Weave Communications 2025 Q2 Earnings Narrowed Loss Per Share Amid Revenue Growth

Weave Communications reported its fiscal 2025 Q2 earnings on Aug 07, 2025, delivering revenue growth above expectations and narrowing its per-share loss, though overall net loss widened slightly. The company beat revenue forecasts by 1.1% and exceeded EPS estimates by 15%, while raising full-year revenue guidance.

Revenue
Weave Communications reported total revenue of $58.47 million in Q2 2025, a 15.6% increase compared to $50.59 million in the same period last year. This marks the fourteenth consecutive quarter where the company exceeded revenue guidance, reflecting sustained business momentum.

Earnings/Net Income
The company narrowed its loss per share to $0.11 in Q2 2025 from $0.12 in the prior-year quarter, an 8.3% improvement. However, the net loss widened to $8.71 million, up 1.8% from $8.55 million in 2024 Q2. Despite better-than-expected earnings, the company continues to post losses for the fifth consecutive year in this period.

Price Action
WEAV shares rose 2.38% during the latest trading day and gained 6.16% over the past week, though the stock declined 11.23% month-to-date as of the earnings report date.

Post-Earnings Price Action Review
The stock’s performance following the earnings release suggested weak investor confidence. A strategy of buying the stock after a beat and holding for 30 days would have returned -54.41%, significantly underperforming the benchmark. The strategy’s maximum drawdown was recorded at 0.00%, and its Sharpe ratio of -0.30 underscored the high risk and low return potential associated with post-earnings trading in this period.

CEO Commentary
CEO Brett White highlighted strong Q2 results, with $58.5 million in revenue and 15.6% year-over-year growth. He emphasized record sales momentum, improved gross margins to 72.3%, and positive free cash flow. Strategic priorities included expanding into the mid-market and specialty medical sectors, investing in AI-driven automation, and leveraging the TrueLark acquisition. White also pointed to the medical segment becoming the second-largest by customer count, positioning Weave for long-term growth.

Guidance
Weave raised its revenue outlook for Q3 2025 to a range of $60.1 million to $61.1 million, with full-year revenue guidance set between $236.8 million and $239.8 million. Non-GAAP operating income for fiscal 2025 is projected to range between $1.2 million and $3.2 million. CFO Jason Christiansen noted that operating income exceeded guidance by $600,000 and expressed confidence in margin expansion and full-year profitability.

Additional News
On August 5, 2025, Weave Communications released its Q2 2025 earnings report, highlighting a 16% year-over-year revenue increase to $58.5 million. The company’s net loss widened to $8.71 million, representing a 1.8% increase from the prior year, though EPS improved to a $0.12 loss. Both revenue and EPS beat analyst estimates by 1.1% and 15%, respectively. Looking ahead, the company forecasts an average annual revenue growth rate of 14% over the next three years, outpacing the 13% industry forecast. The stock declined 7.3% from a week prior, reflecting mixed investor sentiment. Weave has no recent mergers, C-level changes, or buyback announcements to report, but its strategic focus remains on AI integration and expansion in the healthcare sector.