WEAV: Raised 2025 Revenue Outlook Will Drive Stronger Profitability Ahead

Analysts have modestly reduced their price target on Weave Communications from approximately 9.00 dollars to 8.00 dollars. This reflects slightly lower assumptions for revenue growth, profit margins, and future valuation multiples.

What's in the News

• Weave Communications raised its full year 2025 revenue guidance midpoint, updating the range to 238 million dollars to 239 million dollars, reflecting expectations for meaningful year over year profitability improvement (company guidance)
• The company issued updated guidance for the fourth quarter of 2025, projecting total revenue between 62.4 million dollars and 63.4 million dollars (company guidance)
• Full year 2025 total revenue is now expected to be in the range of 238.0 million dollars to 239.0 million dollars (company guidance)

Valuation Changes

• The fair value estimate has been reduced slightly from 9.0 dollars to 8.0 dollars, implying a modestly lower intrinsic valuation.
• The discount rate has risen marginally from approximately 8.67 percent to 8.71 percent, reflecting a slightly higher required return.
• Revenue growth assumptions have been trimmed from about 15.59 percent to 14.77 percent, indicating a modestly slower expected growth trajectory.
• The net profit margin forecast has decreased from roughly 13.09 percent to 12.41 percent, signaling slightly lower long term profitability expectations.
• The future P/E multiple has been reduced from about 23.55 times to 21.69 times, pointing to a somewhat more conservative valuation multiple applied to future earnings.