Weave Communications (NYSE:WEAV) Issues Quarterly Earnings Results

Key Points

• Weave Communications reported quarterly EPS of $0.04, matching analyst estimates, while revenue reached $67.54 million, slightly below the $67.88 million consensus. Revenue rose 15.5% year over year, and operating income improved to $3.2 million.
• The company lowered its 2026 revenue outlook to $273 million–$275 million after a go-to-market transition caused booking shortfalls, but raised its full-year non-GAAP operating income forecast to $12 million–$14 million.
• AI adoption and cash generation remained strong: custom AI interactions increased 165% year over year, while Weave produced $8.7 million in quarterly free cash flow. Shares traded near $6.63, below the analyst consensus price target of $8.33.

Weave Communications (NYSE:WEAV - Get Free Report) announced its earnings results on Thursday. The company reported $0.04 EPS for the quarter, hitting analysts' consensus estimates of $0.04, FiscalAI reports. The business had revenue of $67.54 million during the quarter, compared to the consensus estimate of $67.88 million. Weave Communications had a negative net margin of 10.05% and a negative return on equity of 26.46%.

Here are the key takeaways from Weave Communications' conference call:

• Q2 revenue rose 15.5% year over year to $67.5 million, with payments growth roughly twice the rate of total revenue and record gross and net new-location additions. Dental delivered its strongest location-add quarter in eight quarters, while specialty medical growth accelerated.
• Operating income reached $3.2 million versus breakeven a year ago, lifting operating margin to 4.7%. Sales and marketing expense fell to 38% of revenue, and the company generated $8.7 million in free cash flow during the quarter.
• AI adoption continued to expand, with custom AI interactions up 165% year over year to 70 million and more than 14.5 million calls analyzed through Call Intelligence. Management expects products such as AI Receptionist to support higher monetization, retention, and payments volume.
• Weave lowered its 2026 revenue outlook to $273 million–$275 million after a May-to-July go-to-market transition caused booking shortfalls that will weigh on third- and fourth-quarter revenue. Management accelerated completion of the SDR and account-executive restructuring into August, but execution improvements remain to be demonstrated.
• Despite the revenue reset, Weave raised its full-year non-GAAP operating income outlook to $12 million–$14 million, citing improved sales efficiency and continued operating leverage. A deeper athenahealth integration and Marketplace presence are also expected to improve specialty-medical average revenue, retention, and customer-acquisition economics over time.

Weave Communications Stock Performance

Shares of Weave Communications stock traded down $0.17 during trading on Thursday, hitting $6.63. 1,273,615 shares of the company's stock were exchanged, compared to its average volume of 1,003,187. The stock has a market capitalization of $527.95 million, a price-to-earnings ratio of -21.40 and a beta of 1.67. The business has a 50-day simple moving average of $6.25 and a 200-day simple moving average of $5.73. Weave Communications has a 52-week low of $4.24 and a 52-week high of $8.11. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.24 and a current ratio of 1.24.

Hedge Funds Weigh In On Weave Communications

A number of institutional investors have recently modified their holdings of WEAV. Amundi grew its holdings in Weave Communications by 27.1% during the first quarter. Amundi now owns 5,301 shares of the company's stock worth $59,000 after acquiring an additional 1,130 shares during the period. Tower Research Capital LLC TRC boosted its position in Weave Communications by 119.7% in the 2nd quarter. Tower Research Capital LLC TRC now owns 8,683 shares of the company's stock worth $72,000 after purchasing an additional 4,731 shares in the last quarter. RPO LLC acquired a new stake in shares of Weave Communications during the 4th quarter worth approximately $81,000. Schonfeld Strategic Advisors LLC acquired a new stake in shares of Weave Communications during the 4th quarter worth approximately $84,000. Finally, Stoic Point Capital Management LLC purchased a new position in shares of Weave Communications during the 4th quarter valued at approximately $87,000. Hedge funds and other institutional investors own 86.83% of the company's stock.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a "sell (e+)" rating on shares of Weave Communications in a research report on Wednesday, July 8th. Three equities research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average target price of $8.33.

About Weave Communications

Weave Communications is a technology company that provides integrated communications and customer management solutions tailored for small- to medium-sized local businesses. Headquartered in Lehi, Utah, the company developed a cloud-based platform that unifies voice calling, business texting, appointment reminders and payment processing within a single interface.

The platform's core offerings include a unified business phone system, two-way texting, automated appointment and recall reminders, secure payment acceptance and a basic customer relationship management module.

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