Weave Communications (WEAV) closed FY 2025 with Q4 revenue of US$63.4 million and a basic EPS loss of US$0.02, compared with Q4 FY 2024 revenue of US$54.2 million and a basic EPS loss of US$0.09, while trailing 12 month EPS stood at a loss of US$0.37 on revenue of US$239.0 million. Over the past year, the company has seen quarterly revenue move from US$55.8 million in Q1 FY 2025 to US$63.4 million in Q4, as basic EPS losses narrowed from US$0.12 in Q1 to US$0.02 in Q4. This puts the recent period in context as one where top line growth coincides with reduced losses and brings margins into clearer focus for investors.
See our full analysis for Weave Communications.With the latest numbers on the table, the next step is to set these results against the widely held narratives about Weave Communications to see which stories the data supports and which ones start to look less convincing.
See what the community is saying about Weave Communications
Losses Shrink Sharply In FY 2025
- Across FY 2025, quarterly net income loss moved from US$8.8 million in Q1 to US$1.8 million in Q4, while basic EPS loss went from US$0.12 to US$0.02 over the same period.
- Consensus commentary focuses on operating leverage and margin expansion, and this pattern in the numbers partly lines up with that story:
- On a trailing 12 month basis, net income loss sits at US$28.1 million on US$239.0 million of revenue, so the business is still clearly loss making even as quarterly losses have narrowed.
- Analysts in the consensus expect revenue to grow about 15.2% a year and free cash flow to benefit from scalable margins. That view relies on trends like this continuing rather than stalling at roughly break even quarters.
Revenue Growth vs Ongoing Unprofitability
- Trailing 12 month revenue is US$239.0 million with a loss of US$28.1 million, and over the last five years losses have reportedly been shrinking at roughly 13.1% a year while the company remains unprofitable.
- Bears focus on that continued unprofitability, and the recent data gives them plenty to point to alongside the revenue growth story:
- Even with Q4 revenue at US$63.4 million and a much smaller loss of US$1.8 million, forecasts still have the company remaining loss making for at least the next three years, which fits the cautious view that profitability is a key hurdle.
- At the same time, revenue is forecast to grow 12.8% a year, ahead of the 10.3% US market figure in the data. Anyone leaning bearish needs to weigh that growth potential against the prospect of several more years of losses.
After reading both sides, if you are wondering how far the cautious view really goes on margins and churn, it is worth seeing how skeptics frame those risks in detail: 🐻 Weave Communications Bear Case
Valuation Discounts And Growth Expectations
- With the share price at US$5.56, the stock trades on a P/S of 1.8x versus peers at 2.6x and the wider US software group at 3.6x. It also sits below a DCF fair value of about US$10.43 in the supplied data.
- Bulls highlight this mix of growth and apparent discounts, and the earnings profile helps explain why they still see upside despite the losses:
- Trailing 12 month EPS is a loss of US$0.37, but bulls point out that losses have been narrowing over five years at roughly 13.1% a year. They interpret this as the company moving toward better margin territory even if profitability is not in the near term forecasts.
- On top of that, revenue growth expectations in the low to mid teens support the bullish argument that a 1.8x P/S multiple and a share price below the US$10.43 DCF fair value leave room for re rating if that growth path is sustained.
If you want to see how optimistic investors connect these growth and valuation numbers into a full story, the bullish case lays it out clearly: 🐂 Weave Communications Bull Case
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Weave Communications on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
If this mix of optimism and caution has you undecided, take a closer look at the numbers now so you can form your own view by weighing 5 key rewards and 1 important warning sign.
See What Else Is Out There
Weave Communications is still loss making with trailing 12 month EPS at a loss of US$0.37 and forecasts pointing to several more years before profitability.
If ongoing losses and earnings uncertainty have you wanting something steadier, check out 63 resilient stocks with low risk scores today to focus on companies with more resilient profiles.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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