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Weave Communications (NYSE:WEAV) delivered strong third-quarter results for 2025, showcasing 17% year-over-year revenue growth and continued margin expansion as the company accelerates its AI-powered healthcare solutions. The company’s stock rose 3.04% in aftermarket trading following the earnings announcement, reaching $6.78.
Quarterly Performance Highlights
Weave reported total revenue of $61.3 million for Q3 2025, representing a 17% increase from the same period last year. Software and payments revenue, which comprises the bulk of the company’s business, grew at a similar rate to $58.8 million. The company maintained a healthy 90% gross revenue retention rate while improving its non-GAAP gross margin to 73%, a 50 basis point improvement year-over-year.
As shown in the following financial results summary from the company’s presentation:
Notably, Weave achieved $5.0 million in free cash flow during the quarter, a $1.5 million increase year-over-year, while non-GAAP operating income reached $1.7 million, up $0.3 million from Q3 2024. This represents a 2.7% operating margin, demonstrating the company’s progress toward sustainable profitability.
The company’s revenue growth has shown consistent upward momentum over the past two years, as illustrated in this chart:
This growth trajectory has been accompanied by steady margin expansion, with gross margins improving from 68.7% in Q3 2023 to 73% in the most recent quarter:
CEO Brett White emphasized during the earnings call that "Weave is leading this transformation, unlocking the full potential of intelligent automation," while CFO Jason Christiansen highlighted the company’s commitment to "balancing growth with profitability."
Strategic Initiatives
Weave’s strategic focus centers on its AI-powered solutions designed to streamline operations for small and medium-sized healthcare practices. The company serves over 35,000 customer locations across dental, optometry, veterinary, and specialty medical practices, helping them manage patient communications, scheduling, payments, and practice analytics through a unified platform.
The company’s comprehensive offering is illustrated in this visualization of the Weave platform:
A key strategic initiative has been the expansion of AI capabilities. Weave acquired TrueLark in 2025 to accelerate its AI-powered front office automation. The company has been systematically rolling out AI features since 2023, as shown in this timeline:
One of the most promising new features is Call Intelligence, which analyzes call recordings to detect patient sentiment and identify revenue opportunities. The dashboard provides practice owners with actionable insights:
Case studies presented in the earnings slides demonstrate the impact of these solutions. Affordable Care, America’s largest dental support organization for tooth replacement solutions, reported a 36% decrease in appointment no-shows, 97% of forms completed prior to appointments, and 44% more on-time appointments after implementing Weave’s solutions.
SGA Dental Partners reported an estimated $500,000 annual increase in EBITDA and 900 new patients in the first four months of using TrueLark, Weave’s AI receptionist solution.
Competitive Industry Position
Weave positions itself as a leader in the patient relationship management space, addressing the challenges healthcare practices face in managing fragmented point solutions. According to the company’s data, practices miss one out of three calls during business hours, with the average dental practice missing 300 calls per month. Additionally, 47% of bookings occur after hours, highlighting the need for automated solutions.
The company’s competitive position is reinforced by its leadership in the G2 Grid for Patient Relationship Management, where it outperforms competitors like SolutionReach and OhMD:
Weave’s unified platform approach differentiates it from competitors by integrating phones, texting, scheduling, payments, reviews, and analytics in a single solution. The company has established authorized integrations with major practice management systems including Dentrix, athenahealth, OpenDental, and many others, creating a robust ecosystem for healthcare practices.
Forward-Looking Statements
Looking ahead, Weave has raised its full-year revenue guidance to $238-$239 million and expects Q4 2025 revenue between $62.4 million and $63.4 million. The company also provided non-GAAP operating income guidance of $1.5-$2.5 million for Q4 and $3.3-$4.3 million for the full year 2025.
As shown in the company’s guidance slide:
Weave identified multiple growth vectors, including expansion into specialty medical verticals, integration partnerships, payments, multi-location practices, and AI-powered innovations. The company estimates its total addressable market (TAM) at $3 billion in its current verticals (dental, optometry, veterinary) in the US, with potential expansion to $5 billion by including select medical specialties and further growth to $22 billion by targeting international markets.
The company’s path to profitability has shown steady improvement, transitioning from negative margins to positive operating income:
As healthcare practices increasingly seek to modernize their operations and improve patient experiences, Weave’s AI-powered solutions position the company to capitalize on this trend. However, the company faces challenges including market saturation, competitive pressure, and potential integration challenges as it continues to develop its AI platforms.
With its stock trading near its 52-week low of $6.35 prior to the earnings announcement, the positive Q3 results and raised guidance signal potential for recovery as Weave continues to execute on its growth strategy and path to increased profitability.
Full presentation:
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