention rates and positive word-of-mouth, further fueling growth.

7. Detailed Products

Weave Payments

A payment processing solution designed specifically for healthcare providers, allowing them to securely process patient payments and manage their revenue cycle.

Weave Messaging

A patient engagement platform that enables healthcare providers to communicate with patients through text, email, and voice messages, improving patient engagement and reducing no-shows.

Weave Reviews

A review management platform that helps healthcare providers manage online reviews and improve their online reputation.

Weave Analytics

A data analytics platform that provides healthcare providers with insights into their patient engagement, revenue cycle, and operational performance.

Weave Phone

A cloud-based phone system designed specifically for healthcare providers, offering advanced features and integrations with existing systems.

8. Weave Communications, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Weave Communications, Inc. operates in a niche market, providing a unique communication platform for businesses. While there are some substitutes available, they are not as comprehensive as Weave's offerings, reducing the threat of substitutes.

Bargaining Power Of Customers

Weave Communications, Inc. has a diverse customer base, and no single customer has significant bargaining power. The company's customer-centric approach and personalized support also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Weave Communications, Inc. has a diversified supplier base, and no single supplier has significant bargaining power. The company's strong relationships with suppliers and its ability to negotiate favorable terms reduce the bargaining power of suppliers.

Threat Of New Entrants

While there are some barriers to entry in the communication platform market, new entrants can still disrupt the market. However, Weave Communications, Inc.'s established brand, strong customer relationships, and continuous innovation reduce the threat of new entrants.

Intensity Of Rivalry

The communication platform market is highly competitive, with several established players and new entrants vying for market share. Weave Communications, Inc. must continue to innovate and differentiate itself to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 42.99%
Debt Cost 3.95%
Equity Weight 57.01%
Equity Cost 15.03%
WACC 10.27%
Leverage 75.41%

11. Quality Control: Weave Communications, Inc. passed 4 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Domo

A-Score: 5.1/10

Value: 9.2

Growth: 4.9

Quality: 5.1

Yield: 0.0

Momentum: 9.5

Volatility: 2.0

1-Year Total Return ->

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NetSol Technologies

A-Score: 4.9/10

Value: 7.7

Growth: 4.2

Quality: 5.7

Yield: 0.0

Momentum: 9.0

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Matterport

A-Score: 4.3/10

Value: 6.4

Growth: 5.0

Quality: 4.0

Yield: 0.0

Momentum: 7.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Amplitude

A-Score: 4.2/10

Value: 4.8

Growth: 5.4

Quality: 4.5

Yield: 0.0

Momentum: 6.5

Volatility: 3.7

1-Year Total Return ->

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Stock-Card
Weave Communications

A-Score: 3.1/10

Value: 5.5

Growth: 5.9

Quality: 4.0

Yield: 0.0

Momentum: 0.5

Volatility: 3.0

1-Year Total Return ->

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Stock-Card
Creative Realities

A-Score: 3.0/10

Value: 9.0

Growth: 2.8

Quality: 4.8

Yield: 0.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.44$

Current Price

6.44$

Potential

-0.00%

Expected Cash-Flows