Weave Communications Reports $65.5M Revenue in Q1 2026, 17% Increase Year-Over-Year

Weave Communications, Inc. reported a revenue of $65.5 million for the first quarter of 2026, marking a 17% increase from $55.8 million in the same period of the previous year. The company’s gross profit also rose to $47.5 million, up from $39.9 million, resulting in a gross margin of 73%. Despite the revenue growth, Weave recorded a net loss of $5.8 million, an improvement from the $8.8 million loss reported in the first quarter of 2025. The loss per share decreased to $0.07 from $0.12 year-over-year.

The company experienced a notable increase in operating expenses, which totaled $53.6 million compared to $49.3 million in the prior year. The rise in expenses was primarily driven by a 22% increase in sales and marketing costs, reflecting Weave's ongoing investment in customer acquisition and brand awareness. Research and development expenses slightly decreased, while general and administrative costs also saw a reduction, indicating a focus on operational efficiency.

Weave's customer base continues to expand, with significant contributions from new customer locations acquired over the past year. The company reported that approximately $8.7 million of the revenue growth was attributable to these new customers, while existing customers contributed an additional $1 million. The company’s dollar-based net revenue retention rate was reported at 92%, down from 98% a year earlier, indicating some challenges in retaining revenue from existing customers.

In terms of strategic developments, Weave completed the acquisition of Vidurama, Inc. in May 2025, which is expected to enhance its AI capabilities in customer engagement. The integration of AI technology into Weave's platform aims to streamline operations for small and medium-sized healthcare practices. The company is also focusing on expanding its market presence beyond North America, with operations already established in India, Latin America, and the Philippines.

Looking ahead, Weave anticipates continued revenue growth driven by customer acquisition and product enhancements. However, the company acknowledges potential challenges, including economic uncertainties and competitive pressures that could impact its ability to attract and retain customers. Weave remains committed to investing in its platform and expanding its offerings to meet evolving customer needs while navigating the complexities of regulatory compliance in the healthcare sector.