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Weave Communications (NYSE: WEAV) published its latest earnings release on Friday, and it'll probably spend the weekend wishing it hadn't. Mr. Market wasn't happy about the company's slight bottom-line miss, and punished Weave by selling out of its equity. By the end of the day, the company's shares had fallen by almost 5%. Focused on health Weave, which specializes in communications solutions for healthcare businesses, released its final set of 2025 figures. The fourth quarter saw the company earn reven ...

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]

Weave Communications (NYSE:WEAV) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Company ParticipantsBrett White - CEOJason Christiansen - CFOMark Schappel - Managing DirectorMatthew Kikkert - Equity Research AssociateMoriah Shilton - Investor Relations ExecutivesConference Call ParticipantsAlex Sklar - AnalystHannah Rudoff - Software Equity Research AnalystOperatorGreetings, and welcome to Weave's fourth quarter and full year 2025 financial results and conference call. At this time, all participants ar ...

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]

Weave Communications (NYSE:WEAV) Q4 2025 Earnings call February 19, 2026 04:30 PM ET Speaker6Greetings, and welcome to Weave's fourth quarter and full year 2025 financial results and conference call. At this time, all participants are on a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. If you would like to ask a question, please raise your hand. If you have dialed in to today's call, please press star nine to raise your ...

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 ...

• Total revenue was $63.4 million, representing a 17.0% year-over-year increase compared to $54.2 million in the fourth quarter of 2024. • GAAP gross margin was 72.7%, compared to 72.1% in 2024. • Non-GAAP gross margin was 73.3%, compared to 72.6% in 2024. • GAAP loss from operations was $2.2 million, compared to $7.4 million in the fourth quarter of 2024. • Non-GAAP income from operations was $2.3 million, compared to $1.8 million in the fourth quarter of 2024. • GAAP net loss was $1.8 million, or $0.02 pe ...

Core Viewpoint - Raymond James downgraded Weave Communications from Strong Buy to Outperform and reduced its price target to $10.00 from $12.00, reflecting a more challenging environment for small and mid-sized business software companies [1][2] Group 1: Company Performance and Initiatives - Weave continues to gain traction in growth initiatives, particularly in Specialty Medical, which has become its second-largest market by locations [2] - Progress in multi-office deployments includes a recent win covering over 600 locations, alongside a growing pipeline for its AI receptionist and automation solution, TrueLark [3] - Additional growth opportunities are identified through deeper integrations, improved product packaging, potential ARPC expansion via AI and payments offerings, and broader go-to-market partnerships [3] Group 2: Future Outlook - Although initiatives are expected to take time to materialize, there is a path toward re-accelerating growth and a return to a more consistent beat-and-raise pattern [4] - Shares are trading at 2x the 2026 sales estimate, but a full re-rating is unlikely until organic growth acceleration becomes more visible or the company shows a clearer path toward long-term profitability [4]

Revenue and Growth - Recurring revenues accounted for 91% of total revenue for the three months ended September 30, 2025, and 92% for the same period in 2024[118] - Subscription and payment processing revenue for Q3 2025 was $58.76 million, up from $50.38 million in Q3 2024, representing a year-over-year increase of 25%[121] - Revenue for the three months ended September 30, 2025, was $61,342,000, representing a 17% increase from $52,386,000 in the same period of 2024[158] - Revenue for the nine months ended September 30, 2025, increased by $25.5 million, or 17%, to $175.6 million, with approximately $19.8 million attributed to new customer locations acquired[166] - Revenue for the three months ended September 30, 2025, was $61.3 million, a 17% increase from $52.4 million in the same period of 2024[181] Profitability and Margins - Gross profit for subscription and payment processing services was $45.86 million for Q3 2025, maintaining a gross margin of 78%[121] - Gross profit for the three months ended September 30, 2025, was $44,342,000, compared to $37,727,000 in 2024, maintaining a gross margin of 72%[154] - Gross margin improved to 72% for the nine months ended September 30, 2025, compared to 71% in the prior year, driven by a favorable customer mix and efficiencies in cost management[168] - The free cash flow margin for the three months ended September 30, 2025, was 8%, compared to 7% in the same period of 2024[181] Expenses and Losses - Operating expenses are expected to continue increasing, with sales and marketing being the largest component[139] - Total operating expenses for the three months ended September 30, 2025, were $53,286,000, compared to $44,357,000 in 2024, resulting in a loss from operations of $8,944,000[154] - Research and development expenses for the three months ended September 30, 2025, were $13,121,000, up from $9,868,000 in 2024, reflecting a 33% increase[154] - Sales and marketing expenses increased by 25% to $26,404,000 for the three months ended September 30, 2025, compared to $21,159,000 in 2024[161] - The net loss for the nine months ended September 30, 2025, was $26,204,000, compared to a net loss of $21,635,000 in the same period of 2024[154] - The company reported a net loss of $26.2 million for the nine months ended September 30, 2025, compared to a net loss of $21.6 million in the same period of 2024[182] Cash Flow and Financial Position - Free cash flow for the nine months ended September 30, 2025, was $8.5 million, compared to $4.2 million in the prior year, reflecting improved cash generation from operating activities[176] - Net cash provided by operating activities for the nine months ended September 30, 2025, was $11.3 million, up from $7.5 million in 2024, representing a 51% increase[186] - Cash used in financing activities for the nine months ended September 30, 2025, was $4.2 million, significantly lower than $16.6 million used in the same period of 2024[192] - As of September 30, 2025, the company had cash and cash equivalents of $64.4 million, along with $15.9 million in other short-term investments[185] - The company has a total borrowing capacity of $50.0 million under its revolving line of credit, with no outstanding balance as of September 30, 2025[195] Customer Metrics and Retention - Customer retention is expected to improve gross margin, with subscription and payment processing gross margin consistently at 78% for the three months ended September 30, 2025, and 2024[128] - The dollar-based net revenue retention rate decreased to 94% in September 2025 from 98% in September 2024[151] - The dollar-based gross revenue retention rate decreased to 90% in September 2025 from 92% in September 2024[151] Strategic Initiatives - The company introduced the enhanced Weave platform in 2024, which is web-based and designed for both single- and multi-location customers[124] - The acquisition of TrueLark provides an opportunity to expand the customer base among medium-sized businesses, particularly in specialty healthcare verticals[126] - The company aims to add new customers through both unpaid channels, such as recommendations, and paid channels, including digital marketing and trade shows[123] - The company plans to expand into new industry verticals, having successfully entered dental, optometry, and veterinary markets[130] Other Income and Expenses - Interest income for the three months ended September 30, 2025, was $447,000, down from $520,000 in 2024[154] - Total other income (expense), net decreased by $449,000, or 56%, to $358,000 for the three months ended September 30, 2025, largely due to decreased realized gains on short-term investments[165]