Weave Communications, Inc.WEAV

Weave Communications, Inc. Revenue Disclosure

10-KFiled Mar 5, 20262 min read
Revenue
The Company accounts for revenue in accordance with ASC Topic 606, Revenue from Contracts With Customers for all periods presented. See Note 2 for a description of the Company’s revenue recognition accounting policy.
Contract Balances
For the years ended December 31, 2025, 2024, and 2023, the Company recognized revenue of $39.4 million, $38.9 million and $34.1 million, respectively, that was included in the corresponding deferred revenue balance at the beginning of each respective period.
Deferred Contract Costs
The following table summarizes the activity of deferred contract costs (in thousands):
Year Ended December 31,
202520242023
Beginning balance$21,055 $19,169 $18,027 
Capitalization of contract costs18,252 15,304 13,313 
Amortization of deferred contract costs(14,835)(13,418)(12,171)
Ending balance$24,472 $21,055 $19,169 
Performance Obligations
Performance obligations promised in a contract are based on the services and products that will be transferred to the customer. They must be capable of being distinct and separately identifiable from other promises in the contract. The Company’s performance obligations consist of the following:
•Software services;
•Cloud-based phone services;
•Payment services;
•Onboarding and installation services (pre-configured applications and phone hardware); and
•Phone hardware.
Disaggregation of Revenues
Revenue has been disaggregated into recurring and onboarding categories to identify revenue that are one-time in nature from those that are term-based and renewable.
The table below outlines revenue for the Company’s recurring subscription (software and phone services) and payment processing services, as well as for its onboarding services, and phone hardware for the years ended December 31, 2025, 2024, and 2023 (in thousands):
Year Ended December 31,
202520242023
Subscription and payment processing$228,769 $196,106 $162,715 
Phone Hardware (embedded lease)
6,792 4,661 4,521 
  Total recurring revenue
235,561 200,767 167,236 
Onboarding3,463 3,547 3,232 
  Total onboarding revenue
3,463 3,547 3,232 
Total revenue$239,024 $204,314 $170,468 

Historical Timeline

Fiscal YearFiled
2025Mar 5, 2026Showing above
2024Mar 13, 2025
2023Mar 13, 2024
2022Mar 16, 2023
2021Mar 23, 2022

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsNew StandardsPay vs Performance