WEAV

Weave is a vertical SaaS platform for SMB healthcare practices whose numbers tell a stabilization-into-profitability story. Revenue has compounded from $142M (FY22) to $239M (FY25), +17% in the latest year, while net loss has steadily shrunk from -$51.7M in FY21 to -$28.1M in FY25. Crucially, the recurring subscription-and-payments core — 91% of revenue — earns a durable 78% gross margin per the 10-K disaggregation; the negative gross margins the filing discloses on onboarding (-153%) and phone hardware (-9%) are deliberate customer-acquisition subsidies, not a broken cost structure. Operating cash flow is positive and growing (+24% to $17.5M), and against just $2.39M of capex the business generates real free cash flow despite still printing a GAAP operating loss of -$30.6M. The balance sheet backs this up: $55M cash, zero long-term debt, and liabilities/equity of a manageable 1.52x.

The valuation is where the case sharpens. At $6.58 the market cap is $518M, or 2.2x sales — a low multiple for a 17%-grower with 72% consolidated (78% recurring) gross margins that already self-funds. You are not paying up for a growth story; you are paying a modest sales multiple for a franchise whose losses are narrowing and whose cash generation is improving. The MD&A frames the forward drivers as new-customer acquisition, net expansion, new products, and — via Weave Enterprise — a push from single-location SMBs into multi-location and medium-sized accounts, which is a credible expansion vector for a company historically concentrated in one-location customers.