Weave Communications, Inc. reported fourth‑quarter 2025 results that surpassed revenue expectations while delivering earnings per share that aligned with consensus estimates. Total revenue reached $63.4 million, a 17 % year‑over‑year increase that exceeded the $63.18 million consensus estimate by $0.22 million. Non‑GAAP earnings per share were $0.03, matching the $0.03 consensus estimate and falling short of the $0.04 analyst estimate by $0.01. The company’s GAAP loss per share for the quarter was $0.02, reflecting the continued impact of one‑time charges and higher operating expenses.
Revenue growth was driven by strong performance in the payments and new‑location segments, which together contributed the bulk of the $10 million increase over the prior year. Weave’s focus on expanding its AI‑powered front‑office platform and the recent acquisition of TrueLark broadened its product mix and helped secure higher‑margin contracts. The company’s gross margin reached a record 73.3 % on a non‑GAAP basis, up from 71.8 % in the prior quarter, indicating effective cost control and a favorable shift toward higher‑margin services.
Earnings per share matched consensus but fell short of the $0.04 estimate, a difference that can be attributed to the company’s ongoing GAAP loss and the impact of higher operating costs. While the $0.03 EPS beat a negative estimate of –$0.02, it missed the $0.04 estimate, underscoring the narrow margin between expectations and actual performance. The company’s operating income rose to $2.3 million, its highest level to date, driven by the margin expansion and the scale of its AI platform.
Looking ahead, Weave guided first‑quarter 2026 revenue to $64.2 million to $64.8 million, in line with the consensus estimate of $64.58 million. For the full year, the company projected revenue between $273 million and $276 million, matching the consensus view of $274.7 million. The guidance reflects confidence in continued demand for its AI‑enabled practice management solutions and the expected growth from the TrueLark integration.
Despite the positive financials, Weave faces headwinds in retention metrics, with net revenue retention at 93 % and gross retention at 89 % in Q4 2025. The company remains unprofitable on a GAAP basis, and the GAAP loss per share highlights the need for continued cost discipline. Nevertheless, management emphasized the strategic importance of AI expansion and market penetration, positioning the company to capture a larger share of the healthcare practice‑management market.
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