Weave Communications (WEAV) Q2 2025 earnings summary

Executive summary

• Q2 2025 revenue reached $58.5M, up 16% year-over-year, with record sales, improved gross margins, and positive free cash flow, driven by new customer acquisitions and expansion in healthcare verticals.

• Acquired TrueLark (Vidurama, Inc.) for $35.8M, expanding AI-powered automation and 24/7 patient engagement; integration and joint go-to-market efforts are underway.

• Specialty Medical became the second-largest vertical by customer count, with record growth in medical aesthetics, primary care, and physical therapy, supported by new EMR integrations.

• Platform powers millions of patient interactions monthly, leveraging integrated SaaS for communications, payments, and engagement.

• Ranked #1 in 34 G2 categories for Summer 2025, maintaining top status in Patient Relationship Management.

Financial highlights

• Q2 2025 gross margin improved to 72.3% (non-GAAP), up 40 bps year-over-year; GAAP gross margin was 71.7%.

• Gross profit reached $42.3M, up nearly $6M year-over-year.

• Adjusted EBITDA for Q2 2025 was $1.1M, up from breakeven in Q2 2024.

• Free cash flow for Q2 2025 was $4.5M, with YTD free cash flow of $3.4M, up from $0.7M last year.

• Ended Q2 with $77.8M in cash and short-term investments after deploying $23M–$25M for the TrueLark acquisition.

Outlook and guidance

• Q3 2025 revenue expected between $60.1M and $61.1M; non-GAAP operating income forecasted at $0.0M–$1.0M.

• Full-year 2025 revenue guidance raised to $236.8M–$239.8M, with non-GAAP operating income of $1.2M–$3.2M.

• Profitability expected to improve in the second half of the year, driven by revenue growth and operating efficiency.