Weave Communications (WEAV) Q4 2025 earnings summary

Executive summary

• Achieved Q4 revenue of $63.4M, up 17% year-over-year, and full-year revenue of $239.0M, also up 17% year-over-year.

• Platform serves over 39,000 customer locations, automating millions of patient interactions monthly and driving strong engagement and retention.

• Focused on AI-powered solutions for SMB healthcare practices, streamlining operations, payments, and patient engagement.

• Marked 16 consecutive quarters of meeting or exceeding the high end of revenue guidance.

• Expanded product suite and AI capabilities, including the acquisition of TrueLark, which added AI Receptionist features and increased total addressable market by $7 billion to $22 billion.

Financial highlights

• Q4 non-GAAP gross margin was 73.3%, up 70 bps year-over-year; full-year non-GAAP gross margin was 72.7%, up 80 bps.

• Q4 non-GAAP operating income was $2.3M (3.6% margin), up $500K year-over-year; full-year non-GAAP operating income was $4.1M (1.7% margin), up from 0.4% last year.

• Q4 free cash flow was $4.4M; full-year free cash flow was $12.9M, up $2.5M year-over-year.

• Ended 2025 with $81.7M in cash and short-term investments.

• Net revenue retention rate: 93%; gross revenue retention rate: 89%.

• Active customer locations: 39,625, up 4,628 year-over-year.

Outlook and guidance

• Q1 2026 revenue expected between $64.2M and $64.8M; non-GAAP operating income projected at $1.0M–$2.0M.

• Full year 2026 revenue guidance: $273M–$276M; non-GAAP operating income: $8M–$12M.

• Anticipates margin improvement and increased operating income as 2025 investments yield results.

• New AI products expected to positively impact revenue growth in the second half of 2026.