Press Release: Weave Announces Third Quarter 2025 Financial Results

Dow Jones
Oct 31
   --  Third quarter total revenue of $61.3 million, up 17.1% year over year 
 
 
   --  GAAP gross margin of 72.3%, up 30 basis points year over year 
 
   --  Non-GAAP gross margin of 73.0%, up 50 basis points year over year 
 
   --  Net cash provided by operating activities was $6.1 million, up $1.6 
      million year over year 
 
   --  Free cash flow was $5.0 million, up $1.5 million year over year 
LEHI, Utah--(BUSINESS WIRE)--October 30, 2025-- 

Weave Communications, Inc. ("Weave") (NYSE: WEAV), a leading vertical SaaS platform that delivers AI-powered patient engagement and payment solutions for small and medium-sized healthcare practices, today announced its financial results for the third quarter September 30, 2025.

"We delivered another strong quarter, marked by accelerating revenue growth, non-GAAP profitability, and free cash flow as well as significant advancements across our product roadmap," said Brett White, CEO of Weave. "The SMB healthcare market is evolving rapidly, with technology playing a greater role in how practices attract, engage, and retain patients. Weave is uniquely positioned to lead in this next phase of transformation. Our scale, brand, and deep expertise in SMB healthcare give us an advantage."

Third Quarter 2025 Financial Highlights

   --  Total revenue was $61.3 million, representing a 17.1% year-over-year 
      increase compared to $52.4 million in the third quarter of 2024. 
 
   --  GAAP gross margin was 72.3%, compared to 72.0% in the third quarter of 
      2024. 
 
   --  Non-GAAP gross margin was 73.0%, compared to 72.5% in the third quarter 
      of 2024. 
 
   --  GAAP loss from operations was $8.9 million, compared to $6.6 million in 
      the third quarter of 2024. 
 
   --  Non-GAAP income from operations was $1.7 million, compared to $1.4 
      million in the third quarter of 2024. 
 
   --  GAAP net loss was $8.7 million, or $0.11 per share, compared to $5.9 
      million, or $0.08 per share, in the third quarter of 2024. 
 
   --  Non-GAAP net income was $2.0 million, or $0.03 per share, compared to 
      $2.1 million, or $0.03 per share, in the third quarter of 2024. 
 
   --  Adjusted EBITDA was $2.7 million, compared to $2.2 million in the third 
      quarter of 2024. 
 
   --  Gross revenue retention was 90%, compared to 92% in the third quarter 
      of 2024. 
 
   --  Net revenue retention was 94%, compared to 98% in the third quarter of 
      2024. 
 
   --  Net cash provided by operating activities was $6.1 million, compared to 
      $4.5 million for the third quarter of 2024. 
 
   --  Free cash flow was $5.0 million, compared to $3.5 million for the third 
      quarter of 2024. 

Recent Business Highlights

   --  Launched new payments features including surcharging and bulk payments, 
      addressing key customer needs. Surcharging helps healthcare practices 
      manage rising costs by offering flexibility to pass credit card fees to 
      payers, while bulk payments saves time for larger, multi-location 
      practices by enabling multiple payment requests at once. 
 
   --  Again earned the top rating in the G2 Fall Report for Patient 
      Relationship Management, reflecting strong customer satisfaction and 
      trust. Also certified as a Great Place to Work in the U.S. and India for 
      the seventh consecutive year in the U.S. and second in India. 

Full Year 2025 Outlook

The company expects to achieve the following financial results for the full year ending December 31, 2025:

 
                                  Fourth Quarter     Full Year 
                                           (in millions) 
--------------------------------  ------------------------------- 
Total revenue                     $62.4 - $63.4   $238.0 - $239.0 
--------------------------------  --------------  --------------- 
Non-GAAP income from operations    $1.5 - $2.5      $3.3 - $4.3 
--------------------------------  --------------  --------------- 
Weighted average share count           78.2            76.3 
--------------------------------  --------------  --------------- 
 

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the "Forward-Looking Statements" safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Non-GAAP income (loss) from operations excludes estimates for, among other things, stock-based compensation expense, acquisition transaction costs (as described further below), and amortization of acquisition-related intangible assets. A reconciliation of this non-GAAP financial guidance measure to a corresponding GAAP financial guidance measure is not available on a forward-looking basis because we do not provide guidance on GAAP income (loss) from operations and are not able to present the various reconciling cash and non-cash items between GAAP loss from operations and non-GAAP income (loss) from operations without unreasonable effort. In particular, stock-based compensation expense is impacted by our future hiring and retention needs, as well as the future fair market value of our common stock, all of which are difficult to predict and are subject to change. The actual amount of these expenses during 2025 will have a significant impact on our future GAAP financial results.

Webcast

The company will host a conference call and webcast for analysts and investors on Thursday, October 30, 2025, beginning at 4:30 p.m. EST.

The live audio webcast and a webcast replay of the conference call can be accessed from the investor relations page of Weave's website at investors.getweave.com.

About Weave

Weave is a leading all-in-one customer experience and payments software platform for small and medium-sized healthcare businesses. From the first phone call to the final invoice and every touchpoint in between, Weave connects the entire patient journey. Weave's software solutions transform how healthcare practices attract, communicate with, and engage patients and clients to grow their business. Weave seamlessly integrates billing and payment requests into communication workflows, streamlining payment timelines, reducing accounts receivable, and supporting practice profitability. In the past year, Weave has been named an Inc. Power Partner, a G2 leader in Patient Relationship Management software, and a Top 50 Product for Small Business. To learn more, visit getweave.com/newsroom.

Non-GAAP Financial Measures

In this press release, Weave has provided financial information that has not been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). We disclose the following historical non-GAAP financial measures in this press release: non-GAAP net income, non-GAAP net income margin, non-GAAP net income per share, non-GAAP gross profit, non-GAAP gross margin, non-GAAP operating expenses, non-GAAP income (loss) from operations, non-GAAP income (loss) from operations margin, Adjusted EBITDA and free cash flow. We use these non-GAAP financial measures internally to analyze our financial results and evaluate our ongoing operational performance. We believe that these non-GAAP financial measures provide an additional tool for investors to use in understanding and evaluating ongoing operating results and trends in the same manner as our management and board of directors. Our use of these non-GAAP financial measures has limitations as an analytical tool, and you should not consider them in isolation or as a substitute for analysis of our financial results as reported under GAAP. Because of these and other limitations, you should consider these non-GAAP financial measures along with other GAAP-based financial performance measures, including various cash flow metrics, operating loss, net loss, and our GAAP financial results. We have provided a reconciliation of these non-GAAP financial measures to their most directly comparable GAAP measures in the tables included in this press release, and investors are encouraged to review the reconciliation.

Non-GAAP net income, non-GAAP net income margin and non-GAAP net income per share

We define non-GAAP net income as GAAP net loss adjusted to exclude stock-based compensation expense, acquisition transaction costs, and amortization of acquisition-related intangible assets, and non-GAAP net income margin as non-GAAP net income as a percentage of revenue. Acquisition transaction costs include legal and any accounting professional services costs incurred as a result of our acquisition during the applicable period. Although we exclude the amortization of acquisition-related intangibles from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Non-GAAP net income per share is calculated as non-GAAP net income divided by the diluted weighted average shares outstanding.

Non-GAAP gross profit and non-GAAP gross margin

We define non-GAAP gross profit as GAAP gross profit adjusted to exclude stock-based compensation expense and amortization of acquisition-related intangible assets. Although we exclude the amortization of acquisition-related intangible assets from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Non-GAAP gross margin is defined as non-GAAP gross profit as a percentage of revenue.

Non-GAAP operating expenses

We define non-GAAP operating expenses, in the aggregate or its individual components (i.e., sales and marketing, research and development or general and administrative), as the applicable GAAP operating expenses adjusted to exclude the applicable stock-based compensation expense, acquisition transaction costs, if any, and amortization of acquisition-related intangible assets. Although we exclude the amortization of acquisition-related intangible assets from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation.

Non-GAAP income (loss) from operations and non-GAAP income (loss) from operations margin

We define non-GAAP income (loss) from operations as GAAP loss from operations less stock-based compensation expense, acquisition transaction costs, if any, and amortization of acquisition-related intangible assets. Although we exclude the amortization of acquisition-related intangible assets from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Non-GAAP income (loss) from operations margin is defined as non-GAAP income (loss) from operations as a percentage of revenue.

Adjusted EBITDA

We define EBITDA as earnings before interest expense, interest income, other income/expense, income tax benefit (expense), depreciation, and amortization. Our depreciation adjustment includes depreciation on operating fixed assets and we do not adjust for amortization of finance lease right-of-use assets on phone hardware provided to our customers. Our amortization adjustment includes the amortization of capitalized costs from both internal-use software development and cloud computing arrangements. We further adjust EBITDA to exclude stock-based compensation expense, a non-cash item, acquisition transaction costs, which we believe are not reflective of ongoing results of operations in the period incurred and not directly related to the operation of our business, and amortization of acquisition-related intangible assets. Although we exclude the amortization of acquisition-related intangible assets from the non-GAAP measure, management believes it is important for investors to understand that such intangible assets were recorded as part of purchase accounting and contribute to revenue generation. We believe that Adjusted EBITDA provides management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Additionally, management uses Adjusted EBITDA to measure our financial and operational performance and prepare our budgets.

Free cash flow

We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software costs. We believe that free cash flow is a useful indicator of liquidity that provides useful information to management and investors, even if negative, as it provides information about the amount of cash consumed by our combined operating and investing activities. For example, as free cash flow has in the past been negative, we have needed to access cash reserves or other sources of capital for these investments.

Limitations and Reconciliation of Non-GAAP Financial Measures

The foregoing non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as substitutes for financial information presented under U.S. GAAP. There are a number of limitations related to the use of non-GAAP financial measures versus comparable financial measures determined under U.S. GAAP. For example, the non-GAAP financial information presented above may be determined or calculated differently by other companies and may not be directly comparable to that of other companies. In addition, free cash flow does not reflect our future contractual commitments and the total increase or decrease of our cash balance for a given period. Further, Adjusted EBITDA excludes some costs, namely, non-cash stock-based compensation expense, acquisition transaction costs, and amortization of acquisition-related intangible assets. Therefore, Adjusted EBITDA does not reflect the non-cash impact of stock-based compensation expense or working capital needs that will continue for the foreseeable future. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures and to not rely on any single financial measure to evaluate our business.

Supplemental Financial Information

The supplemental financial information provided herein excludes the impact of Vidurama, Inc. (d.b.a. "TrueLark"), a business we acquired in May 2025.

Dollar-Based Net Revenue Retention ("NRR")

For retention rate calculations, we use adjusted monthly revenue ("AMR"), which is calculated for each location as the sum of (i) the subscription component of revenue for each month and (ii) the average of the trailing three-month recurring payments revenue. To calculate our NRR, we first identify the cohort of locations (the "Base Locations") that were active in a particular month (the "Base Month"). We then divide AMR for the Base Locations in the same month of the subsequent year by AMR in the Base Month to derive a monthly NRR. We derive our annual NRR as of any date by taking a weighted average of the monthly net retention rates over the trailing twelve months before such date.

Dollar-Based Gross Revenue Retention ("GRR")

To calculate our GRR, we first identify the Base Locations that were under subscription in the Base Month. We then calculate the effect of reductions in revenue from customer location terminations by measuring the amount of AMR in the Base Month for Base Locations still under subscription twelve months subsequent to the Base Month (the "Remaining AMR"). We then divide the Remaining AMR for the Base Locations by AMR in the Base Month for the Base Locations to derive a monthly gross retention rate. We calculate GRR as of any date by taking a weighted average of the monthly gross retention rates over the trailing twelve months prior to such date. GRR reflects the effect of customer locations that terminate their subscriptions, but does not reflect changes in revenue due to revenue expansion, revenue contraction, or the addition of new customer locations.

Forward-Looking Statements

This press release and the accompanying conference call contain forward-looking statements including, among others, current estimates of full year 2025 revenue and non-GAAP income (loss) from operations, and the quotations of our Chief Executive Officer.

These forward-looking statements involve risks and uncertainties. If any of these risks or uncertainties materialize, or if any of our assumptions prove incorrect, our actual results could differ materially from the results expressed or implied by these forward-looking statements. These risks and uncertainties include risks associated with: the ability of Weave to successfully integrate our acquisition of TrueLark and to achieve expected benefits from the acquisition; our ability to attract new customers, retain existing customers and increase our customers' use of our platform; our ability to manage our growth; the impact of unfavorable economic conditions and macroeconomic uncertainties on our company; our ability to maintain and enhance our brand and increase market awareness of our company, platform and products; customer adoption of our platform and products and enhancements thereto; customer acquisition costs and sales and marketing strategies; our ability to achieve profitability in any future period; competition; our ability to enhance our platform and products; interruptions in service; and the risks described in the filings we make from time to time with the Securities and Exchange Commission ("SEC"), including the risks described under the heading "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended June 30, 2025, filed with the SEC on August 7, 2025, which should be read in conjunction with our financial results and forward-looking statements and is available on the SEC Filings section of the Investor Relations page of our website at investors.getweave.com.

All forward-looking statements in this press release are based on information available to us as of the date hereof, and we do not assume any obligation to update the forward-looking statements provided to reflect events that occur or circumstances that exist after the date on which they were made.

Channels for Disclosure of Information

Weave uses the investor relations page on our website, blog posts on our website, press releases, public conference calls, webcasts, our X (Twitter) feed (@getweave), our Facebook page, and our LinkedIn page as the means of complying with our disclosure obligations under Regulation FD. We encourage investors, the media, and others to follow the channels listed above, in addition to following Weave's press releases, SEC filings, and public conference calls and webcasts, and to review the information disclosed through such channels.

 
                       WEAVE COMMUNICATIONS, INC 
                 CONDENSED CONSOLIDATED BALANCE SHEETS 
       (unaudited, in thousands, except share and per share data) 
 
                              September 30, 2025     December 31, 2024 
                             --------------------  --------------------- 
ASSETS 
Current assets: 
   Cash and cash 
    equivalents               $           64,394    $          51,596 
   Short-term investments                 15,897               47,534 
   Accounts receivable, net                4,283                3,743 
   Deferred contract costs, 
    net                                   12,934               11,568 
   Prepaid expenses and 
    other current assets                   5,443                6,298 
                                 ---------------       -------------- 
      Total current assets               102,951              120,739 
                                 ---------------       -------------- 
Non-current assets: 
   Property and equipment, 
    net                                    8,834                8,443 
   Operating lease 
    right-of-use assets                   34,557               37,516 
   Finance lease 
    right-of-use assets                   10,664               10,650 
   Deferred contract costs, 
    net, less current 
    portion                               10,794                9,487 
   Intangible assets, net                  7,482                   -- 
   Goodwill                               29,465                   -- 
   Other non-current assets                1,716                2,091 
                                 ---------------       -------------- 
         TOTAL ASSETS         $          206,463    $         188,926 
                                 ===============       ============== 
LIABILITIES AND 
STOCKHOLDERS' EQUITY 
Current liabilities: 
   Accounts payable           $            6,123    $           8,276 
   Accrued liabilities and 
    other                                 27,241               17,638 
   Deferred revenue                       38,499               39,987 
   Current portion of 
    operating lease 
    liabilities                            4,349                4,119 
   Current portion of 
    finance lease 
    liabilities                            6,697                6,600 
                                 ---------------       -------------- 
      Total current 
       liabilities                        82,909               76,620 
                                 ---------------       -------------- 
Non-current liabilities: 
   Other long-term 
   liabilities                             2,936                   -- 
   Operating lease 
    liabilities, less 
    current portion                       35,657               38,961 
   Finance lease 
    liabilities, less 
    current portion                        6,344                6,377 
                                 ---------------       -------------- 
      Total liabilities                  127,846              121,958 
                                 ---------------       -------------- 
Stockholders' equity: 
   Preferred stock, 
   $0.00001 par value per 
   share; 10,000,000 
   shares authorized, zero 
   shares issued and 
   outstanding as of 
   September 30, 2025 and 
   December 31, 2024                          --                   -- 
   Common stock, $0.00001 
   par value per share; 
   500,000,000 shares 
   authorized as of 
   September 30, 2025 and 
   December 31, 2024; 
   77,990,452 and 
   73,225,253 shares 
   issued and outstanding 
   as of September 30, 
   2025 and December 31, 
   2024, respectively                         --                   -- 
   Additional paid-in 
    capital                              396,121              358,549 
   Accumulated deficit                  (317,217)            (291,013) 
   Accumulated other 
    comprehensive loss                      (287)                (568) 
                                 ---------------       -------------- 
      Total stockholders' 
       equity                             78,617               66,968 
                                 ---------------       -------------- 
         TOTAL LIABILITIES 
          AND STOCKHOLDERS' 
          EQUITY              $          206,463    $         188,926 
                                 ===============       ============== 
 
 
                            WEAVE COMMUNICATIONS, INC 
                 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
            (unaudited, in thousands, except share and per share data) 
 
                           Three Months Ended 
                             September 30,         Nine Months Ended September 30, 
                       --------------------------  ------------------------------- 
                           2025          2024           2025             2024 
                       ------------  ------------  ---------------  -------------- 
Revenue                $    61,342   $    52,386   $   175,621      $   150,145 
Cost of revenue             17,000        14,659        49,383           43,307 
                        ----------    ----------    ----------       ---------- 
        Gross profit        44,342        37,727       126,238          106,838 
                        ----------    ----------    ----------       ---------- 
Operating expenses: 
   Sales and 
    marketing               26,404        21,159        75,175           62,678 
   Research and 
    development             13,121         9,868        36,262           29,471 
   General and 
    administrative          13,761        13,330        43,251           38,729 
                        ----------    ----------    ----------       ---------- 
     Total operating 
      expenses              53,286        44,357       154,688          130,878 
                        ----------    ----------    ----------       ---------- 
         Loss from 
          operations        (8,944)       (6,630)      (28,450)         (24,040) 
                        ----------    ----------    ----------       ---------- 
Other income 
(expense): 
   Interest income             447           520         1,345            1,372 
   Interest expense           (366)         (405)       (1,300)          (1,123) 
   Other income, net           277           692         1,248            2,278 
                        ----------    ----------    ----------       ---------- 
     Loss before 
      income taxes          (8,586)       (5,823)      (27,157)         (21,513) 
                        ----------    ----------    ----------       ---------- 
         Income tax 
          benefit 
          (expense)            (82)          (56)          953             (122) 
                        ----------    ----------    ----------       ---------- 
           Net loss    $    (8,668)  $    (5,879)  $   (26,204)     $   (21,635) 
                        ==========    ==========    ==========       ========== 
Net loss per share - 
 basic and diluted     $     (0.11)  $     (0.08)  $     (0.35)     $     (0.30) 
                        ==========    ==========    ==========       ========== 
Weighted-average 
 common shares 
 outstanding - basic 
 and diluted            77,338,906    72,007,727    75,684,733       71,253,586 
                        ==========    ==========    ==========       ========== 
 
 
                         WEAVE COMMUNICATIONS, INC 
              CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS 
                         (unaudited, in thousands) 
 
                            Three Months Ended        Nine Months Ended 
                              September 30,             September 30, 
                          ----------------------  ------------------------- 
                             2025        2024         2025         2024 
                          -----------  ---------  ------------  ----------- 
CASH FLOWS FROM 
OPERATING ACTIVITIES 
   Net loss               $(8,668)     $ (5,879)  $(26,204)     $(21,635) 
   Adjustments to 
   reconcile net loss 
   to net cash provided 
   by operating 
   activities 
      Depreciation and 
       amortization         2,920         2,712      8,602         8,670 
      Amortization of 
       operating 
       right-of-use 
       assets                 992           991      2,959         2,949 
      Amortization of 
       intangible 
       assets                 362            --        518            -- 
      Provision for 
       credit losses          294           400        774         1,243 
      Amortization of 
       deferred contract 
       costs                3,723         3,340     10,943         9,992 
      Stock-based 
       compensation, net 
       of amount 
       capitalized          9,922         8,022     28,159        23,085 
      Net accretion of 
       discounts on 
       short-term 
       investments           (108)         (503)      (750)       (1,677) 
      Changes in 
      operating assets 
      and liabilities: 
         Accounts 
          receivable       (1,186)       (3,236)    (1,207)       (6,096) 
         Deferred 
          contract 
          costs            (4,569)       (3,488)   (13,616)      (11,531) 
         Prepaid 
          expenses and 
          other assets        378           199      1,826         1,665 
         Accounts 
          payable              75            29     (2,644)        2,465 
         Accrued 
          liabilities       3,875         3,194      6,382           191 
         Operating lease 
          liabilities      (1,034)         (995)    (3,074)       (2,963) 
         Deferred 
          revenue            (907)         (286)    (1,373)        1,117 
                           ------       -------    -------       ------- 
            Net cash 
             provided by 
             operating 
             activities     6,069         4,500     11,295         7,475 
                           ------       -------    -------       ------- 
CASH FLOWS FROM 
INVESTING ACTIVITIES 
   Maturities of 
    short-term 
    investments            17,400        23,471     47,856        55,745 
   Purchases of 
    short-term 
    investments                --       (22,534)   (15,455)      (43,016) 
   Purchases of property 
    and equipment            (279)         (548)    (1,267)       (1,802) 
   Capitalized 
    internal-use 
    software costs           (743)         (411)    (1,565)       (1,434) 
   Business 
    acquisitions, net of 
    cash acquired            (537)           --    (23,855)           -- 
                           ------       -------    -------       ------- 
            Net cash 
             provided by 
             (used in) 
             investing 
             activities    15,841           (22)     5,714         9,493 
                           ------       -------    -------       ------- 
CASH FLOWS FROM 
FINANCING ACTIVITIES 
   Principal payments on 
    finance leases         (1,829)       (1,743)    (5,416)       (5,285) 
   Proceeds from stock 
    option exercises          234           193        749           550 
   Payments for taxes 
    related to net share 
    settlement of equity 
    awards                 (1,445)       (4,461)    (1,488)      (13,883) 
   Stock issuance costs        --            --        (26)           -- 
   Proceeds from the 
    employee stock 
    purchase plan             859           977      1,970         1,997 
                           ------       -------    -------       ------- 
            Net cash 
             used in 
             financing 
             activities    (2,181)       (5,034)    (4,211)      (16,621) 
                           ------       -------    -------       ------- 
NET INCREASE (DECREASE) 
 IN CASH AND CASH 
 EQUIVALENTS               19,729          (556)    12,798           347 
CASH AND CASH 
 EQUIVALENTS, BEGINNING 
 OF PERIOD                 44,665        51,659     51,596        50,756 
                           ------       -------    -------       ------- 
CASH AND CASH 
 EQUIVALENTS, END OF 
 PERIOD                   $64,394      $ 51,103   $ 64,394      $ 51,103 
                           ======       =======    =======       ======= 
SUPPLEMENTAL DISCLOSURE 
OF CASH FLOW 
INFORMATION: 
   Cash paid during the 
    period for interest   $   366      $    405   $  1,300      $  1,123 
   Cash paid during the 
    period for income 
    taxes                 $   124      $     56   $    349      $    122 
SUPPLEMENTAL DISCLOSURE 
OF NONCASH INVESTING 
AND FINANCING 
ACTIVITIES: 
   Equipment purchases 
    financed with 
    accounts payable      $   135      $     --   $    135      $     -- 
   Finance lease 
    liabilities arising 
    from obtaining 
    finance lease 
    right-of-use assets   $ 1,138      $  1,671   $  5,480      $  5,247 
   Operating lease 
    liabilities arising 
    from obtaining 
    operating lease 
    right-of-use assets        --            --   $     --      $    149 
   Unrealized gain on 
    short-term 
    investments           $     9      $    106   $     14      $     19 
   Stock-based 
    compensation 
    included in 
    capitalized software 
    development costs     $   140      $     --   $    281      $     -- 
   Equity issued as 
    consideration in 
    business 
    combinations          $    --      $     --   $ 10,041      $     -- 
   Consideration 
    withheld for 
    indemnification 
    liabilities related 
    to business 
    combinations          $ 1,789      $     --   $  1,789      $     -- 
 
 
                         WEAVE COMMUNICATIONS, INC 
                 DISAGGREGATED REVENUE AND COST OF REVENUE 
                         (unaudited, in thousands) 
 
                Three Months Ended September   Nine Months Ended September 
                            30,                            30, 
                ----------------------------  ----------------------------- 
                    2025           2024            2025           2024 
                -------------  -------------  --------------  ------------- 
Subscription 
and payment 
processing: 
   Revenue      $ 58,760       $ 50,375       $168,180        $143,980 
   Cost of 
    revenue      (12,905)       (10,932)       (37,576)        (32,164) 
                 -------        -------        -------   ---   ------- 
      Gross 
       profit   $ 45,855       $ 39,443       $130,604        $111,816 
      Gross 
       margin       78.0%          78.3%          77.7%           77.7% 
 
Onboarding: 
   Revenue      $    821       $    845       $  2,542        $  2,748 
   Cost of 
    revenue       (2,239)        (2,006)        (6,306)         (5,870) 
                 -------        -------        -------   ---   ------- 
      Gross 
       profit   $ (1,418)      $ (1,161)      $ (3,764)       $ (3,122) 
      Gross 
       margin     (172.7)%       (137.4)%       (148.1)%        (113.6)% 
 
Phone 
Hardware: 
   Revenue      $  1,761       $  1,166       $  4,899        $  3,417 
   Cost of 
    revenue       (1,856)        (1,721)        (5,501)         (5,273) 
                 -------        -------        -------   ---   ------- 
      Gross 
       profit   $    (95)      $   (555)      $   (602)       $ (1,856) 
      Gross 
       margin       (5.4)%        (47.6)%        (12.3)%         (54.3)% 
 

WEAVE COMMUNICATIONS, INC

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

(unaudited, in thousands, except share and per share data)

The following tables reconcile the specific items excluded from GAAP in the calculation of non-GAAP financial measures for the periods indicated below.

 
Non-GAAP gross profit 
-----------------------   -------------  ------------  --------------  ------------- 
                              Three Months Ended        Nine Months Ended September 
                                 September 30,                      30, 
                          ---------------------------  ----------------------------- 
                              2025           2024           2025           2024 
                          -------------  ------------  --------------  ------------- 
Gross profit              $44,342        $37,727       $126,238        $106,838 
   Stock-based 
    compensation              200            237            700             720 
   Amortization of 
    acquisition-related 
    intangibles               215             --            320              -- 
                           ------  ----   ------  ---   -------  ----   -------  --- 
Non-GAAP gross profit     $44,757        $37,964       $127,258        $107,558 
                           ======  ====   ======  ===   =======  ====   =======  === 
GAAP gross margin            72.3%          72.0%          71.9%           71.2% 
Non-GAAP gross margin        73.0%          72.5%          72.5%           71.6% 
 
 
Non-GAAP operating 
expenses 
-----------------------   -------------  ------------  --------------  ------------- 
                              Three Months Ended        Nine Months Ended September 
                                 September 30,                      30, 
                          ---------------------------  ----------------------------- 
                              2025           2024           2025           2024 
                          -------------  ------------  --------------  ------------- 
Sales and marketing       $26,404        $21,159       $ 75,175        $ 62,678 
   Stock-based 
    compensation           (1,983)        (1,758)        (5,775)         (4,605) 
   Amortization of 
    acquisition-related 
    intangibles              (147)            --           (198)             -- 
                           ------   ---   ------  ---   -------   ---   -------  --- 
Non-GAAP sales and 
 marketing                $24,274        $19,401       $ 69,202        $ 58,073 
                           ======  ====   ======  ===   =======  ====   =======  === 
 
Research and development  $13,121        $ 9,868       $ 36,262        $ 29,471 
   Stock-based 
    compensation           (4,162)        (1,848)        (9,542)         (5,924) 
   Acquisition 
    transaction 
    costs(1)                   --             --            (97)             -- 
                           ------  ----   ------  ---   -------   ---   -------  --- 
Non-GAAP research and 
 development              $ 8,959        $ 8,020       $ 26,623        $ 23,547 
                           ======  ====   ======  ===   =======  ====   =======  === 
 
General and 
 administrative           $13,761        $13,330       $ 43,251        $ 38,729 
   Stock-based 
    compensation           (3,577)        (4,179)       (12,142)        (11,836) 
   Acquisition 
    transaction 
    costs(1)                 (334)            --         (1,458)             -- 
                           ------   ---   ------  ---   -------   ---   -------  --- 
Non-GAAP general and 
 administrative           $ 9,850        $ 9,151       $ 29,651        $ 26,893 
                           ======  ====   ======  ===   =======  ====   =======  === 
 
 
Non-GAAP income (loss) 
from operations 
-----------------------   ---------------  ---------------  ----------------  --------------- 
                          Three Months Ended September 30,   Nine Months Ended September 30, 
                          --------------------------------  --------------------------------- 
                               2025             2024              2025             2024 
                          ---------------  ---------------  ----------------  --------------- 
Loss from operations      $    (8,944)     $    (6,630)     $   (28,450)      $   (24,040) 
   Stock-based 
    compensation                9,922            8,022           28,159            23,085 
   Acquisition 
    transaction 
    costs(1)                      334               --            1,555                -- 
   Amortization of 
    acquisition-related 
    intangibles                   362               --              518                -- 
                           ----------       ----------       ----------  ---   ---------- 
Non-GAAP income (loss) 
 from operations          $     1,674      $     1,392      $     1,782       $      (955) 
                           ==========       ==========       ==========  ===   ========== 
GAAP loss from 
 operations margin              (14.6)%          (12.7)%          (16.2)%           (16.0)% 
Non-GAAP income (loss) 
 from operations margin           2.7%             2.7%             1.0%             (0.6)% 
 
 
Non-GAAP net income 
(loss) 
-----------------------   ---------------  ---------------  ----------------  --------------- 
                          Three Months Ended September 30,   Nine Months Ended September 30, 
                          --------------------------------  --------------------------------- 
                               2025             2024              2025             2024 
                          ---------------  ---------------  ----------------  --------------- 
Net loss                  $    (8,668)     $    (5,879)     $   (26,204)      $   (21,635) 
   Stock-based 
    compensation                9,922            8,022           28,159            23,085 
   Acquisition 
    transaction 
    costs(1)                      334               --            1,555                -- 
   Amortization of 
    acquisition-related 
    intangibles                   362               --              518                -- 
                           ----------       ----------       ----------  ---   ---------- 
Non-GAAP net income       $     1,950      $     2,143      $     4,028       $     1,450 
                           ==========       ==========       ==========  ===   ========== 
GAAP net loss margin            (14.1)%          (11.2)%          (14.9)%           (14.4)% 
Non-GAAP net income 
 margin                           3.2%             4.1%             2.3%              1.0% 
 
 
GAAP net loss per share 
 - basic and diluted      $     (0.11)     $     (0.08)     $     (0.35)      $     (0.30) 
GAAP weighted-average 
 common shares 
 outstanding - basic and 
 diluted                   77,338,906       72,007,727       75,684,733        71,253,586 
 
Non-GAAP net income per 
 share - basic            $      0.03      $      0.03      $      0.05       $      0.02 
Non-GAAP 
 weighted-average common 
 shares outstanding - 
 basic                     77,338,906       72,007,727       75,684,733        71,253,586 
 
Non-GAAP net income per 
 share - diluted          $      0.02      $      0.03      $      0.05       $      0.02 
Non-GAAP 
 weighted-average common 
 shares outstanding - 
 diluted                   81,614,121       72,007,727       80,592,295        71,253,586 
 
 
Free Cash Flow 
--------------------   -----------  -----------  ------------  ----------- 
                          Three Months Ended         Nine Months Ended 
                            September 30,              September 30, 
                       ------------------------  ------------------------- 
                          2025         2024          2025         2024 
                       -----------  -----------  ------------  ----------- 
Net cash provided by 
 operating 
 activities            $ 6,069      $ 4,500      $ 11,295      $  7,475 
Less: Purchases of 
 property and 
 equipment                (279)        (548)       (1,267)       (1,802) 
Less: Capitalized 
 internal-use 
 software costs           (743)        (411)       (1,565)       (1,434) 
                        ------       ------       -------       ------- 
   Free cash flow      $ 5,047      $ 3,541      $  8,463      $  4,239 
                        ======       ======       =======       ======= 
 
 
Adjusted EBITDA 
--------------------   -----------  -----------  ------------  ----------- 
                          Three Months Ended         Nine Months Ended 
                            September 30,              September 30, 
                       ------------------------  ------------------------- 
                          2025         2024          2025         2024 
                       -----------  -----------  ------------  ----------- 
Net loss               $(8,668)     $(5,879)     $(26,204)     $(21,635) 
Interest expense           366          405         1,300         1,123 
Income tax expense 
 (benefit)                  82           56          (953)          122 
Interest income           (447)        (520)       (1,345)       (1,372) 
Other income net          (277)        (692)       (1,248)       (2,278) 
Depreciation               515          512         1,546         1,702 
Amortization               467          345         1,406         1,149 
Stock-based 
 compensation            9,922        8,022        28,159        23,085 
Amortization of 
 acquisition-related 
 intangibles               362           --           518            -- 
Acquisition 
 transaction 
 costs(1)                  334           --         1,555            -- 
                        ------       ------       -------       ------- 
   Adjusted EBITDA     $ 2,656      $ 2,249      $  4,734      $  1,896 
                        ======       ======       =======       ======= 
 

(1) Represents expenses incurred with third parties as part of the Company's acquisition activity, including due diligence, closing, and post-closing integration activities.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251030453635/en/

 
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(END) Dow Jones Newswires

October 30, 2025 16:03 ET (20:03 GMT)

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