Latest Ratios: P/E Ratio -20.0x · EV/EBITDA N/A · ROE -37.6%. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $589M | $579M | $1.1B | $776M | $301M | $976M | — | — |
| Enterprise Value | $586M | $576M | $1.1B | $785M | $313M | $865M | — | — |
| P/E Ratio → | -20.00 | — | — | — | — | — | — | — |
| P/S Ratio | 2.46 | 2.42 | 5.58 | 4.55 | 2.12 | 8.43 | — | — |
| P/B Ratio | 6.85 | 7.03 | 17.03 | 9.83 | 3.62 | 8.69 | — | — |
| P/FCF | 38.86 | 38.23 | 95.35 | 118.89 | — | — | — | — |
| P/OCF | 33.57 | 33.02 | 80.63 | 75.97 | — | — | — | — |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.41 | 5.61 | 4.61 | 2.20 | 7.47 | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / EBIT | — | — | — | — | — | — | — | — |
| EV / FCF | — | 38.04 | 95.72 | 120.23 | — | — | — | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 72.1% | 72.1% | 71.4% | 68.1% | 62.5% | 57.4% | 56.9% | 59.5% |
| Operating Margin | -12.1% | -12.1% | -15.4% | -20.2% | -35.0% | -43.5% | -49.5% | -69.8% |
| Net Profit Margin | -11.7% | -11.7% | -13.9% | -18.2% | -35.0% | -44.6% | -50.6% | -70.1% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | -37.6% | -37.6% | -38.9% | -38.3% | -50.9% | -68.8% | -77.8% | -48.6% |
| ROA | -14.1% | -14.1% | -14.5% | -15.2% | -25.1% | -36.9% | -39.8% | -29.0% |
| ROIC | -28.7% | -28.7% | -29.6% | -28.2% | -77.6% | -3625.3% | -2734.1% | — |
| ROCE | -24.5% | -24.5% | -26.1% | -26.0% | -36.9% | -55.3% | -62.9% | -41.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.63 | 0.63 | 0.84 | 0.75 | 0.88 | 0.22 | 0.49 | 0.24 |
| Debt / EBITDA | — | — | — | — | — | — | — | — |
| Net Debt / Equity | — | -0.03 | 0.07 | 0.11 | 0.14 | -0.99 | -0.98 | -0.98 |
| Net Debt / EBITDA | — | — | — | — | — | — | — | — |
| Debt / FCF | — | -0.19 | 0.37 | 1.35 | — | — | — | — |
| Interest Coverage | -16.04 | -16.04 | -17.49 | -15.00 | -33.44 | -42.61 | -35.85 | -38.53 |
Net cash position: cash ($55M) exceeds total debt ($52M)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.58 | 1.78 | 1.84 | 2.84 | 1.54 | 2.66 |
| Quick Ratio | 1.08 | 1.08 | 1.58 | 1.78 | 1.84 | 2.84 | 1.54 | 2.66 |
| Cash Ratio | 0.97 | 0.97 | 1.29 | 1.49 | 1.57 | 2.50 | 1.27 | 2.40 |
| Asset Turnover | — | 1.15 | 1.08 | 0.85 | 0.68 | 0.62 | 0.86 | 0.41 |
| Inventory Turnover | — | — | — | — | — | — | — | — |
| Days Sales Outstanding | — | 6.64 | 6.69 | 7.52 | 8.47 | 9.64 | 11.62 | 18.06 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | — | — | — | — | — | — |
| FCF Yield | 2.6% | 2.6% | 1.0% | 0.8% | — | — | — | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | — | — |
| Shares Outstanding | — | $76M | $72M | $68M | $66M | $64M | $64M | $11M |
Includes 30+ ratios · 7 years · Updated daily
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Quick answers to the most common questions about buying WEAV stock.
Weave Communications, Inc.'s current P/E ratio is -20.0x. This places it at the 50th percentile of its historical range.
Weave Communications, Inc.'s return on equity (ROE) is -37.6%. The historical average is -51.5%.
Based on historical data, Weave Communications, Inc. is trading at a P/E of -20.0x. This is at the 50th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Weave Communications, Inc. has 72.1% gross margin and -12.1% operating margin.
Key Metrics
Top Statement Risk
Persistent operating losses despite growth
Metrics are mathematically derived from official filings.
Premium Pricing on Unproven Profitability
Weave's forward P/E of 43.0x and P/S of 2.43x appear to price in a significant earnings inflection, yet the company's trailing P/E is negative at -19.76x, indicating the market is betting on a future that has not yet materialized in its financial statements.
The valuation multiples suggest investors are assigning a growth premium to Weave, but the disconnect between the negative trailing P/E and the positive forward P/E implies the market expects a rapid transition to profitability. This premium is particularly high given the company's current operating losses and the deceleration in revenue growth observed in prior analysis, warranting scrutiny of the assumptions embedded in the forward estimates.
Gross Margin Strength Masked by Operating Losses
Weave's gross margin has remained robust at approximately 72% over the last ten quarters, yet its operating margin has been consistently negative, ranging from -3.4% to -18.3%, indicating that high-value software revenue is being consumed by substantial operating expenses.
The stable, high gross margin is a positive indicator of the underlying value of Weave's software product. However, the persistent negative operating margin, despite recent improvement, suggests that the company's cost structure, particularly in sales and marketing, is not yet scaled to achieve profitability at current revenue levels. This dynamic means the company's true earning power is not reflected in its net margin, which is further depressed by non-cash stock-based compensation.
Negative Returns Reflecting Unprofitable Growth Phase
Weave's ROIC has been negative for all ten quarters, ranging from -2.2% to -9.8%, indicating the company is destroying value on invested capital as it prioritizes scaling over near-term profitability.
The consistently negative ROIC, which is more negative than ROA, suggests that the company's debt-financed investments are not generating returns sufficient to cover the cost of capital. This trend is a direct consequence of the operating losses identified in the profitability analysis and implies that the business model is not yet self-sustaining. Investors should monitor whether the improving operating margin trend translates into positive ROIC in the future.
Modest Debt Burden Amidst Negative Coverage
Weave's debt-to-equity ratio has improved from 0.80 to 0.60 over the last ten quarters, yet its interest coverage ratio remains deeply negative, ranging from -3.55 to -22.46, indicating that operating losses are insufficient to service interest payments.
The declining D/E ratio is a positive sign of balance sheet management, but the persistently negative interest coverage is a critical concern. It means the company is relying on cash reserves or external financing to meet its interest obligations, as its core operations are not generating enough earnings. This dynamic increases refinancing risk and makes the company vulnerable to shifts in credit market conditions.
Adequate Liquidity Masked by Working Capital Shifts
Weave's current ratio has compressed from 1.75 to 1.25 over the last ten quarters, yet it remains above 1.0, suggesting the company maintains a sufficient, though declining, buffer to meet short-term obligations.
The compression in the current ratio, driven by a shift in the liability structure, warrants monitoring. However, the ratio's stability above 1.0, combined with the company's ability to generate positive free cash flow in recent quarters, suggests that liquidity is not an immediate threat. The primary risk is not a sudden liquidity crisis but rather the continued erosion of equity from operating losses, which could eventually pressure the company's ability to access capital.
The Misleading Signal of Price-to-Sales
The P/S ratio of 2.43x is the most commonly misapplied metric for Weave, as it obscures the company's lack of profitability and the significant cash burn required to achieve its current revenue scale.
For a software company with high gross margins, the P/S ratio can suggest reasonable valuation, but it completely ignores the path to profitability. In Weave's case, the ratio fails to account for the substantial operating expenses that consume all gross profit and more, leading to negative operating and net margins. A more appropriate metric would be a forward EV/EBITDA or a price-to-free-cash-flow ratio, which better reflects the company's current cash generation profile and the market's expectations for future earnings.