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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 Q4 2025 Earnings: Strong Revenue Growth and Expanding Margins

Weave delivered a strong Q4 2025 with revenue growth of 17% year-over-year, driven by the continued adoption of its AI Receptionist and expansion into new markets. The company's gross margin expanded to a record 73.3%, up 70 basis points from the prior year, while operating income increased to $2.3 million, representing an operating margin of 3.6%. Earnings per share (EPS) came in at $0.03, in line with expectations. The company's revenue growth was driven by payments and the addition of new locations, with total revenue reaching $63.4 million.

Publication Date: Mar -09

📋 Highlights
  • Revenue Growth & Margins:: Q4 revenue reached $63.4M (+17% YoY), with gross margin hitting 73.3% (up 70 bps YoY) and operating income at $2.3M (record high).
  • TAM Expansion:: Total addressable market increased to $22B (+$7B), with under 15% penetration in U.S. dental locations and ADA endorsement as exclusive patient engagement solution.
  • Free Cash Flow Strength:: Full-year 2025 free cash flow was $12.9M (+24% YoY), with Q4 free cash flow at $4.4M and $6.2M in operating cash flow.
  • 2026 AI Roadmap:: Plans to launch omnichannel AI Receptionists across all verticals by H1 2026, expanding into autonomous intake, payments, and claims integration.
  • Retention Dynamics:: Multi-location NRR at 102% vs. 93% for single-location practices, with 2/3 of customers being single-location and 93% gross retention rate.

Revenue Growth and Margin Expansion

The company's revenue growth was driven by the continued adoption of its AI Receptionist and expansion into new markets, particularly in the dental sector where it has penetrated less than 15% of the US market. Weave's gross margin expansion was driven by the company's ability to leverage its technology and scale its business, resulting in improved operating leverage. As Brett White noted, "We've consistently delivered revenue growth, expanded margins, and free cash flow while continuing to invest in innovation."

Valuation and Outlook

With a current P/S ratio of 1.82, Weave's valuation appears reasonable compared to its growth prospects. As the company continues to expand its AI capabilities and penetrate new markets, it is well-positioned for long-term growth. The company's guidance for 2026, with revenue expected to grow to between $273 million and $276 million, suggests a continued strong growth trajectory. Using the midpoint of this guidance, Weave's expected P/S ratio for 2026 would be approximately 1.63, suggesting that the company's valuation is reasonable given its growth prospects.

Key Metrics and Ratios

Key metrics such as the P/E Ratio (-15.49), P/B Ratio (5.27), and EV/EBITDA (-43.36) provide insight into Weave's valuation. The company's ROE (-36.38%) and ROIC (-20.78%) highlight areas for improvement, while its Net Debt / EBITDA (-2.95) suggests a healthy balance sheet. Weave's Free Cash Flow Yield (3.48%) is also a positive indicator of the company's financial health.

3. NewsRoom

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The Fiber Weave Skew Problem Is Over: ACCM Celeritas™ SF1600 Delivers Zero-Skew for PCIe 7, 224 Gbps and Beyond

Apr -03

Source: businesswire.com

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Weave Communications Appoints Edward Robson and Ryan Dubin to Board of Directors

Mar -30

Source: businesswire.com

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Minted Technology Advisors Unlocks Growth for Healthcare Practices Through Weave Partnership

Mar -30

Source: businesswire.com

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3 Under-the-Radar Artificial Intelligence (AI) Stocks With Explosive Potential

Mar -13

Source: fool.com

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Weave Named Exclusive Patient Engagement Platform Endorsed for American Dental Association Members

Mar -13

Source: businesswire.com

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Sanya Emerges as New Hub for Euro-Asian Tourism, Leveraging Aviation Rights to Weave a Closer Cooperation Network Between Central Asia and Europe

Mar -03

Source: businesswire.com

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Weave to Present at Raymond James 47th Annual Institutional Investors Conference

Feb -26

Source: businesswire.com

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Weave Communications (WEAV) Loses 26% in 4 Weeks, Here's Why a Trend Reversal May be Around the Corner

Feb -26

Source: zacks.com

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
NetSol Technologies

A-Score: 4.9/10

Value: 8.5

Growth: 4.2

Quality: 5.7

Yield: 0.0

Momentum: 8.0

Volatility: 2.7

1-Year Total Return ->

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Stock-Card
Domo

A-Score: 4.7/10

Value: 7.7

Growth: 4.9

Quality: 5.6

Yield: 0.0

Momentum: 8.0

Volatility: 2.0

1-Year Total Return ->

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Stock-Card
Matterport

A-Score: 4.4/10

Value: 6.4

Growth: 4.9

Quality: 4.0

Yield: 0.0

Momentum: 8.0

Volatility: 3.3

1-Year Total Return ->

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Stock-Card
Amplitude

A-Score: 3.9/10

Value: 4.6

Growth: 5.4

Quality: 4.3

Yield: 0.0

Momentum: 5.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Creative Realities

A-Score: 3.9/10

Value: 9.2

Growth: 2.8

Quality: 5.0

Yield: 0.0

Momentum: 5.0

Volatility: 1.3

1-Year Total Return ->

View Full Report
Stock-Card
Weave Communications

A-Score: 3.3/10

Value: 5.5

Growth: 5.9

Quality: 4.0

Yield: 0.0

Momentum: 1.0

Volatility: 3.3

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.34$

Current Price

5.34$

Potential

-0.00%

Expected Cash-Flows