-- 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)