Weave Communications, Inc.

What they do

Weave sells a vertically specialized SaaS platform that unifies voice, text, scheduling, reviews, digital forms, and payments into one system for dental, optometry, veterinary, and specialty medical practices. The company integrates with more than 90 practice management systems and owns its telephony stack. As of December 31, 2025, it had nearly 40,000 locations under subscription and more than 30,000 customers, with no single customer representing more than 5% of revenue.

Revenue drivers

• Subscription and payment processing — Term-based subscription fees plus Weave Payments processing revenue; this was $64.6 million of the $67.5 million in Q2 2026 revenue, or about 96%, with a 78% gross margin.
• Weave Payments — Payment processing and patient financing; management said in the Q2 2026 release that payments grew at roughly twice the 15.5% total company growth rate, though no separate dollar figure was disclosed.
• Onboarding and phone hardware — Onboarding revenue was $0.8 million and hardware revenue $2.2 million in Q2 2026; both are priced as customer acquisition tools and run negative gross margin, with onboarding gross margin of (240)%.

Recent performance

Q2 2026 revenue was $67.5 million, up 15.5% from $58.5 million a year earlier. GAAP gross margin was 72.0% and non-GAAP gross margin 72.6%, each up 30 basis points year over year. GAAP loss from operations narrowed to $4.4 million from $10.2 million, while non-GAAP income from operations was $3.2 million versus $0.1 million. GAAP net loss was $4.3 million, or $0.05 per share, and operating cash flow was $10.2 million with free cash flow of $8.7 million. Full-year 2025 revenue was $239.0 million with a net loss of $28.1 million and operating cash flow of $17.5 million.

Strategy

Management is positioning Weave as an 'always-on teammate' using agentic AI to handle scheduling, routine questions, lead follow-up, and call insights. In Q2 2026 the company launched an omnichannel AI Receptionist built on Google Cloud's Gemini Enterprise Agent Platform and expanded enterprise capabilities including single sign-on and automated insurance eligibility. It deepened integrations with athenaOne and Elation Health and joined athenahealth's Marketplace program. Growth focus includes Specialty Medical, described in the 10-K as the second-largest and fastest-growing vertical by location count, with four targeted specialties: primary care, physical and occupational therapy, aesthetics, and med spa.

Risks

• Growth rate may not persist — The 10-K states that Weave's recent growth rates may not be indicative of future growth and that employee growth and churn have created operational challenges in customer service and sales.
• Customer acquisition carries negative gross profit — Onboarding produced a $1.9 million gross loss and phone hardware also runs at a loss, because Weave prices these as acquisition tools below cost.
• Continued GAAP losses — The company reported a GAAP net loss of $4.3 million in Q2 2026 and $28.1 million for full-year 2025, with GAAP profitability still not achieved.
• Highly fragmented competition — The 10-K states the healthcare practice software market is highly fragmented and Weave competes primarily against a patchwork of point solutions, while facing rapid technological change.

Outlook

For the third quarter of 2026, management guides total revenue of $68.6-$69.6 million and non-GAAP income from operations of $3.0-$4.0 million. For full-year 2026, guidance is total revenue of $273.0-$275.0 million and non-GAAP income from operations of $12.0-$14.0 million, with a weighted average share count of 79.8 million. Guidance excludes stock-based compensation, acquisition costs, amortization of acquisition-related intangibles, and shareholder-matter costs, and no forward-looking GAAP reconciliation was provided.