Weave Communications (NYSE:WEAV) executives emphasized continued growth, margin expansion, and an accelerating product roadmap centered on AI-driven front-office automation during the company’s fourth-quarter and full-year 2025 earnings call.
Fourth-quarter and full-year performance
CEO Brett White said Weave delivered a “strong quarter” in Q4, highlighted by 17% year-over-year revenue growth, gross margin expansion to a company record 73.3%, and operating income of $2.3 million, which management said was its highest level both in dollars and as a percentage of revenue. White also noted the company has now posted its 16th consecutive quarter of meeting or exceeding the high end of its revenue guidance range.
AI strategy: unified workflows, omnichannel receptionist, and phased expansion
White framed Weave’s product strategy around reducing administrative “friction” in small and medium-sized healthcare practices by unifying patient communications across voice and text, with AI agents and staff operating in coordinated workflows. He described Weave as an “orchestration layer” that routes conversations, preserves context across channels, assigns follow-up tasks, and surfaces performance insights for practice owners.
Management repeatedly pointed to the company’s authorized integrations with practice management systems, ownership of the telephony stack, and embedded workflows (including scheduling and payments) as key enablers for reliable automation in regulated healthcare environments. White argued these factors, along with Weave’s scale—nearly 40,000 customer locations and billions of patient interactions annually—create domain-specific advantages that are difficult for horizontal AI providers to replicate without exposing protected health information.
White said the acquisition of TrueLark added an AI Receptionist to Weave’s platform and accelerated the company’s “agentic” roadmap. He also noted that Weave’s pricing approach—licensed per location and based on consumption rather than per-seat—positions the company to benefit as practices seek automation amid staffing constraints.
Weave outlined a phased plan for 2026 product releases:
- Q4 launch: A Unified Inbox that consolidates TrueLark AI conversations and Weave staff interactions into a single contextual view.
- First half of 2026: Expected general availability of an omnichannel AI Receptionist across all vertical markets, enabling 24/7 AI handling of calls and texts with intelligent handoffs to staff; conversations are transcribed into the Unified Inbox and prioritized through Weave Call Intelligence, which can generate follow-up tasks.
- Second half of 2026: Expansion beyond scheduling into more autonomous intake and payments, including automated payment requests after claims adjudication and the collection of co-pays and pre-treatment deposits within scheduling flows.
In response to a question about monetization, White said Weave is “very confident” it can capture the value of new AI functionality, though pricing specifics are still being determined (for example, as an additional module versus inclusion in bundles). He emphasized Weave’s focus on proving labor savings and incremental revenue generation for practices.
Growth vectors: specialty medical, mid-market, and payments
White said specialty medical remains a standout opportunity, noting it became Weave’s second-largest vertical by location count in Q2 2025 and that the company added more specialty medical locations in Q4 than any quarter in its history. He said Weave currently focuses on four areas within specialty medical: primary care, physical and occupational therapy, aesthetics, and med spa.
CFO Jason Christiansen added that Weave’s product expansion in 2025, including TrueLark, increased estimated total addressable market by roughly $7 billion to about $22 billion, with additional expansion expected as AI Receptionist capabilities broaden. Christiansen said Weave remains in fewer than 15% of U.S. dental locations and has roughly 1% share in specialty medical, which he characterized as an early-stage penetration opportunity.
Weave also highlighted developments in payments. White said Weave Payments grew at more than twice the rate of total revenue in 2025, with early adoption of features including automated payment reminders, bulk collections, and surcharging. During Q&A, management said surcharging has been “very well-received” and is contributing to higher payment volumes among adopting customers.
The company announced a partnership agreement with CareCredit, which management described as the leading patient financing solution used by more than 285,000 health and wellness locations nationwide. Executives said the integration is expected to improve visibility into patient credit availability, streamline applications, and improve treatment acceptance by making care more accessible. White said the partnership also provides a pathway to capture payment volumes that might otherwise flow directly through CareCredit, with integration work still ahead and more detail to come later.
Christiansen added that payments opportunity varies by specialty based on insurance mix, noting that areas such as primary care tend to have higher insurance coverage rates, while categories like aesthetics and veterinary may present a larger direct-pay opportunity.
Margins, expenses, cash flow, and retention metrics
Christiansen reported Q4 revenue of $63.4 million (up 17% year over year). Gross margin was 73.3%, up 70 basis points from the prior year, and the company posted sequential gross margin expansion in 15 of the past 16 quarters. He attributed margin improvement to efficiencies in cloud infrastructure, amortization of older phone hardware and payment terminals, and a growing mix of higher-margin payments revenue.
Operating income in Q4 was $2.3 million, up more than $500,000 year over year, for an operating margin of 3.6% (up 30 basis points year over year and 90 basis points sequentially). Total operating expenses were 70% of revenue, with general and administrative expense improving to 15% of revenue from 17% a year earlier. Research and development was 14% of revenue, down from 15%, while sales and marketing was 40% of revenue, reflecting what Christiansen described as targeted 2025 investments in mid-market sales capacity, upsell teams (including a dedicated payments sales team), channel sales, and marketing to build awareness in specialty medical and promote AI Receptionist and new products.
Weave ended Q4 with $81.7 million in cash and short-term investments. Cash from operations was $6.2 million in Q4, and free cash flow was $4.4 million. Full-year free cash flow was $12.9 million, up 24% year over year.
Retention metrics in Q4 included net revenue retention of 93% and gross revenue retention of 89%. Christiansen said churn declined steadily in the second half of 2025 and that Q4 churn returned to 2023 and 2024 levels. He said the company expects gross revenue retention to trend back to a historical 91%–93% range over time, citing initiatives such as more tailored onboarding, refined packaging, new products, and expanded integration coverage.
Christiansen also provided additional context on retention reporting, noting Weave measures retention on a location basis and that about two-thirds of the customer base is single-location practices. He said net revenue retention is 102% for multi-location groups on a logo basis, compared to 93% for single-location practices. He added that Weave has historically “landed heavy” with customers adopting much of the platform upfront, which can limit near-term upsell—though he said TrueLark and faster product development cycles are expanding upsell opportunities. He noted penetration of insurance eligibility and TrueLark products within the installed base remains below 2%.
2026 guidance and operating priorities
For Q1 2026, Weave guided revenue to $64.2 million to $64.8 million and operating income to $1 million to $2 million, with Christiansen citing seasonal expense factors in the first quarter. For full-year 2026, the company expects revenue of $273 million to $276 million and non-GAAP operating income of $8 million to $12 million. Management said new products rolling out through the year are expected to contribute more meaningfully to revenue growth in the latter half of 2026.
In response to a question on investment and hiring priorities, White said the company is prioritizing product and engineering—particularly to expand AI Receptionist from text to voice—and also continuing go-to-market improvements. He said Weave has begun shifting from a full-service account executive model to an SDR/AE approach, which he characterized as more efficient with early proof points.
About Weave Communications (NYSE:WEAV)
Weave Communications is a technology company that provides integrated communications and customer management solutions tailored for small- to medium-sized local businesses. Headquartered in Lehi, Utah, the company developed a cloud-based platform that unifies voice calling, business texting, appointment reminders and payment processing within a single interface.
The platform’s core offerings include a unified business phone system, two-way texting, automated appointment and recall reminders, secure payment acceptance and a basic customer relationship management module.
