WEAV earnings analysis
What we found in WEAV's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Weave Communications reported a strong Q1 2026, with revenues reaching $65.5 million, a 17% increase year-over-year, and an EPS of $0.03, exceeding expectations by $0.05. The company continues to expand its footprint in the SMB healthcare sector while facing challenges regarding cash flow and operational efficiency. Despite ongoing losses, the positive revenue trend bolsters confidence for the upcoming quarters.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 17% Year-Over-Year
- Total revenues for Q1 2026 were $65.5 million, an increase of $9.7 million from $55.8 million in Q1 2025.
- Positive Earnings Surprise
- Reported EPS of $0.03 exceeded the estimate of -$0.02 by $0.05, demonstrating improved profitability.
- Improved Gross Margin
- Gross margin improved to 73% in Q1 2026 from 72% in Q1 2025, showcasing better cost efficiencies.
- Increase in Recurring Revenues
- Recurring subscription and payment processing revenue accounted for 90% of total revenues, supporting stable cash flows.
- Strong Demand for New Products
- New product offerings and enhanced functionalities have contributed to customer engagement and revenue growth.
- Cash Reserves Available for Growth
- As of March 31, 2026, the company had $42.2 million in cash and short-term investments, providing a cushion for operational challenges.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Negative Free Cash Flow
- Q1 2026 saw free cash flow of -$7.1 million compared to -$1.06 million in Q1 2025, indicating cash management issues.
- Accumulated Losses
- The company reported an accumulated deficit of $324.8 million as of March 31, 2026, raising concerns over long-term profitability.
- Customer Retention Risks
- Dollar-based net revenue retention rate dropped to 92% in Q1 2026 from 98% in Q1 2025, reflecting potential challenges in customer loyalty.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.03
- Gross margin
- 73%
- Segment
- Subscription and payment processing
- Segment
- Onboarding
- Segment
- Phone Hardware
What they said about what is next.
Management expects Q2 2026 revenue to be between $67.2 million and $68.2 million.
The filing reads better than the one before it.
What came before.
- 10-K · March 5, 2026
- Weave positions itself as an AI-powered, vertical SaaS platform for SMB healthcare practices (dental, optometry, veterinary and specialty medical) with a unified communications, payments and AI workflow roadmap. Revenue…
- 10-K · March 13, 2025
- Weave positions itself as an AI-enabled, all-in-one customer experience and payments platform purpose-built for small and medium-sized healthcare practices, integrating communications, scheduling and payments into a…
- 10-K · March 13, 2024
- Weave positions itself as an all-in-one customer experience and payments platform for SMB healthcare practices, serving over 31,000 locations and more than 28,000 customers as of December 31, 2023. The 10-K emphasizes a…
- 10-Q · November 8, 2023
- Weave reported Q3 revenue of $43,544,000, up $7,314,000 (20.2%) versus $36,230,000 in Q3 2022, with gross profit expanding to $29,935,000 (68.8% margin) and an operating loss that narrowed to $(8,022,000). Liquidity…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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