Weave Communications (NYSE:WEAV) Posts Quarterly Earnings Results, Misses Estimates By $0.08 EPS

Key Points

• Weave reported a quarterly EPS of ($0.06), missing the consensus $0.02 estimate by $0.08, and showed a negative return on equity (33.06%) and net margin (-11.74%).
• Operationally the quarter was strong with $65.5 million in revenue (+17.4% YoY), $2.5 million operating income, record new locations, improving retention, accelerating AI adoption, and gross margin of 73.2% driven by faster-growing payments.
• Balance-sheet and guidance mixed: cash fell to $72.7 million and Q1 free cash flow was ($7.1 million) (seasonal), but management raised full-year revenue guidance to $275–278 million and expects positive FCF in H1 2026 with non‑GAAP operating income of $10.5–13.5 million.

Weave Communications (NYSE:WEAV - Get Free Report) released its quarterly earnings results on Thursday. The company reported ($0.06) earnings per share for the quarter, missing the consensus estimate of $0.02 by ($0.08), Zacks reports. Weave Communications had a negative return on equity of 33.06% and a negative net margin of 11.74%.

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

• Weave reported a strong Q1 with $65.5 million in revenue, 17.4% year-over-year growth, and operating income of $2.5 million, beating the high end of guidance for the 17th consecutive quarter.
• The company added a record number of locations in Q1 and saw improving monthly retention, with dollar-based net revenue retention at 92% and gross retention at 89%, driven by upsells of new products.
• Adoption of AI products is accelerating (platform handled >300% more AI interactions YoY); pilots of the AI Receptionist and Call Intelligence show meaningful operational and revenue gains and an omni-channel agent is coming later this quarter.
• Payments continue to outpace overall revenue growth, boosting margins — gross margin improved 110 bps to 73.2% and subscription-plus-payments margin was 78.4%, supporting a path to a long-term 75–80% gross margin target.
• Balance sheet and guidance mixed: cash and short-term investments fell to $72.7 million and Q1 free cash flow was negative $7.1 million (seasonal), but management expects positive FCF in H1 2026 and raised full-year revenue guidance to $275–278 million with non‑GAAP operating income of $10.5–13.5 million.

Weave Communications Stock Up 1.5%

WEAV traded up $0.08 during trading on Thursday, reaching $4.92. The stock had a trading volume of 2,425,093 shares, compared to its average volume of 1,145,738. The company has a quick ratio of 1.24, a current ratio of 1.24 and a debt-to-equity ratio of 0.08. Weave Communications has a one year low of $4.24 and a one year high of $11.32. The business has a 50-day moving average of $4.97 and a 200-day moving average of $6.04.

Insider Buying and Selling

In related news, CRO Joseph David Mcneil sold 25,000 shares of the stock in a transaction on Friday, March 6th. The stock was sold at an average price of $5.53, for a total value of $138,250.00. Following the transaction, the executive owned 505,721 shares of the company's stock, valued at $2,796,637.13. This represents a 4.71% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 18.40% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Wasatch Advisors LP increased its position in shares of Weave Communications by 16.3% in the third quarter. Wasatch Advisors LP now owns 6,098,592 shares of the company's stock valued at $40,739,000 after acquiring an additional 855,253 shares during the period. Vanguard Group Inc. lifted its holdings in shares of Weave Communications by 3.4% during the third quarter. Vanguard Group Inc. now owns 5,465,810 shares of the company's stock valued at $36,512,000 after purchasing an additional 179,693 shares during the last quarter. Gumshoe Capital Management LLC purchased a new position in shares of Weave Communications during the fourth quarter valued at approximately $22,705,000. State Street Corp raised its holdings in Weave Communications by 26.8% in the 4th quarter. State Street Corp now owns 2,172,391 shares of the company's stock worth $16,488,000 after acquiring an additional 459,547 shares during the last quarter. Finally, Renaissance Technologies LLC raised its holdings in Weave Communications by 31.7% in the 4th quarter. Renaissance Technologies LLC now owns 1,694,300 shares of the company's stock worth $12,860,000 after acquiring an additional 407,500 shares during the last quarter. 86.83% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on WEAV. Stifel Nicolaus decreased their price target on shares of Weave Communications from $11.00 to $9.00 and set a "buy" rating on the stock in a report on Friday, February 20th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Weave Communications in a report on Friday, March 27th. Piper Sandler decreased their price target on shares of Weave Communications from $12.00 to $8.00 and set an "overweight" rating on the stock in a report on Friday, February 20th. Finally, Raymond James Financial cut Weave Communications from a "strong-buy" rating to a "moderate buy" rating in a research note on Tuesday, January 6th. Three investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, Weave Communications currently has a consensus rating of "Hold" and an average price target of $10.00.

Weave Communications Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.