Weave Communications, Inc. 2026 Q2 Earnings Call

Good afternoon, everyone, and welcome to Weave's second quarter 2026 earnings call. With me on today's call are Brett White, CEO, and Jason Christiansen, CFO. During the course of this conference call, we will make forward-looking statements regarding the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made as of today's date, and are subject to various risks and uncertainties described in our SEC filings. Weave disclaimed any obligation to update or revise any forward-looking statements. On today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. Unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis, which excludes acquisition-related costs related to certain shareholder matters, amortization of acquired intangible assets, and stock-based compensation.

A reconciliation to comparable GAAP metrics can be found in today's earnings release, which is available on our investor relations website and as an exhibit to the Form 8-K furnished with the SEC before this call, as well as the earnings presentation on our investor relations website. With that, I will now turn the call over to Brett.

Thank you, Mark, and thank you all for joining us today. Weave delivered strong results in the second quarter. Total revenue was $67.5 million, 15.5% growth over last year, and payments grew at roughly double that rate. Revenue retention, measured on a quarterly basis, also improved sequentially. We added the most new locations ever in a single quarter, both on a gross and net basis. Dental, our largest vertical, had a strong quarter, adding more locations on a gross and net basis than it has in the last eight quarters. On the medical front, we released a significantly deeper integration with the athenaOne platform and joined athenahealth's Marketplace, making our innovative solutions available to more than 160,000 specialty medical providers.

As part of our commitment to deliver increasingly profitable growth, we made significant progress optimizing our go-to-market motion. Sales and marketing expense as a percentage of revenue was down sequentially. Overall, we expanded our operating margin to almost 5%, up sharply from roughly break even in the same quarter last year. Over the last 12 months, we have increased our revenue by $37 million and seen over 19% of that incremental improvement convert to adjusted EBITDA, demonstrating that our business gets substantially more profitable at scale. With that financial context in mind, I'd like to dive deeper into the fundamentals of our business and why we're so confident in our long-term position. Weave is the unified AI-powered patient engagement and payments platform, purpose-built for healthcare practices. We bring together AI agents and practice staff interactions across voice and text into unified workflows.

Acting as an always-on teammate, Weave is the orchestration layer that helps practices continuously improve patient relationships, proactively assign tasks for staff follow-up, and deliver insights so practice owners can measure, analyze, and optimize their businesses. Whether I'm talking to owners of independent practices or operators running hundreds of locations, they all share the same need: increasing production. They also share the same three challenges impacting their businesses: scheduling and keeping treatment chairs full, staffing shortages and rising costs, and revenue leakage. Our primary focus at Weave is ensuring that our value to customers in addressing these challenges is a large and increasing multiple of their spending on our solutions. Starting with the most complicated and critical challenge to address, scheduling. Practice owners face increasing margin pressure, making efficient scheduling table stakes and full schedules a top priority.

A recent survey found that appointment scheduling and confirmation top the list of tasks front desk staff wish were automated, with 49% citing it as their primary concern. Weave keeps schedules full by closing the gaps that drain production. Our platform has significant advantage because we own the patient practice communication layer through which almost every workflow originates or gets completed. This allows us to execute workflows through the trusted primary business phone number rather than from a random unknown phone number or a five-digit short code, leading to higher patient engagement with important messages. Weave ensures no call or text goes unanswered and converts inquiries into appointments. The impact is real. One doctor put it, "Weave's automated texts in response to missed calls drove a 70% decrease in missed opportunities." Automated recall and reactivation campaigns bring lapsed patients back before they slip away for good.

When a cancellation opens up a slot on the schedule, Weave's waitlist workflows can be activated to convert the empty chair to revenue without manual back and forth between the staff and patients. Once someone on the waitlist books, staff are notified instantly, so no one is double-booked or contacted about an appointment that's already gone. Automated smart reminder workflows help keep appointments from being forgotten. Our AI Receptionist lets patients book, confirm, cancel, and reschedule appointments by voice or text around the clock. For one Weave customer, staff members spent hours of each day manually calling patients to confirm their upcoming visits, and the practice still suffered from a consistent pattern of no-shows. Rather than hoping staff would find time during their busy workday to call and nudge patients, the practice implemented a customized automated reminder sequence with Weave.

Their no-show rate plummeted from multiple missed appointments every day to just one no-show every two weeks. A single automated text sequence captured substantial, otherwise lost revenue, and the doctor noted that the investment in Weave paid for itself almost instantly. Moving to challenge number 2, staffing shortages and rising labor costs. Over 60% of practices surveyed have experienced a staffing shortage in the last 12 months. These vacant roles often impact scheduling and office production, resulting in reduced patient volume, lower treatment plan acceptance, and longer collection cycles. Additionally, employment costs for these positions have increased significantly due to a shortage of qualified office staff. Weave helps practices streamline their workload by automating the high-volume manual tasks that eat up staff hours, so leaner teams can focus on deeper-level work. The goal is simple: give people hours back so they can focus on patients, not paperwork.

With Weave's 24/7 coverage, a front office team manages a single unified inbox instead of a backlog of missed calls and voicemails. Workflow automation runs across the entire patient journey, from the first intake form to the final balance collection. Pre-appointment Insurance Verification and eligibility checks reduce the amount of time sitting on hold with the insurance payers. The depth and breadth of the work Weave completes alters the way practices think about staffing and expenses. One doctor told us, quote, "I conservatively save over $50,000 a year in salary and overhead expenses by automating tasks and running a leaner team with Weave." End quote. Following the departure of their front desk manager, a Virginia-based practice used Weave to automate their front office workflows, which eliminated the need to backfill the role.

In another example, a customer was buried in Insurance Verification tasks and noted that their practice administrator could spend over an hour on hold with the insurance payer for a single patient. After they implemented Weave's Insurance Verification, calls to the payers were significantly reduced, and time spent on verification per patient dropped to just a few minutes. Finally, our customers face the challenge of revenue leakage throughout the patient journey, from booking to final collection. Revenue leakage often goes unnoticed. According to multiple industry reports, the average dental practice writes off 9% or more of their gross billings annually. Weave plugs those leaks by embedding payments and revenue cycle management solutions directly into patient interaction workflows. It starts before the visit. Insurance eligibility is confirmed, and co-pays are collected up front with a card on file or Text to Pay.

Text to Pay sends an automatic payment link from the practice number that patients already trust, helping practices collect money they may otherwise never receive. A practice administrator at a Florida-based dental office was responsible for verifying insurance for 60 to 100 patients a day. After adopting Weave's Insurance Verification, she went from struggling to finish a single day's work to comfortably completing the work in half the time. In addition to the time saved, those verifications represented timely payments instead of denials landing weeks later. What used to be a source of lost revenue and a real strain on the team became something that they could stay ahead of. In-house or third-party payment plans are also available through Weave, allowing providers to offer flexible financing options to help patients say yes to critical treatment.

After the appointment, Weave automates follow-up for the small unpaid balances that typically fall to the bottom of the priority list. No front desk team wants to spend the valuable time chasing dozens of $30 co-pays, but those balances add up. After a payment request is created in Weave, reminders are sent automatically so balances don't linger. One doctor told us that Weave reduced their billing process to just five seconds per invoice via our Text to Pay solution. A practice administrator in Massachusetts said with Weave Text to Pay, payments came in in just five to 10 minutes after patients were notified. As a result, they've collected more than $2 million through Weave Payments. Revenue that once aged in receivables or slipped away entirely is now collected almost immediately. We continue to address these challenges by adding new AI-powered products and features.

In just one year, we added 70% more AI-powered features to the Weave platform. In the second quarter, custom AI interactions on our platform totaled 70 million and increased by 165% compared to last year. Call Intelligence, our longest-tenured standalone AI product, had 143% increase in interactions. Customers using Call Intelligence analyzed more than 14.5 million calls in Q2, servicing 810,000 unscheduled opportunities for staff follow-up. Only a portion of these opportunities were acted upon by staff. While millions of dollars in production value were captured, millions more were missed, a gap our AI Receptionist is uniquely positioned to close. Our AI Receptionist helps solve the core problem of 24/7 scheduling automation, keeping schedules full without requiring additional staff, providing clear benefits for single-location practices and scalable impact for multi-location organizations. Our AI Receptionist takes action after work hours or when the front office desk staff are busy.