Revenue growth has decelerated to 15.5% in 2026Q2 from a peak of 21.4% in 2024Q2, while the operating margin, though improved to -6.5%, remains deeply negative due to SG&A expenses consistently exceeding 60% of revenue.
Weave Communications, Inc. (WEAV) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 257.79M | 239.02M | 204.31M | 170.47M | 142.12M | 115.87M | 79.9M | 45.75M |
| Revenue Growth % | 16.73% | 16.99% | 19.85% | 19.95% | 22.65% | 45.03% | 74.65% | - |
| Cost of Goods Sold | 71.31M | 66.72M | 58.43M | 54.38M | 53.28M | 49.37M | 34.45M | 18.52M |
| COGS % of Revenue | - | 27.91% | 28.6% | 31.9% | 37.49% | 42.61% | 43.12% | 40.48% |
| Gross Profit | 186.47M | 172.31M | 145.88M | 116.09M | 88.84M | 66.5M | 45.45M | 27.23M |
| Gross Margin % | 72.34% | 72.09% | 71.4% | 68.1% | 62.51% | 57.39% | 56.88% | 59.52% |
| Gross Profit Growth % | - | 18.11% | 25.66% | 30.67% | 33.6% | 46.32% | 66.92% | - |
| Operating Expenses | 207.73M | 200.89M | 177.29M | 150.46M | 138.54M | 116.89M | 85.02M | 59.15M |
| OpEx % of Revenue | - | 84.05% | 86.78% | 88.26% | 97.49% | 100.88% | 106.41% | 129.3% |
| Selling, General & Admin | 163.75M | 158.46M | 137.06M | 116.42M | 107.83M | 89.88M | 65.05M | 44.74M |
| SG&A % of Revenue | - | 66.29% | 67.08% | 68.29% | 75.87% | 77.57% | 81.42% | 97.81% |
| Research & Development | 44.19M | 44.46M | 40.23M | 34.04M | 30.71M | 27.01M | 19.97M | 14.41M |
| R&D % of Revenue | - | 18.6% | 19.69% | 19.97% | 21.61% | 23.31% | 24.99% | 31.49% |
| Other Operating Expenses | 0 | -2.03M | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | -21.26M | -28.91M | -31.41M | -34.37M | -49.7M | -50.39M | -39.57M | -31.92M |
| Operating Margin % | -8.25% | -12.1% | -15.37% | -20.16% | -34.97% | -43.49% | -49.53% | -69.78% |
| Operating Income Growth % | - | 7.96% | 8.59% | 30.86% | 1.36% | -27.34% | -23.96% | - |
| EBITDA | 732K | -12.42M | -15.95M | -18.53M | -33.06M | -38.25M | -30.15M | -26.19M |
| EBITDA Margin % | 0.28% | -5.19% | -7.8% | -10.87% | -23.26% | -33.01% | -37.73% | -57.25% |
| EBITDA Growth % | 104.92% | 22.13% | 13.97% | 43.94% | 13.57% | -26.89% | -15.1% | - |
| D&A (Non-Cash Add-back) | 21.99M | 16.5M | 15.47M | 15.83M | 16.64M | 12.14M | 9.43M | 5.73M |
| EBIT | -18.64M | -27.28M | -26.63M | -28.85M | -48.19M | -50.45M | -39.32M | -31.25M |
| Net Interest Income | 76K | 111K | 328K | 273K | -286K | -1.18M | -1.1M | -811K |
| Interest Income | 1.63M | 1.81M | 1.85M | 2.2M | 1.16M | 0 | 0 | 0 |
| Interest Expense | 1.55M | 1.7M | 1.52M | 1.92M | 1.44M | 1.18M | 1.1M | 811K |
| Other Income/Expense | 1.06M | -62K | 3.26M | 3.6M | 70K | -1.24M | -850K | -137K |
| Pretax Income | -20.2M | -28.98M | -28.16M | -30.77M | -49.63M | -51.63M | -40.42M | -32.06M |
| Pretax Margin % | -7.84% | -12.12% | -13.78% | -18.05% | -34.92% | -44.56% | -50.59% | -70.08% |
| Income Tax | 345K | -924K | 189K | 260K | 104K | 60K | 0 | 0 |
| Effective Tax Rate % | -1.71% | 3.19% | -0.67% | -0.84% | -0.21% | -0.12% | 0% | 0% |
| Net Income | -20.54M | -28.05M | -28.35M | -31.03M | -49.74M | -51.69M | -40.42M | -32.06M |
| Net Margin % | -7.97% | -11.74% | -13.87% | -18.2% | -35% | -44.61% | -50.59% | -70.08% |
| Net Income Growth % | 31.81% | 1.04% | 8.65% | 37.61% | 3.78% | -27.88% | -26.08% | - |
| Net Income (Continuing) | -20.54M | -28.05M | -28.35M | -31.03M | -49.74M | -51.69M | -40.42M | -32.06M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.26 | -0.37 | -0.40 | -0.46 | -0.76 | -2.60 | -0.75 | -3.03 |
| EPS Growth % | 37.23% | 7.5% | 13.04% | 39.47% | 70.77% | -246.67% | 75.25% | - |
| EPS (Basic) | - | -0.37 | -0.40 | -0.46 | -0.76 | -2.60 | -0.75 | -3.03 |
| Diluted Shares Outstanding | 79.63M | 76.31M | 71.66M | 67.69M | 65.74M | 64.32M | 64.24M | 11.06M |
| Basic Shares Outstanding | 79.63M | 76.31M | 71.66M | 67.69M | 65.74M | 64.32M | 64.24M | 11.06M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying WEAV stock.
For fiscal year 2025, Weave Communications, Inc. (WEAV) reported total revenue of $239.0M. This represents a 422.5% increase compared to $45.7M in 2019.
Weave Communications, Inc. (WEAV) reported a net loss of $28.1M for the fiscal year ending 2025.
Weave Communications, Inc. (WEAV) reported an operating income of $-28.9M, resulting in an operating profit margin of -12.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Weave Communications, Inc. (WEAV) generated $172.3M in gross profit for the year, representing a gross profit margin of 72.1%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent operating losses despite growth
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Scaling
Weave's revenue growth has decelerated from a peak of 21.4% in 2024Q2 to 15.5% in 2026Q2, suggesting the company is maturing from a high-growth phase into a more sustainable, albeit slower, expansion trajectory.
The sequential decline in year-over-year revenue growth rates indicates the law of large numbers is taking effect as the revenue base expands. While still growing at a healthy double-digit pace, the trend suggests the initial hyper-growth phase driven by market penetration may be transitioning to a phase reliant on deeper customer monetization and market share gains in a competitive landscape.
Gross Margin Stability vs. Operating Losses
Despite a stable gross margin hovering around 72%, Weave's operating margin remains deeply negative, indicating that the company's high-value software revenue is being consumed by substantial operating expenses, particularly in sales and marketing.
The consistent gross margin suggests strong pricing power and efficient delivery of its core platform. However, the persistent negative operating margin, which improved from -17.3% in 2024Q1 to -6.5% in 2026Q2, highlights the significant investment required to acquire customers and scale the business. The path to profitability hinges on demonstrating operating leverage by growing revenue faster than SG&A.
Emerging Operating Leverage in SG&A
Operating losses are narrowing as a percentage of revenue, with the operating margin improving by over 10 percentage points from 2024Q1 to 2026Q2, suggesting the company is beginning to leverage its fixed cost base as revenue scales.
The improvement in operating margin is primarily driven by SG&A growing at a slower rate than revenue. For instance, SG&A as a percentage of revenue fell from 66.7% in 2024Q1 to 60.7% in 2026Q2. This trend is a positive signal for future profitability, but the absolute level of operating loss remains significant, and the company must sustain this discipline to reach breakeven.
SG&A Dominates Cost Structure
SG&A is the dominant cost line item, consistently consuming over 60% of revenue, which underscores the heavy investment in sales and marketing required to drive growth in the competitive dental software market.
The cost structure is heavily weighted towards customer acquisition and retention, with SG&A dwarfing both COGS and R&D. While R&D spending has been volatile, the sustained high level of SG&A suggests that Weave's growth model is currently sales-driven. Investors should monitor whether this investment efficiency improves, as measured by customer acquisition cost and lifetime value.
Stock-Based Compensation Dilutes Losses
Stock-based compensation remains a significant non-cash expense, averaging over $8 million per quarter, which inflates the reported net loss and suggests that the true economic cost of operations is higher than the GAAP figures imply.
The substantial SBC expense, which represented approximately 10% of revenue in recent quarters, is a critical factor in evaluating earnings quality. While non-cash, it represents a real cost to shareholders through dilution. The volatility in SBC, such as the spike to $9.9M in 2025Q3, warrants investigation into the underlying equity grant cycles and their impact on future share count.
Path to Profitability Remains Uncertain
Despite improving margins, Weave's cumulative operating losses over the last ten quarters exceed $70 million, raising questions about the sustainability of its growth model and the timeline to achieving consistent GAAP profitability.
The core challenge is that revenue growth, while solid, has not yet outpaced the substantial operating cost base. The company's operating margin, while improving, is still negative, and the recent quarter's loss of $4.4M on $67.5M revenue indicates that profitability is not imminent. A short-seller would focus on the risk that growth decelerates further before the company can achieve the necessary scale to cover its fixed costs.