Weave Communications, Inc. (WEAV)

Weave Communications' stock has been impacted by several events in the past six months. In Q4 2025, the company reported revenue of $63.4 million, a 17% year-over-year increase, but missed non-GAAP net income per share estimates, leading to a stock decline. In Q1 2026, Weave announced strong financial results with revenue growth accelerating to 17.4% year-over-year, reaching $65.5 million, and the most customer location additions in a single quarter, exceeding analyst expectations and leading to a stock price increase. Weave's dollar-based net revenue retention fell to 93% in 2025, and gross revenue retention fell to 89%, indicating some pressure on expansion and churn. Weave has been enhancing its AI-powered platform, with over 50% of customer locations using embedded AI tools. The acquisition of TrueLark in May 2025 has bolstered Weave's automation capabilities.

While direct information on the seasonality of demand for Weave Communications' products and services is not explicitly detailed, there is a clear indication of cash flow seasonality. The company's free cash flow has been negative in Q1 due to large seasonal disbursements and significant prepaid software renewals. Management expects positive free cash flow in the first half of 2026.

Weave Communications, Inc. is a technology company providing an all-in-one customer experience and payments software platform for small and medium-sized healthcare businesses. The company operates in the Healthcare sector, specifically in the Health Information Services industry, and is a prominent player in the SaaS industry. Weave aims to streamline operations for small businesses by unifying, modernizing, and personalizing customer interactions. Weave's product suite includes communication tools such as VoIP phone systems and two-way text messaging, customer engagement solutions like automated appointment reminders, payment processing solutions like Weave Payments, scheduling and automation features, and reputation management tools. The platform integrates with over 90 practice management systems, serving dental, optometry, veterinary, and specialty medical practices, as well as other home services, with a business model built on recurring subscription revenue.

Weave Communications, Inc. primarily serves customers in the United States and Canada, with over 30,000 customers across approximately 35,000 locations. While the software can be used internationally, hardware is not shipped outside of the U.S. and Canada, and voice communication quality may vary for users located further from U.S.-based servers. The company intends to expand its footprint in international markets and pursue strategic acquisitions.

Weave Communications has maintained a positive brand reputation, being named an Inc. Power Partner, recognized as a G2 leader in Patient Relationship Management software, awarded a spot on G2's 2026 Best Software Awards for Best Healthcare Software Products, and listed as a Top 50 Product for Small Business. No specific negative events significantly impacting Weave Communications, Inc.'s brand reputation in the past year were found in the search results.

Weave Communications, Inc. has a diverse ownership structure, with institutional investors holding a substantial majority of the company's shares. Fmr Llc, Vanguard Group Inc, and BlackRock, Inc. are among the major institutional owners. Tyler Newton is the largest individual insider shareholder, owning 21.90% of the company. Other key executives, including Brett White (CEO), Joseph David McNeil (Chief Revenue Officer), and Erin Goodsell (Chief Legal Officer and Corporate Secretary), also hold substantial numbers of shares.