Weave Communications, Inc.WEAV
Weave Communications, Inc. Leases Disclosure
Leases
The Company has lease arrangements, both as a lessor and a lessee, and makes assumptions and judgments when assessing contracts for lease components, determining lease classifications, and calculating ROU asset and lease liability values. These assumptions and judgments may include the useful lives and fair values of the leased assets, the implicit rate underlying the Company’s leases, the Company’s incremental borrowing rate, or the Company’s intent to exercise or not exercise options available in lease contracts.
Lease expense and other information consisted of the following for the periods presented (in thousands, except lease terms and discount rates):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
Lease expense | |||||||||||||||||
Finance lease expense: | |||||||||||||||||
Amortization of right-of-use assets | $ | 7,359 | $ | 7,096 | $ | 7,421 | |||||||||||
Interest on lease liabilities | 1,410 | 1,342 | 1,165 | ||||||||||||||
Operating lease expense | 5,632 | 5,690 | 5,690 | ||||||||||||||
Short-term lease expense | 46 | 43 | 18 | ||||||||||||||
Variable lease expense | 479 | 301 | 40 | ||||||||||||||
Total lease expense | $ | 14,926 | $ | 14,472 | $ | 14,334 | |||||||||||
Supplemental cash flow information | |||||||||||||||||
Finance leases: | |||||||||||||||||
Operating cash outflow from finance leases | $ | 1,410 | $ | 1,342 | $ | 1,165 | |||||||||||
Financing cash outflow from finance leases | $ | 7,168 | $ | 7,060 | $ | 7,530 | |||||||||||
Operating leases: | |||||||||||||||||
Operating cash outflow from operating leases | $ | 5,762 | $ | 5,721 | $ | 5,574 | |||||||||||
Other information | |||||||||||||||||
Finance leases: | |||||||||||||||||
Weighted-average remaining lease term (years) | 1.8 | ||||||||||||||||
Weighted-average discount rate | 10.8 | % | |||||||||||||||
Operating leases: | |||||||||||||||||
Weighted-average remaining lease term (years) | 7.1 | ||||||||||||||||
Weighted-average discount rate | 3.9 | % | |||||||||||||||
Operating leases
The Company as the Lessee
The Company leases office space for its headquarters under a non-cancelable operating lease agreement which expires in January 2033. Though the Company will consider renewal options on its lease as it nears expiration, the Company has not recognized any renewal options as part of the current lease term as it is not reasonably certain that it will exercise its option as of December 31, 2025. The rate implicit in the Company’s operating lease is not readily determinable. Thus, the Company uses its incremental borrowing rate to discount lease payments to present value. The incremental borrowing rate is the rate incurred to borrow on a collateralized basis, and is based on the Company’s secured line of credit, which may be adjusted for the specific terms and collateral of the lease. The operating lease agreement does not contain any residual value guarantees or other restrictions or covenants that would cause the Company to incur additional significant financial obligations. The office space lease agreement contains non-lease components, which represent charges for common area maintenance, taxes and utilities. The Company has elected the practical expedient and does not separate lease components from non-lease components.
The Company has other leases for office space with terms less than twelve months from contract inception and no options to purchase the underlying asset. These agreements are accounted for as short-term leases in accordance with ASC Topic 842, Leases.
Total rent expense for office space leases was $5.6 million for the year ended December 31, 2025, and $5.5 million for each of the years ended December 31, 2024, and 2023, respectively, and is reported gross of sublease income received.
Future maturities of remaining lease payments included in the measurement of operating lease liabilities as of December 31, 2025 are as follows (in thousands):
Years ending December 31, | |||||
2026 | $ | 6,083 | |||
2027 | 6,009 | ||||
2028 | 6,139 | ||||
2029 | 6,292 | ||||
2030 | 6,450 | ||||
Thereafter | 13,953 | ||||
Total | 44,926 | ||||
Less: imputed interest | (5,714) | ||||
Present value of operating lease obligations | $ | 39,212 | |||
The Company as the Lessor
The Company provides varying quantities of phone hardware to customers without adjustments to the base subscription price. The Company is deemed a lessor in these arrangements. In April 2023, the Company entered into a Sublease Agreement for the fourth floor of its corporate headquarters in Lehi, Utah. This agreement was renewed in October 2025 with a three-year lease term beginning in March 2026. Sublease income is included in other income (expense) on the consolidated statements of operations and comprehensive loss.
The Company reported revenues associated with these leases for the periods presented as follows (in thousands):
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Phone hardware revenue | 6,792 | 4,662 | 4,521 | ||||||||||||||
Sublease income | 877 | 877 | 658 | ||||||||||||||
| Total | $ | 7,669 | $ | 5,539 | $ | 5,179 | |||||||||||
Finance leases
The Company is the lessee in all of its finance lease arrangements. In June 2016, the Company began financing its purchases of phone hardware through lease agreements classified as finance leases. As of December 31, 2025 the Company had 90 executed and active lease agreements for phone hardware. These agreements have maturity dates ranging from January 2026 to December 2028. As of December 31, 2025, the gross value of phone hardware acquired under these capital leases approximated $21.4 million. Amortization expense on finance-leased phone hardware was $7.4 million, $7.1 million, and $7.4 million for the years ended December 31, 2025, 2024, and 2023, respectively, which is included in depreciation expense on the consolidated statements of operations and comprehensive loss as referenced in Note 7.
Future minimum lease payments for the Company’s finance leases as of December 31, 2025 were as follows (in thousands):
Years ending December 31, | |||||
2026 | $ | 7,697 | |||
2027 | 4,697 | ||||
2028 | 2,062 | ||||
2029 | — | ||||
2030 | — | ||||
Thereafter | — | ||||
Total | 14,456 | ||||
Less: amounts representing interest | (1,516) | ||||
Present value of finance lease obligations | $ | 12,940 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 13, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 23, 2022 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.