F

Weave Communications, Inc. — Earnings Quality Grade F

WEAV · Healthcare

Major red flags

Revenue
$239M
2025
Net Income
-$28M
2025
Gross Margin
72.1%
Free Cash Flow
$13M
01

Screening Summary

11
Passed
4
Watch
1
Failed
-2.21
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 7 days, change -0 days YoY

A2AR vs Revenue Growth

AR growth 16.1% vs revenue growth 17.0%

A3Revenue vs CFFO

Revenue 17.0%, CFFO 24.0%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

No material inventory

B2CapEx vs Revenue

CapEx growth 23.6% vs revenue 17.0%. Normal

!
B3SG&A Ratio

SG&A/Gross Profit = 92.0%, exceeds 70%

B4Gross Margin

Gross margin 72.1%, change +0.7pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO < Net Income for 3 consecutive years

Small-cap context: Small-cap CFFO/NI often diverges from working-capital swings, not necessarily manipulation.

C2Free Cash Flow

FCF $0.0B, FCF/NI = -0.46

C3Accruals Ratio

Accruals ratio = -21.9%. Low accruals

C4Cash vs Debt

Cash $0.1B covers debt $0.1B

04

Balance Sheet Health

!
D1Goodwill + Intangibles

Goodwill+Intangibles $0.0B = 44% of equity

!
D2Leverage

Interest coverage = -18.0x (<2x). Financial stress

D3Soft Asset Growth

Other assets -17.2% vs revenue 17.0%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Insufficient data

06

Manipulation Score

!
F1Beneish M-Score

M-Score = -2.21 (grey zone)

Portfolio monitoring

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04

Beneish M-Score

Manipulation Probability-2.21
-4.0 Clean-2.22 Grey-1.78 Danger0
0.993
DSRI
AR growing faster than revenue?
0.99
GMI
Gross margin declining?
3.883
AQI
Asset quality deteriorating?
1.17
SGI
Revenue growth rate
0.91
DEPI
Depreciation slowing?
0.988
SGAI
SG&A ratio changing?
-0.2192
TATA
Accruals level
1.003
LVGI
Leverage increasing?
05

Altman Z-Score

-4.55
Distress Zone
0 Distress1.102.605.0+ Safe
0.0981
Liquidity
-1.5342
Cumulative profit
-0.1312
Operating efficiency
0.656
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25