Weave Communications (WEAV) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue reached $67.5 million, representing 15.5%–16% year-over-year growth, driven by new customer acquisitions, record new locations, and strong payments business growth.

• Operating margin improved to 4.7% (non-GAAP), up from breakeven or 0.1% last year, reflecting enhanced operating leverage and cost discipline.

• Free cash flow increased to $8.7 million, with cash and short-term investments ending at $78.5 million or $47.6 million in cash and $30.8 million in short-term investments.

• AI-powered platform enhancements included a 70% increase in AI features, launch of AI Receptionist, and over 50% of customer locations using embedded AI solutions.

• Net loss narrowed to $4.3 million GAAP, improved from $8.7 million last year; non-GAAP net income was $3.3 million.

Financial highlights

• Gross profit grew to $49 million, with gross margin at 72%–72.6%, up 30 basis points year-over-year.

• Adjusted EBITDA for Q2 was $4.6 million, up from $1.1 million in Q2 2025.

• Subscription and payment processing revenue was $64.6 million, with gross margin of 77.9%–78.3%.

• Onboarding and hardware segments contributed minor revenue, with negative or low gross margins.

• Free cash flow margin was 13% for the quarter.

Outlook and guidance

• Q3 2026 revenue expected between $68.6 million and $69.6 million; non-GAAP operating income projected at $3.0 million–$4.0 million.

• Full-year 2026 revenue guidance raised to $273 million–$275 million, with non-GAAP operating income expected at $12 million–$14 million.

• Management anticipates continued revenue growth, operational efficiency, and further improvement in operating cash flows.