Company Overview
Weave Communications, Inc. operates an AI-powered patient communications, engagement, and payments platform specifically designed for small and medium-sized healthcare businesses. This specialized technology stack includes offerings such as an AI-receptionist, a unified phone number, and a customized phone system capable of identifying the nature of incoming calls. The company functions within the Healthcare sector, focusing on the Health Information Services industry, where it leverages artificial intelligence to streamline administrative workflows and improve patient interactions. With a market capitalization of $368.08M and annual revenue reaching $239.02M, the firm demonstrates significant scale relative to its workforce of 904 employees. These valuation and revenue figures indicate that the market assigns substantial value to the company's proprietary AI capabilities, positioning it as a notable player despite the recent losses in net income.
Financial Health
The company reported revenue of $239.02M over the trailing twelve months, while net income stood at -$28,052,000 and EBITDA was -$18,893,000, revealing a cost structure where operating expenses and tax obligations significantly erode pre-tax profitability. Despite the negative net income, the company generated positive free cash flow of $45.32M, which suggests a degree of financial flexibility allowing for operational continuity and potential capital allocation without immediate reliance on external financing. The gross margin stands at 72.1%, indicating strong pricing power or low direct costs in delivering its software services, whereas the operating margin is -3.2% and the profit margin is -11.7%, signaling that high fixed costs or general and administrative expenses are currently suppressing overall profitability. In terms of liquidity and leverage, the company holds $81.72M in cash against $52.15M in debt, resulting in a debt-to-equity ratio of 63.30, which presents a leveraged balance sheet where liabilities exceed equity. The current ratio of 1.24 indicates that the company maintains sufficient short-term assets to cover its short-term liabilities, though with a modest safety margin. Return on Equity is -37.6% and Return on Assets is -9.1%, metrics that reveal that management has not yet achieved profitability from its existing equity and asset base, reflecting the early-stage or high-investment nature of the business model.
Valuation Assessment
The trailing twelve-month P/E ratio is listed as N/A due to negative earnings, while the forward P/E is 22.55, implying that the market expects earnings to turn positive in the future to justify the current stock price. The price-to-book ratio is 4.45, indicating that the market values the company at a significant premium over its tangible book value, likely reflecting intangible assets such as its AI technology and customer base. Alternative valuation metrics show a price-to-sales ratio of 1.54 and an EV/EBITDA of -18.21, suggesting that the market is pricing the company primarily on its sales growth and revenue potential rather than current earnings power. The stock has traded between a 52-week low of $4.58 and a 52-week high of $12.19, providing a clear range for historical volatility and liquidity analysis. The beta value of 1.73 indicates that the stock price is substantially more volatile than the broader market, moving with greater intensity during periods of market fluctuation.
Growth & Income
Revenue growth stands at 17.0% year-over-year, while earnings growth is N/A due to the company's current net loss status, implying that top-line expansion is outpacing bottom-line profitability as the firm scales its operations. The company does not pay dividends, evidenced by a dividend yield of N/A and a payout ratio of 0.0%, meaning that all available earnings and cash flows are reinvested into the business rather than distributed to shareholders. This reinvestment strategy is typical for growth-oriented companies that prioritize expanding their AI platform and market share before returning capital to investors. The overall growth and income profile is characterized by robust revenue expansion and a zero-dividend policy, focusing entirely on capital appreciation potential through operational scaling.