Q2 2026 Weave Communications Inc Earnings Call Transcript
Key Points
- Weave Communications Inc (WEAV) delivered strong Q2 2026 results with total revenue of $67.5 million, representing 15.5% year-over-year growth, and payments revenue growing at roughly double that rate.
- The company achieved record gross and net new location additions in Q2, with its largest vertical, dental, adding more locations than in any quarter over the past eight quarters.
- Weave Communications Inc (WEAV) significantly improved profitability, expanding operating margin to 4.7%, a 460 basis point improvement year-over-year, and converting 34% of revenue growth into incremental operating income.
- The company made strategic progress in its go-to-market model, including verticalizing its inbound sales function and implementing an SDR model, which contributed to a 240 basis point sequential improvement in sales and marketing efficiency.
- Weave Communications Inc (WEAV) deepened its integration with the AthenaOne platform and joined Athena Health's marketplace, expanding its potential market to over 160,000 specialty medical providers.
- AI adoption is accelerating, with custom AI interactions totaling $70 million in Q2, up 165% year-over-year, and the AI receptionist product receiving positive customer feedback, including one customer reporting a doubling of receptionist effectiveness in 30 days.
- Weave Communications Inc (WEAV) experienced a go-to-market transition disruption from May to July, leading to bookings slightly below expectations and a downward adjustment to its full-year revenue guidance.
- The company's full-year 2026 revenue guidance was revised down to a range of $273 million to $275 million, reflecting the impact of the sales model transition period.
- Weave Communications Inc (WEAV) faced a slight headwind to Q2 revenue due to a quarter-over-quarter and year-over-year decrease in onboarding revenue from lower setup fees.
- Gross margin decreased by 60 basis points sequentially, impacted by increased usage fees for messaging, trued-up vendor invoices, and higher credit card fees associated with annual customer payments.
- The company's reported dollar-based net revenue retention (NRR) remained steady at 92%, indicating limited near-term expansion in existing customer revenue, despite improvements in monthly retention rates.
- The go-to-market transition involved a reduction in the outbound sales team size, which, while intended for efficiency, contributed to the temporary disruption and required a period of recalibration.
To raise your hand.
To withdraw your question, press star 1 again.
I will now hand the conference over to Mariah Shilton, Investor Relations. Mariah, please go ahead.
Thank you, Al. 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 Christensen, 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.
Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results.
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