Weave Communications reported first‑quarter 2026 revenue of $65.5 million, a 17.4% year‑over‑year increase from $55.8 million in Q1 2025. Non‑GAAP diluted earnings per share rose to $0.03, beating the consensus estimate of $0.02 by $0.01, or 50%. The earnings beat reflects disciplined cost management and the continued scaling of the company’s AI‑powered platform, which has helped maintain profitability as revenue grows.
Gross margin expanded to 72.6% from 71.6% in the prior year, while non‑GAAP gross margin climbed to 73.2% from 72.1%. The margin improvement is driven by higher‑margin AI‑enabled services and operational efficiencies that have reduced the cost of delivering the platform to new customer locations. These gains offset modest increases in support and infrastructure costs associated with the company’s rapid expansion.
Over 50% of Weave’s customer locations now use the AI tools embedded in its platform, and the company added a record number of new locations in the quarter. The widespread adoption of AI features—such as the upcoming omnichannel AI receptionist—has increased usage intensity and helped the company capture higher revenue per location, contributing to the revenue growth above consensus expectations.
Management guided full‑year 2026 revenue to $275 million–$278 million and non‑GAAP operating income to $10.5 million–$13.5 million, consistent with or slightly above prior guidance and market consensus. The guidance signals confidence in sustained demand for the platform and the continued monetization of AI capabilities, while maintaining a focus on cost discipline to preserve margin expansion.
CEO Brett White said, “Weave delivered another excellent quarter, with revenue growth accelerating to 17.4% year‑over‑year and the most customer location additions in a single quarter in our history. We also drove significant year‑over‑year improvements in profitability. This success is a clear result of our disciplined business operations.” He added, “Over 50% of customer locations are currently using the AI tools embedded in our platform. The upcoming release of our omnichannel AI receptionist, supporting both voice‑ and text‑based conversations, fundamentally strengthens our future role as a proactive, agentic, always‑on teammate that manages the complete patient journey.”
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