Weave Communications (NYSE:WEAV) Releases Earnings Results, Hits Expectations

Weave Communications (NYSE:WEAV) announced its quarterly earnings results on Thursday. The company reported $0.04 earnings per share for the quarter, meeting the consensus estimate of $0.04, FiscalAI reports. The firm had revenue of $67.54 million during the quarter, compared to analyst estimates of $67.88 million. Weave Communications had a negative return on equity of 26.46% and a negative net margin of 10.05%.

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 Trading Down 2.4%

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

Institutional Trading of Weave Communications

Hedge funds and other institutional investors have recently modified their holdings of the stock. Corient Private Wealth LLC purchased a new position in shares of Weave Communications during the 4th quarter worth $129,000. XTX Topco Ltd purchased a new stake in shares of Weave Communications in the fourth quarter valued at about $649,000. Stoic Point Capital Management LLC purchased a new stake in shares of Weave Communications in the fourth quarter valued at about $87,000. Polymer Capital Management US LLC increased its position in Weave Communications by 25.5% during the fourth quarter. Polymer Capital Management US LLC now owns 19,134 shares of the company’s stock worth $145,000 after purchasing an additional 3,884 shares during the last quarter. Finally, Potrero Capital Research LLC acquired a new stake in Weave Communications during the fourth quarter worth about $5,893,000. 86.83% of the stock is owned by institutional investors and hedge funds.

Analysts Set New Price Targets

Separately, Weiss Ratings reaffirmed a “sell (e+)” rating on shares of Weave Communications in a research note 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 stock. According to data from MarketBeat.com, the stock has an average 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.