Weave Q2 Revenue Jumps 16%

Core Insights - Weave Communications reported Q2 2025 GAAP revenue of $58.5 million, exceeding analyst expectations of $57.81 million, with non-GAAP EPS of $0.02, surpassing the estimated $0.00, driven by growth in specialty medical segments and AI integration from the TrueLark acquisition [1][2][12] Financial Performance - Q2 2025 GAAP revenue was $58.5 million, a 15.6% increase from $50.6 million in Q2 2024 [2] - Non-GAAP gross margin improved to 72.3%, up from 71.9% in Q2 2024 [2] - Non-GAAP income from operations was $0.1 million, a significant improvement from a loss of $1.0 million in Q2 2024 [2] - Free cash flow for the first six months of 2025 was $3.4 million, down from $21.2 million in the same period last year, reflecting a 78.9% decrease [2][11] Business Overview - Weave Communications provides an all-in-one platform for healthcare providers, integrating various functionalities to enhance operational efficiency and patient engagement [3] - The company focuses on small- and medium-sized practices in dental, optical, veterinary, and specialty medical fields [3] Strategic Focus - Recent efforts have been directed towards expanding the customer base in specialty healthcare segments and enhancing technology through AI-powered automation and cloud integration [4] - The acquisition of TrueLark is expected to broaden Weave's capabilities in front office automation, adding significant value to the company's offerings [7] Customer Growth and Market Position - Specialty medical has become Weave's second-largest vertical by location count, with record customer additions, although overall penetration remains below 15% [9] - Customer satisfaction is high, with Weave ranked first across 34 categories by G2, although gross revenue retention has decreased to 90% in Q2 2025 [10] Future Outlook - For Q3 2025, Weave forecasts revenue between $60.1 million and $61.1 million, with non-GAAP operating income expected to be flat to $1.0 million [12] - For FY2025, management targets revenue of $236.8 million to $239.8 million, with non-GAAP operating income of $1.2 million to $3.2 million, reflecting growth from TrueLark and continued account expansion [12]