Q4 2025 Weave Communications Inc Earnings Call

February 19, 2026

Pins are on a listen-only mode. A question and answer session will follow the formal presentation. As a reminder, this conference is being recorded if you would like to ask a question. Please. Raise your hand. If you have dialed in to today's call, please press star 9, to raise your hand and star 6 to unmute, I would now, like to turn the conference over to your host Mariah Shelton. Investor relations, thank you. You may begin.

Thank you. Kevin.

Speaker #1: These conversations are transcribed and posted into our unified inbox, preserving full context across both AI agent and staff interactions. Weave Call Intelligence then automatically prioritizes important requests and creates follow-up tasks.

His fourth quarter and full year 2025 Financial results conference call.

With me on today's call are Brett White CEO and Jason Christiansen CFO.

Speaker #1: In the second half of 2026, we plan to extend beyond scheduling to more autonomous intake and payments, including automated payment requests after claims adjudication, and the collection of copays and pretreatment deposits directly within scheduling flows.

Join the course of this conference call. We will make forward-looking statements regarding the anticipated performance of our business.

These 4 are 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 FCC filing.

Speaker #1: This is a deliberate, phased rollout with a larger opportunity to expand AI across front- and back-office workflows. We are excited about the opportunity ahead in 2026.

We we've disclaimed any obligation to update or revise, any forward-looking statements.

Speaker #1: Our AI roadmap expands our TAM, deepens Weave's role in the practice, and leverages our market-leading position and scale. Before Jason dives into the financials, I wanted to recap a couple additional highlights from our 2025 growth factors.

Further 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 talked about today will be on a non-gaap basis which excludes 1-time acquisition related costs, amortization of acquired intangible assets and stock-based compensation.

Speaker #1: The specially medical vertical continues to stand out as one of our most attractive growth opportunities. This space grew to become our second largest vertical by location count in Q2 of '25.

Speaker #1: Hello everyone. Thank you for attending today's iRhythm Holdings, Inc. Q4 2025 earnings conference call. My name is William, and I will be your moderator today.

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 8K, furnished, with the SEC before this call.

Speaker #1: All lines will be muted during the presentation portion of the call, with an opportunity for questions and answers at the end. If you would like to ask a question, please press *1 on your telephone keypad.

Speaker #1: That momentum continued, and we added more specialty locations—specifically medical locations—in Q4 than in any quarter in our history. Specialty medical comprises 29 specialties, and we currently focus on just four: primary care, physical and occupational therapy, aesthetics, and med spa.

As well as the earnings presentation on our investor relations website.

Speaker #1: At this time, I would now like to pass the conference over to our host, Stephanie Zakovich, Senior Director of Investor Relations with iRhythm. Stephanie?

Before I turn the call over to Brett. We want to let you know that we'll be participating in the Raymond James institutional investors conference on March 2nd at the JW Marriott in Orlando Florida.

And with that, I will now turn the call over to Brett.

Speaker #2: Thank you all for participating in today's call. Earlier today, iRhythm released financial results for the fourth quarter and full year ended December 31, 2025.

Speaker #1: Next, Weave Payments grew at more than twice the rate of total revenue in 2025, with strong early adoption of new capabilities like automated payment reminders, bulk collections, and surcharging.

Thank you Mariah, and thank you to everyone joining us today.

Speaker #2: Before we begin, I'd like to remind you that management will make statements during this call that include forward-looking statements within the meaning of federal securities laws, pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995.

Speaker #1: Today, we announced a partnership agreement with CareCredit, the leading patient financing solution used by over 285,000 health and wellness locations nationwide. This integration is expected to give Weave customers greater visibility into available patient credit, streamline the credit application process, and improve treatment acceptance rates by making care more accessible.

We've delivered another strong quarter in Q4 with 17% year-over-year, Revenue growth gross, margin expanding to a company record of 73.3% and operating income increasing to 2.3 million, our highest level both in dollars and a as a percentage of Revenue.

Speaker #2: Any statements contained in this call that are not statements of historical fact should be deemed to be forward-looking statements. These are based upon our current estimates and various assumptions, and reflect management's intentions, beliefs, and expectations about future events, strategies, competition, products, operating plans, and performance.

This marks the 16th consecutive quarter of meeting or exceeding, the high end of our Revenue, guidance range.

For the full year, we generated 17% Revenue growth and 24% growth in free, cash flow.

Speaker #1: In conclusion, Weave delivered consistent revenue growth, expanded margins and free cash flow, while continuing to invest in innovation. Just as importantly, the customer successes we see today give us confidence that this value creation is repeatable and sustainable.

Speaker #2: These statements involve risks and uncertainties that could cause actual results or events to materially differ from those anticipated or implied by these forward-looking statements.

These results demonstrate the strength of our model, consistent Tom light, Topline growth expanding margins and discipline cash generation while continuing to advance the platform for our customers.

Speaker #2: Accordingly, you should not place undue reliance on these statements. For a list and description of the risks and uncertainties associated with our business, please refer to the Risk Factors section of our most recent annual report on Form 10-K filed with the Securities and Exchange Commission.

We're approving, we can scale profitably and deliver new capabilities that deepen weaves value to the practice.

Speaker #1: Weave is defining the intelligent healthcare front office. We're building a durable, scalable business that delivers on our commitments, and we are excited about the long-term value we can create for both our customers and our shareholders.

At our core, we serve the professionals who care for patients.

Speaker #2: Our discussion today will also include certain financial measures that are not calculated in accordance with generally accepted accounting principles, or GAAP. We believe these non-GAAP financial measures provide additional information pertinent to our business performance.

Speaker #1: Both myself and the Weave management team enter 2026 very excited about not only opportunity ahead of us, but also our very unique position to capitalize on the opportunities and deliver additional value to our markets.

Our customers provide Care at every stage of life, from the First pediatric visits to restorative procedures, chronic Care Management and everything in between they are trusted professionals, delivering essential services in their communities.

Health Care is fundamentally human.

Speaker #2: These non-GAAP financial measures should be read together with the most directly comparable GAAP financial measures. Please refer to the tables in our earnings release and 10-K for reconciliation of these measures to their most directly comparable GAAP financial measures.

AI will not replace providers. It will amplify them.

Speaker #1: I want to thank our customers, partners, team members, and shareholders for your continued trust in Weave. The progress we've made gives us strong confidence in the path ahead.

What it can do and what we are building toward is removing the administrative friction that pulls people away from patients.

Our vision is simple.

Speaker #1: With that, I'll turn the call over to Jason for a deeper discussion of our financial performance.

Speaker #2: This conference call contains time-sensitive information and is accurate only as of the live broadcast today, February 19, 2026. iRhythm disclaims any intention or obligation accepted as required by law to update or revise any financial projections or forward-looking statements, whether because of new information, future events, or otherwise.

Speaker #2: Thanks, Brett. And good afternoon, everyone. It was another solid quarter and a strong finish to the year for Weave, reflecting continued momentum in our growth initiatives and disciplined execution across the business.

Elevate patient experiences through a unified platform that improves business operations. So Health Care Professionals can focus on patient care.

This vision is not a slogan.

It guides how we build invest and operate.

Speaker #2: The growth in our product suite this year including the acquisition of TrueLark, expanded our estimated total addressable market by roughly $7 billion to an estimated $22 billion.

Speaker #2: And with that, I'll turn the call over to Quentin Blackford, iRhythm's President and CEO.

The healthcare industry is 1 of the largest and most complex in the world making it ripe for AI, adoption and SMB practices have historically been slow to embrace digital transformation.

Speaker #3: Thank you, Stephanie. Good afternoon, everyone, and thank you for joining us. I'm pleased to be here with Dan Wilson, our Chief Financial Officer, to discuss our fourth quarter and full year 2025 performance and how we're positioning the company for 2026 and beyond.

Speaker #2: We believe there is further TAM expansion on the horizon as we add capabilities to our AI receptionist. Across our established verticals, we see a meaningful runway for continued growth.

Healthcare professionals, navigate increasing administrative burdens like Staffing, shortages Rising patient demand and reimbursement complexity.

Speaker #3: Dan will walk through our financials shortly, but I want to begin by framing where we stand today, and where we're headed. 2025 was a breakout year for iRhythm.

Speaker #2: In dental, our initial market, we are in fewer than 15% of U.S. locations, highlighting the depth of opportunity still ahead. For example, Weave has recently been selected and endorsed by the American Dental Association as its exclusive patient engagement solution, giving us co-marketing access to their 160,000 members and reinforcing our leadership position in the dental market.

They require Technology Solutions to manage growth, communication, schedules billing, insurance, and payments, so they can focus on the patient in front of them while staying competitive in the local markets.

Speaker #3: We delivered strong, volume-led revenue growth and meaningfully expanded margins as we exited the year with momentum across cardiology, primary care, innovative channels, and international markets.

Missed patient calls, scheduling challenges and shifting Insurance. Dynamics waste time, reduce patient, satisfaction increase, burnout and strained, practice revenue, and profitability.

Speaker #3: At the same time, we strengthened the underlying platform that will fuel the next several years of value creation. Growth in the quarter, and for the full year, continued to be driven by volume across all channels.

These operational, inefficiencies create a clear and durable opportunity for Automation and value creation.

That's where we've comes in.

Speaker #2: Specialty medical is our largest and newest U.S. market opportunity, and we remain in the early stages of penetration with roughly 1% share. We see a clear path to building a significantly larger business with our growing suite of AI-powered solutions, expanding market share, and increasing average revenue per location.

Speaker #3: With growth in the fourth quarter of 27%, this marked our fifth consecutive quarter of revenue growth above 20%, reinforcing the durability of our platform and breadth of our growth drivers.

Weave is the unified AI powered, patient Communications and engagement platform, purpose-built for small and medium-sized Healthcare practices.

Speaker #3: Our leadership and long-term continuous monitoring remained strong, with nearly a 72% share in a segment growing in the high teens, supported by more than 135 scientific publications to date.

We bring together AI agent and practice staff conversations across Voice and text into Unified workflows.

Speaker #2: Moving to our financial results, starting with the fourth quarter, we produced $63.4 million in total revenue, which represents 17% year-over-year growth. Driven by payments and the addition of new locations, gross margin for the quarter was 73.3%, representing a year-over-year improvement of 70 basis points.

Speaker #3: On profitability, we also made great progress as we reached a key inflection point, finishing the year with positive free cash flow results for the first time in our company's history and exceeding expectations with respect to adjusted EBITDA margins.

It helps practices continuously improve, patient, relationships, proactively assigns tasks for staff, follow-up and delivers insights. So practice owners can measure analyze and optimize

weave is a mission critical practice system of work.

Built at the center of patient, interactions 24/7.

Speaker #3: In the fourth quarter, adjusted EBITDA margins meaningfully exceeded the 15% goal that we have identified as we approach $1 billion in revenue, demonstrating the profitable scalability of our business.

All conversations flow through weave, creating operational, data to drive process, continuity, inside our platform.

Speaker #3: But this year was about more than financial milestones. It was about validating the strategic direction we've set, moving from episodic detection to proactive, integrated, and increasingly predictive care.

Speaker #2: We have delivered sequential gross margin expansion in 15 of the past 16 quarters, including a 30-basis-point sequential improvement in Q4. Margin improvement was primarily driven by ongoing efficiencies in our cloud infrastructure and amortization of phone hardware and payment terminals as devices older than three years become fully amortized.

This continuity extends a cross communication channels. The patient conversation can begin on the phone. Continue over text, with an AI agent and escalate back to a staff member when needed.

Speaker #3: The need for long-term continuous monitoring continues to grow. Arrhythmias remain episodic. Often invisible until they cause downstream complications, and they are consistently missed by short-duration or symptom-driven diagnostics.

Our platform treats this, as a single persistent interaction preserving contacts end to end. So patient requests are addressed sufficiently

This is coordinated teamwork between the weave AI platform and the practice staff, we support.

Speaker #3: Data demonstrates that nearly 65% of all arrhythmias—whether symptomatic or asymptomatic—are found after 48 hours of monitoring, reinforcing the need for longer duration. Yet, nearly 2 million short-duration Holter and event monitors continue to be prescribed in the U.S.

Speaker #2: We also continue to benefit from the growing contribution of higher margin payments revenue. Total operating expenses for Q4 were 70% of revenue. General and administrative expenses were $9.6 million, and provided the most year-over-year operating leverage improvement in our business.

Weave is powered by authorized secure Integrations with practice Management Systems making our platform reliable enough to manage scheduling Insurance, verification billing and payments.

This goes, well beyond responding to basic inquiries.

Speaker #3: Market on an annual basis. We estimate that at least 27 million people in the U.S. are living with significant risk of undiagnosed arrhythmias, a staggering and costly gap in care.

As customers continue to recognize the value of our agentic workflows. We've evolved from a product that practices use to an always on teammate. They rely on

Speaker #2: General and administrative expenses improved to 15% of revenue from 17% in Q4 2024, a decrease of over 200 basis points. Research and development expenses were $8.9 million, or 14% of revenue, which represents a decrease from 15% in Q4 2024.

Speaker #3: At the same time, the healthcare system is constrained. Nearly half of U.S. counties, and close to 90% of rural counties, have no cardiologist. Access is not improving, which means the point of arrhythmia detection must shift.

We reduce administrative burden improve conversion and Collections and free staff to focus on high-value patient care.

Most importantly, we strengthen the patient practice relationship, which ultimately drives more revenue and profitability for our customers.

Speaker #3: In 2025, we demonstrated the power of enabling that shift. More than one-third of our volume originated in primary care settings, supported by our expanding footprint and integrated delivery networks, EHR-integrated workflows, and innovative channel partnerships.

Speaker #2: Sales and marketing expenses totaled $25.6 million, or 40% of revenue. As discussed in previous earnings calls, we made a number of targeted investments in 2025.

With communication, history, Automation and real-time performance, insights. All in weave practices, run smarter, grow faster and build lasting operational resilience

Speaker #3: We now serve approximately 40,000 primary care physicians, creating a scalable, proactive care model that aligns with the growing focus on value-based care and population health.

Speaker #2: We added sales capacity in mid-market. We grew our upsell team to increase product attach rates, including payments through a new dedicated payment sales team.

Customer Reliance on weave, makes our platform indispensable, strengthening customer attention, expanding, share of wallet, increasing customer lifetime value. As we continuously, add value through AI, powered Solutions, and additional products that our customers demand

Speaker #3: This is not a shift away from cardiology. Rather, it expands the market for these important customers as our ability to help rule in and rule out patients can enable cardiology to focus on the highest acuity patients while primary care becomes an effective front door for earlier detection, meeting the majority of our patients where they are most often being seen.

Speaker #2: And we built out a channel sales team that focuses exclusively on selling through commercial partnerships. We also increased our marketing program spend to increase brand awareness and demand in the specialty medical vertical, and in promoting our AI receptionist, the new products.

We believe that AI will augment software companies that leverage and deliver its value.

This is especially true in vertical highly regulated markets like healthcare where remotes and years of expertise matter.

Speaker #3: Helping to fuel this move upstream is the power of our EHR integration strategy. More than half of our volume now flows through EHR-integrated accounts.

Speaker #2: Mid-market and specialty medical sales accelerated in 2025, and we finished the year with strong sales performance and a healthy pipeline to start 2026 behind these investments.

We've had spent almost 2, decades building. For The Unique needs of SMB, Healthcare practices, Healthcare, workflows are highly customized, scheduling billing, Insurance verification, and patient communication vary by specialty, and by location.

Speaker #3: And 75 of our top 100 customers are fully integrated. These integrations are not simply workflow enhancements. They create meaningful stickiness, increase prescribing consistency, and drive long-term account durability.

Speaker #2: We continue to optimize our sales and marketing efforts and anticipate some improvements in sales and marketing efficiency in the second half of 2026. Operating income for the quarter was $2.3 million, an improvement of over 500,000 compared to Q4 2024.

Delivering, reliable AI, powered workflows in these environments requires authorizing Integrations with systems of record Regulatory, Compliance scalability, and predictable execution.

Speaker #3: We also advanced our predictive AI capabilities significantly in 2025. With nearly 3 billion hours of curated ECG data, we're now combining internal and external data sets, such as claims and EHR information, to identify patients at risk of arrhythmias before diagnosis.

Most importantly, it requires trust with providers and patients with almost 40,000, customer locations and billions of patient interactions flowing through our platform annually. We have the data mode at scale that cannot be replicated by horizontal generative AI providers.

Speaker #2: This represents an operating margin of 3.6%, a 30-basis-point improvement over the prior year, and a 90-basis-point improvement sequentially. Turning to the balance sheet and cash flow, we continue to see strong liquidity and free cash flow.

Speaker #3: Early pilots through our partnership with Lusum Health show more than 85% accuracy in pre-identifying patients with clinically relevant arrhythmias. While early, these programs reaffirm our conviction that iRhythm is positioned not just to detect disease, but to help predict risk earlier and ultimately to help prevent it.

Our extensive industry, specific data allows us to deliver high accuracy without exposing Phi.

This domain, expertise and trusted data, Foundation are durable, competitive advantages.

Speaker #2: We ended the quarter with $81.7 million in cash and short-term investments, an increase of 1.4 million sequentially. Cash provided by operating activities in Q4 was $6.2 million, and free cash flow was $4.4 million.

Speaker #3: Our initial programs focus on high-risk populations, such as patients with diabetes, CKD, CAD, COPD, sleep, and heart failure, where arrhythmias are common and costly.

Our customers are Health Care Providers, not technologists, doctor owners are focused on delivering care and running their businesses. They do not have the time resources or desire to build and maintain custom applications particularly in an industry that has historically lagged and digitization and monetization

And that is the huge opportunity for weave.

Speaker #3: These programs are not just about diagnosing more patients. They are focused on doing so in a way that improves the efficiency, quality, and cost of care delivery.

Speaker #2: Free cash flow for the full year was $12.9 million, which represents 24% year-over-year growth. Our net revenue retention rate in Q4 was 93%. Our gross revenue retention rate was 89%, and remains very strong for companies serving SMB customers.

Practices operate within strict privacy security and Regulatory Frameworks.

They look to trusted software Partners to navigate that complexity.

Speaker #3: VIO provides a definitive diagnosis, enabling providers to stratify risk, route patients appropriately, and reduce unnecessary downstream healthcare utilization, resulting in early indications of better patient outcomes and reduced cost of care.

We've integrates with the practice management system, utilizes The Trusted Practice phone. Number owns the phone hardware and telephones stack and is deeply embedded in daily operations.

Speaker #2: As a reminder, our reported retention rates are a weighted average of the previous 12 months' retention rates. As such, it can take several quarters for the progress we are currently making to show through our reported retention metrics.

Speaker #3: As an independent diagnostic provider, iRhythm delivers objective, clinically validated results that integrate directly into existing workflows, and care pathways. Which helps protect providers and systems in increasingly audit-sensitive risk-bearing environments.

We have yet to encounter a customer or Prospect planning to replace that infrastructure with a homegrown solution. Instead practices are seeking greater automation inside the systems that they already rely on.

Speaker #2: I will provide additional one-time metrics in this year-end recap, which we believe may be helpful in understanding 2025 retention rate trends. First, when looking at gross retention, we implemented a number of initiatives in 2025 that improved the customer experience.

Speaker #3: Within our MCT business, our current ZOAT offering continues to perform exceptionally well, with unit growth running more than twice the company average for the year.

The acquisition of truarc added an AI receptionist to our offering embedding enic functionality directly into our platform.

Speaker #3: The strength continues to be supported by new account wins, expanding utilization within existing accounts, and increased prescribing alongside ZIO Monitor. This notable and sustained performance even before bringing an exciting new product to market reinforces our view that ZOAT is a durable growth driver resonating with physicians today, and that we will continue to gain market share in the near term.

Speaker #2: Including more tailored onboarding, new products, and refined product packaging, which, along with greater integration coverage and depth across all verticals, helps ensure customers receive the value they expect.

Our capabilities go beyond reactive automation to deliver proactive, execution, scheduling appointments verifying Insurance eligibility collecting payments. Identifying coaching opportunities analyzing outcomes and escalating to staff for full conversational. Contacts is provided is preserved.

This further establishes weed's role as a system of work inside the practice.

Speaker #2: These efforts yielded a steady reduction in churn in the second half of 2025, and Q4 churn returned to our 2023 and 2024 churn levels.

Additionally, we recognize that AI has the potential to disrupt some software, re Revenue models such as seat base licensing.

Speaker #3: Consistent with.

Speaker #2: We expect gross revenue retention rates to trend back to historical ranges of 91% to 93% over time. Previously, we highlighted how integrations with practice management systems affect churn.

In fact, headcount reductions in a practice lead to even higher usage and dependency on the weave platform. As we add agentic solutions, to handle additional workflows, we capture share wallet from the practices, Labor budget, historically, allocated to administrative staff or call centers. This simultaneously reduces practice costs and improves Roi.

Speaker #2: Customers who purchase weave products that are not yet integrated with practice management systems or that have basic read-only integrations typically have higher churn initial churn rates.

Adding isolated AI tools does not reduce the cost or complexity of running a healthcare practice.

Speaker #2: New verticals like specialty medical typically start with higher churn rates, which improve over time as we increase the number and depth of practice management integrations.

As AI becomes table Stakes, the premium shifts to platforms that can act not just in form.

Weave is uniquely positioned to be that platform.

Speaker #2: Additionally, we have seen an ongoing trend of single locations being acquired by larger groups. While we may lose single locations to multi-location groups through acquisition, our investments in mid-market and AI, combined with high customer satisfaction rates, position us to potentially win those businesses back as part of a larger deal.

Turning to our plans for 2026. True Lark, is the foundational building block of our AI receptionist capabilities.

Truarc accelerated our road map by adding an established text base, AI agent that handles common FAQs, manages inbound, leads and automate scheduling and rebooking.

Speaker #2: Transitioning to net revenue retention rates, we discussed previously that our net revenue retention rate in the first half of 2025 was bolstered by the effects of a price increase in 2024.

The acquisition materially expanded. Our Tam by extending weave deeper into the front office Automation and addressing and directly addressing the single largest component of the practices cost structure Staffing.

This is both the biggest expense and 1 of the most operationally complex challenges practice, owners face.

Speaker #2: Which accounted for approximately 250 basis points of uplift. We lapped the effect of that price increase in the first half, and our net revenue retention rate has subsequently decreased accordingly.

1 of our largest customers is now booking over 1,200 appointments per month. Using our AI receptionist work. That would otherwise require full-time. Front desk staff or just be missed.

Speaker #2: It's also important to note that our reported retention metrics are measured on a location basis, not on a customer or logo basis. Approximately two-thirds of our current customer base are single-location practices.

as that customer put it quote when you're thinking of software cost to cut, it is 1 of the last things you will ever consider because it is 1 of the few things that actually is bringing in Revenue to the business end quote,

Speaker #2: The addition of another location within a multi-location customer does not improve our net revenue retention rate. Looking solely at multi-location groups on a logo basis, our net revenue retention rate is 102%.

In Q4 we launched a Unified Inbox that consolidates true Lark, agentic conversations, and we've staff interactions into a single contextual view. Removing the need to toggle between systems

We continue building voice capabilities, enabling the same AI agent to operate across text and phone.

Speaker #2: While our net revenue retention rate is 93% for single-location practices, multi-locations have a higher net revenue retention rate on a logo basis because of location additions.

In the first half of 2026, we expect General availability of our Omni Channel, AI receptionist across all vertical markets, this enables practices to answer calls 24/7 with an AI agent that can address common questions requests or book appointments and intelligently hand off more complex interactions to staff when needed needed.

Speaker #2: My final point is that our ability to expand net revenue retention has been limited because customers often adopt most of our product suite upfront.

These conversations are transcribed and posted into our Unified Inbox, preserving full context, across both AI, agent and staff interactions.

Speaker #2: Customers often consolidate multiple point solutions when they purchase weaves unified platform. This establishes higher initial revenue capture. Though this historically limited our near-term upsell opportunities.

We've called intelligence, then automatically prioritizes important requests and creates follow-up tasks.

Brett White: into a single contextual view, removing the need to toggle between systems. We continued building voice capabilities, enabling the same AI agent to operate across text and phone. In the first half of 2026, we expect general availability of our omni-channel AI receptionist across all vertical markets. This enables practices to answer calls 24/7 with an AI agent that can address common questions, request or book appointments, and intelligently hand off more complex interactions to staff when needed. These conversations are transcribed and posted into our unified inbox, preserving full context across both AI agent and staff interactions. Weave Call Intelligence then automatically prioritizes important requests and creates follow-up tasks.

Speaker #2: We have seen this dynamic reflected in average revenue per location growth, which grew 10% over the past two years even as net revenue retention declined over the same period.

In the second half of 2026, we plan to extend beyond scheduling to more autonomous intake and payments including automated payment requests. After claims adjudication and the collection of co-pays and pre-treatment deposits directly within scheduling flows.

Speaker #2: However, the addition of TrueLark and faster product development cycles are now meaningfully expanding the upsell opportunity within our installed base. Our insurance eligibility and TrueLark products drove acceleration of upsells in Q4, and our penetration into the installed base for both products is still less than 2%.

This is a deliberate phased rollout with a larger opportunity to expand AI across front and back office workflows.

Brett White: This enables practices to answer calls 24/7 with an AI agent that can address common questions, request or book appointments, and intelligently hand off more complex interactions to staff when needed. These conversations are transcribed and posted into our unified inbox, preserving full context across both AI agent and staff interactions. Weave Call Intelligence then automatically prioritizes important requests and creates follow-up tasks.

We are excited about the opportunity ahead in 2026. Our AI roadmap, expands our Tam deepens weaves role in the practice and leverages our market-leading position and scale.

Before Jason dives into the financials. I wanted to recap a couple of additional highlights from our 2025 growth factors.

Speaker #2: We ended 2025 with 39,625 active customer locations, an increase of 4,628 locations year over year. Before turning to our outlook, I'll briefly recap full-year performance.

The specialty medical vertical continues to stand out as 1 of our most attractive growth opportunities. This space grew to become our second largest vertical by location count and Q2 of 25.

Brett White: In the second half of 2026, we plan to extend beyond scheduling to more autonomous intake and payments, including automated payment requests after claims adjudication and the collection of co-pays and pre-treatment deposits directly within scheduling flows. This is a deliberate phased rollout with a larger opportunity to expand AI across front and back-office workflows. We are excited about the opportunity ahead in 2026. Our AI roadmap expands our TAM, deepens Weave's role in the practice, and leverages our market-leading position and scale. Before Jason dives into the financials, I wanted to recap a couple additional highlights from our 2025 growth vectors. The specialty medical vertical continues to stand out as one of our most attractive growth opportunities. This space grew to become our second-largest vertical by location count in Q2 of 2025.

That momentum continued and we added more specialty location specialty. Medical locations in Q4 than in any quarter in our history.

Speaker #2: For 2025, total revenue grew 17% to $239 million. Gross margin for the year expanded to 72.7%, up 80 basis points from 71.9% in the prior year.

Specially medical comprises 29 Specialties and we currently focused on Just 4 Primary Care, physical and occupational, therapy, Aesthetics and Med, Spa

Speaker #2: We delivered full-year operating income of $4.1 million representing an operating margin of 1.7% compared to 0.4% last year. This marks another year of progress in profitability and I would like to highlight that this year's improvement came while also making targeted investments in growth initiatives, which reflects our ability to balance growth while making investments into our business.

Next, we've payments grew at more than twice the rate of total revenue in 2025, with strong early, adoption of new capabilities, like automatic automated payment. Reminders bulk Collections, and search charging

Today, we announced a partnership agreement with Care. Credit the leading patient, financing solution used by over 285,000 health and wellness locations nationwide. This integration is expected to give weave customers greater visibility into available patient. Credit streamline, the credit application process and improved treat treatment, acceptance rates by making care more accessible.

Speaker #2: We are pleased with our progress this year and would like to thank our team members at Weave, our customers and partners for their contributions throughout the year.

Brett White: That momentum continued, and we added more specialty medical locations in Q4 than in any quarter in our history. Specialty medical comprises 29 specialties, and we currently focused on just 4: primary care, physical and occupational therapy, aesthetics, and med spa. Next, Weave Payments grew at more than twice the rate of total revenue in 2025, with strong early adoption of new capabilities like automated payment reminders, bulk collections, and surcharging. Today, we announced a partnership agreement with CareCredit, the leading patient financing solution used by over 285,000 health and wellness locations nationwide. This integration is expected to give Weave customers greater visibility into available patient credit, streamline the credit application process, and improve treatment acceptance rates by making care more accessible. In conclusion, Weave delivered consistent revenue growth, expanded margins and free cash flow while continuing to invest in innovation.

in conclusion, we've delivered consistent Revenue, growth expanded margins and free cash flow while continuing to invest in innovation,

Speaker #2: Looking ahead, we remain encouraged by the strengthening foundation of the business and the opportunities in front of us. For the first quarter of 2026, we expect total revenue to be in the range of $64.2 million to $64.8 million.

Just as importantly, the customer successes, we see today, give us confidence that this value creation is repeatable and sustainable.

Wave is defining. The intelligent Healthcare front office.

Speaker #2: We expect to improve first quarter operating income year over year. And for it to be in the range of $1 million to $2 million.

And we are excited about the long-term value, we can create for both our customers and our shareholders.

Speaker #2: As a reminder, there are seasonal factors that result in a sequential increase in expenses in Q1, including the reset of payroll tax limits, benefit renewals taking effect, and the timing of the annual audit fees, which are weighted more heavily in Q1.

Both myself and the weave management team entered 2026, very excited about not only opportunity ahead of us but also our very unique position to capitalize on the opportunities and deliver additional value to our markets.

I want to thank our customers partners, team members, and shareholders for your continued, trust and weave.

Speaker #2: We remain committed to delivering improving margins while maintaining our bias toward growth. We are beginning to benefit from the investments made in 2025, such as those made in sales and marketing, and we will be flowing an increased percentage of incremental revenue into operating income in 2026.

The progress we've made gives a strong confidence in the path ahead with that. I'll turn the call over to Jason for a deeper discussion of our financial performance.

Brett White: Just as importantly, the customer successes we see today give us confidence that this value creation is repeatable and sustainable. Weave is defining the intelligent healthcare front office. We're building a durable, scalable business that delivers on our commitments, and we are excited about the long-term value we can create for both our customers and our shareholders. Both myself and the Weave management team entered 2026 very excited about not only the opportunity ahead of us, but also our very unique position to capitalize on the opportunities and deliver additional value to our markets. I want to thank our customers, partners, team members, and shareholders for your continued trust in Weave. The progress we've made gives us strong confidence in the path ahead. With that, I'll turn the call over to Jason for a deeper discussion of our financial performance.

Thanks, Brett and good afternoon everyone. It was another solid quarter and a strong finish to the year for weave reflecting continued momentum in our growth initiatives and disciplined execution across the business.

Speaker #2: For the full year 2026, we expect to grow total revenue to be in the range of $273 million to $276 million. With the new products Brett discussed, which will be released throughout the year, we expect the impact of these products to positively impact revenue growth in the latter half of the year.

The growth in our product Suite. This year, including the acquisition of truarc expanded, our estimated total addressable Market by roughly 7 billion dollars to an estimated 22 billion.

We believe there is further Tam expansion on the horizon as we add capabilities to our AI receptionist.

Speaker #2: We also expect to improve non-GAAP operating income year over year, to be in the range of $8 million to $12 million. We expect our weighted average share count for Q1 to be approximately 78.7 million shares, and approximately 79.9 million shares for the full year.

Across our established verticals. We see a meaningful runway for continued growth.

In Dental our initial Market we are in fewer than 15% of Us locations, highlighting the depth of opportunity still ahead.

Jason Christiansen: Thanks, Brett, and good afternoon, everyone. It was another solid quarter and a strong finish to the year for Weave, reflecting continued momentum in our growth initiatives and disciplined execution across the business. The growth in our product suite this year, including the acquisition of TrueLark, expanded our estimated total addressable market by roughly $7 billion to an estimated $22 billion. We believe there is further TAM expansion on the horizon as we add capabilities to our AI receptionist. Across our established verticals, we see a meaningful runway for continued growth. In dental, our initial market, we are in fewer than 15% of US locations, highlighting the depth of opportunity still ahead.

Speaker #2: In closing, I share Brett's excitement about our 2026 roadmap and our position in the market. We delivered a strong 2025, marked by solid revenue growth, continued margin expansion, and improving profitability and cash generation.

For example, we would has recently been selected and endorsed by the American Dental Association as its exclusive, patient engagement solution. Giving us co-marketing access to their 160,000 members and reinforcing our leadership position in the dental Market.

Speaker #2: We remain confident in our strategy and our ability to execute as we continue to balance growth and profitability improvements. With that, I'll turn the call over to the operator for Q&A.

specialty medical is our largest and newest US market opportunity and we remain in the early stages of penetration, with roughly 1%, share

Speaker #2: We will now begin the question and answer session. If you would like to ask a question, a reminder to please raise your hand now.

We see a clear path to building a significantly larger business with our growing Suite of AI, powered Solutions, expanding market, share and increasing, average revenue per location.

Speaker #2: If you have dialed into today's call, please press star 9 to raise your hand, star 6 to unmute. Please stand by as we compile the Q&A roster.

Speaker #2: And our first question comes from Parker Lane of Stifel. Your line is open. Please go ahead.

Jason Christiansen: For example, Weave has recently been selected and endorsed by the American Dental Association as its exclusive patient engagement solution, giving us co-marketing access to their 160,000 members and reinforcing our leadership position in the dental market. Specialty medical is our largest and newest US market opportunity, and we remain in the early stages of penetration with roughly 1% share. We see a clear path to building a significantly larger business with our growing suite of AI-powered solutions, expanding market share, and increasing average revenue per location. Moving to our financial results. Starting with the Q4, we produced $63.4 million in total revenue, which represents 17% year-over-year growth, driven by payments and the addition of new locations. Gross margin for the quarter was 73.3%, representing a year-over-year improvement of 70 basis points.

Moving to our financial results. Starting with the fourth quarter, we produced 63.4 million in total revenue which represents 17% year-over-year. Growth driven by payments in the addition of new locations.

Speaker #3: Hi, this is Matthew Kickert for Parker. Thank you for taking my questions. To start, can you talk a little bit more about the CareCredit integration that you announced this morning?

Gross margin for the quarter was 73.3%, representing a year-over-year, Improvement of 70 basis points.

Speaker #3: Just curious if that's your focus is to drive incremental payments attached rate more average payments volumes across existing customers or something else?

we have delivered sequential gross margin expansion in 15 of the past 16 quarters, including a 30 basis point sequential Improvement in Q4

Speaker #4: Yeah. Great to catch up with you, Matthew. The Care Credit partnership, what that really does is open up another avenue for us to capture volumes that otherwise would flow through Care Credit themselves.

Margin Improvement was primarily driven by ongoing efficiencies in our Cloud infrastructure and amortization of phone hardware and payment terminals, as devices older than 3 years, become fully amortized.

We also continue to benefit from the growing contribution of higher margin payments Revenue.

Speaker #4: They are the largest provider of patient financing solutions in the market. And this gives us access through the partnership to some of the volumes that otherwise would flow through them.

Total operating expenses for Q4 were 70% of Revenue.

General and administrative expenses. Were 9.6 million and provided the most year-over-year operating leverage improvement in our business.

Speaker #4: So there's work now to be done on the integration and bringing that directly to market. So today we just announced that we completed the partnership.

General and administrative expenses. Improved to 15% of revenue from 17% in Q4 2024, a decrease of over 200 basis points.

Jason Christiansen: We have delivered sequential gross margin expansion in 15 of the past 16 quarters, including a 30 basis point sequential improvement in Q4. Margin improvement was primarily driven by ongoing efficiencies in our cloud infrastructure and amortization of phone hardware and payment terminals as devices older than 3 years become fully amortized. We also continue to benefit from the growing contribution of higher-margin payments revenue.... Total operating expenses for Q4 were 70% of revenue. General and administrative expenses were $9.6 million and provided the most year-over-year operating leverage improvement in our business. General and administrative expenses improved to 15% of revenue from 17% in Q4 2024, a decrease of over 200 basis points.

Speaker #4: And we'll have more color to provide in the future.

Speaker #3: Yeah. And I would add, you know, this is kind of just the next step in our payment strategy. So kind of starting with basic payment processing, then moving into more additional financial tools, additional financial vehicles that allow our customers to offer their patients.

Research and development. Expenses were 8.9 million or 14% of Revenue which represents a decrease from 15% in Q4 2024.

Sales and marketing expenses totaled 25.6 million or 40% of Revenue.

Speaker #3: So it makes our takes our payment solution to basically a financial solution and the practices have more tools to offer their patients, whether it be financing through Care Credit, financing through themselves, using the Weave tools to schedule payments.

As discussed in previous earnings calls. We made a number of targeted investments in 2025, we added sales capacity in mid-market.

We grew our upsell team to increase product attached rates, including payments through a new dedicated payment, sales team and we built out a channel sales team that focuses exclusively on selling through commercial Partnerships.

Speaker #3: So it just makes the payment product more attractive, stickier, in addition to attaching more volume.

we also increased our marketing program, spend

Speaker #5: Okay. And then secondly for 2026, what are your expectations for growth rates across the different subverticals?

to increase brand awareness and demand in the specialty medical vertical. And in promoting, our AI receptionist and new products.

Jason Christiansen: Research and development expenses were $8.9 million or 14% of revenue, which represents a decrease from 15% in Q4 2024. Sales and marketing expenses totaled $25.6 million or 40% of revenue. As discussed in previous earnings calls, we made a number of targeted investments in 2025. We added sales capacity in mid-market. We grew our upsell team to increase product attach rates, including payments, through a new dedicated payment sales team, and we built out a channel sales team that focuses exclusively on selling through commercial partnerships. We also increased our marketing program spend to increase brand awareness and demand in the specialty medical vertical and in promoting our AI receptionist and new products.

Speaker #4: Yeah. You know, we're starting the year in a great position. We haven't broken out the growth rates for each one of the different the verticals that we serve.

Mid-market and Specialty, medical sales accelerated in 2025 and we finished the year with strong sales performance and a healthy pipeline to start 2026 Behind These Investments.

Speaker #4: But we continue to we continue to anticipate strong growth across the growth vectors that we've talked about around specialty medical. We just talked about how Q4 was our strongest quarter from an additions perspective there.

We continue to optimize our sales and marketing efforts and anticipate some improvements in sales and marketing efficiency in the second half of 2026.

Compared to Q4 2024.

Speaker #4: Mid-market grew nicely in 2025. We expect that to continue. And so can't speak to the underlying components, but we do anticipate to continue to see momentum and growth through those through the same channels.

This represents an operating margin of 3.6%, a 30 basis point improvement, over the prior year, and a 90 basis point Improvement sequentially.

Jason Christiansen: Mid-market and specialty medical sales accelerated in 2025, and we finished the year with strong sales performance and a healthy pipeline to start 2026 behind these investments. We continue to optimize our sales and marketing efforts and anticipate some improvements in sales and marketing efficiency in the second half of 2026. Operating income for the quarter was $2.3 million, an improvement of over $500,000 compared to Q4 2024. This represents an operating margin of 3.6%, a 30 basis point improvement over the prior year and a 90 basis point improvement sequentially. Turning to the balance sheet and cash flow, we continue to see strong liquidity and free cash flow.

Turning to the balance sheet and cash flow. We continue to see strong liquidity and free cash flow. We ended the quarter with 81.7 million in cash and short-term Investments, and increase of 1.4 million sequentially.

Speaker #6: Yeah. And I would add, you know, expect specialty medical probably will be the strongest grower just because of the opportunity set here and all the work that we've done on adding integrations.

Speaker #6: Throughout this year, continue to add them throughout the year. Some of the marketing dollars that you saw that we spent in Q4 is really around developing our brand presence in that sector.

Cash provided by operating activities in Q4 was 6.2 million in free, cash flow was 4.4 million. Free cash flow for the full year, was 12.9 Million, which represents 24% year-over-year growth

Speaker #6: So we expect that to grow, continue to be the fastest grower. I expect all of our verticals to grow nicely. The Omnichannel AI receptionists that we're rolling out is really valuable to kind of all verticals and integrated and not.

Our net revenue retention rate in Q4 was 93%. Our growth Revenue retention rate was 989% and remains very strong for companies serving SMB customers.

Speaker #6: I mean, the tool is quite useful even without a PMS integration. So I think I expect solid growth in all verticals, but I think specialty medical probably lead the pack.

As a reminder, our reported retention rates are a weighted average of the previous 12 months, retention rates, as such it can take several quarters for the progress. We are currently making to show through our reported retention metrics.

Jason Christiansen: We ended the quarter with $81.7 million in cash and short-term investments, an increase of $1.4 million sequentially. Cash provided by operating activities in Q4 was $6.2 million, and free cash flow was $4.4 million. Free cash flow for the full year was $12.9 million, which represents 24% year-over-year growth. Our net revenue retention rate in Q4 was 93%. Our gross revenue retention rate was 89% and remains very strong for companies serving SMB customers. As a reminder, our reported retention rates are a weighted average of the previous 12 months retention rates. As such, it can take several quarters for the progress we are currently making to show through our reported retention metrics.

Speaker #5: Terrific. Thank you.

I will provide additional 1-time metrics in this year-end recap, which we believe may be helpful in understanding 2025 retention rate trends.

Speaker #2: And your next question comes from the line of Alex Sklar with Raymond James. Your line is open. Please go ahead. Your line is open.

First, when looking at gross retention, we implemented a number of initiatives in 20125 that improved the customer experience.

Speaker #2: Please go ahead. We'll move on to our next question from Hannah Rudolph of Piper Sandler. Your line is open. Please go ahead.

Including more tailored onboarding new products and refined product packaging, which along with greater integration coverage and depth. All of our verticals helps ensure customers receive the value. They expect.

These efforts yielded a steady reduction in Insurance in the second half of 2025 and Q4 churn returned to our 2023 and 2024 churn levels.

Speaker #7: Hey, guys. Thanks for taking my questions today. It was encouraging to hear that stat about the one customer I believe you said who scheduled 1,200 appointments using your AI receptionist.

We expect gross revenue, retention rates to trim, back to historical ranges of 91% to 93% over time.

Jason Christiansen: I will provide additional one-time metrics in this year-end recap, which we believe may be helpful in understanding 2025 retention rate trends. First, when looking at gross retention, we implemented a number of initiatives in 2025 that improved the customer experience, including more tailored onboarding, new products, and refined product packaging, which, along with greater integration coverage and depth across all verticals, helps ensure customers receive the value they expect. These efforts yielded a steady reduction in churn in the second half of 2025, and Q4 churn returned to our 2023 and 2024 churn levels. We expect gross revenue retention rates to trend back to historical ranges of 91% to 93% over time. Previously, we highlighted how integrations with practice management systems affect churn.

Speaker #7: I guess longer term, as you think about it and you launch more AI capabilities and you complete the rollout of this unified inbox, how do you think about pricing to capture the value that you're delivering?

previously, we highlighted, how Integrations with practice Management Systems affect churn

Speaker #4: Yeah. So we will definitely be able to monetize it. I think still being worked out is it priced as an additional module or is it priced as included in a bundle?

Customers who purchase weave products that are not yet integrated with practice Management systems or that have basic read-only Integrations. Typically have higher churn initial churn rates

Speaker #4: So, for example, you may have standalone TrueLark now, and if you want to go to the Fusion inbox where that brings everything from TrueLark and we all together in one place, which is the ultimate destination, is that a premium product that we priced for.

New verticals like specialty. Medical typically start with higher churn rates which improve over time as we increase the number and depths of practice management Integrations

Additionally, we have seen ongoing trend of single locations, being acquired by larger groups.

Speaker #4: The really important concept, though, is that we're now going ability to attach to the labor budget because we can just prove how we save labor and how we drive revenue.

While we may lose single locations to multi-location groups through acquisition our investments in mid-market and AI combined. With high customer. Satisfaction rates position is to potentially win those businesses, back as part of a larger deal.

Speaker #4: So we're very confident that we can monetize the additional AI Omnichannel receptionist functionality. And I think we'll work it out over time. I think a really important point is we don't license by seat.

Jason Christiansen: Customers who purchase Weave products that are not yet integrated with practice management systems or that have basic read-only integrations typically have higher churn, initial churn rates. New verticals, like specialty medical, typically start with higher churn rates, which improve over time as we increase the number and depth of practice management integrations. Additionally, we have seen the ongoing trend of single locations being acquired by larger groups. While we may lose single locations to multi-location groups through acquisition, our investments in mid-market and AI, combined with high customer satisfaction rates, position us to potentially win those businesses back as part of a larger deal.

Transitioning to net revenue, retention rates, we discussed previously that our net revenue retention rate in the first half of 2025 was bolstered by the effects of a price increase in 2024.

Which accounted for approximately 250 basis points of uplift.

Speaker #4: We license by location and then consumption, and we're confident that these tools will produce a lot of value for the practices, and we'll be able to monetize them accordingly.

We lapped, the effect of that price increase in the first half and our net revenue retention rate has subsequently decreased accordingly.

Speaker #7: Totally makes sense. And then, Jason, I really appreciate the additional color you gave this quarter around NRR and the multi-location NRR you shared. I guess you've talked about churn being higher and average sales prices being lower initially in some of your newer verticals as you have newer integrations, and some of the solutions are non-integrated.

It's also important to note that our reported retention metrics are measured on a location basis. Not on a customer or logo basis approximately 2/3 of our current customer base is single location practices.

Speaker #7: I guess, have you seen these metrics stabilize for some of your oldest specialty medical cohorts, or does that take longer than a few years to kind of stabilize and average with historical metrics?

The addition of another location within a multi-location, customer does not improve our net revenue retention rate.

Jason Christiansen: Transitioning to net revenue retention rates, we discussed previously that our net revenue retention rate in the first half of 2025 was bolstered by the effects of a price increase in 2024, which accounted for approximately 250 basis points of uplift. We lapped the effect of that price increase in the first half, and our net revenue retention rate has subsequently decreased accordingly. It's also important to note that our reported retention metrics are measured on a location basis, not on a customer or logo basis. Approximately 2/3 of our current customer base is single-location practices. The addition of another location within a multi-location customer does not improve our net revenue retention rate.

Looking solely at multi-location. Groups on a logo basis are net revenue. Retention rate is 102%.

Speaker #4: Yeah, thank you for the question. You know, we saw the same phenomenon. I highlighted how we saw churn decrease through the second half of the year, and in Q4, return to 2023-24 rates.

While our net revenue retention rate is 93% for single location practices.

Multi locations have a higher net revenue retention rate on a logo basis because of location Editions.

Speaker #4: You know, we saw nice improvement in specialty medical as well in Q4. And so we've already started to see some of the improvements there.

My final point is that our ability to expand net revenue retention has been limited. Because customers often adopt most of our products we upfront

Speaker #4: We've delivered a number of integrations. On that front, we've expanded our coverage on that front. And so as those have started to mature, we're encouraged about making that declaration about where churn will trend back towards.

Customers often consolidate multiple Point Solutions when they purchase weeds unified platform.

This establishes higher initial Revenue capture though this historically limited our near-term upsell opportunities,

Speaker #4: Because we're already starting to see some of the proof points there that we've been talking about.

Jason Christiansen: Looking solely at multi-location groups on a logo basis, our net revenue retention rate is 102%, while our net revenue retention rate is 93% for single-location practices. Multi-locations have a higher net revenue retention rate on a logo basis because of location additions. My final point is that our ability to expand net revenue retention has been limited because customers often adopt most of our product suite upfront. Customers often consolidate multiple point solutions when they purchase Weave's unified platform. This establishes higher initial revenue capture, though this historically limited our near-term upsell opportunities. We have seen this dynamic reflected in average revenue per location growth, which grew 10% over the past two years, even as net revenue retention declined over the same period.

Speaker #6: Yeah. And I would add, Hannah, you mentioned, does it, you know, does it get better over years? And it's actually happens more quickly than that.

Even as net revenue, retention declined, over the same period.

Speaker #6: We're seeing it improve over quarters. And it's just as you get your, you know, improve your integrations depth, breadth, churn rates come down. And not only do churn rates come down, but CAC comes down over time as you develop a brand, you have more word of mouth, you're more familiar in the trade shows.

However, the addition of true Lark and faster product development Cycles are now meaningfully expanding the upsell opportunity within our installed base.

Our insurance eligibility and true Lark products. Drove acceleration of upsells in Q4 and our penetration into the installed base. For both products is still less than 2%.

Speaker #6: So it's a virtuous benefit that comes over trends over time. And then if you say, well, you know, how do you know that? It's just, you know, from our history, looking through all of our verticals that we enter. And that's one of the reasons we do it as a step function, as opposed to just, you know, doing a shotgun blast with a lot of verticals.

We ended 2025 with 39,625 active, customer locations, an increase of 4,628 locations year-over-year.

For turning to our Outlook, I'll briefly recap full your performance.

Speaker #6: Because the idea is, you know, you go into initial vertical, ASP is lower, CAC is higher, churn is higher, you work through that, ASP comes up, CAC comes down, churn comes down, and then you kind of go into a new vertical and you kind of just stage it that way.

For 2025 total revenue grew, 17% to 239 million, gross margin for the year. Expanded to 72.7% up 80 basis points from 71.9% in the prior year.

Jason Christiansen: However, the addition of TrueLark and faster product development cycles are now meaningfully expanding the upsell opportunity within our installed base. Our insurance eligibility and TrueLark products drove acceleration of upsells in Q4, and our penetration into the installed base for both products is still less than 2%. We ended 2025 with 39,625 active customer locations, an increase of 4,628 locations year-over-year. Before turning to our outlook, I'll briefly recap full year performance. For 2025, total revenue grew 17% to $239 million. Gross margin for the year expanded to 72.7%, up 80 basis points from 71.9% in the prior year.

Speaker #6: And I've been in vertical SaaS and payments for over a decade, and this is the pattern I've seen throughout that entire period.

We delivered full year operating income of 4.1 million representing. An operating margin of 1.7% compared to 0.4% last year.

Speaker #7: Great. Really encouraging to hear. Thank you, guys.

Speaker #2: And we will come back to Alex Sklar for your next question from Raymond James. Your line is open. Please go ahead. A reminder that it is star 6 to unmute.

This marks another year of progress in profitability. And I would like to highlight that this year's Improvement came while also making targeted investments in growth initiatives, which reflects our ability to balance growth while making investments into our business.

Speaker #2: Your line is open, Alex. Okay. We will move on to Mark Chappelle with Loop Capital. Mark, your line is open. Please go ahead.

We are pleased with our progress. This year, would like to thank our team members at weave, our customers, and partners for their contributions, throughout the year.

Looking ahead, we remain encouraged by the strengthening foundation of the business and the opportunities in front of us.

Speaker #8: Hi, good afternoon. Can you hear me okay? Okay. Great. Super. So thanks for taking my question. Brett, starting with you, I was wondering if you could just kind of walk through your investment priorities and also hiring priorities for the coming year.

for the first quarter of 2026, we expect total revenue to be in the range of 64.2 million to 64.8 million

Jason Christiansen: We delivered full-year operating income of $4.1 million, representing an operating margin of 1.7% compared to 0.4% last year. This marks another year of progress and profitability, and I would like to highlight that this year's improvement came while also making targeted investments in growth initiatives, which reflects our ability to balance growth while making investments into our business. We are pleased with our progress this year and would like to thank our team members at Weave, our customers, and partners for their contributions throughout the year. Looking ahead, we remain encouraged by the strengthening foundation of the business and the opportunities in front of us. For Q1 2026, we expect total revenue to be in the range of $64.2 million to $64.8 million.

We expect to improve first quarter operating income year-over-year.

And for it to be in the range of 1 million to 2 million.

Speaker #4: Sure. So I think they're the same. Our investment priorities and our hiring priorities. So that's good. I think number one on our hiring and investment priorities are product and engineering.

As a reminder, there are seasonal factors that result in a sequential increase in expenses in q1, including the reset of payroll tax limits benefit, renewals taking effect, and the timing of the annual audit fees, which are weighted more heavily in q1,

We remain committed to delivering improving margins. While maintaining our bias toward growth

Speaker #4: We've got a really unique advantage with, since we own the telephony stack, we have the practice phone number, we have the data, we are really uniquely positioned to take the AI receptionist technology from a text experience to kind of a native inside of Weave and then making it a full voice experience.

We are beginning to benefit from the Investments made in 2025, such as those made in sales and marketing and we will be flowing an increased percentage of incremental Revenue into operating income in 2026.

Jason Christiansen: We expect to improve Q1 operating income year-over-year, and for it to be in the range of $1 million to $2 million. As a reminder, there are seasonal factors that result in a sequential increase in expenses in Q1, including the reset of payroll tax limits, benefit renewals taking effect, and the timing of the annual audit fees, which are weighted more heavily in Q1. We remain committed to delivering improving margins while maintaining our bias toward growth. We are beginning to benefit from the investments made in 2025, such as those made in sales and marketing, and we will be flowing an increased percentage of incremental revenue into operating income in 2026.

For the full year 20126, we expect to grow total revenue to be in the range of 273 million to 276 million.

Speaker #4: And so we are really leaning hard into that. And investing against hiring engineers and product people to make sure that we can execute effectively on that one.

With the new products, Brett discussed, which will be released throughout the year. We expect the impact of these products to positively impact Revenue, growth in the latter, half of the year.

Speaker #4: I think, you know, invest other investment priorities are on the GTM side, go to market side, and we've actually made a couple of changes to our model at the end of this year and into next year.

We also expect to improve non-gaap, operating income year-over-year to be in the range of 8 million to 12 million.

Speaker #4: We're actually, we used to go to, we used to have a full service AE model, and now we're kind of moving more to an SDR AE model.

We expect our weighted average share count for q1 to be approximately 78.7 million shares and approximately 79.9 million shares for the full year.

Speaker #4: It's more efficient. And it seems to be working. So early proof points are good there. And I think those are the big investments we're making certainly in the first half of the year.

Jason Christiansen: For the full year 2026, we expect to grow total revenue to be in the range of $273 million to $276 million. With the new products Brett discussed, which will be released throughout the year, we expect the impact of these products to positively impact revenue growth in the latter half of the year. We also expect to improve non-GAAP operating income year-over-year to be in the range of $8 million to $12 million. We expect our weighted average share count for Q1 to be approximately 78.7 million shares and approximately 79.9 million shares for the full year. In closing, I share Brett's excitement about our 2026 roadmap and our position in the market.

In closing, I share, Brett's excitement about our 2026 roadmap in our position in the market. We delivered a strong 2025 marked by solid Revenue growth continued, margin expansion and improving profitability and cash generation.

Speaker #8: Okay. Great. Thank you. And then as a follow-up, you know, some of your competitors are also highlighting AI in their products. I was wondering if you could just talk a little bit about how Weave is either differentiating or plans to differentiate its AI automation capabilities from those of your competitors.

We remain confident in our strategy and our ability to execute as we continue to balance growth and profitability improvements.

With that, I'll turn the call over to the operator for Q&A.

Speaker #4: Sure. So, you know, we see lots of companies who are, you know, some have some products, some just put AI on their website. I think our unique, well, I know our unique differentiators are, you know, kind of what I started with, is we own the telephony stack.

We will now begin the question and answer session. If you would like to ask a question, a reminder, to please raise your hand. Now, if you have dialed in to today's call, please press star, 9, to raise your hand star 6 to unmute, please stand by as we compile the Q&A roster,

And our first question comes from Parker Lane of stifel. Your line is open, please go ahead.

Speaker #4: We've got the trusted relationships, and we own the very specific, complex, industry, you know, industry-specific workflows. We're a trusted partner of these businesses. And they really, you know, I meet with customers, and they'll show me all the products they have, and they say, "What of these can Weave do, please?" They really want to consolidate functionality so the idea of saying, for example, having an AI chatbot up in one window and Weave up in another window and a PM ups in another window.

Jason Christiansen: We delivered a strong 2025, marked by solid revenue growth, continued margin expansion, and improving profitability and cash generation. We remain confident in our strategy and our ability to execute as we continue to balance growth and profitability improvements. With that, I'll turn the call over to the operator for Q&A.

Hi. This is Matthew kicker. Um for Parker thank you for taking my questions um to start could you talk a little bit more about the Care Credit integration that you announced this morning? Um just curious if that's your focus is to drive incremental payments attached to it. More average payments volumes across existing customers or something else.

Yeah, uh great to great to catch up with you Matthew. Um,

The Care Credit.

Operator: We will now begin the question and answer session. If you would like to ask a question, a reminder to please raise your hand now. If you have dialed in to today's call, please press star nine to raise your hand, star six to unmute. Please stand by as we compile the Q&A roster. Our first question comes from Parker Lane of Stifel. Your line is open. Please go ahead.

Speaker #4: It just doesn't work great. And so, we have the opportunity to bring all of those workflows together, and because we have the full experience, we can retain context through the whole discussion.

to capture volumes that otherwise would flow through, um,

Speaker #4: So you may start with a text, or you may start with a call, and then the call transitions to text, and then the text maybe gets escalated to a specific person in the staff who can handle only specifically handle that question, all of that interaction, whether it's voice or text, gets retained in one place.

Matthew Kikkert: This is Matthew Kickert, for Parker. Thank you for taking my questions. To start, can you talk a little bit more about the CareCredit integration that you announced this morning? Just curious if that's your focus is to drive incremental payments attach rate, more average payment volumes across existing customers, or something else?

Care Credit themselves. They are the largest provider of, uh, patient financing Solutions in the market. And this gives us access, um, through the partnership, uh, to some of the volumes that otherwise would flow through them. So, there's work now to be done on the integration and bringing that directly to Market. So today we just announced, um, that we, uh, completed the partnership. Um, and we'll have more color to provide uh, in the future.

and I would add, you know,

Speaker #4: And it also gets analyzed by our Weave call intelligence. So then you can create action items, you can create tasks, you can actually perform work, whether it be issuing an invoice, filing a—

Jason Christiansen: Yeah, great to catch up with you, Matthew. The CareCredit partnership, what that really does is open up another avenue for us to capture volumes that otherwise would flow through CareCredit themselves. They are the largest provider of patient financing solutions in the market, and this gives us access through the partnership to some of the volumes that otherwise would flow through them. So there's work now to be done on the integration and bringing that directly to market. So today, we just announced that we completed the partnership. And we'll have more color to provide in the future.

Speaker #4: Checking on insurance verification, booking an appointment, rescheduling an appointment—so having all, you know, the deep integrations, the deep workflows, the subject matter expertise, the relationships, and the ability to kind of have seamless hand-off is a real differentiator.

Speaker #4: These highly specific workflows are hard, and you have to learn them over time. If you get an appointment wrong, so for example, someone wants a crown done and you book a 30-minute appointment for a cleaning, that really hurts the practice's day.

this is kind of just the next step in our payment strategy. So you know kind of starting with basic Payment Processing then moving into more uh additional Financial tools additional Financial vehicles. Uh you know that allow our customers to often their patients. So um it makes our takes our payment solution to basically a financial solution and uh, the practices have more tools to offer their patients whether it be financing through Care Credit, uh, financing through themselves, using the weave tools to schedule payments. Uh, so it just makes the payment product, um, more attractive stickier in addition to attaching more volume.

Okay. And then secondly for 2026, what are your expectations?

for growth rates across, um, the different subverted Hills

Speaker #4: And so having that knowledge, that experience, you know, we've got billions of these interactions, and we know kind of over time what type of calls result in what type of outcomes, and we can optimize practice operations using that knowledge and that deep expertise.

Brett White: Yeah, and I would add, you know, this is kind of just a next step in our payment strategy. So, you know, kind of starting with basic payment processing, then moving into more, additional financial tools, additional financial vehicles, you know, that allow our customers to offer their patients. So, it takes our payment solution to basically a financial solution, and the practices have more tools to offer their patients, whether it be financing through CareCredit, financing through themselves, using the Weave tools to schedule payments. So, it just makes the payment product more attractive, stickier, in addition to attaching more volume.

Speaker #8: Thank you.

Speaker #2: And we will come back one more time to Alex Sklar with Raymond James. Your line is open. Please go ahead. Please ensure that you're unmuted locally.

Speaker #2: Yep. Go ahead.

Speaker #8: You can hear me now?

Speaker #4: Hi, Alex.

Speaker #8: Okay. All right. Thanks. It's like third time's the charm. This is actually John on for Alex. Brett, maybe we'll start with payments here. It's great to hear about the continued strength in payments.

Speaker #8: It's been a nice growth driver for you. I'm curious, so any comments you can share on growth differences you're seeing by end market, and then maybe how would you think about payments growth and payments attach rate in 2026 and over the medium term that I have a quick follow-up?

Matthew Kikkert: Okay. And then secondly, for 2026, what are your expectations for growth rates across the different subverticals?

Yeah, you know, we're we're starting the year in a great position. We haven't broken out the growth rates for each 1 of the different. Uh, the verticals that we serve, um, but we continue to uh we continue to anticipate strong growth across the growth vectors that we've talked about around specialty medical. Uh we just talked about how Q4 was our strongest um, strongest quarter uh from from a, from an editions perspective, there um mid-market grew nicely in 2025, we expect that to continue. Um, and so not can't speak to the underlying components, but we, we do anticipate to continue to see uh, momentum and growth through those through the same channels.

Jason Christiansen: Yeah. You know, we're starting the year in a great position. We haven't broken out the growth rates for each one of the different verticals that we serve. But we continue to anticipate strong growth across the growth vectors that we've talked about around specialty medical. We just talked about how Q4 was our strongest quarter from an additions perspective there. Mid-market grew nicely in 2025. We expect that to continue. And so, can't speak to the underlying components, but we do anticipate to continue to see momentum and growth through the same channels.

Speaker #4: Right. So I can give you some product growth highlights, and maybe Jason can talk about sectors. So Weave released this year a couple of really cool new features.

Speaker #4: Bulk collection, but surcharging. Surcharging has been very well received. It's a great upsell product, and that is actually driving some pretty reasonable—almost significant—volume growth from the new customers who adopt it.

Yeah, and I I would add um, you know, expect especially medical probably will be the strongest grower just because the um the opportunity set here and all the work that we've done on adding Integrations um throughout this year continue to add them throughout the year. Some of the marketing dollars that you saw that we spent in Q4 is really around. Developing our brand presence um and that

Sector. So we expect that to grow, continue to be the fastest grower. I, I expect all of our verticals to grow nicely. The the Omni Channel,

Speaker #4: And of course, surcharging is your ability to charge the patient for the credit card fee. And so that gets us not only a better take rate, but more importantly, it just gets us more volume.

Speaker #4: So that's an early stages, but we're seeing some very nice screenshoots on that one. And I'll let Jason talk about sectors or.

AI receptionist that we're rolling out, is really valuable to kind of all verticals in and integrated and not. I mean, the tool is quite useful even without a PMS integration. So I think, um, I expect solid growth in all verticals, but I think specially medical probably lead the pack.

Perfect, thank you.

Brett White: Yeah, and I would add, you know, expect especially medical, probably will be the strongest grower, just because of the opportunity set here and all the work that we've done on adding integrations throughout this year, continue to add them throughout the year. Some of the marketing dollars that you saw that we spent in Q4 is really around developing our brand presence in that sector. So we expect that to grow, continue to be the fastest grower. I expect all of our verticals to grow nicely. The omni-channel AI receptionist that we're rolling out is really valuable to kind of all verticals, including in integrated and not. I mean, the tool is quite useful even without a PMS integration. So I think I expect solid growth in all verticals, but I think especially medical, probably lead the pack.

Speaker #3: Yeah. So some of the, I think the best, one of the best ways to think about payments in the sectors and how it differentiates for us is when you think about the economics of a practice, the average dentist within a practice will do about a million dollars in gross billings.

And your next question comes from the line of Alex clar with Raymond James, your line is open. Please go ahead.

We'll move on to our next question from

Hannah Rudolph from Piper Sandler.

Your line is open, please go ahead.

Speaker #3: A year. And you know, about 50 to 60 percent of that will go through an insurance process. So the remaining 40, 50 percent is our opportunity to go after that.

Guys, thanks for taking my questions today. It was encouraging to hear that staff.

I believe you said.

Speaker #3: So when we think about going after or the performance in different sectors, what's really important is to understand what the insurance component within each one of the sectors we go after or that we sell to have and what just the nature of their economics are.

I guess longer term as you think about it and you launch more AI capabilities and and you complete the roll out of this Unified Inbox. How do you think about pricing to capture the value that you're delivering?

Matthew Kikkert: Perfect. Thank you.

Speaker #3: And so like in specialty medical, when you're dealing with primary care, you're dealing with significantly higher insurance coverage rates. And so the payments opportunity for us in that space isn't as great.

Operator: Your next question comes from the line of Alex Sklar with Raymond James. Your line is open. Please go ahead. Your line is open. Please go ahead. We'll move on to our next question from Hannah Rudolph of Piper Sandler. Your line is open. Please go ahead.

Speaker #3: As it is in like aesthetics or in veterinary. And so we try to align our go-to-market efforts with the needs of those industries. And the opportunity for us to expand revenue per location through them.

Speaker #3: So that's how we think about the different specialties. And it's a contributing factor, Brett talked about how we approach the different specialties and the next verticals in a step function.

Hannah Rudoff: Guys, thanks for taking my questions today. It was encouraging to hear that stat about the one customer, I believe you said, who scheduled 1,200 appointments using your AI receptionist. I guess longer term, as you think about it and you launch more AI capabilities and, and you complete the rollout of this unified inbox, how do you think about pricing to capture the value that you're delivering?

Speaker #3: We look at the overall economics of those specialties as we decide what are the next specialties or the next verticals that we open up.

On the channel receptionist functionality. And I think we'll work it out over time. I think a really important point is we don't we don't license by seat, um, we licensed by location and then consumption. And, um, we're, we're confident that these tools will produce a lot of value for the practices and we'll be able to um monetize them accordingly.

Totally makes.

Speaker #3: And it's something we consider there across all the different solutions that we offer.

Brett White: Yeah. So, we will definitely be able to monetize it. I think still being worked out is, is it priced as an additional module, or is it priced as, you know, included in a bundle? So, for example, you know, you may have standalone TrueLark now, and if you want to go to the Fusion Inbox, where that brings everything from TrueLark, and we all together in one place, which is the ultimate destination, is that a premium product that we price for? The really important concept, though, is that we're now going ability to attach to the labor budget because we can just prove how we save labor and how we drive revenue. So we're very confident that we can monetize the additional AI omni-channel receptionist functionality, and I think we'll work it out over time.

Speaker #8: That was great color there. And then Jason, maybe just a follow-up on the NRR improvements. I know it's been touched on in earlier questions, but specifically, I do want to understand how additive you think some of the newer products, like the TrueLark and your organic product expansion, can be to NRR growth in 2026 and maybe over the medium term, kind of what's embedded in the guide there.

I really appreciate the additional color. You gave this quarter around nrr and, and the multi-location nrr you shared. I guess you've you've talked about churn being higher and average sales price is being lower initially in some of your newer verticals. As, you know, you have newer Integrations and some, some of the solutions are non-integrated, I guess, have you seen these metrics stabilized? For some of your oldest specialty, medical cohorts? Or does that take longer than a few years to kind of stabilize an average with historical metrics?

Speaker #8: Thanks.

Speaker #3: Yeah. So what's embedded within the guide, a lot of the growth from the AI receptionist follows the timeline and the roadmap that Brett laid out in his remarks.

Yeah, thank you for the question, you know?

Speaker #3: So it's biased more towards the second half just based on the timeline for when those products roll to general availability. You know, I think the opportunity for growth is really strong.

Brett White: I think a really important point is we don't, we don't license by seat. We license by location and then consumption, and, we're, we're confident that these tools will produce a lot of value for the practices, and we'll be able to, monetize them accordingly.

Speaker #3: From a net revenue retention perspective, we're still in the early days of selling that. The impact it'll have, I guess I'm not ready to provide a lot of color on that today.

We saw the same phenomenon. I highlighted how we saw uh churn decrease through the second half of the year in Q4 return to um return to 2023. 24 rates. You know, we saw nice Improvement in specialty medical as well in Q4 and so we've already started to see some of the improvements there. We've delivered a number of Integrations. Um, on that front, we've expanded our coverage on that front. So as those have started to mature, we're encouraged about making

Hannah Rudoff: Totally makes sense. And then, Jason, I really appreciate the additional color you gave this quarter around NRR and the multi-location NRR you shared. I guess you've talked about churn being higher and average sales prices being lower initially in some of your newer verticals, as you know, you have newer integrations and some of those solutions are non-integrated. I guess, have you seen these metrics stabilize for some of your oldest specialty medical cohorts, or does that take longer than a few years to kinda stabilize and average with historical metrics?

Speaker #3: There's a significant upsell opportunity. But we also know that customers have typically landed heavy whenever we bring these new capabilities. Which could lead to further average revenue per location expansion.

Looking at that uh declaration about where churn will will Trend back towards um, because we're already starting to see some of the proof points there that we've been talking about.

Speaker #3: Without necessarily leading to significant net revenue retention expansion. And so I guess we'll, I'd like to let the dynamics play out a little bit more as we get more sales experience there.

Yeah, and I would add, um, Hannah you mentioned, does it, you know, does it get better over over years and it's actually happens more quickly than that. We're seeing it improve over quarters. Um, and it's just as you as you get your, you know?

Speaker #3: But the opportunity is quite significant, really encouraging.

Jason Christiansen: Yeah, thank you for the question. You know, we saw the same phenomenon. I highlighted how we saw churn decrease through the second half of the year, and Q4 return to return to 2023, 2024 rates. You know, we saw a nice improvement in specialty medical as well in Q4, and so we've already started to see some of the improvements there. We've delivered a number of integrations on that front, we've expanded our coverage on that front. So as those have started to mature, we're encouraged about making that declaration about where churn will trend back towards, because we're already starting to see some of the proof points there that we've been talking about.

Speaker #8: Thank you.

Speaker #2: I wanted to add, can I, let me just add a little bit more color to the earlier question about why Weave stands out as having an advantage and as we knew move to these omnichannel AI receptionists and you know, there's a bunch of them out there.

Speaker #2: You know, in addition to the things I mentioned, like domain expertise, a really important one is, frankly, our scale and the fact that because we're a public company, because we have scale, we have to do it right.

Improve your Integrations depth, um, Brett. Um, turn rates, come down and, and not only do turn rates, come down but, but cat comes down over time as you develop a brand, you have more more word of mouth. You're more familiar in the trade shows. So, um, it's it's a, it's a virtuous benefit that that comes over Trends over time. And then if you say, well, you know, how do you know that it's? It's just, um, you know, from our history, looking through all of our verticals that we enter and and that's 1 of the reasons we do it as a step function as opposed to just you know doing a shotgun blast with a lot of verticals because the idea is you know you go into an initial vertical ASP is lower CAC is higher, turn is higher. You work through that. ASP comes up, cat comes down, turn comes down and then you kind of go into a, a new vertical and you kind of just stage it that way. And um I I I

Speaker #2: So when it comes to data, you know, maintaining the data security, maintaining and ensuring that the data is used properly. Compliance, you know, we've got HIPAA, we've got PHI, we've got PCI, we've got all these rules and that we have to comply with.

Been in vertical SASS and payments for over a decade. And this is the pattern I've seen throughout that entire period.

Brett White: Yeah, and I would add, Hannah, you mentioned, does it, you know, does it get better over, over years? And it actually happens more quickly than that. We're seeing it improve over quarters. And it's just as you, as you get your, you know, improve your integrations, depth, breadth, churn rates come down. And, and not only do churn rates come down, but, but CAC comes down over time. As you develop a brand, you have word-- more word of mouth, you're more familiar in the trade shows. So, it's, it's a, it's a virtuous benefit that, that comes over-- trends over time. And then if you say, well, you know, how do you know that?

Great. Really, encouraging to hear. Thank you guys.

And we will come back to Alex Clark for your next question. From Raymond James.

Speaker #2: And you know, reliability. And scalability. And security. And you know, being able to support the full experience front to back. These are just a lot of things that buyers are becoming more and more concerned about, especially large groups that some of these smaller kind of newer businesses just don't have the scale or the financial ability to comply with or frankly, it's probably not as much of a focus for them.

Your line is open, please go ahead.

A reminder that it is star 6 to unmute.

Okay, we will move on to Mark Chappelle with loop capital.

Mark, your line is open, please go ahead.

Hi, uh, good afternoon. Uh can you hear me? Okay.

Brett White: It's just, you know, from our history, looking through all of our verticals that we enter, and that's one of the reasons we do it as a step function, as opposed to just, you know, doing a shotgun blast with a lot of verticals. Because the idea is, you know, you go into initial vertical, ASP is lower, CAC is higher, churn is higher. You work through that, ASP comes up, CAC comes down, churn comes down, and then you kind of go into a new vertical, and you kind of just stage it that way. And, I've been in vertical SaaS and payments for over a decade, and this is the pattern I've seen throughout that entire period.

Speaker #2: And for us, it's just absolutely table stakes. There are no further questions at this time. I will now turn the call back to Brett White for closing remarks.

Yes, we can. Okay, great super. So thanks for taking my question. Uh, Brett starting with you. I was wondering if you just kind of walk through uh your investment priorities. And also hiring priorities for the coming year.

Sure. So um,

Speaker #3: Well, thank you all for joining the call. We're super excited about 2026. And thank you again to the entire Weave team for posting an incredible 2025.

I think they're the same our investment priorities in our hiring priorities. Um, so that's that's good. I I I think number 1 on our hiring and investment priorities are

Speaker #3: Thank you.

Hannah Rudoff: Great, really encouraging to hear. Thank you, guys.

Operator: We will come back to Alex Sklar for your next question from Raymond James. Your line is open. Please go ahead. A reminder that it is star six to unmute. Your line is open, Alex. Okay, we will move on to Mark Chappell with Loup Capital. Mark, your line is open. Please go ahead.

Product and Engineering. Um, we we've got a really unique Advantage with since we we own the telephones stack, we have The Practice phone number. We have the data, we are really uniquely positioned to take, you know, the the AI receptionist technology from a text experience to, um, you know, kind of a native inside of weave and then making a full voice experience. And and so we are really leaning hard into that and investing against uh hiring engineers and product people to make sure that we can execute effectively on that 1. Um I think you know, invest other investment priorities are um

Mark Schappel: Hi, good afternoon. Can you hear me okay?

Brett White: Yes, yes, we can.

Mark Schappel: Okay, great. Super. So thanks for taking my question. Brett, starting with you, I was wondering if you could just kind of walk through your investment priorities and also hiring priorities for the coming year.

Full service AE model and now we're we're kind of moving more to an SDR AE model. It's it's more efficient. Uh and it seems to be working so early proof points are good there.

Brett White: Sure. So, I think they're the same, our investment priorities and our hiring priorities. So that's good. I think number one on our hiring and investment priorities are product and engineering. We've got a really unique advantage with... Since we own the telephony stack, we have the practice phone number, we have the data, we are really uniquely positioned to take, you know, the AI receptionist technology from a text experience to, you know, kind of a native inside of Weave and then make it a full voice experience. And so we are really leaning hard into that and investing against hiring engineers and product people to make sure that we can execute effectively on that one.

Um, and I think those are those are those are the big Investments were were making?

uh, certainly in the first half of the year,

Okay. Great, thank you. And then as a follow-up uh, you know some of your competitors are also highlighting AI in their products. So I was wondering if you could just uh talk a little bit, a little bit about how we've uh is there a differentiating or plans to differentiate its AI automation capabilities uh from that those of your competitors.

Sure. So, you know, we see lots of, um, companies who are, you know, some some have some products, some just put AI on their website. Um, I think our unique. Well, I know our unique differentiators are, you know, kind of what I, what I started with is we own the TF stack. Um, we've got the trusted relationships and we own the very specific

Brett White: I think, you know, other investment priorities are on the GTM side, go-to-market side, and we've actually made a couple changes to our model at the end of this year and into next year. We used to have a full service AE model, and now we're kind of moving more to an SDR AE model. It's more efficient, and it seems to be working, so early proof points are good there. And I think those are the big investments we're making, certainly in the first half of the year.

Complex industry, you know, industry specific workflows, we're a trusted partner of these businesses and they really, you know, I I meet with customers and they'll show me all the products they have. And they said what which of these can weave do, please? They really want to consolidate functionality. So the idea of saying for example, having an AI chatbot up in 1 window.

Mark Schappel: Okay, great. Thank you. And then as a follow-up, you know, some of your competitors are also highlighting AI in their products. I was wondering if you could just talk a little, little bit about how Weave is either differentiating or plans to differentiate its AI automation capabilities from those of your competitors.

Brett White: Sure. So, you know, we see lots of companies who are, you know, some, some have some products, some just put AI on their website. I think our unique... Well, I know our unique differentiators are, you know, kind of what I started with, is we own the telephony stack, we've got the trusted relationships, and we own the very specific complex industry, you know, industry-specific workflows. We're a trusted partner of these businesses, and they really, you know... I meet with customers, and they'll show me all the products they have, and they say: "What-- Which of these can Weave do, please?" They really want to consolidate functionality. So the idea of saying, for example, having an AI chatbot up in one window and Weave up in another window, and a PMS in another window, it just doesn't work great.

And weave up in another window, and a pmf is on another window. It it it just doesn't work. Great. And so we have the opportunity to bring all of those workflows together. And because we have the full experience, we can retain, um, context through the whole discussion. So, you may start with, um, a, a text or you may start with a call and then the call transitions to text. And then the text maybe gets escalated to a specific person in the staff, who can handle only specifically handle that question all of that interaction, whether it's voice or text gets retained in 1 place and it also gets analyzed by or we've call intelligence. So then you can create action items, you can create tasks, you can actually um perform work, whether it be issue an invoice, filing, an uh checking on insurance verification, booking an appointment rescheduling, an appointment. Um, so having all, you know, the deep in

Integrations, the Deep workflows the, the subject matter expertise the relationships. Um, and the ability to kind of have seamless handoff is a real real. Differentiator these, these these

Brett White: So we have the opportunity to bring all of those workflows together. Because we have the full experience, we can retain context through the whole discussion. So you may start with a text, or you may start with a call, and then the call transitions to text, and then the text maybe gets escalated to a specific person in the staff who can handle specifically that question. All of that interaction, whether it's voice or text, gets retained in one place, and it also gets analyzed by our Weave Call Intelligence. So then you can create action items, you can create tasks, you can actually perform work, whether it be issuing an invoice, filing, checking on insurance verification, booking an appointment, rescheduling an appointment.

Highly specific workflows are hard, and you have to learn them over time if you get an appointment wrong. So for example, someone wants a crown done and you book, you know, a 30 minute appointment for a cleaning that really hurts the practice's day. And so having that knowledge that experience you know we've got billions of these interactions and we know kind of over time what type of calls result in what type of outcomes and we can optimize practice operations using that, that knowledge and that deep expertise.

Thank you.

And we will come back. 1 more time to Alex clar with reeman James.

Your line is open, please go ahead.

Brett White: So having all, you know, the deep integrations, the deep workflows, the subject matter expertise, the relationships, and the ability to kind of have seamless handoff is a real, real differentiator. These highly specific workflows are hard, and you have to learn them over time. If you get an appointment wrong, so for example, someone wants a crown done and you book, you know, a 30-minute appointment for a cleaning, that really hurts the practice's day. And so having that knowledge, that experience, you know, we've got billions of these interactions, and we know kinda over time, what type of calls result in what type of outcomes, and we can optimize practice operations using that knowledge and that deep expertise.

Hi. Okay. All right. Thanks like there's it's like third time's a charm. This is actually John on for Alex. Uh, Brett. Maybe we'll start with payments here. It's great to hear about the continued strength and payments. It's been a nice growth driver for you. I'm curious. So any comments you can share on growth differences, you're seeing by End Market and then maybe how we should think about uh payments growth and payments attach rate in 2026 and over the medium term that I have a quick follow-up.

Right? So I, I can give you some product growth, um, highlights and maybe Jason can talk about sectors. So we released this year, a couple of really cool new features, um, bulk collection. But but sir charging sir, charging, um, has been very, um,

Jason Christiansen: Thank you.

A very well-received, it's a great upsell product and that is actually driving, um, some pretty, um, reasonable, almost significant volume, growth from the new customers, who adopt it. And, of course, surcharging is your ability to charge the patient for the credit card fee. Uh, and so that gets us not only, um, a better take rate, but, but more importantly, it just gets us more volume. So, um, that's an early stages. But we're seeing some very nice screen shoots on that 1. And I'll let Jason talked about

Operator: We will come back one more time to Alex Sklar with Raymond James. Your line is open. Please go ahead. Please ensure that you're unmuted locally.

Sectors.

[Analyst] (Raymond James): Can you hear me now?

Operator: Yep, go ahead.

[Analyst] (Raymond James): Can you hear me now?

Brett White: Hi, Alex.

think about payments in the sectors and how it differentiates um, for us is

[Analyst] (Raymond James): Okay, all right. Thanks. Like, third time's the charm. This is actually John on for Alex. Brett, maybe we'll start with payments here. It's great to hear about the continued strength in payments. It's been a nice growth driver for you. I'm curious, so any comments you can share on growth differences you're seeing by end market, and then maybe how we should think about payments growth and payments attach rate in 2026 and over the medium term? Then I have a quick follow-up.

Uh, when you think about the economics of a practice, uh, the average dentist, uh, within a practice will do about a million dollars in Gross Billings. Uh,

Brett White: Right. So I can give you some product growth highlights, and maybe Jason can talk about sectors. So we released this year a couple of really cool new features, both collection, but surcharging. Surcharging has been very well-received. It's a great upsell product, and that is actually driving some pretty reasonable, almost significant volume growth from the new customers who adopt it. And of course, surcharging is your ability to charge the patient for the credit card fee. And so that gets us not only a better take rate, but more importantly, it just gets us more volume. So that's in early stages, but we're seeing some very nice green shoots on that one, and I'll let Jason talk about sectors.

A year and, um, you know, about 50 to 60% of that will go through an insurance process. So, the remaining, you know, 40, 50% is our opportunity to go after that. So, when we think about going after or the the performance in different sectors, what's really important is to understand what the insurance component within each 1 of uh, the sectors we go after or, or that we sell to um, have and what just the nature of their economics are and so like, in um, in specialty medical when you're dealing with primary care, um, you're dealing with significantly higher insurance coverage rates and so the payments opportunity for us in that space isn't as great as it is in like Aesthetics or in Veterinary. And so we try to align our um, our go to market efforts with the needs of those, uh, those Industries and the

Jason Christiansen: Yeah. So, I think one of the best ways to think about payments in the sectors and how it differentiates for us is when you think about the economics of a practice, the average dentist within a practice will do about $1 million in gross billings a year. And you know, about 50% to 60% of that will go through an insurance process, so the remaining, you know, 40% to 50% is our opportunity to go after that. So when we think about going after or the performance in different sectors, what's really important is to understand what the insurance component within each one of the sectors we go after or that we sell to have and what just the nature of their economics are.

Opportunity. Um, the opportunity for for us to expand Revenue per location through them. So, um,

That that's how we think about the different uh, the different Specialties. And it's a, it's a contributing factor. Brett talked about how we approach the different Specialties and the next verticals in a step function.

We look at the overall economics of those um, Specialties as we decide what are the next the next Specialties or the next verticals that we open up and, um, it's something we consider their across, uh, all the different solutions that we offer.

That was a great color there and and then Jason maybe just follow up on the nrr improvements. I know it's been touched on an earlier questions. But specifically, I do want to understand how additive you think some of the newer products like the true Lark and your organic product expansion can be to nrr growth in 2026 and maybe over the medium-term kind of what's embedded in in the guide there. Thanks.

Jason Christiansen: Like in specialty medical, when you're dealing with primary care, you're dealing with significantly higher insurance coverage rates. The payments opportunity for us in that space isn't as great as it is in, like, aesthetics or in veterinary. We try to align our go-to-market efforts with the needs of those industries, and the opportunity for us to expand revenue per location through them. That's how we think about the different specialties, and it's a contributing factor. Brett talked about how we approach the different specialties and the next verticals in a step function. We look at the overall economics of those specialties as we decide what are the next specialties or the next verticals that we open up.

Yeah, so the first, what's embedded within the guide, a lot of the growth from the AI receptionist follows the timeline, and the road map that bra Bret laid out in his remarks. So it it it it's biased more towards the second half just based on the timeline for when those products role to General availability. Um you know I think the the opportunity for growth is is uh,

Is really strong um from a net revenue retention perspective. Um, we're still in the early days of selling that.

Jason Christiansen: It's something we consider there across all the different solutions that we offer.

[Analyst] (Raymond James): That was great color there. Then, Jason, maybe just a follow-up on the NRR improvements. I know it's been touched on in earlier questions, but specifically, I do want to understand how additive you think some of the newer products, like the TrueLark and your organic product expansion, can be to NRR growth in 2026 and maybe over the medium term, kind of what's embedded in the guide there. Thanks.

The impact it'll have. I guess I'm not ready to provide a lot of color on that today. There's a significant upsell opportunity, but we also know that um, customers have typically landed heavy whenever we bring these new capabilities, which um could lead to further, average revenue per location expansion without necessarily leading to significant net revenue, retention expansion. Um, and so, I guess we'll, I'd like to let the Dynamics play out a little bit more as we get more sales experience there. But the opportunity is, is, uh,

Quite significant really encouraging.

Thank you.

Jason Christiansen: Yeah. So what's embedded within the guide, a lot of the growth from the AI receptionist follows the timeline and the roadmap that Brett laid out in his remarks. So it's biased more towards the second half, just based on the timeline for when those products roll to general availability. You know, I think the opportunity for growth is really strong. From a net revenue retention perspective, we're still in the early days of selling that. The impact it'll have, I guess I'm not really to provide a lot of color on that today. There's a significant upsell opportunity, but we also know that customers have typically landed heavy whenever we bring these new capabilities, which could lead to further average revenue per location expansion without necessarily leading to significant net revenue retention expansion.

Can I let me just add a little bit more color to the, the earlier question about, you know, why we stands out as, um, having an advantage and as we knew move to these Omni Channel AI receptionists and and you know, there's a bunch of them out there.

Um,

You know, in addition to the things I mentioned like domain expertise, a really important 1 is frankly our scale uh and the fact that you know, because we're a public company because we have scale, we have to do it, right? So when it comes to data,

Jason Christiansen: And so I guess we'll, I'd like to let the dynamics play out a little bit more as we get more sales experience there, but the opportunity is quite significant and really encouraging.

Don't.

Have the scale or the financial ability to comply with or frankly, it's probably not as much of a focus for them. Uh, and for us it's it's just absolutely table Stakes.

Brett White: I wanted to add; let me just add a little bit more color to the earlier question about, you know, why Weave stands out as having an advantage and as we now move to these omni-channel AI receptionists, and, you know, there's a bunch of them out there. You know, in addition to the things I mentioned, like domain expertise, a really important one is, frankly, our scale, and the fact that, you know, because we're a public company, because we have scale, we have to do it right. So when it comes to data, you know, maintaining the data security, maintaining and ensuring that the data is used properly. Compliance, you know, we've got HIPAA, we've got PHI, we've got PCI, we've got all these rules and that we have to comply with.

There are no further questions at this time. I will now turn the call back to Brett White for closing remarks.

Well, thank you all for joining the call. Um, we're super excited about 2026, and thank you again to the entire weave team for, for posting an an incredible 2025. Thank you.

This concludes today's call, thank you for attending. You may now disconnect

Brett White: You know, reliability, scalability, and security, and, you know, being able to support the full experience front to back. These are just a lot of things that buyers are becoming more and more concerned about, especially large, you know, groups, that some of these smaller, you know, kind of newer businesses just don't have the scale or the financial ability to comply with, or frankly, it's probably not as much of a focus for them. For us, it's just absolutely table stakes.

Operator: There are no further questions at this time. I will now turn the call back to Brett White for closing remarks.

Brett White: Well, thank you all for joining the call. We're super excited about 2026, and thank you again to the entire Weave team for posting an incredible 2025. Thank you.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Q4 2025 Weave Communications Inc Earnings Call

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