Weave Communications (WEAV 2.20%) 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.
NYSE: WEAV
Key Data Points
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.
