Weave Communications (WEAV) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue grew 18.3% year-over-year to $55.8 million, driven by strong demand in specialty medical and payments, with the platform serving over 35,000 customer locations.

• Announced a definitive agreement to acquire TrueLark, an AI-powered receptionist and automation platform, for $35 million ($25M cash, $10M equity), expected to close in Q2 2025, enhancing AI automation and expanding the addressable market.

• Achieved 13th consecutive quarter of exceeding revenue guidance, with record specialty medical sales and new integrations expanding the integrated market by 60,000 locations.

• Gross margin improved to 72.1%, up 170 basis points year-over-year, supported by favorable customer mix and cost management.

• Welcomed Abhi Sharma as SVP of Engineering, bringing significant AI and communications experience.

Financial highlights

• Q1 2025 revenue: $55.8 million, up 18.3% year-over-year; TTM revenue reached $213 million, up 20%.

• Gross margin: 72.1% (up 170 bps YoY); gross profit: $40.2 million.

• Adjusted EBITDA: $1 million, up $1.4 million year-over-year.

• Free cash flow: $(1.1) million, a significant improvement from $(20.5) million last year.

• Ended Q1 with $53.4 million in cash and equivalents, $44.8 million in short-term investments, and no outstanding debt.

Outlook and guidance

• Q2 2025 revenue guidance: $57.3–58.3 million; non-GAAP operating income guidance: $(1.0)–$0.0 million.

• Full-year 2025 revenue guidance raised to $236.8–239.8 million, including ~$2.5 million from TrueLark; non-GAAP operating income expected between $0.0–$3.0 million.

• Management expects continued revenue growth, improved operating cash flows, and margin expansion as operational efficiency increases.

• TrueLark expected to be accretive to the bottom line in 2026.

• Guidance assumes TrueLark acquisition closes in Q2 2025.