Weave Communications Reports 16% Revenue Growth to $58.5 Million for Q2 2025

Weave Communications, Inc. reported a revenue of $58.5 million for the quarter ending June 30, 2025, marking a 16% increase from $50.6 million in the same period last year. For the first half of 2025, the company generated $114.3 million in revenue, up 17% from $97.8 million in the first half of 2024. Despite this growth, Weave recorded a net loss of $8.7 million for the quarter, slightly higher than the $8.6 million loss reported in the prior year. The company’s accumulated deficit increased to $308.5 million as of June 30, 2025.

The increase in revenue was primarily driven by the addition of new customer locations, which accounted for approximately 92% of the revenue growth. However, the cost of revenue also rose, reaching $16.5 million for the quarter, a 14% increase from $14.5 million in the previous year. This rise in costs was attributed to higher direct costs associated with customer support and growth, including cloud infrastructure and telecommunications expenses. The gross margin improved to 72% from 71% year-over-year, reflecting a favorable customer mix and efficiencies in cost management.

In terms of strategic developments, Weave completed the acquisition of Vidurama, Inc., an AI-powered receptionist and front-desk automation platform, for a total consideration of $35.8 million in May 2025. This acquisition is expected to enhance Weave's offerings and expand its customer base, particularly among medium-sized businesses. The integration of Vidurama is anticipated to provide additional opportunities for growth, although it did not materially impact revenue or earnings in the reported periods.

Operationally, Weave's customer base continued to grow, with a dollar-based net retention rate of 96% as of June 30, 2025, down from 97% a year earlier. The company reported a total of 77 million shares of common stock outstanding as of August 4, 2025. Weave's employee headcount has also increased, reflecting its ongoing expansion efforts, particularly in international markets such as India and the Philippines.

Looking ahead, Weave remains focused on enhancing its platform and expanding into new vertical markets. The company anticipates that its investments in product development and customer acquisition will drive future growth, although it acknowledges the challenges posed by competitive pressures and economic uncertainties. Weave's management expressed optimism about its ability to achieve operational efficiencies and improve cash flows, aiming to leverage its recent acquisitions and product enhancements to sustain its growth trajectory.