Weave Communications Maintains Buy Rating with $13 Price Target Amid Strong Q2 Performance and Strategic Acquisitions.

Weave Communications is a strong performer with a Buy rating from Bank of America Securities analyst Michael Funk. Q2 results exceeded expectations, and the acquisition of TrueLark enhances service offerings and increases potential customer retention and average revenue per user. Despite a decline in revenue retention, guidance for H2 2025 suggests growth acceleration, and a valuation discount compared to peers supports the Buy rating and $13 price target.

Weave Communications, Inc. (WEAV) reported its second-quarter (Q2) 2025 financial results, with revenue rising 15.6% year-over-year to $58.5 million, surpassing analyst expectations. The company's non-GAAP net income improved to $1.5 million from a loss in the previous year. The acquisition of TrueLark, an AI-driven automation platform, has significantly bolstered Weave's capabilities, particularly in the specialty medical sector, which became the second-largest by customer count, driving revenue growth [1].

Key drivers behind Weave's performance include the acquisition of TrueLark, which enhances AI-driven automation capabilities, and the growth of the specialty medical vertical. Additionally, the company launched integrations with Ortho2 Edge and IDEXX Neo, expanding its reach to new locations [1]. Despite a slight decline in net and gross revenue retention, Weave maintained its full-year revenue guidance, projecting Q3 revenue between $60.1 million and $61.1 million and full-year revenue of $236.8 million to $239.8 million [1].

Bank of America Securities analyst Michael Funk reiterated his Buy rating on Weave, citing strong performance and strategic initiatives. Funk highlighted Weave's robust Q2 results, particularly in the specialty medical sector, and the potential customer retention and average revenue per user increase from the TrueLark acquisition. He also noted Weave's guidance for the latter half of 2025, which suggests an acceleration in growth supported by strategic hiring and sales team expansion [3].

The company's valuation offers a discount compared to peers, further supporting the Buy rating and a price target of $13.00. Raymond James also maintained a Buy rating with a $15.00 price target [3]. Weave's stock recently traded at 77 times the next 12-month earnings, compared to a P/E of 96 three months ago [1].

In summary, Weave Communications' Q2 2025 results demonstrate strong performance and strategic initiatives, driving a Buy rating from multiple analysts. The company's focus on AI-driven automation and specialty medical growth positions it well for future growth, despite a slight decline in revenue retention.

References:
[1] https://www.tradingview.com/news/reuters.com,2025:newsml_PLX615400:0-weave-q2-revenue-up-15-6-beats-expectations/
[2] https://www.ainvest.com/news/twilio-q2-2025-net-retention-cross-selling-catalyst-shareholder-2508/
[3] https://www.tipranks.com/news/ratings/strong-performance-and-strategic-initiatives-drive-buy-rating-for-weave-communications-ratings
[4] https://seekingalpha.com/news/4476247-weave-projects-236_8m-to-239_8m-full-year-revenue-as-ai-powered-automation-and-truelark