Why Weave Communications Stock Flopped on Friday

The company barely missed the consensus analyst estimate for profitability in its just-reported quarter.Weave Communications (WEAV 4.91%) published its latest earnings release on Friday, and it'll probably spend the weekend wishing it hadn't. Mr. Market wasn't happy about the company's slight bottom-line miss, and punished Weave by selling out of its equity. By the end of the day, the company's shares had fallen by almost 5%. Focused on health Weave, which specializes in communications solutions for healthcare businesses, released its final set of 2025 figures. The fourth quarter saw the company earn revenue of $63.4 million, which bettered the year-ago period by 17%. Growth on the bottom line was more sluggish, with net income not in accordance with generally accepted accounting practices (GAAP) expanding by 8% to $2.6 million ($0.03 per share). Image source: Getty Images. On average, analysts tracking Weave stock anticipated the company would post just under $63.2 million on the top line, but a slightly better non-GAAP (adjusted) net income of $0.04 per share. In its earnings release, Weave touted the "stickiness" of its products. It quoted CEO Brett White as saying that "As our agentic workflows expand, Weave evolves from a product practices use to an always-on teammate they rely on." "We reduce administrative burden, improve conversion and collections, and free staff to focus on high-value patient care," he added. ExpandNYSE: WEAVWeave CommunicationsToday's Change(-4.91%) $-0.28Current Price$5.42Key Data PointsMarket Cap$445MDay's Range$5.15 - $5.9852wk Range$5.15 - $15.71Volume4MAvg Vol1.7MGross Margin71.84% Guiding for more growth Weave also proffered guidance for two periods, its current (first) quarter and the entirety of 2026. For the latter, it's estimating it will book $273 million to $276 million in revenue, with adjusted net income coming in at $8 million to $12 million. Both ranges sit comfortably above the 2025 results, which were $239 million and $6.6 million, respectively. The company's stock is, admittedly, rather pricey on certain valuations, such as price to book value. I feel the company has more growth in its future, like it expects, but it continues to look expensive in a world where there are tech sector bargains to be had. Given that, it would be an appealing buy candidate on further price weakness.About the AuthorEric Volkman is a contributing Motley Fool finance and stock market analyst. Previously, Eric was an equities analyst at European investment bank Raiffeisen Capital and Investment. He’s also been a freelance finance writer since 1995. He studied at Susquehanna University.TMFVolkmanStocks MentionedWeave CommunicationsNYSE: WEAV$5.42 (4.91%) $0.28*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.