Shares of Weave Communications, Inc. (WEAV) surged 7.96% in after-hours trading following the release of its third-quarter 2025 financial results, which exceeded analyst expectations and showcased the company's growth trajectory.

The company reported total revenue of $61.342 million for Q3, representing a 17.1% increase year-over-year and beating the analyst consensus estimate of $60.672 million. Weave also achieved non-GAAP profitability, with adjusted net income of $2 million, or $0.03 per share. The strong performance was underpinned by a GAAP gross margin of 72.3%, up 30 basis points year-over-year, and a non-GAAP gross margin of 73.0%, up 50 basis points from the same period last year.

Investors were particularly encouraged by Weave's positive outlook. The company projects fourth-quarter revenue between $62.4 million and $63.4 million, with full-year 2025 revenue expected to range from $238.0 million to $239.0 million. Additionally, Weave anticipates non-GAAP income from operations between $1.5 million and $2.5 million for Q4, and between $3.3 million and $4.3 million for the full year. The company's focus on AI-powered patient engagement and payment solutions for small and medium-sized healthcare practices, along with recent product enhancements such as new surcharging and bulk payment features, appears to be resonating well with its target market.