Free cash flow has stabilized in the $5M-$10M range after significant volatility, supported by minimal capital expenditures below 2% of revenue, but operating cash flow is heavily inflated by stock-based compensation add-backs averaging over $8 million per quarter.
Weave Communications, Inc. (WEAV) cash flow statement — 7-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Cash from Operations | 16.85M | 17.54M | 14.15M | 10.22M | -12.77M | -20.37M | -15.52M | -22.07M |
| Operating CF Margin % | - | 7.34% | 6.93% | 6% | -8.98% | -17.58% | -19.42% | -48.24% |
| Operating CF Growth % | -2388.5% | 23.97% | 38.43% | 180.06% | 37.34% | -31.29% | 29.68% | - |
| Net Income | -20.54M | -28.05M | -28.35M | -31.03M | -49.74M | -51.69M | -40.42M | -32.06M |
| Depreciation & Amortization | 16.77M | 15.63M | 15.47M | 15.83M | 16.64M | 12.14M | 9.43M | 5.73M |
| Stock-Based Compensation | 28.06M | 32.13M | 32.22M | 22.82M | 18.75M | 14.09M | 11.61M | 1.4M |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 92K |
| Other Non-Cash Items | 18.01M | 15.92M | 13.15M | 10.68M | 11.44M | 9.77M | 7.15M | 3.82M |
| Working Capital Changes | -25.45M | -18.09M | -18.34M | -8.09M | -9.87M | -4.68M | -3.28M | -1.05M |
| Change in Receivables | -2.51M | -1.61M | 1.87M | -1.38M | -966K | -870K | -567K | -1.75M |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 4K |
| Change in Payables | 2.26M | -1.09M | 3.12M | 1.32M | -330K | 583K | 302K | 1.86M |
| Cash from Investing | -3.52M | -6.85M | 8.88M | -7.74M | -54.03M | -9.81M | -3.86M | -2.47M |
| Capital Expenditures | -2.56M | -2.39M | -2.19M | -1.69M | -1.9M | -7.38M | -2.76M | -2.47M |
| CapEx % of Revenue | 0.99% | 1% | 1.07% | 0.99% | 1.33% | 6.37% | 3.45% | 5.4% |
| Acquisitions | -537K | -23.86M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -3.27M | -2.29M | -1.6M | -2M | -1.22M | -2.43M | -1.1M | 0 |
| Cash from Financing | -10.37M | -7.33M | -22.19M | -13.72M | -7.21M | 110.48M | -5.15M | 65M |
| Debt Issued (Net) | -7.24M | -7.17M | -7.06M | -17.53M | -8.71M | -1.86M | -6M | -4.39M |
| Equity Issued (Net) | 2.52M | 2.7M | 3.72M | 0 | 0 | 111.6M | 0 | 68.58M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -1.41M |
| Other Financing | -5.64M | -2.86M | -18.86M | 3.81M | 1.5M | 740K | 851K | 799K |
| Net Change in Cash | 2.96M | 3.36M | 840K | -11.24M | -74M | 80.3M | -24.53M | 40.46M |
| Free Cash Flow | 14.29M | 15.15M | 11.96M | 6.53M | -15.89M | -30.18M | -19.38M | -24.54M |
| FCF Margin % | 5.55% | 6.34% | 5.86% | 3.83% | -11.18% | -26.05% | -24.25% | -53.64% |
| FCF Growth % | -0.14% | 26.64% | 83.19% | 141.09% | 47.34% | -55.76% | 21.03% | - |
| FCF per Share | 0.18 | 0.20 | 0.17 | 0.10 | -0.24 | -0.47 | -0.30 | -2.22 |
| FCF Conversion (FCF/Net Income) | -0.70x | -0.63x | -0.50x | -0.33x | 0.26x | 0.39x | 0.38x | 0.69x |
| Interest Paid | 766K | 1.7M | 1.52M | 1.92M | 1.44M | 1.18M | 1.08M | 0 |
| Taxes Paid | -101K | 0 | 189K | 260K | 104K | 0 | 0 | 0 |
Quick answers to the most common questions about buying WEAV stock.
Weave Communications, Inc. (WEAV) generated $17.5M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Weave Communications, Inc. (WEAV) generated $15.2M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Weave Communications, Inc. (WEAV) spent $2.4M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Persistent losses despite positive OCF
Metrics are mathematically derived from official filings.
Earnings Quality Masked by Non-Cash Charges
Weave's operating cash flow consistently exceeds its net loss, with the OCF/NI ratio averaging -1.3 over the last ten quarters, indicating that substantial non-cash expenses like stock-based compensation are the primary driver of the gap.
The persistent negative OCF/NI ratio is a direct result of the large stock-based compensation add-back, which averaged $7.8 million per quarter. This suggests the company's core operations are generating cash, but the GAAP net loss is heavily inflated by non-cash equity-based pay. Investors should monitor whether this cash generation can eventually offset the dilutive effects of SBC.
FCF Volatility Amidst Operational Cash Generation
Free cash flow has been volatile, swinging from a -$20.5M deficit in 2024Q1 to a $21.2M surplus in 2024Q2, but has recently stabilized in the $5M-$10M range, suggesting the business is generating modest but inconsistent cash after minimal capital expenditures.
The FCF margin has normalized to a range of 8-14% in recent quarters, a significant improvement from the deep negatives seen in early 2024. This trajectory indicates the company has moved past a period of heavy cash burn, but the volatility, particularly the large working capital swings, implies that FCF is not yet a reliable, predictable metric for valuation.
Working Capital Swings Drive Cash Flow Volatility
Working capital changes have been the primary driver of operating cash flow volatility, with a massive $15.6M inflow in 2024Q2 followed by a $26.2M outflow in 2024Q1, indicating lumpy collections or payment cycles that obscure underlying operational cash generation.
The erratic working capital movements, particularly the large negative swings in Q1 periods, suggest potential seasonality in collections or billing practices. This volatility makes it difficult to assess the true underlying cash generation of the business on a quarterly basis and warrants investigation into the company's receivables and payables management.
Minimal Capital Intensity Supports Cash Flow
Capital expenditures are negligible, consistently below 2% of revenue, which is typical for a software-as-a-service business and allows nearly all operating cash flow to convert to free cash flow.
The consistently low CapEx/Rev ratio, averaging just 1.0% over the period, confirms Weave's asset-light model. This minimal reinvestment requirement is a key structural advantage, as it means the company does not need to spend heavily on physical assets to maintain its operations, preserving cash for other uses.
Cash Flow Obscured by SBC and Acquisitions
The reported operating cash flow is significantly inflated by stock-based compensation add-backs, and the 2025Q2 acquisition of a $23.3M asset suggests potential future integration costs or earn-out liabilities not fully reflected in current cash flows.
While operating cash flow appears positive, a substantial portion is attributable to the non-cash SBC expense, which averaged $7.8M per quarter. Furthermore, the net acquisition in 2025Q2 introduces potential future cash outflows for integration or contingent payments that are not visible on the current cash flow statement, representing a hidden risk to future liquidity.