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

Weave Communications (NYSE:WEAV) announced its quarterly earnings data on Thursday. The company reported ($0.06) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.02 by ($0.08), Zacks reports. Weave Communications had a negative net margin of 11.74% and a negative return on equity of 33.06%.

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 Price Performance

WEAV stock traded up $0.08 during trading on Thursday, hitting $4.92. 2,425,093 shares of the company’s stock traded hands, compared to its average volume of 1,145,738. The business has a fifty day simple moving average of $4.97 and a two-hundred day simple moving average of $6.04. The company has a debt-to-equity ratio of 0.08, a quick ratio of 1.24 and a current ratio of 1.24. Weave Communications has a 1 year low of $4.24 and a 1 year high of $11.32.

Analysts Set New Price Targets

Several research analysts have commented on WEAV shares. Stifel Nicolaus dropped their price objective on shares of Weave Communications from $11.00 to $9.00 and set a “buy” rating for the company in a report on Friday, February 20th. Raymond James Financial cut shares of Weave Communications from a “strong-buy” rating to a “moderate buy” rating in a research report on Tuesday, January 6th. Weiss Ratings reissued a “sell (d-)” rating on shares of Weave Communications in a research report on Friday, March 27th. Finally, Piper Sandler reduced their price objective on shares of Weave Communications from $12.00 to $8.00 and set an “overweight” rating on the stock in a research report on Friday, February 20th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the company has an average rating of “Hold” and an average price target of $10.00.

Insider Transactions at Weave Communications

In related news, CRO Joseph David Mcneil sold 25,000 shares of Weave Communications stock in a transaction that occurred on Friday, March 6th. The shares were sold at an average price of $5.53, for a total transaction of $138,250.00. Following the transaction, the executive directly owned 505,721 shares of the company’s stock, valued at $2,796,637.13. This trade represents a 4.71% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. 18.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Weave Communications

Several institutional investors have recently bought and sold shares of WEAV. Amundi increased its holdings in Weave Communications by 27.1% during the first quarter. Amundi now owns 5,301 shares of the company’s stock valued at $59,000 after buying an additional 1,130 shares during the period. Tower Research Capital LLC TRC increased its holdings in Weave Communications by 119.7% during the second quarter. Tower Research Capital LLC TRC now owns 8,683 shares of the company’s stock valued at $72,000 after buying an additional 4,731 shares during the period. RPO LLC purchased a new position in Weave Communications during the fourth quarter valued at approximately $81,000. Schonfeld Strategic Advisors LLC purchased a new position in Weave Communications during the fourth quarter valued at approximately $84,000. Finally, Stoic Point Capital Management LLC purchased a new position in Weave Communications during the fourth quarter valued at approximately $87,000. 86.83% of the stock is owned by hedge funds and other institutional investors.

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.