Weave Communications, Inc. (WEAV) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Weave Communications, Inc. (WEAV) Technology Profile & Competitive Position

Weave Communications provides a comprehensive customer communication platform for small and medium-sized businesses, enhancing customer interactions and streamlining operations. With a focus on industries like dental, optometry, and veterinary services, Weave offers integrated solutions including phone systems, text messaging, and payment processing to improve customer engagement and business efficiency.

What Is the Investment Thesis for WEAV?

Weave Communications presents a notable research candidate within the SMB software market, driven by its integrated customer communication platform and strong industry focus. With a gross margin of 72.3%, Weave demonstrates efficient operations and pricing power. Growth catalysts include expanding its product offerings and penetrating deeper into its target verticals. However, the company's negative profit margin of -10.1% indicates ongoing investments in growth and potential profitability challenges. Key value drivers include increasing customer lifetime value through enhanced engagement tools and expanding its customer base in underserved markets. Investors should monitor Weave's ability to achieve profitability while sustaining its growth trajectory and managing competition.

Based on FMP financials and quantitative analysis

WEAV Key Highlights

Weave Communications operates in the customer communications and engagement software platform market, focusing on small and medium-sized businesses.

• The company's gross margin stands at 72.3%, reflecting strong pricing power and efficient cost management.
• Weave Communications serves a diverse range of industries including dental, optometry, veterinary, and home services.
• The company's platform includes features like Customized Phone System, Weave Text Messaging, and Weave Payments.
• Weave Communications was founded in 2008 and is headquartered in Lehi, Utah.

Who Are WEAV's Competitors?

WEAV is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance

What Are WEAV's Key Strengths?

Integrated platform with a comprehensive suite of communication tools.

• Strong focus on specific industries, allowing for tailored solutions.
• Established customer base and brand reputation.
• Proprietary technology and intellectual property.

What Are WEAV's Weaknesses?

Negative profit margin indicates potential profitability challenges.

• Reliance on specific industries may limit growth potential.
• Competition from larger, more established software providers.
• Potential for customer churn due to subscription-based model.

What Could Drive WEAV Stock Higher?

Expansion of product offerings to include more advanced features and integrations.

• Penetration deeper into existing target verticals, such as dental, optometry, and veterinary services.
• Potential strategic partnerships with other technology providers to expand the ecosystem.
• Leveraging data analytics to provide more personalized and effective communication solutions.

What Are the Key Risks for WEAV?

Financial-distress signal — its Altman Z-Score of 1.67 sits in the distress zone (elevated bankruptcy risk).

• Negative return on equity (-25.0%) — the business is not currently generating profit on shareholder capital.
• Increasing competition from new and existing players in the market.
• Rapid technological advancements may require significant investments in R&D.
• Economic downturns may impact customer spending on software solutions.
• Changes in regulations or industry standards may require adjustments to the platform.
• Negative profit margin indicates potential profitability challenges.

What Are the Growth Opportunities for WEAV?

• Expanding Product Offerings: Weave has the opportunity to expand its product offerings to include more advanced features and integrations. By developing new solutions that address emerging customer needs, Weave can attract new customers and increase revenue from existing customers. The market for integrated communication platforms is growing, with a projected market size of $50 billion by 2028. Timeline: Ongoing.
• Penetrating Deeper into Target Verticals: Weave can focus on penetrating deeper into its existing target verticals, such as dental, optometry, and veterinary services. By tailoring its solutions to the specific needs of these industries, Weave can increase its market share and build stronger relationships with its customers. This targeted approach can lead to higher customer retention rates and increased revenue per customer. Timeline: Ongoing.
• Geographic Expansion: Weave can expand its geographic reach beyond the United States and Canada. By entering new markets, Weave can tap into new customer bases and diversify its revenue streams. This expansion can be achieved through strategic partnerships, acquisitions, or organic growth. The global market for customer communication platforms is expected to grow significantly in the coming years. Timeline: 2-3 years.
• Leveraging Data Analytics: Weave can leverage data analytics to provide more personalized and effective communication solutions. By analyzing customer data, Weave can identify trends and insights that can be used to improve customer engagement and drive business outcomes. This data-driven approach can help Weave differentiate itself from its competitors and deliver greater value to its customers. Timeline: Ongoing.
• Strategic Partnerships and Integrations: Weave can form strategic partnerships with other technology providers to expand its ecosystem and offer more comprehensive solutions. By integrating its platform with other popular business applications, Weave can provide a seamless experience for its customers and increase its value proposition. These partnerships can also help Weave reach new customers and markets. Timeline: Ongoing.

What Are WEAV's Competitive Advantages?

• Integrated platform offering a comprehensive suite of communication tools.
• Strong focus on specific industries, allowing for tailored solutions.
• Established customer base and brand reputation.
• Proprietary technology and intellectual property.

What Does WEAV Do?

Founded in 2008 and headquartered in Lehi, Utah, Weave Communications, Inc. evolved from Recall Solutions, LLC to become a leading provider of customer communication and engagement software. The company's platform is designed to help small and medium-sized businesses (SMBs) in the United States and Canada maximize the value of their customer interactions while minimizing manual tasks. Weave's core offerings include a Customized Phone System that identifies incoming calls from new or existing customers, Weave Text Messaging for direct customer communication, and Weave Payments for streamlined payment processing. Over the years, Weave has expanded its product suite to include features like Weave Reviews for online reputation management, Weave Email Marketing, and Web Assistant Appointment Requests for online engagement. The platform also offers tools like Digital Forms and Scheduling to automate administrative tasks and improve customer experience. Weave serves a diverse range of industries, including dental, optometry, veterinary, physical therapy, home services, audiology, medical specialty services, and podiatry, providing tailored solutions to meet their specific communication and engagement needs. The company's focus on integrated solutions and customer-centric innovation has positioned it as a key player in the SMB software market.

What Products and Services Does WEAV Offer?

• Provides a customer communications and engagement software platform.
• Offers a Customized Phone System to identify and manage incoming calls.
• Provides Weave Text Messaging for direct communication with customers.
• Offers Weave Payments for streamlined payment processing.
• Provides Weave Reviews for online reputation management.
• Offers Weave Email Marketing for targeted email campaigns.
• Provides Digital Forms and Scheduling to automate administrative tasks.

How Does WEAV Make Money?

• Subscription-based revenue model for access to the Weave platform.
• Revenue from add-on features and integrations.
• Payment processing fees from Weave Payments.
• Focus on serving small and medium-sized businesses (SMBs).

What Industry Does WEAV Operate In?

Weave Communications operates in the competitive application software industry, which is characterized by rapid technological advancements and evolving customer needs. The market for customer communication and engagement platforms is growing, driven by the increasing importance of customer experience and the need for businesses to streamline their operations. Weave competes with other software providers by offering an integrated solution tailored to specific industries. The company's focus on SMBs and its comprehensive suite of communication tools differentiate it in the market. The industry is also influenced by trends such as cloud computing, mobile technology, and data analytics, which are shaping the development of new and innovative solutions.

Who Are WEAV's Key Customers?

• Dental practices
• Optometry clinics
• Veterinary services
• Physical therapy centers
• Home service providers

Weave Communications, Inc. (WEAV) Valuation Context

Valued at $580M, WEAV is classified as a small-cap stock. Relative to its peer group, WEAV's quantitative score of 32/100 is below the peer average of 73/100.

WEAV Revenue & Earnings Trend

In Q2 2026, WEAV generated $67.5M in top-line revenue, marking a sequential increase of 3.1%. The company recorded a net loss of $4.3M, with diluted EPS of $-0.05. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Technology company. Across the four most recent quarters, WEAV averaged $-0.06 in diluted EPS.

Company Profile

Weave Communications, Inc. operates in the Software - Application industry within the Technology sector. It is headquartered in Lehi, US. The company is led by CEO Brett T. White. WEAV has traded publicly since 2021.

Return on equity for Weave Communications, Inc. stands at -25.0%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -9.8%, showing how much profit it generates from its asset base. Its free cash flow yield is 2.5%, a gauge of the cash the business throws off relative to its market value. A current ratio of 1.25 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -3.5%, the inverse of the P/E and a quick read on earnings relative to price.

Weave Communications, Inc.'s Piotroski F-Score is 5/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 1.67 places it in the distress zone, a signal of elevated financial risk.

Weave Communications, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 116.4% above estimates on average.

Wall Street analysts project Weave Communications, Inc. revenue of about $274.2M for fiscal 2026, with EPS near $0.17. The estimate reflects 4 contributing analysts.

WEAV Financials

WEAV Latest News

WEAV Analyst Consensus

WEAV MoonshotScore

What Investors Ask About Weave Communications, Inc. (WEAV) — Technology

Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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