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WEAV, Weave Communications Inc.

Software asset-light Unprofitable

Weave Payments: we provide payment processing, with point-of-sale and digital payment solutions that allow patients to make payments from anywhere, and patient financing solutions.

Weave is a leading AI-powered patient communications, engagement, and payments platform purpose-built for small and medium-sized ("SMB") healthcare practices.

Weave serves as the orchestration layer for modern healthcare practices, bringing together voice, text, and AI-powered workflows into a single system of work.

Latest annual: FY2025 10-K

WEAV · Weave Communications Inc.

The business

What it sells, where the money comes from, the kind of company it is.

Revenue · FY2025

$239M

+17.0% YoY · 25% 5-yr CAGR

Vital signs · TTM, with 5-yr average

Revenue $249M 5-yr avg $174M

Gross margin 72% 5-yr avg 66%

Operating margin −11.0% 5-yr avg −25.4%

ROIC −42% 5-yr avg −118%

Owner-earnings margin 4% 5-yr avg −3%

Free cash flow margin 4% 5-yr avg −3%

The business in brief

read the 10-K →

What this business is and what moves its needle, from its own SEC filings.

Situation: Unprofitable. No sustained operating profit across the record; an earnings multiple has nothing to rest on. What the record does show is revenue, the gross-margin trajectory, and the burn against the cash on hand.
What moves the needle: Operating margin has run around −35% through the cycle on a 63% gross margin, the operating line in the red even at its best — so the lever is whether the spending below the gross line can come down enough to clear a profit: revenue growth against the cost curve, and the cash runway until it does. The cash cycle has run negative through the cycle (a median of −27 days): the operation is paid before it pays, so working capital releases cash as the business grows rather than tying it up. Read this kind of business on retention and the cost of growth. On its own account, the filing leans hardest on customer concentration, set against the numbers in what the filing emphasizes, below.
Is it a good business?: Return on capital has rarely cleared the cost of capital (median −111%, above 15% in 0 of 4 years). Owner earnings, the cash-based check, have been thin too. This is price-taker territory, where the balance sheet and the cycle matter more than any multiple; the rest is in the 10-K.

Every line is arithmetic on the company's filings, shown in full in the sections below.

The record

Ten years of arithmetic, read across the cycle.

The record, 2019–2025

realized figures from each filing · older years to the left

2019’19	2020’20	2021’21	2022’22	2023’23	2024’24	2025’25	TTMTTMMar 2026
								Income statement
$46M	$80M	$116M	$142M	$170M	$204M	$239M	$249M	RevenueRevenue
60%	57%	57%	63%	68%	71%	72%	72%	Gross marginGross mgn
28%	32%	27%	30%	27%	26%	23%	22%	SG&A / revenueSG&A/rev
31%	25%	23%	22%	20%	20%	19%	18%	R&D / revenueR&D/rev
($32M)	($40M)	($50M)	($50M)	($34M)	($31M)	($31M)	($27M)	Operating incomeOp. inc.
−69.8%	−49.5%	−43.5%	−35.0%	−20.2%	−15.4%	−12.8%	−11.0%	Operating marginOp. mgn
($32M)	($40M)	($52M)	($50M)	($31M)	($28M)	($28M)	($25M)	Net incomeNet inc.
								Cash flow & returns
($22M)	($16M)	($20M)	($13M)	$10M	$14M	$18M	$12M	Operating cash flowOp. cash
$6M	$9M	$12M	$13M	$12M	$12M	$12M	$12M	DepreciationDeprec.
$3M	$4M	$5M	$5M	$6M	($1M)	$2M	($5M)	Working capital & otherWC & other
$2M	$3M	$7M	$2M	$2M	$2M	$2M	$2M	CapexCapex
5.4%	3.5%	6.4%	1.3%	1.0%	1.1%	1.0%	1.0%	Capex / revenueCapex/rev
($25M)	($18M)	($28M)	($15M)	$9M	$12M	$15M	$10M	Owner earningsOwner earn.
−53.6%	−22.9%	−23.9%	−10.3%	5.0%	5.9%	6.3%	3.9%	Owner earnings marginOE mgn
($25M)	($18M)	($28M)	($15M)	$9M	$12M	$15M	$10M	Free cash flowFCF
−53.6%	−22.9%	−23.9%	−10.3%	5.0%	5.9%	6.3%	3.9%	Free cash flow marginFCF mgn
—	—	—	—	$0	$0	$24M	$24M	AcquisitionsAcquis.
$1M	$0	$0	—	—	—	—	—	BuybacksBuybacks
—	—	—	-126%	-96%	-161%	-88%	-42%	ROICROIC
—	—	-46%	-60%	-39%	-42%	-34%	-30%	Return on equityROE
—	—	−46%	−60%	−39%	−42%	−34%	−30%	Retained to equityRetained/eq
								Balance sheet
$80M	$56M	$136M	$62M	$51M	$52M	$55M	$42M	Cash & investmentsCash+inv
—	$3M	$3M	$3M	$4M	$4M	$4M	$5M	ReceivablesReceiv.
—	$3M	$4M	$4M	$5M	$8M	$7M	$7M	Accounts payablePayables
—	($856K)	($1M)	($497K)	($2M)	($5M)	($3M)	($2M)	Operating working capitalOper. WC
—	$68M	$154M	$133M	$130M	$121M	$105M	$101M	Current assetsCur. assets
—	$44M	$54M	$72M	$73M	$77M	$85M	$81M	Current liabilitiesCur. liab.
—	1.5×	2.8×	1.8×	1.8×	1.6×	1.2×	1.2×	Current ratioCurr. ratio
—	—	—	—	—	$0	$29M	$29M	GoodwillGoodwill
—	$93M	$187M	$208M	$201M	$189M	$208M	$204M	Total assetsAssets
—	$4M	$10M	$10M	$0	—	—	$10M	Total debtDebt
—	($52M)	($126M)	($52M)	($51M)	—	—	($32M)	Net debt / (cash)Net debt
-39.4×	-36.1×	-42.6×	-34.5×	-17.9×	-20.6×	-18.0×	-16.3×	Interest coverageInt. cov.
($86M)	($114M)	$112M	$83M	$79M	$67M	$82M	$83M	Shareholders’ equityEquity
3.0%	14.5%	12.2%	13.2%	13.4%	15.8%	13.4%	12.2%	Stock comp / revenueSBC/rev
								Per share
10.3M	11.4M	20.6M	65.1M	67.7M	71.7M	76.3M	78.6M	Shares out (diluted)Shares
$4.43	$7.04	$5.61	$2.18	$2.52	$2.85	$3.13	$3.17	Revenue / shareRev/sh
$-3.11	$-3.56	$-2.50	$-0.76	$-0.46	$-0.40	$-0.37	$-0.32	EPS (diluted)EPS
$-2.38	$-1.61	$-1.34	$-0.23	$0.13	$0.17	$0.20	$0.12	Owner earnings / shareOE/sh
$-2.38	$-1.61	$-1.34	$-0.23	$0.13	$0.17	$0.20	$0.12	Free cash flow / shareFCF/sh
$0.24	$0.24	$0.36	$0.03	$0.02	$0.03	$0.03	$0.03	Cap. spending / shareCapex/sh
$-8.33	$-10.03	$5.44	$1.28	$1.17	$0.93	$1.08	$1.06	Book value / shareBVPS

The diluted share count moved ×1.82 into 2021 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

The diluted share count moved ×3.15 into 2022 — shares issued, not a split the totals corroborate — and the per-share figures carry the counts as filed.

Per-share growththe realized rate an owner's share compounded

	6-yr	5-yr
Revenue / share	−5.6%/yr	−14.9%/yr
Capital spending / share	−28.7%/yr	−33.6%/yr

The record, charted

FY2019–2025

Each measure over its full record; the current point and the worst year marked.

Share count

76Mpeak FY2025

ROIC

−88%low FY2024

Gross margin

72%low FY2020

Owner earnings vs. net income

Owner earningsNet income

The accountant's number, and the cash an owner can take; the gap is the tell.

$15Mowner earningsvs.($28M)net incomelow FY2021

Where the cash went

ReinvestBuybacksDividendsAcquisitionsRetainedBeyond op. cash

Each year's outlays against its operating cash: the mix, and how it drifts. The hatched cap is spending beyond that year's operating cash — financed from the balance sheet or borrowing, not operations.

FY2023FY2025

Owner-earnings bridge

FY2021–FY2025cash-flow statement, SEC EDGAR →

Net income is the accountant's number; owner earnings is the cash an owner could take out. The walk between them, off the cash-flow statement, and whether the gap is widening or holding.

In fiscal 2025 the business turned a $28M loss into $15M of owner earnings: more cash than the profit line showed, after the non-cash charges and the capital it put back in.

	FY2025	FY2024	FY2023	FY2022	FY2021
Reported net income	($28M)	($28M)	($31M)	($50M)	($52M)
Depreciation & amortizationnon-cash charge added back	+$12M	+$12M	+$12M	+$13M	+$12M
Stock-based compensationreal costnon-cash, but a real cost	+$32M	+$32M	+$23M	+$19M	+$14M
Working capital & othertiming of cash in and out, other non-cash items	+$2M	−$1M	+$6M	+$5M	+$5M
Cash from operations	$18M	$14M	$10M	($13M)	($20M)
Capital expenditurecash put back in to keep running and to grow	−$2M	−$2M	−$2M	−$2M	−$7M
Owner earnings	$15M	$12M	$9M	($15M)	($28M)
Owner-earnings marginowner earnings ÷ revenue	6%	6%	5%	-10%	-24%

Owner earnings is the cash an owner could pull out without starving the business: operating cash less the capital it must spend to hold its position . The cash-flow statement also adds stock comp back as non-cash, but it is a real cost paid in shares; counted as the expense it is (less $32M), owner earnings is nearer ($17M).

Maintenance capex is estimated as depreciation where a growing business invests above it; free cash flow is the figure the scorecard's free-cash margin reads.

III

Quality & stewardship

Returns, the balance sheet, capital allocation, and pay.

Owner’s Scorecard

FY2025 10-K · source on SEC EDGAR →

Material weakness in financial controls

“For example, we previously identified material weaknesses in our internal control over financial reporting that were remediated in 2022.”

The figures below are only as sound as the controls that produced them. read the note →

Will it survive?

Can it pay its interest? -18.0×

Does not cover its interest

Operating income ($31M) ÷ interest expense $2M

What this means
A full year of operating profit didn't cover the interest bill. This is the zombie zone: the business depends on refinancing, asset sales, or forbearance to service its debt.
How heavy is the debt, net of cash? +$45M

Net cash

Cash $55M − debt $10M

What this means
Cash and short-term investments exceed every dollar of debt by $45M, on net the company owes nothing, and can act from strength when others can't. Net debt is the leverage figure that matters: the cash is already set against the debt. Strategic or illiquid investments aren't counted here.
How long is cash tied up? -33d

Negative, funded by others

DSO 7 + DIO 0 − DPO 40 days

What this means
Days cash is tied up between paying suppliers and collecting from customers. A negative cycle is a quiet moat: suppliers and customers fund the operation (Buffett's “float”), the company grows on other people's money. (Little or no inventory, a services / asset-light model, so the inventory leg is ~0.)

Is it a good business?

Return on invested capital -126%

Below average through the cycle

4-yr median, range -161%–-88%; -65% latest = NOPAT ($24M) ÷ invested capital $37M

Industry peers: median -0%

What this means
The rate the business earns on the money tied up in it, Buffett's north star, because over time a stock tracks the ROIC beneath it. Above ~15% sustained hints at a moat; a return below the cost of capital (~8%) erodes value as a business grows rather than building it — the test Buffett weighs most. The headline is the median of the last 4 years (it ran -65% most recently), so one peak or trough year doesn't set the verdict. Asset-light businesses (R&D expensed, little capital) read artificially high, pair this with Owner Earnings.
Owner-earnings margin 6%

Solid, recently turned positive

latest $15M = operating cash $18M − maintenance capex $2M; positive each of the last 3 years, after an earlier loss stretch (7-yr median -10%)

Industry peers: median 10%

What this means
What an owner could take out without starving the business: operating cash less the maintenance capital it must spend to hold its position — Buffett's owner earnings. That's 6% of revenue this year, a -10% median across 7 years. Treating stock comp as the real expense it is (less $32M of SBC) leaves ($17M).
Are earnings backed by cash? $18M

Loss, but cash-generative

Net income ($28M) · cash from operations $18M

In the filing’s words The filing discloses a material weakness in its financial controls — the reported numbers here, and the record built on them, are only as reliable as the controls that produced them.

What this means
The company reported a net loss, so a conversion ratio isn't meaningful. What matters then is whether operations still threw off cash, here, they did.

How is the cash used?

Where do the earnings go? 0%

Reinvests most of it

Dividends + buybacks $0 ÷ Owner Earnings $15M

What this means
Of $15M Owner Earnings, $0 (0%) went back to shareholders, $0 dividends, $0 buybacks. Returning most of it is the mark of a mature business with little left to reinvest at a high return; reinvesting most could mean a long runway, or empire-building. The split doesn't say which; the return earned on it (see ROIC) does.
Investing or harvesting? 0.21×

Harvesting

Capex $2M ÷ depreciation $12M

What this means
Descriptive, not a grade. Above ~1× means investing faster than assets wear out (growth, or, sustained for years, today's earnings carrying less depreciation than tomorrow's will). Below means spending less than it's wearing out (efficiency, or a melting asset base). The ratio won't tell you which; the filings will.

Graham’s defensive tests · 1 of 5 met

Graham’s numerical criteria for the defensive investor (The Intelligent Investor, ch. 14), run on the filings. A floor of safety, not a buy signal; many fine modern businesses fail his strictest liquidity rules by design.

Adequate size Miss

Revenue ≥ $2B · $239M

What this means
Big enough to weather a storm. Graham's 1972 floor was ~$100M of sales (≈ $700M today); we use a $2B revenue line as a conservative modern stand-in.
Strong liquidity Miss

Current ratio ≥ 2× · 1.24×

What this means
Current assets at least twice current liabilities, near-term bills covered without touching the business. Strict by design: many cash-rich modern firms run leaner and miss it, holding their cushion in longer-dated securities.
Conservative debt Pass

Debt ≤ working capital · $10M vs $20M WC

What this means
Graham's rule that borrowings not exceed net current assets. Capital-heavy and buyback-heavy firms routinely fail it, read it next to interest coverage, not alone.
Earnings stability Miss

A profit every year (7-yr record) · 7 loss years

What this means
Graham wanted earnings in each of the past ten years, the stability a defensive owner leans on.
Dividend record Miss

Uninterrupted dividends · none paid

What this means
An unbroken dividend was Graham's mark of durability. He wanted twenty years; the filings show about ten, and a single suspension breaks the streak. Non-payers, many fine modern compounders, fall outside his defensive net by design.
Earnings growth —

Earnings +33% over the record · —

What this means
Earnings were negative early in the record, a growth rate isn't meaningful.
Moderate price —

P/E ≤ 15 and P/E × P/B ≤ 22.5 · decided by the price

What this means
Graham's valuation gate, the wall he kept between a sound business and a sound investment. Three-year average earnings are $-0.37/share (latest year $-0.35), the averaged base the calculator's gate runs on, and book value is $1.04/share. Enter a price in “What the price implies” just below for the P/E, P/B, and whether it clears. But this is the rule Buffett outgrew: there's no hard P/E law, and a wonderful business can deserve a far richer multiple if the thesis holds, treat it as the bargain-hunter's floor, not a verdict on the price.

Durability & moat, 2019–2025

Whether the record’s returns held, and what the capital reinvested earned.

Profitable years 0 of 7

What this means
Lost money in 7 year(s), look at what happened there before trusting the average.
Operating margin −54% → −16% (3-yr avg ends)

What this means
Through the cycle the operating margin widened — about −54% early to −16% lately, median −35% — pricing power intact or improving.
Reinvestment, incremental ROIC returns capital

What this means
The capital base barely grew: this business returns cash through dividends and buybacks rather than reinvesting. Judge it on the cash returned, not on compounding.
Worst year 2019 · −69.8% op. margin

What this means
Operations went underwater in 2019, understand why before trusting the good years.

Does AI threaten the moat?

Elevated contestability

The product is software or information, the very thing capable AI now produces more cheaply, so the moat is more contestable than the record alone implies.

In its own filing Named as a competitive risk

Its FY2025 10-K names artificial intelligence as a competitive threat.

“Our competitors or other third parties may incorporate AI into their products, offerings, and solutions more quickly or more successfully than us, which could impair our ability to compete effectively and adversely affect our results of operations.”

AI has collapsed the cost of building a capable substitute for the very thing this business sells. When a credible alternative can be assembled for a fraction of the incumbent's price, it is pricing power that erodes first, not revenue tomorrow. The live question is whether the moat survives that, not whether it held in the past. Whether that question is answerable at all is yours to decide, against your own circle of competence.

Read from the filing's own risk factors, paired with the industry's structure under its SIC code; the durability is read above, the price below.

All figures as filed; the source filing is linked above.

Current Position

as of the latest quarter, Mar 31, 2026

Can the business pay what it owes this year, off the freshest balance sheet: the quality of the assets, the debt actually coming due, and what a low ratio means here.

Current assets$101M

Cash & short-term investments$42M
Receivables$5M
Other current assets$54M

Current liabilities$81M

Accounts payable$7M
Other current liabilities$74M

Current ratio1.24×all current assets ÷ what's due · Graham looked for 2×

Quick ratio1.24×stricter: inventory excluded

Cash ratio0.52×strictest: cash alone against what's due

Working capital$20Mthe cushion left after near-term bills

Revenue, latest quarter vs. a year ago+17.4%the freshest read on whether the business is still growing

Current ratio, recent quarters1.6× → 1.2×

Deeper floors

Tangible book value$47Mequity stripped of goodwill & intangibles

Net current asset value($20M)Graham's net-net: current assets less all liabilities

Debt incl. operating leases$48M$38M of it operating leases

Deferred revenue$37Mcustomer cash collected before delivery; operating float

From the company's latest filing.

Management, ownership & pay

read the proxy →

From the proxy: how much of the business the people running it own, and how they are paid.

Insider ownership16.4%
The stake all directors and executive officers hold together, per the 2026 proxy: skin in the game, the first thing Munger reads.
Stock-based compensation$32M
The slice of the business handed to employees in shares this year, 13% of revenue. Buffett's oldest accounting fight: this is compensation, compensation is an expense, real whether or not the headline earnings admit it. One trap: the cash-flow statement adds SBC back, so the operating cash, and the owner earnings drawn from it, are flattered by exactly this amount; counted as the cost it is, what an owner keeps is lower.

Peers, Software

The same industry, side by side on owner economics. Each figure is a through-cycle median, so a peak or trough year can’t distort it; the group median at the foot is the line to read each against.

Company	Revenue	Gross margin	Op. margin	ROIC	Owner earn. margin
MKTWMarketWise Inc.	$328M	57%	11.6%	—	14%
DOMODomo, Inc.	$319M	73%	-34.5%	—	-8%
CRNCCerence Inc.	$252M	70%	1.3%	-1%	12%
AIC3.ai Inc.	$250M	67%	-80.5%	-36%	-37%
WEAVWeave Communications Inc.	$239M	63%	-35.0%	-111%	-10%
PDFSPDF Solutions Inc.	$219M	61%	0.0%	0%	7%
XZOExzeo Group Inc.	$217M	40%	28.4%	—	35%
IIIVi3 Verticals Inc.	$213M	32%	1.9%	1%	10%
Group median	—	62%	0.7%	-1%	9%

The price

What a price has to assume.

What the price implies

reverse-DCF

Type today's close and see the owner-earnings growth you'd have to believe to justify it, beside what Weave Communications Inc. has delivered.

Today’s price $

Base Normalize · through-cycle ($12M) Net of stock comp (−$30M)

—

The assumptions Required return 9% Years of high growth 10 Terminal growth 2.5%

9.0% = the 4.55% 10-year Treasury (Jul 15, 2026) + 4.45 points of equity premium. The rate you require is yours to set.

Enter a price above to run it.

Implied by the price—

Owner-earnings growth · since FY2023+33%/yr

Owner-earnings yield—

P/E (3-yr earnings ’23–’25)—

P/B—

Graham’s price gate—

Graham capped the multiple at 15×; Buffett and Munger let that rule go: a wonderful business can deserve 50× if the thesis holds. The gate marks the bargain-hunter's floor.

Against a high-grade bond: Graham’s yardstick bond yield%

Prefilled with the 10-year Treasury (4.55%, as of Jul 15, 2026). Edit it for today’s exact figure, or a AAA corporate yield.

Graham measured a stock against the bond you could own instead, the heart of his margin of safety. Enter a price above to weigh the owner-earnings yield against this bond.

Owner earnings $10M on 80M shares outstanding, per the 10-Q cover, as of 2026-05-01; net cash $32M. The base is the latest year by default; Normalize values it on the through-cycle median owner-earnings margin (to avoid paying on a peak year). Net of stock comp treats option pay as the expense it is. The dials set the multiple a growth belief justifies; the price, and every dollar on this page, is yours.

Weigh WEAV against another business →

Cite: Owner Scorecard, "Weave Communications Inc. (WEAV), the owner's record," https://ownerscorecard.com/c/WEAV, data as of 2026-07-09.

Manual order: ← WDFC its page in the Manual WEC →

Industry order: ← WB the Software chapter WIX →