UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 10-K Washington, D.C. 20549 ______________ ☒ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________ to __________ Commission File Number: 001-40998 Weave Communications, Inc. (Exact name of registrant as specified in its charter) Delaware 26-330290 ...

Summary of Weave's Conference Call Company Overview - **Company**: Weave - **Industry**: Vertical software and payments platform for healthcare practices - **Focus**: AI-powered patient engagement for small and medium-sized healthcare practices, primarily in dental, optometry, veterinary, and specialty medical sectors [2][18] Core Business Insights - **Revenue**: Weave reported $239 million in revenue for the year, reflecting a 17% year-over-year growth [5][20] - **Free Cash Flow**: Generated nearly $13 million in free cash flow, with a 24% increase year-over-year [5][22] - **Customer Base**: Focuses on well-capitalized, high-quality small and medium-sized businesses with a high retention rate [5][6] - **Churn Rate**: Very low churn rate, indicating strong customer loyalty [6] Product Offerings - **Services**: Provides telephony, patient engagement solutions, payment management, and AI functionalities [3][4] - **AI Receptionist**: New product aimed at enhancing patient engagement and operational efficiency, currently being rolled out [4][19] - **Payment Solutions**: Text to Pay and other modern payment workflows to improve collections and reduce write-off rates [38][39] Market Opportunity - **Total Addressable Market (TAM)**: Estimated at $10 billion in the U.S. for all medical practices, with significant room for growth in specialty medical [18] - **Market Penetration**: Currently about 10% penetrated in the U.S. market, with less than 1% in specialty medical and around 15% in dental [18] Financial Performance - **Gross Margin**: Improved from 57% at IPO to 73.3%, with consistent growth over 15 of the last 16 quarters [20][21] - **Growth Strategy**: Focus on unit economics and operational effectiveness while balancing revenue growth with profitability [45] Competitive Advantages - **Data and Experience**: Decades of industry data and experience create a competitive moat against new entrants [29][30] - **Integrated Solutions**: Offers a comprehensive platform that reduces the need for multiple vendors, enhancing customer satisfaction [43] Future Outlook - **AI Integration**: AI features expected to drive further growth and improve customer engagement [19][24] - **Sales Strategy**: Focus on mid-market and enterprise solutions, with a longer sales cycle but significant growth potential [32][33] - **Customer Engagement**: Emphasis on improving patient engagement and operational efficiency through technology [8][16] Key Takeaways - Weave is well-positioned for growth in the healthcare software market, with a strong focus on AI and patient engagement solutions - The company has demonstrated consistent financial performance and has a clear strategy for expanding its market presence - Future developments, particularly in AI and payment solutions, are expected to enhance value for customers and drive revenue growth [50][51]

Core Viewpoint - Weave Communications, Inc. (WEAV) is experiencing significant selling pressure, having declined 26.1% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory with strong analyst support for better-than-expected earnings [1] Group 1: Technical Indicators - The Relative Strength Index (RSI) is a momentum oscillator that indicates whether a stock is oversold, with readings below 30 typically signaling this condition [2] - WEAV's current RSI reading is 27.34, suggesting that the heavy selling may be exhausting itself, indicating a potential bounce back towards equilibrium [5] Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that WEAV's earnings estimates for the current year have increased by 29.8% over the last 30 days, which usually correlates with price appreciation [7] - WEAV holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [8]

Core Insights - The article emphasizes the focus on value investing in Asia, particularly in stocks that exhibit a significant gap between market price and intrinsic value, targeting deep value balance sheet bargains and wide moat stocks [1][2]. Group 1: Investment Strategy - The investment strategy involves identifying stocks that are undervalued, such as net cash stocks, net-nets, low price-to-book (P/B) stocks, and those with sum-of-the-parts discounts [1]. - The approach also includes seeking high-quality businesses with strong earnings power, referred to as "Magic Formula" stocks, hidden champions, and wide moat compounders [1]. Group 2: Market Outlook - The quarterly numbers of the company align with analysts' forecasts, indicating a favorable growth outlook [1]. - However, there are competitive concerns that investors should be aware of, suggesting potential challenges in the market environment [1].

Core Viewpoint - Weave Communications reported a slight miss on its bottom line in its latest earnings release, resulting in a nearly 5% drop in its stock price [1]. Financial Performance - In Q4, Weave generated revenue of $63.4 million, a 17% increase compared to the same period last year [2]. - The company's non-GAAP net income rose by 8% to $2.6 million, translating to $0.03 per share [2]. - Analysts had expected revenue to be slightly lower at $63.2 million, with a non-GAAP net income of $0.04 per share [4]. Product and Market Position - Weave emphasized the "stickiness" of its products, with CEO Brett White highlighting the company's role in reducing administrative burdens and enhancing patient care [4]. Future Guidance - For Q1 and the entirety of 2026, Weave projects revenue between $273 million and $276 million, with adjusted net income expected to be between $8 million and $12 million [5]. - These projections indicate significant growth compared to 2025 results of $239 million in revenue and $6.6 million in net income [5]. Valuation and Investment Considerations - The company's stock is considered expensive based on certain valuations, such as price to book value, despite anticipated future growth [6]. - Weave Communications was not included in a list of the top 10 stocks recommended for investment by analysts [7].

分组1 - Weave Communications, Inc. reported quarterly earnings of $0.03 per share, matching the Zacks Consensus Estimate, with an earnings surprise of -9.91% compared to the previous year [1] - The company posted revenues of $63.4 million for the quarter ended December 2025, exceeding the Zacks Consensus Estimate by 0.52%, and showing an increase from $54.17 million year-over-year [2] - Weave Communications has surpassed consensus revenue estimates four times over the last four quarters [2] 分组2 - The stock has underperformed, losing about 24.6% since the beginning of the year, while the S&P 500 has gained 0.5% [3] - The current consensus EPS estimate for the coming quarter is $0.02 on revenues of $64.67 million, and for the current fiscal year, it is $0.12 on revenues of $274.83 million [7] - The Internet - Software industry is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - In Q4, the company achieved $63.4 million in total revenue, reflecting a 17% year-over-year growth, with gross margin reaching a record 73.3% [20][24] - Operating income for Q4 was $2.3 million, marking an improvement of over $500,000 compared to Q4 2024, resulting in an operating margin of 3.6% [23][30] - For the full year 2025, total revenue grew 17% to $239 million, with gross margin expanding to 72.7%, up 80 basis points from the previous year [30] Business Line Data and Key Metrics Changes - Weave Payments grew at more than twice the rate of total revenue in 2025, driven by new capabilities like automated payment reminders and bulk collections [16] - The specialty medical vertical became the second-largest vertical by location count, with significant growth in Q4 [16] Market Data and Key Metrics Changes - The company is in fewer than 15% of U.S. dental locations, indicating substantial growth potential in the dental market [19] - Specialty medical, which currently holds about 1% market share, is expected to be a significant growth area due to the introduction of AI-powered solutions [20] Company Strategy and Development Direction - The company aims to enhance patient experiences through a unified platform that reduces administrative burdens for healthcare professionals [5][6] - The acquisition of TrueLark is seen as a foundational step in expanding AI Receptionist capabilities, addressing staffing challenges in practices [13][19] - The company plans to roll out an omnichannel AI Receptionist in 2026, which will allow practices to manage patient interactions across various channels [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of revenue growth and margin expansion, emphasizing the importance of AI in enhancing operational efficiency [17][30] - The company anticipates continued strong growth in specialty medical and mid-market sectors, supported by recent investments in sales and marketing [22][31] Other Important Information - The company ended Q4 with $81.7 million in cash and short-term investments, reflecting strong liquidity [23] - The net revenue retention rate in Q4 was 93%, with gross revenue retention at 89%, indicating strong customer retention despite some challenges in newer verticals [24][28] Q&A Session Summary Question: Can you elaborate on the CareCredit integration? - The CareCredit partnership opens new avenues for capturing volumes that would otherwise flow through CareCredit, enhancing the payment solution's attractiveness [35][36] Question: What are your expectations for growth rates across different subverticals in 2026? - Management anticipates strong growth across specialty medical and mid-market sectors, with specialty medical expected to lead due to recent marketing efforts [37][38] Question: How do you plan to monetize the new AI capabilities? - The company is exploring whether to price new functionalities as additional modules or include them in existing bundles, confident in the ability to monetize the AI omnichannel receptionist [42][43] Question: Have churn rates stabilized in specialty medical cohorts? - Churn rates have shown improvement in Q4, returning to historical levels, with ongoing integrations expected to further enhance retention [44][45] Question: What are the investment priorities for the coming year? - Investment priorities include product and engineering, particularly in enhancing AI capabilities, as well as adjustments to the go-to-market strategy for efficiency [52][54] Question: How does Weave differentiate its AI capabilities from competitors? - Weave's unique advantages include ownership of the telephony stack, deep industry-specific workflows, and the ability to retain context across various patient interactions [56][58]

Financial Data and Key Metrics Changes - In Q4, the company achieved $63.4 million in total revenue, reflecting a 17% year-over-year growth, with gross margin reaching a record 73.3% [20][21] - For the full year, total revenue grew 17% to $239 million, and gross margin expanded to 72.7%, up 80 basis points from the previous year [30] - Operating income for Q4 was $2.3 million, representing an operating margin of 3.6%, an improvement of 30 basis points year-over-year [23] Business Line Data and Key Metrics Changes - Weave Payments grew at more than twice the rate of total revenue in 2025, driven by new capabilities like automated payment reminders and bulk collections [16] - The specialty medical vertical became the second-largest by location count, with significant growth in Q4, adding more locations than any previous quarter [16] Market Data and Key Metrics Changes - The company has expanded its estimated total addressable market (TAM) by approximately $7 billion to an estimated $22 billion following the acquisition of TrueLark [19] - The dental market remains a key focus, with Weave being endorsed by the American Dental Association, providing access to 160,000 members [20] Company Strategy and Development Direction - The company aims to enhance patient experiences through a unified platform that reduces administrative burdens for healthcare professionals [5][6] - Weave is focusing on AI-powered solutions to automate workflows, thereby improving operational efficiency and customer retention [9][10] - The acquisition of TrueLark is seen as a foundational step in enhancing AI receptionist capabilities, addressing staffing challenges in practices [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of revenue growth and margin expansion, highlighting the importance of ongoing investments in innovation [17][30] - The company anticipates strong growth in specialty medical and mid-market sectors, with expectations for continued momentum in 2026 [31][32] Other Important Information - The company ended Q4 with $81.7 million in cash and short-term investments, reflecting strong liquidity [23] - Free cash flow for the full year was $12.9 million, representing a 24% year-over-year growth [24] Q&A Session Summary Question: Can you elaborate on the CareCredit integration? - The CareCredit partnership opens avenues for capturing volumes that would otherwise flow through CareCredit, enhancing payment solutions for customers [35][36] Question: What are the growth expectations across different subverticals for 2026? - Management anticipates strong growth across specialty medical and mid-market sectors, with specialty medical expected to lead due to recent marketing efforts and integrations [37][38] Question: How do you plan to monetize the new AI capabilities? - The company is exploring whether to price new functionalities as additional modules or include them in existing bundles, confident in the ability to monetize the value delivered [42][43] Question: Have churn rates stabilized in older specialty medical cohorts? - Churn rates have shown improvement, returning to historical levels, with ongoing integrations contributing to this stabilization [44][45] Question: What are the investment and hiring priorities for the coming year? - The company prioritizes investments in product and engineering, particularly in AI and telephony, alongside adjustments in the go-to-market strategy for efficiency [52][54] Question: How does Weave differentiate its AI capabilities from competitors? - Weave's unique advantages include ownership of the telephony stack, deep industry-specific workflows, and the ability to retain context across interactions, setting it apart from competitors [56][58]

Financial Data and Key Metrics Changes - In Q4 2025, Weave Communications achieved a revenue growth of 17% year-over-year, with total revenue reaching $63.4 million [22] - Gross margin expanded to a record 73.3%, reflecting a year-over-year improvement of 70 basis points [22] - Operating income for Q4 was $2.3 million, marking an operating margin of 3.6%, which is a 30 basis point improvement from the previous year [25] - For the full year 2025, total revenue grew 17% to $239 million, and gross margin for the year expanded to 72.7%, up 80 basis points from the prior year [32] Business Line Data and Key Metrics Changes - Weave Payments grew at more than twice the rate of total revenue in 2025, driven by new capabilities like automated payment reminders and bulk collections [18] - The specialty medical vertical became the second-largest vertical by location count, with significant growth in Q4 [18] - The acquisition of TrueLark added AI receptionist capabilities, enhancing the product offering and expanding the total addressable market by approximately $7 billion to an estimated $22 billion [21] Market Data and Key Metrics Changes - Weave has been endorsed by the American Dental Association as its exclusive patient engagement solution, providing access to 160,000 members [22] - The company is in the early stages of penetration in the specialty medical market, currently holding roughly 1% market share [22] Company Strategy and Development Direction - The company aims to leverage AI to reduce administrative burdens for healthcare professionals, enhancing patient care and operational efficiency [6][10] - Weave plans to roll out an omni-channel AI receptionist across all vertical markets in 2026, which will allow practices to handle calls 24/7 [16] - The focus is on integrating AI capabilities into existing workflows to create a seamless experience for healthcare providers [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the sustainability of revenue growth and margin expansion, highlighting the importance of customer success in driving long-term value [19] - The company anticipates continued strong growth in specialty medical and mid-market sectors, supported by recent investments in sales and marketing [40] - Management expects total revenue for Q1 2026 to be in the range of $64.2 million to $64.8 million, with an operating income of $1 million to $2 million [33] Other Important Information - The company ended Q4 with $81.7 million in cash and short-term investments, reflecting strong liquidity [25] - Free cash flow for the full year was $12.9 million, representing a 24% year-over-year growth [26] Q&A Session Summary Question: Can you talk about the CareCredit integration? - The CareCredit partnership opens avenues to capture volumes that would otherwise flow through CareCredit, enhancing the payment solution for practices [38] Question: What are your expectations for growth rates across different subverticals in 2026? - Management anticipates strong growth across specialty medical and mid-market sectors, with specialty medical expected to be the fastest-growing segment [40][41] Question: How do you plan to capture the value delivered by new AI capabilities? - The company is exploring monetization strategies for the AI receptionist, considering whether to price it as an additional module or include it in a bundle [45] Question: How do you see the impact of new products like TrueLark on net revenue retention? - The growth from the AI receptionist is expected to be more pronounced in the second half of 2026, with significant upsell opportunities anticipated [72]

Weave Overview Q4 2025 NYSE : WEAV FEBRUARY 2026 1 Safe Harbor Statement This presentation has been prepared by Weave Communications, Inc. ("Weave", "we", "us", or "our") for informational purposes only and not for any other purpose. This presentation contains "forward-looking statements" within the Private Securities Litigation Reform Act of 1995 that are based on our management's current expectations and projections about future events and financial trends that we believe may affect our financial conditio ...