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Weave Communications Reports Strong Q2 Growth, Adjusts Revenue Outlook Amid Sales Transition
Weave Communications Inc. (NYSE: WEAV) released its second‑quarter 2026 results on Thursday, showing a 15.5% year‑over‑year rise in revenue to $67.5 million. The company also posted a non‑GAAP operating income of $3.2 million, a turnaround from the breakeven figure it reported in the same quarter a year earlier. Cash and short‑term investments stood at $78.5 million, while free cash flow reached $8.7 million.
Revenue growth was largely driven by a surge in payments revenue, which expanded at roughly twice the pace of total revenue. Weave also added a record number of new practice locations, with its dental vertical adding more sites on both gross and net bases than in any of the preceding eight quarters. Gross profit climbed 16% to $49 million, giving a gross margin of 72.6%, up 30 basis points from the year‑ago level. Subscription and payment‑processing gross margin reached 77.9%.
“We’re pleased with the momentum in our core metrics,” CEO Brett White said. “Payments revenue is growing faster than overall revenue, and we’re seeing strong demand across our verticals.” CFO Jason Christiansen noted that customer‑support costs fell as a percentage of revenue thanks to technology and AI adoption, product enhancements, and self‑service capabilities. Those savings were partially offset by higher messaging usage fees, adjustments to vendor invoices, and elevated credit‑card fees linked to a larger group of customers paying annually in advance.
Management explained that a transition in its sales organization—shifting to a verticalized inbound model and a sales‑development‑rep‑based outbound approach—caused a temporary shortfall in bookings from May through July. The company expects the impact to weigh on second‑half revenue. In response, Weave lowered its full‑year revenue outlook to $273 million–$275 million but raised its operating‑income forecast to $12 million–$14 million.
AI and integration initiatives remain a priority. AI interactions surged, with custom AI usage up 165% year‑over‑year. A deeper integration with athenahealth expanded Weave’s reach to more than 160,000 specialty medical providers, according to a June 11 announcement. The company said demand remains strong, and the expanded capabilities could benefit retention, pricing, and payment‑processing growth.
“We’re seeing real‑world benefits from our AI and integration work,” White added. “Providers are using the platform more, and that translates into higher engagement and revenue potential.”
Weave’s cash position and free cash flow provide a buffer as the firm navigates the sales transition. The company’s $78.5 million in cash and short‑term investments, combined with $8.7 million in free cash flow, give it flexibility to invest in product development and market expansion.
The company’s focus on vertical SaaS for healthcare, coupled with its AI‑powered patient engagement and payments platform, positions it to capture ongoing digitization trends in the medical practice sector. Investors will watch how the sales‑organization shift affects bookings and whether the revised revenue outlook holds through the remainder of the year.
Weave’s next earnings release is scheduled for the end of the third quarter. Analysts will likely examine whether the company can sustain its operating‑income trajectory and whether the AI and integration initiatives translate into the projected revenue growth.
In summary, Weave Communications reported solid Q2 growth, improved profitability, and a healthy cash position. The firm has adjusted its revenue outlook to reflect a temporary bookings shortfall but maintains confidence in its AI and integration strategy to drive future growth.
Revenue growth was largely driven by a surge in payments revenue, which expanded at roughly twice the pace of total revenue. Weave also added a record number of new practice locations, with its dental vertical adding more sites on both gross and net bases than in any of the preceding eight quarters. Gross profit climbed 16% to $49 million, giving a gross margin of 72.6%, up 30 basis points from the year‑ago level. Subscription and payment‑processing gross margin reached 77.9%.
“We’re pleased with the momentum in our core metrics,” CEO Brett White said. “Payments revenue is growing faster than overall revenue, and we’re seeing strong demand across our verticals.” CFO Jason Christiansen noted that customer‑support costs fell as a percentage of revenue thanks to technology and AI adoption, product enhancements, and self‑service capabilities. Those savings were partially offset by higher messaging usage fees, adjustments to vendor invoices, and elevated credit‑card fees linked to a larger group of customers paying annually in advance.
Management explained that a transition in its sales organization—shifting to a verticalized inbound model and a sales‑development‑rep‑based outbound approach—caused a temporary shortfall in bookings from May through July. The company expects the impact to weigh on second‑half revenue. In response, Weave lowered its full‑year revenue outlook to $273 million–$275 million but raised its operating‑income forecast to $12 million–$14 million.
AI and integration initiatives remain a priority. AI interactions surged, with custom AI usage up 165% year‑over‑year. A deeper integration with athenahealth expanded Weave’s reach to more than 160,000 specialty medical providers, according to a June 11 announcement. The company said demand remains strong, and the expanded capabilities could benefit retention, pricing, and payment‑processing growth.
“We’re seeing real‑world benefits from our AI and integration work,” White added. “Providers are using the platform more, and that translates into higher engagement and revenue potential.”
Weave’s cash position and free cash flow provide a buffer as the firm navigates the sales transition. The company’s $78.5 million in cash and short‑term investments, combined with $8.7 million in free cash flow, give it flexibility to invest in product development and market expansion.
The company’s focus on vertical SaaS for healthcare, coupled with its AI‑powered patient engagement and payments platform, positions it to capture ongoing digitization trends in the medical practice sector. Investors will watch how the sales‑organization shift affects bookings and whether the revised revenue outlook holds through the remainder of the year.
Weave’s next earnings release is scheduled for the end of the third quarter. Analysts will likely examine whether the company can sustain its operating‑income trajectory and whether the AI and integration initiatives translate into the projected revenue growth.
In summary, Weave Communications reported solid Q2 growth, improved profitability, and a healthy cash position. The firm has adjusted its revenue outlook to reflect a temporary bookings shortfall but maintains confidence in its AI and integration strategy to drive future growth.
