Weave raises 2025 revenue guidance to $238M–$239M as AI products accelerate specialty medical growth

Earnings Call Insights: Weave Communications, Inc. (WEAV) Q3 2025

MANAGEMENT VIEW

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Brett White, CEO, stated that "We are very pleased to report that the Weave team delivered another strong quarter, marked by accelerating revenue growth, non-GAAP profitability and free cash flow as well as significant advancements across our product road map." He highlighted the company's vertical SaaS platform for AI-powered patient engagement and payment solutions tailored to small and medium-sized healthcare practices, emphasizing their ability to integrate deeply with practice management systems through authorized APIs and their commitment to security and compliance.

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White shared a customer example: "One of our largest customers...said, 'We're so glad you acquired TrueLark because of your proven scale, security and reliability.'"

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The CEO noted performance metrics: "This quarter, we generated $61.3 million in revenue, accelerating our year-over-year growth rate to 17.1%. This also marks our 15th consecutive quarter of exceeding the top end of our revenue guidance. Gross margin reached a record high of 73% this quarter." He also cited $5 million in free cash flow.

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White described operational progress: "In just 1 quarter, those locations booked more than $320,000 in additional appointments with 75% of those appointments scheduled without any staff involvement. As a result, new patient volume has increased by over 25% year-over-year."

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On strategic focus, White explained, "Our strategy builds on this strength by focusing on deepening customer reliance on Weave and expanding our share of practice spend. With each new feature, we are striving to enhance automation, engagement and efficiency for our customers."

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Jason Christiansen, CFO, stated, "We delivered revenue of $61.3 million, exceeding the midpoint...an acceleration of our revenue growth rate to 17.1% year-over-year. Excluding TrueLark and the effect of last year's price increase, Q3 revenue grew more quarter-over-quarter than any quarter in the past 4 years."

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Christiansen added, "Specialty medical, where we are still less than 1% penetrated, grew more in Q3 than in any previous quarter as it continues to ramp. Payments revenue again grew more than double our total growth rate."

OUTLOOK

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Christiansen announced, "We are raising the midpoint of our full year revenue guidance and updating the range to $238 million to $239 million. We are also raising our full year non-GAAP operating income guidance to be in the range of $3.3 million to $4.3 million."

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For Q4 2025, Christiansen provided, "We expect total revenue in the range of $62.4 million to $63.4 million and non-GAAP operating income in the range of $1.5 million to $2.5 million."

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Management described the outlook as reflecting "meaningful year-over-year improvement in profitability."

FINANCIAL RESULTS

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Weave reported $61.3 million in revenue for Q3 2025, with a gross margin of 73%, and $5 million in free cash flow.

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Gross profit was $44.8 million. Operating income reached $1.7 million, an improvement of $300,000 compared to Q3 2024 and exceeding the high end of previous guidance by $700,000.

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Cash and short-term investments totaled $80.3 million at quarter end, with $6.1 million cash from operating activities. Year-to-date free cash flow was $8.5 million, a $4.3 million improvement over the prior year.

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Gross revenue retention was 90%; net revenue retention was 94%.

Q&A

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Alexander Sklar, Raymond James: Asked about payments and the integration of TrueLark. White responded that "we had very strong volume growth this quarter...average volume per customer continues to be strong." Integration of TrueLark with payments is on the roadmap, with features like "intelligent actions" for revenue cycle management expected over the next couple of quarters.

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Sklar also inquired about specialty medical group implementations. Christiansen replied, "We continue to make great progress in the mid-market. Sales are very strong...they also selected Weave because of the payment workflows and solutions that we're able to integrate."

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Hannah Rudoff, Piper Sandler: Asked about accelerating payments adoption. White said, "The real unlock for our payments business is the workflows, really nailing the workflows and then also nailing the integration with practice management software."

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Rudoff also questioned the balance between new integrations and ASP growth. White explained, "Integrated Weave is more valuable to our customers. So it has a higher ASP, and it has a higher retention rate."

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Matthew Kikkert, Stifel: Asked about specialty medical drivers. Christiansen said, "We continue to remain focused on the primary verticals...the size of the opportunity is roughly the size of dental, optometry and vet combined."

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Kylie Towbin, Citi: Inquired about profitability and AI receptionist adoption. Christiansen noted, "We have a bias towards growth, but it's something that we remain very focused on making sure that we can strike the right cord on both sides." White clarified the AI receptionist "alleviates lower-value tasks" rather than replacing staff.

SENTIMENT ANALYSIS

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Analysts highlighted strong metrics and product momentum but pressed for details on payments adoption, integration, and profitability, with a tone that was neutral to slightly positive. Sklar, Rudoff, Kikkert, and Towbin focused on execution details, indicating cautious optimism.

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Management maintained a confident and upbeat tone in prepared remarks and Q&A, repeatedly emphasizing "strong momentum" and using phrases like "very optimistic about the opportunity ahead of us."

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Compared to the previous quarter, analyst tone remained steady, with questions shifting more toward execution scalability and competitive differentiation. Management’s confidence increased, with more forward-looking statements about AI and integration roadmaps.

QUARTER-OVER-QUARTER COMPARISON

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Revenue growth accelerated from 15.6% in Q2 to 17.1% in Q3, with gross margin rising from 72.3% to 73%.

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Full-year revenue and operating income guidance were raised, reflecting improved outlook and continued profitability focus.

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Management’s tone was more assertive about AI-driven automation and mid-market expansion, while analysts maintained focus on payments, integration, and specialty medical traction.

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Strategic focus on AI automation deepened, with expanded integration between TrueLark and Weave, and a continued push into specialty medical.

RISKS AND CONCERNS

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Christiansen noted that "when we enter new verticals, it is typical for us to see higher churn and lower average sales prices initially."

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Management acknowledged pressure on retention metrics in fast-growing specialty medical due to new customer adoption but stated, "Over time, we expect churn to normalize and average sales price to increase as we achieve greater product market fit."

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White highlighted staffing shortages as a persistent risk for SMB healthcare practices, positioning Weave as a solution but underscoring the ongoing operational challenge.

FINAL TAKEAWAY

Management emphasized another strong quarter driven by accelerating revenue growth, improved profitability, and record gross margins, while highlighting the continued expansion of AI-driven automation, deepening product integrations, and successful penetration into the specialty medical vertical. The company raised its full-year guidance and outlined a robust roadmap for further integration of TrueLark functionalities, aiming to solidify its leadership in intelligent automation for healthcare practices.

Read the full Earnings Call Transcript [https://seekingalpha.com/symbol/weav/earnings/transcripts]

MORE ON WEAVE COMMUNICATIONS

* Weave Communications, Inc. (WEAV) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4835993-weave-communications-inc-weav-q3-2025-earnings-call-transcript]
* Seeking Alpha’s Quant Rating on Weave Communications [https://seekingalpha.com/symbol/WEAV/ratings/quant-ratings]
* Historical earnings data for Weave Communications [https://seekingalpha.com/symbol/WEAV/earnings]
* Financial information for Weave Communications [https://seekingalpha.com/symbol/WEAV/income-statement]