Weave Communications, Inc.

Weave reported second-quarter 2026 total revenue of $67.5 million, up 15.5% year over year. Gross profit was $49 million, up 16% year over year, and gross margin was 72.6%, up 30 basis points year over year and down 60 basis points sequentially. Operating income was $3.2 million versus breakeven in Q2 2025, and operating margin was 4.7%, up 460 basis points year over year. The company ended the quarter with $78.5 million in cash and short-term investments, up $5.8 million sequentially; cash from operations was $10.2 million and free cash flow was $8.7 million. For Q3 2026, Weave guided to revenue of $68.6 million-$69.6 million and operating income of $3 million-$4 million. For full-year 2026, revenue is expected to be $273 million-$275 million and non-GAAP operating income $12 million-$14 million.

Brett White said Weave’s core thesis is improving healthcare practices’ scheduling, staffing efficiency, and revenue collection through its patient communication and payments platform. He emphasized record location additions, stronger dental performance, deeper AI adoption, and a significantly deeper athenaOne integration that should improve specialty medical economics over time. His tone was confident and upbeat, but he acknowledged the sales transition caused a temporary booking shortfall that is now being completed and tightened.

Jason Christiansen focused on the quarter’s mix of growth and leverage: revenue of $67.5 million, gross profit of $49 million, gross margin of 72.6%, and operating income of $3.2 million. He highlighted expense discipline, including G&A at $10 million, R&D at $10 million, and sales and marketing at $25.8 million or 38% of revenue, with S&M down 240 basis points sequentially. He also pointed to $78.5 million in cash and short-term investments, $10.2 million in operating cash flow, $8.7 million in free cash flow, and free cash flow positivity for the first half of 2026. On guidance, he lowered full-year revenue to $273 million-$275 million because of the go-to-market transition, while raising operating income guidance to $12 million-$14 million.

Analysts focused heavily on the revenue guide reduction and whether the go-to-market transition was the only issue versus any broader demand slowdown. Management said demand remained strong, and the shortfall came from lead distribution and the sales-team redesign, with the impact flowing into Q3 and Q4. Questions also centered on the size and structure of the sales team, the sustainability of dental momentum, and the athenahealth integration; management said the outbound team is smaller, the transition was accelerated and completed in early August, and deeper integrations should lift ASP, retention, and CAC over time.