Forensic Analysis · Technology / Software · as of Jun 28, 2026
Weave Communications, Inc. (WEAV)
A forensic read on Weave Communications, Inc. built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
D · Weak — demands caution
Forensic grade
Distress
Financial health
-4.7
Altman Z-score
Clean
Earnings quality
5
Forensic signals
-30.9%
ROE
$471M
Market cap
Weave Communications, Inc. earns a D (Weak — demands caution) forensic quality grade, and its Altman Z-score is -4.7, placing it in the Distress zone. 5 forensic signals were flagged in its latest SEC filings, led by accruals ratio.
What the filings flag
+56.3%Accruals ratio.Net operating assets grew +56.3% relative to their average in FY2025 — the accrual component of earnings. Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The cash-flow cross-check agrees: reported earnings ran behind operating cash by -213% of net operating assets.
-35%Return on invested capital.Return on invested capital is -35% and rising from -47% — well below its ~10% cost of capital, so reinvested dollars may be destroying value, not building it.
+5.7%/yrShare-count dilution.Diluted share count changed +17% over the last 3 years to FY2025 (+5.7%/yr). The count is GROWING — existing holders are being diluted. That's ~5.7% shaved off per-share growth every year — total profit has to grow that much just to keep earnings-per-share flat, and a stake held since FY2022 has been diluted ~17%.
13% of revStock-based comp load.Stock-based compensation ran 13% of revenue and 212% of free cash flow in FY2025 — about $0.42 per diluted share. Heavy — a large slice of 'free cash flow' is really being paid out in stock, so the true owner cash per share is well below the headline.
stoppedShareholder returns — halted.Capital returns have STOPPED — $1M of buybacks + dividends in FY2019, but ~$0 in FY2021. A halt usually means the company is conserving cash; understand why before reading it as neutral.
Key fundamentals
Net Margin-11.7%
Debt / Equity0.00x
Free Cash Flow$15.2M
Latest Revenue$239.0M
Return on Equity-34.1%
Revenue Growth YoY+17.0%
Go deeper — free with an account
The forensic grade and screens above are free — no account needed. An account adds the full interactive deep-dive on Weave Communications, Inc.:
🔒The written investment read — what the numbers mean, in plain English
🔒Ask anything about WEAV's filings — AI Q&A across the 10-K, 10-Qs & 8-Ks
🔒Interactive valuation — reverse-DCF sliders, Monte Carlo & scenario stress
🔒Calibrated 12-month price forecast, with the math shown