Weave Communications (WEAV +0.14%) published its latest earnings release on Friday, and it'll probably spend the weekend wishing it hadn't. Mr. Market wasn't happy about the company's slight bottom-line miss, and punished Weave by selling out of its equity. By the end of the day, the company's shares had fallen by almost 5%.
Focused on health
Weave, which specializes in communications solutions for healthcare businesses, released its final set of 2025 figures. The fourth quarter saw the company earn revenue of $63.4 million, which bettered the year-ago period by 17%. Growth on the bottom line was more sluggish, with net income not in accordance with generally accepted accounting practices (GAAP) expanding by 8% to $2.6 million ($0.03 per share).
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On average, analysts tracking Weave stock anticipated the company would post just under $63.2 million on the top line, but a slightly better non-GAAP (adjusted) net income of $0.04 per share.
In its earnings release, Weave touted the "stickiness" of its products. It quoted CEO Brett White as saying that "As our agentic workflows expand, Weave evolves from a product practices use to an always-on teammate they rely on."
"We reduce administrative burden, improve conversion and collections, and free staff to focus on high-value patient care," he added.
WEAV Weave Communications
NYSE · As of 4:00 PM ET 10/23/26
Guiding for more growth
Weave also proffered guidance for two periods, its current (first) quarter and the entirety of 2026. For the latter, it's estimating it will book $273 million to $276 million in revenue, with adjusted net income coming in at $8 million to $12 million. Both ranges sit comfortably above the 2025 results, which were $239 million and $6.6 million, respectively.
The company's stock is, admittedly, rather pricey on certain valuations, such as price to book value. I feel the company has more growth in its future, like it expects, but it continues to look expensive in a world where there are tech sector bargains to be had. Given that, it would be an appealing buy candidate on further price weakness.
