Free cash flow remains highly volatile, swinging from a -43.5% margin in 2024Q1 to a 41.9% peak in 2024Q2, largely driven by unpredictable working capital fluctuations.
| Cash from Operations | 12.05M | 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 % | -2552.57% | 23.97% | 38.43% | 180.06% | 37.34% | -31.29% | 29.68% | - |
| Net Income | -25M | -28.05M | -28.35M | -31.03M | -49.74M | -51.69M | -40.42M | -32.06M |
| Depreciation & Amortization | 16.03M | 15.63M | 15.47M | 15.83M | 16.64M | 12.14M | 9.43M | 5.73M |
| Stock-Based Compensation | 30.28M | 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 | 1.33M | 15.92M | 13.15M | 10.68M | 11.44M | 9.77M | 7.15M | 3.82M |
| Working Capital Changes | -10.59M | -18.09M | -18.34M | -8.09M | -9.87M | -4.68M | -3.28M | -1.05M |
| Change in Receivables | -2.95M | -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 | 1.7M | -1.09M | 3.12M | 1.32M | -330K | 583K | 302K | 1.86M |
| Cash from Investing | -14.14M | -6.85M | 8.88M | -7.74M | -54.03M | -9.81M | -3.86M | -2.47M |
| Capital Expenditures | -2.47M | -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 | -23.86M | -23.86M | 0 | 0 | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | -2.79M | -2.29M | -1.6M | -2M | -1.22M | -2.43M | -1.1M | 0 |
| Cash from Financing | -9.11M | -7.33M | -22.19M | -13.72M | -7.21M | 110.48M | -5.15M | 65M |
| Debt Issued (Net) | -5.39M | -7.17M | -7.06M | -17.53M | -8.71M | -1.86M | -6M | -4.39M |
| Equity Issued (Net) | 1.07M | 2.7M | 3.72M | 0 | 0 | 111.6M | 0 | 68.58M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -26K | 0 | 0 | 0 | 0 | 0 | 0 | -1.41M |
| Other Financing | -4.79M | -2.86M | -18.86M | 3.81M | 1.5M | 740K | 851K | 799K |
| Net Change in Cash | -11.2M | 3.36M | 840K | -11.24M | -74M | 80.3M | -24.53M | 40.46M |
| Free Cash Flow | 9.59M | 15.15M | 11.96M | 6.53M | -15.89M | -30.18M | -19.38M | -24.54M |
| FCF Margin % | 3.85% | 6.34% | 5.86% | 3.83% | -11.18% | -26.05% | -24.25% | -53.64% |
| FCF Growth % | -68.7% | 26.64% | 83.19% | 141.09% | 47.34% | -55.76% | 21.03% | - |
| FCF per Share | 0.12 | 0.20 | 0.17 | 0.10 | -0.24 | -0.47 | -0.30 | -2.22 |
| FCF Conversion (FCF/Net Income) | -0.38x | -0.63x | -0.50x | -0.33x | 0.26x | 0.39x | 0.38x | 0.69x |
| Interest Paid | 0 | 0 | 1.52M | 1.92M | 1.44M | 1.18M | 1.08M | 0 |
| Taxes Paid | 0 | 0 | 189K | 260K | 104K | 0 | 0 | 0 |
High stock-based compensation dilution
As reported in financial statements, Weave's operating cash flow frequently diverges from net income, with the OCF/NI ratio fluctuating wildly, such as the -3.38 reading in 2025Q4, which suggests that GAAP losses are being significantly mitigated by non-cash adjustments rather than core operational efficiency.
The persistent gap between net income and operating cash flow indicates that the company's path to profitability is heavily reliant on non-cash add-backs. Investors should monitor whether this conversion quality improves as the business matures or if it remains permanently tethered to high stock-based compensation levels.
Based on EDBL's reported figures, free cash flow margins have exhibited extreme volatility, swinging from a -43.5% low in 2024Q1 to a 41.9% peak in 2024Q2, highlighting the inconsistent nature of cash generation as the firm attempts to scale its specialized software platform.
This erratic FCF trajectory suggests that the company has not yet achieved a stable, self-sustaining cash generation model. The reliance on periodic working capital swings to bolster cash flow warrants further investigation into the sustainability of these quarterly improvements.
According to recent SEC filings, Weave maintains a low capital intensity with CapEx/Revenue ratios consistently below 2%, suggesting that the firm's primary investment focus remains on software development and sales infrastructure rather than heavy physical asset replacement or significant hardware manufacturing capabilities.
While the low CapEx profile is typical for a SaaS provider, it may obscure the true cost of customer acquisition if hardware fulfillment is treated as an operating expense rather than a capital investment. The minimal investment in tangible assets implies that the company's competitive moat is almost entirely dependent on intangible software integrations.
As noted in quarterly cash flow data, working capital changes have been a primary driver of liquidity, including a massive $15.6 million inflow in 2024Q2, which suggests that the company's cash position is highly sensitive to the timing of collections and payables management.
The significant quarterly fluctuations in working capital appear to be the main factor behind the company's inconsistent cash flow performance. This volatility may indicate that the firm's cash management is subject to the cyclical payment patterns of its SMB healthcare customer base.
Analysis of recent financial disclosures reveals that stock-based compensation, which reached $7.1 million in 2026Q1, consistently masks the underlying cash-burn rate, effectively subsidizing operating expenses that would otherwise weigh heavily on the company's reported free cash flow and overall liquidity position.
By treating SBC as a non-cash expense, the company presents a more favorable cash flow picture than the underlying operational reality might suggest. Investors should be cautious, as this reliance on equity-based compensation may lead to significant shareholder dilution without a corresponding improvement in GAAP profitability.
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.