Q2 2026 Weave Communications Inc Earnings Call

August 6, 2026

Speaker #1: Hello, everyone. Thank you for joining us, and welcome to the Weave Q2 2026 earnings conference call. After today's prepared remarks, we will host a Q&A session.

Operator: Hello, everyone. Thank you for joining us, and welcome to the Weave Second Quarter 2026 Earnings Conference Call. After today's prepared remarks, we will host a question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Moriah Shilton, Investor Relations. Moriah, please go ahead.

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Mariah Shilton, Investor Relations.

Speaker #1: Mariah, please go ahead.

Speaker #2: Thank you, Al. Good afternoon, everyone, and welcome to Weave's Q2 2026 earnings call. With me on today's call are Brett White, CEO, and Jason Christiansen, CFO.

Moriah Shilton: Thank you, Al. Good afternoon, everyone, and welcome to Weave's Q2 2026 earnings call. With me on today's call are Brett White, CEO, and Jason Christiansen, CFO. During the course of this conference call, we will make forward-looking statements regarding the anticipated performance of our business. These forward-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 SEC filings. Weave disclaimed any obligation to update or revise any forward-looking statements. 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 talk about today will be on a non-GAAP basis, which excludes acquisition-related costs related to certain shareholder matters, amortization of acquired intangible assets, and stock-based compensation.

Speaker #2: During the course of this conference call, we will make forward-looking statements regarding the anticipated performance of our business. These forward-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 SEC filings.

Speaker #2: Weave disclaims any obligation to update or revise any forward-looking statements. Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results.

Speaker #2: Unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis. Which excludes acquisition-related costs, costs related to certain shareholder matters, amortization of acquired intangible assets, and stock-based compensation.

Speaker #2: 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 8-K furnished with the SEC before this call.

Moriah Shilton: 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 8-K furnished with the SEC before this call, as well as the earnings presentation on our Investor Relations website. With that, I will now turn the call over to Brett.

Speaker #2: as well as the earnings presentation on our Investor Relations website. And with that, I will now turn the call over to Brett.

Speaker #3: Thank you, Mariah. And thank you all for joining us today. Weave delivered strong results in the Q2. Total revenue was $67.5 million, $15.5% growth over last year, and payments grew at roughly double that rate.

Brett White: Thank you, Moriah, and thank you all for joining us today. Weave delivered strong results in Q2. Total revenue was $67.5 million, 15.5% growth over last year, and payments grew at roughly double that rate. Revenue retention, measured on a quarterly basis, also improved sequentially. We added the most new locations ever in a single quarter, both on a gross and net basis. Dental, our largest vertical, had a strong quarter, adding more locations on a gross and net basis than it has in the last eight quarters. On the medical front, we released a significantly deeper integration with the athenaOne platform and joined athenahealth's Marketplace, making our innovative solutions available to more than 160,000 specialty medical providers.

Speaker #3: Revenue retention, measured on a quarterly basis, also improved sequentially. We added the most new locations ever in a single quarter, both on a gross and net basis.

Speaker #3: Dental, our largest vertical, had a strong quarter, adding more locations on a gross and net basis than it has in the last eight quarters.

Speaker #3: On the medical front, we released a significantly deeper integration with the Athena One platform and joined Athena Health's marketplace making our innovative solutions available to more than 160,000 specialty medical providers.

Speaker #3: As part of our commitment to deliver increasingly profitable growth, we made significant progress optimizing our go-to-market motion and sales and marketing expense as a percentage of revenue was down sequentially.

Brett White: As part of our commitment to deliver increasingly profitable growth, we made significant progress optimizing our go-to-market motion, and sales and marketing expense as a percentage of revenue was down sequentially. Overall, we expanded our operating margin to almost 5%, up sharply from roughly break even in the same quarter last year. Over the last 12 months, we have increased our revenue by $37 million and seen over 19% of that incremental improvement convert to adjusted EBITDA, demonstrating that our business gets substantially more profitable at scale. With that financial context in mind, I'd like to dive deeper into the fundamentals of our business and why we're so confident in our long-term position. Weave is the unified AI-powered patient engagement and payments platform, purpose-built for healthcare practices. We bring together AI agents and practice staff interactions across voice and text into unified workflows.

Speaker #3: Overall, we expanded our operating margin to almost 5%, up sharply from roughly break-even in the same quarter last year. Over the last 12 months, we have increased our revenue by $37 million and seen over 19% of that incremental improvement convert to adjusted EBITDA, demonstrating that our business gets substantially more profitable at scale.

Speaker #3: With that financial context in mind, I'd like to dive deeper into the fundamentals of our business and why we're so confident in our long-term position.

Speaker #3: Weave is the unified AI-powered patient engagement and payments platform purpose-built for healthcare practices. We bring together AI agents and practice staff interactions across voice and text into unified workflows.

Speaker #3: Acting as an always-on teammate, Weave is the orchestration layer that helps practices continuously improve patient relationships, proactively assign tasks for staff follow-up, and deliver insights so practice owners can measure, analyze, and optimize their businesses.

Brett White: Acting as an always-on teammate, Weave is the orchestration layer that helps practices continuously improve patient relationships, proactively assign tasks for staff follow-up, and deliver insights so practice owners can measure, analyze, and optimize their businesses. Whether I'm talking to owners of independent practices or operators running hundreds of locations, they all share the same need: increasing production. They also share the same three challenges impacting their businesses: scheduling and keeping treatment chairs full, staffing shortages and rising costs, and revenue leakage. Our primary focus at Weave is ensuring that our value to customers in addressing these challenges is a large and increasing multiple of their spending on our solutions. Starting with the most complicated and critical challenge to address, scheduling. Practice owners face increasing margin pressure, making efficient scheduling table stakes and full schedules a top priority.

Speaker #3: Whether I'm talking to owners of independent practices or operators running hundreds of locations, they all share the same need: increasing production. They also share the same three challenges impacting their businesses: scheduling and keeping treatment chairs full, staffing shortages and rising costs, and revenue leakage.

Speaker #3: Our primary focus at Weave is ensuring that our value-to-customers in addressing these challenges is a large and increasing multiple of their spending on our solutions.

Speaker #3: Starting with the most complicated and critical challenge to address: scheduling. Practice owners face increasing margin pressure, making efficient scheduling table stakes and full schedules a top priority.

Speaker #3: A recent survey found that appointment scheduling and confirmation topped the list of tasks front desk staff wish were automated, with 49% citing it as their primary concern.

Brett White: A recent survey found that appointment scheduling and confirmation top the list of tasks front desk staff wish were automated, with 49% citing it as their primary concern. Weave keeps schedules full by closing the gaps that drain production. Our platform has significant advantage because we own the patient practice communication layer through which almost every workflow originates or gets completed. This allows us to execute workflows through the trusted primary business phone number rather than from a random unknown phone number or a five-digit short code, leading to higher patient engagement with important messages. Weave ensures no call or text goes unanswered and converts inquiries into appointments. The impact is real. One doctor put it, Weave's automated texts in response to missed calls drove a 70% decrease in missed opportunities. Automated recall and reactivation campaigns bring lapsed patients back before they slip away for good.

Speaker #3: Weave keeps schedules full by closing the gaps that drain production. Our platform has significant advantage because we own the patient practice communication layer through which almost every workflow originates or gets completed.

Speaker #3: This allows us to execute workflows through the trusted, primary business phone number rather than from a random, unknown phone number or a 5-digit short code, leading to higher patient engagement with important messages.

Speaker #3: Weave ensures no call or text goes appointments. The impact is real. One doctor put it, "Weave's automated texts and response to missed calls drove a 70% decrease in missed opportunities." Automated recall and reactivation campaigns bring lapsed patients back before they slip away for good.

Speaker #3: When a cancellation opens up a slot on the schedule, Weave's waitlist workflows can be activated to convert the empty chair to revenue without manual back-and-forth between the staff and patients.

Brett White: When a cancellation opens up a slot on the schedule, Weave's waitlist workflows can be activated to convert the empty chair to revenue without manual back and forth between the staff and patients. Once someone on the waitlist books, staff are notified instantly, so no one is double-booked or contacted about an appointment that's already gone. Automated smart reminder workflows help keep appointments from being forgotten, and our AI Receptionist lets patients book, confirm, cancel, and reschedule appointments by voice or text around the clock. For one Weave customer, staff members spent hours of each day manually calling patients to confirm their upcoming visits, and the practice still suffered from a consistent pattern of no-shows. Rather than hoping staff would find time during their busy workday to call and nudge patients, the practice implemented a customized automated reminder sequence with Weave.

Speaker #3: Once someone on the waitlist books, staff are notified instantly, so no one is double-booked or contacted about an appointment that's already gone. Automated smart reminder workflows help keep appointments from being forgotten, and our AI receptionist lets patients book, confirm, cancel, and reschedule appointments by voice or text around the clock.

Speaker #3: For one Weave customer, staff members spent hours each day manually calling patients to confirm their upcoming visits, and the practice still suffered from a consistent pattern of no-shows.

Speaker #3: Rather than hoping staff would find time during their busy workday to call and nudge patients, the practice implemented a customized automated reminder sequence with Weave.

Speaker #3: Their no-show rate plummeted from multiple missed appointments every day to just one no-show every 2 weeks. A single automated text sequence captured substantial, otherwise lost revenue, and the doctor noted that the investment in Weave paid for itself almost instantly.

Brett White: Their no-show rate plummeted from multiple missed appointments every day to just one no-show every two weeks. A single automated text sequence captured substantial otherwise lost revenue, and the doctor noted that the investment in Weave paid for itself almost instantly. Moving to challenge number two, staffing shortages and rising labor costs. Over 60% of practices surveyed have experienced a staffing shortage in the last 12 months. These vacant roles often impact scheduling and office production, resulting in reduced patient volume, lower treatment plan acceptance, and longer collection cycles. Additionally, employment costs for these positions have increased significantly due to a shortage of qualified office staff. Weave helps practices streamline their workload by automating the high-volume manual tasks that eat up staff hours, so leaner teams can focus on deeper-level work. The goal is simple: give people hours back so they can focus on patients, not paperwork.

Speaker #3: Moving to challenge number two, staffing shortages and rising labor costs. Over 60% of practices surveyed have experienced a staffing shortage in the last 12 months.

Speaker #3: These vacant roles often impact scheduling and office production, resulting in reduced patient volume, lower treatment plan acceptance, and longer collection cycles. Additionally, employment costs for these positions have increased significantly due to a shortage of qualified office staff.

Speaker #3: Weave helps practices streamline their workload by automating the high-volume manual tasks that eat up staff hours, so leaner teams can focus on deeper-level work.

Speaker #3: The goal is simple: give people hours back so they can focus on patients, not paperwork. With Weave's 24/7 coverage, a front office team manages a single unified inbox, instead of a backlog of missed calls and voicemails.

Brett White: With Weave's 24/7 coverage, a front office team manages a single unified inbox instead of a backlog of missed calls and voicemails. Workflow automation runs across the entire patient journey, from the first intake form to the final balance collection. Pre-appointment insurance verification and eligibility checks reduce the amount of time sitting on hold with the insurance payers. The depth and breadth of the work Weave completes alters the way practices think about staffing and expenses. One doctor told us, I conservatively save over $50,000 a year in salary and overhead expenses by automating tasks and running a leaner team with Weave. Following the departure of their front desk manager, a Virginia-based practice used Weave to automate their front office workflows, which eliminated the need to backfill the role.

Speaker #3: Workflow automation runs across the entire patient journey, from the first intake form to the final balance collection. Pre-appointment insurance verification and eligibility checks reduce the amount of time spent sitting on hold with the insurance payers.

Speaker #3: The depth and breadth of the work Weave completes alters the way practices think about staffing and expenses. One doctor told us, "I conservatively save over $50,000 a year in salary and overhead expenses by automating tasks and running a leaner team with Weave." Following the departure of their front desk manager, a Virginia-based practice used Weave to automate their front office workflows, which eliminated the need to backfill the role.

Speaker #3: In another example, a customer was buried in insurance verification tasks and noted that their practice administrator could spend over an hour on hold with the insurance payer for a single patient.

Brett White: In another example, a customer was buried in insurance verification tasks and noted that their practice administrator could spend over an hour on hold with the insurance payer for a single patient. After they implemented Weave's Insurance Verification, calls to the payers were significantly reduced, and time spent on verification per patient dropped to just a few minutes. Finally, our customers face the challenge of revenue leakage throughout the patient journey, from booking to final collection. Revenue leakage often goes unnoticed. According to multiple industry reports, the average dental practice writes off 9% or more of their gross billings annually. Weave plugs those leaks by embedding payments and revenue cycle management solutions directly into patient interaction workflows. It starts before the visit. Insurance eligibility is confirmed, and co-pays are collected upfront with a card on file or Text to Pay.

Speaker #3: After they implemented Weave's insurance verification, calls to the payers were significantly reduced, and time spent on verification per patient dropped to just a few minutes.

Speaker #3: Finally, our customers faced the challenge of revenue leakage throughout the patient journey, from booking to final collection. Revenue leakage often goes unnoticed. According to multiple industry reports, the average dental practice writes off 9% or more of their gross billings annually.

Speaker #3: Weave plugs those leaks by embedding payments and revenue cycle management solutions directly into patient interaction workflows. It starts before the visit: insurance eligibility is confirmed, and copays are collected upfront with a card-on-file or text-to-pay.

Speaker #3: Text-to-pay sends an automatic payment link from the practice number that patients already trust, helping practices collect money they make otherwise never receive. A practice administrator at a Florida-based dental office was responsible for verifying insurance for 60 to 100 patients a day.

Brett White: Text to Pay sends an automatic payment link from the practice number that patients already trust, helping practices collect money they may otherwise never receive. A practice administrator at a Florida-based dental office was responsible for verifying insurance for 60 to 100 patients a day. After adopting Weave's Insurance Verification, she went from struggling to finish a single day's work to comfortably completing the work in half the time. In addition to the time saved, those verifications represented timely payments instead of denials landing weeks later. What used to be a source of lost revenue and a real strain on the team became something that they could stay ahead of. In-house or third-party payment plans are also available through Weave, allowing providers to offer flexible financing options to help patients say yes to critical treatment.

Speaker #3: After adopting Weave's insurance verification, she went from struggling to finish a single day's work to comfortably completing the work in half the time. In addition to the time saved, those verifications represented timely payments, instead of denials landing weeks later.

Speaker #3: What used to be a source of lost revenue and a real strain on the team became something that they could stay ahead of. In-house or third-party payment plans are also available through Weave, allowing providers to offer flexible financing options to help patients say yes to critical treatment.

Speaker #3: After the appointment, Weave automates follow-up for the small unpaid balances that typically fall to the bottom of the priority list. No front desk team wants to spend a valuable time chasing dozens of $30 copays, but those balances add up.

Brett White: After the appointment, Weave automates follow-up for the small unpaid balances that typically fall to the bottom of the priority list. No front desk team wants to spend the valuable time chasing dozens of $30 co-pays. Those balances add up. After a payment request is created in Weave, reminders are sent automatically so balances don't linger. One doctor told us that Weave reduced their billing process to just 5 seconds per invoice via our Text to Pay solution. A practice administrator in Massachusetts said with Weave Text to Pay, payments came in in just 5 to 10 minutes after patients were notified. As a result, they've collected more than $2 million through Weave Payments. Revenue that once aged in receivables or slipped away entirely is now collected almost immediately. We continue to address these challenges by adding new AI-powered products and features.

Speaker #3: After a payment request is created in Weave, reminders are sent automatically so balances don't linger. One doctor told us that Weave reduced their billing process to just 5 seconds per invoice via our text-to-pay solution.

Speaker #3: A practice administrator in Massachusetts said with Weave Text-to-Pay, payments came in just 5 to 10 minutes after patients were notified. As a result, they've collected more than $2 million through Weave Payments.

Speaker #3: Revenue that once aged in receivables or slipped away entirely is now collected almost immediately. We continue to address these challenges by adding new AI-powered products and features.

Speaker #3: In just one year, we added 70% more AI-powered features to the Weave platform. In the second quarter, custom AI interactions on our platform totaled $70 million, an increase of 165% compared to last year.

Brett White: In just 1 year, we added 70% more AI-powered features to the Weave platform. In Q2, custom AI interactions on our platform totaled 70 million and increased by 165% compared to last year. Call Intelligence, our longest-tenured standalone AI product, had 143% increase in interactions. Customers using Call Intelligence analyzed more than 14.5 million calls in Q2, servicing 810,000 unscheduled opportunities for staff follow-up. Only a portion of these opportunities were acted upon by staff. While millions of dollars in production value were captured, millions more were missed. A gap our AI Receptionist is uniquely positioned to close. Our AI Receptionist helps solve the core problem of 24/7 scheduling automation, keeping schedules full without requiring additional staff, providing clear benefits for single-location practices and scalable impact for multi-location organizations. Our AI Receptionist takes action after work hours or when the front office staff are busy.

Speaker #3: Call Intelligence, our longest-tenured standalone AI product, had a 143% increase in interactions. Customers using Call Intelligence analyzed more than 14.5 million calls in Q2, servicing 810,000 unscheduled opportunities for staff follow-up.

Speaker #3: Only a portion of these opportunities were acted upon by staff. While millions of dollars in production value were captured, millions more were missed—a gap our AI receptionist is uniquely positioned to close.

Speaker #3: Our AI receptionist helps solve the core problem of 24/7 scheduling automation, keeping schedules full without requiring additional staff, providing clear benefits for single-location practices and scalable impact for multi-location organizations.

Speaker #3: Our AI receptionist takes action after work hours or when the front office desk staff are busy. Today, our AI receptionist answers inbound calls and text messages, responds to common patient questions, and books and manages appointments.

Brett White: Today, our AI Receptionist answers inbound calls and text messages, responds to common patient questions, and books and manages appointments. As communicated on our last call, in May, we provided early access to voice capabilities on our AI Receptionist, representing the first step in moving beyond text to omni-channel patient engagement. The practice now has a complete view of all patient interactions and an agent that acts. Customer feedback has been incredibly positive. A customer in Georgia told us that using this product doubled the effectiveness of the receptionist function in just 30 days. A dentist office shared with us that their AI Receptionist gave their front desk staff much-needed breaks while ensuring 100% of missed calls received an immediate response. Another customer described the relief of having patient scheduling captured over the weekend.

Speaker #3: As communicated on our last call, in May we provided early access to voice capabilities on our AI receptionist. Representing the first step in moving beyond text, to omnichannel patient engagement.

Speaker #3: The practice now has a complete view of all patient interactions and an agent that acts. Customer feedback has been incredibly positive. A customer in Georgia told us that using this product doubled the effectiveness of the receptionist function in just 30 days.

Speaker #3: A dentist's office shared with us that their AI receptionist gave their front desk staff much-needed breaks while ensuring 100% of missed calls received an immediate response.

Speaker #3: Another customer described the relief of having patients scheduling captured over the weekend. They told us that the best part of Monday morning is now seeing all the appointments the AI receptionist booked while the team was away.

Brett White: They told us that the best part of Monday morning is now seeing all the appointments the AI Receptionist booked while the team was away. As AI agents take on more of the routine administrative work, practice owners are able to run their business with technology working alongside their team. We see this freeing up staff to focus on things machines can't do. Front office teams become the reason patients feel known and cared for. They take on managing and directing the practice's AI workforce. They become the engine behind new patient acquisition. In short, AI Receptionist isn't just automating tasks, it's elevating the role of the front office. Before I turn the call over to Jason, I want to spend a couple of minutes updating you on our go-to-market strategy. In previous calls, we shared our goal to improve the productivity of our go-to-market functions.

Speaker #3: As AI agents take on more of their routine administrative work, practice owners are able to run their business with technology working alongside their team.

Speaker #3: We see this freeing up staff to focus on things machines can't do. Front office teams become the reason patients feel known and cared for.

Speaker #3: They take on managing and directing the practice's AI workforce. And they become the engine behind new patient acquisition. In short, AI receptionist isn't just automating tasks; it's elevating the role of the front office.

Speaker #3: Before I turn the call over to Jason, I want to spend a couple of minutes updating you on our go-to-market strategy. In previous calls, we shared our goal to improve the productivity of our go-to-market functions.

Speaker #3: We have implemented some key changes in our go-to-market organization, which sharper focus on ensuring that function is structured to support stronger growth with expanding profitability as we continue to scale.

Brett White: We have implemented some key changes in our go-to-market organization, with sharper focus on ensuring that function is structured to support stronger growth with expanding profitability as we continue to scale. In H1, we verticalized our inbound sales function, putting specialized sellers in front of our key end markets. As new locations from specialty medical accelerate, we see increasing value in having experts showcase our value proposition and speak to vertical specific pain points. We have now reached the scale that makes verticalization a cost-effective investment. Additionally, we gradually implemented an SDR model in our outbound sales function so that account executives can focus on demoing and closing. This moves prospecting from our account executives to our specialized SDR team, which now feeds a growing flow of qualified opportunities into the funnel.

Speaker #3: In the first half of the year, we verticalized our inbound sales function, putting specialized sellers in front of our key end markets. As new locations, especially medical, accelerate, we see increasing value in having experts showcase our value proposition and speak to vertical-specific pain points.

Speaker #3: We have now reached the scale that makes verticalization a cost-effective investment. Additionally, we implemented we gradually implemented an SDR model in our outbound sales function so that account executives can focus on demoing and closing.

Speaker #3: This moves prospecting from our account executives to our specialized SDR team, which now feeds a growing flow of qualified opportunities into the funnel. This change gives us a team of more senior account executives with our top closers running full calendars with higher quality meetings.

Brett White: This change gives us a team of more senior account executives with our top closers running full calendars with higher quality meetings. Early indications from these changes are very positive. As stated earlier, we added a record number of new locations in the quarter, both gross and net, with particularly strong performance in dental. Importantly, we did that while reducing sales and marketing expenses as a percentage of revenue by 240 basis points sequentially. That is exactly the combination that we are building toward. More growth per dollar of sales and marketing. As with any change of this nature, the transition came with an adjustment period.

Speaker #3: Early indications from these changes are very positive. As stated earlier, we added a record number of new locations in the quarter, both gross and net, with particularly strong performance in dental.

Speaker #3: Importantly, we did that while reducing sales and marketing expenses as a percentage of revenue by 240 basis points sequentially. That is exactly the combination that we are building toward.

Speaker #3: More growth per dollar of sales and marketing. As with any change of this nature, the transition came with an adjustment period. Over the May to July period, as lead generation gradually moved to our SDR team, and our account executives shifted onto demoing and closing, it took time to calibrate the lead distribution with the appropriate execution, resulting in bookings slightly below our expectation, despite very strong demand.

Brett White: Over the May to July period, as lead generation gradually moved to our SDR team and our account executives shift onto demoing and closing, it took time to calibrate the lead distribution with the appropriate execution, resulting in booking slightly below our expectation, despite very strong demand. This impact is reflected in our revenue outlook, which Jason will walk through in a moment. This is a normal cost of moving to a more focused sales model. We have already sharpened lead routing and tightened incentive alignment. Given how positive the early indications have been, we recently made the decision to accelerate and complete this transition in August to compress the remainder of the adjustment period and build on our momentum. These adjustments to our go-to-market function set us up for stronger, higher-performing business going forward. Our current pipeline is stronger than ever.

Speaker #3: This impact is reflected in our revenue outlook, which Jason will walk through in a moment. This is a normal cost of moving to a more focused sales model.

Speaker #3: We have already sharpened lead routing and tightened incentive alignment. Given how positive the early indications have been, we recently made the decision to accelerate and complete this transition in August, to compress the remainder of the adjustment period and build on our momentum.

Speaker #3: These adjustments to our go-to-market function set us up for stronger, higher-performing business going forward. Our current pipeline is stronger than ever, our sales organization is now operating as designed, and our conviction in this model is high.

Brett White: Our sales organization is now operating as designed. Our conviction in this model is high. We believe we are well-positioned for long-term success with a more efficient operating infrastructure, a growing customer base, and an expanding market opportunity. With that, I'll turn the call over to Jason to walk through the financials in more detail.

Speaker #3: We believe we are well positioned for long-term success with a more efficient operating infrastructure, a growing customer base, and an expanding market opportunity. With that, I'll turn the call over to Jason to walk through the financials in more detail.

Speaker #1: Thanks, Brett. And good afternoon, everyone. The second quarter of 2026 was a solid quarter for Weave, with continued revenue growth and much improved operating income as we continue to execute across the business.

Jason Christiansen: Thanks, Brett, and good afternoon, everyone. The second quarter of 2026 was a solid quarter for Weave, with continued revenue growth and much improved operating income as we continue to execute across the business. In the second quarter, we produced $67.5 million in total revenue, which represents 15.5% year over year growth, driven by payments which grew at roughly twice the rate of total revenue and acceleration in new location additions in the last 12 months. Q2 was another record quarter in gross and net location adds. The largest increase was in specialty medical, with accelerating growth in all three of our more established verticals: dental, optometry, and veterinary. A slight headwind to Q2 revenue was a quarter over quarter and year over year decrease in onboarding revenue due to lower setup fees. Moving forward, we are renewing our focus on consistently collecting these one-time setup fees.

Speaker #1: In the second quarter, we produced 67.5 million dollars in total revenue, which represents 15.5% year-over-year growth. Driven by payments, which grew at roughly twice the rate of total revenue, and acceleration in new location additions in the last 12 months.

Speaker #1: Q2 was another record quarter in gross and net location ads, the largest increase was in specialty medical, with accelerating growth in all three of our more established verticals, dental, optometry, and veterinary.

Speaker #1: A slight headwind to Q2 revenue was a quarter-over-quarter and year-over-year decrease in onboarding revenue due to lower setup fees. Moving forward, we are renewing our focus on consistently collecting these one-time setup fees.

Speaker #1: Gross profit grew 16% year-over-year to 49 million dollars. Gross margin for the quarter was 72.6%, representing a year-over-year improvement of 30 basis points. Customer support continues to be a source of leverage as expenses have decreased as a percentage of revenue through technology and AI adoption, product improvements, self-serve capabilities, and other operational improvements focused on elevating the customer experience.

Jason Christiansen: Gross profit grew 16% year over year to $49 million. Gross margin for the quarter was 72.6%, representing a year over year improvement of 30 basis points. Customer support continues to be a source of leverage as expenses have decreased as a percentage of revenue through technology and AI adoption, product improvements, self-serve capabilities, and other operational improvements focused on elevating the customer experience. These improvements were offset in part by increased usage fees for messaging and trued up invoices on certain vendor agreements. Q2 also has our largest cohort of customers who pay annually in advance, which results in an increase in credit card fees tied to the payment of customer invoices. These last two points comprise the gross margin decrease of 60 basis points sequentially. Subscription and payment processing gross margin was 77.9%.

Speaker #1: These improvements were offset in part by increased usage fees for messaging and true-up invoices on certain vendor agreements. Q2 also has our largest cohort of customers who pay annually in advance, which results in an increase in credit card fees tied to the payment of customer invoices.

Speaker #1: These last two points comprise the gross margin decrease of 60 basis points sequentially. Subscription and payment processing gross margin was 77.9%. Turning to our reported dollar-based revenue retention rates, GRR was 89%, and NRR was 92%, holding steady.

Jason Christiansen: Turning to our reported dollar-based revenue retention rates, GRR was 89% and NRR was 92%, holding steady, with continued improvement in the monthly net revenue retention rate through Q2. As such, it can take multiple quarters for improvements to show through in reported metrics. Total operating expenses for Q2 were 68% of revenue. General and administrative expenses were $10 million and decreased over 200 basis points year over year to 15% of revenue from 17% in Q2 2025, as we held these expenses flat year over year. Research and development expenses were also $10 million, or 15% of revenue, and decreased by 40 basis points compared to the prior year.

Speaker #1: With continued improvement in the monthly net revenue retention rate through Q2. As a reminder, our reported dollar-based revenue retention rates are a weighted average of the previous 12 months' monthly retention rates.

Speaker #1: As such, it can take multiple quarters for improvements to show through in reported metrics. Total operating expenses for Q2 were 68% of revenue. General and administrative expenses were $10 million and decreased over 200 basis points year-over-year to 15% of revenue, from 17% in Q2 2025, as we held these expenses flat year-over-year.

Speaker #1: Research and development expenses were also $10 million, or 15% of revenue, and decreased by 40 basis points compared to the prior year. We saw significant improvement in sales and marketing expenses as a percent of revenue, which totaled $25.8 million, or 38% of revenue.

Jason Christiansen: We saw significant improvement in sales and marketing expenses as a percent of revenue, which totaled $25.8 million or 38% of revenue. This represents a 160 basis point improvement from last year and, more importantly, a sequential improvement of 240 basis points. We expect improvements in our sales and marketing efficiency to continue as the go-to-market changes Brett discussed get reflected in our results. Operating income for the quarter was $3.2 million compared to break even in Q2 2025 and exceeded the top end of our guidance. Operating margin was 4.7%, a 460 basis point improvement over the prior year, and an 80 basis point improvement sequentially. The improvement in sales and marketing directly contributed to these profitability improvements. Additionally, we converted 34% of the Q2 revenue growth year over year into incremental operating income, which we are really pleased with.

Speaker #1: This represents a 160 basis point improvement from last year, and more importantly, a sequential improvement of 240 basis points. We expect improvements in our sales and marketing efficiency to continue as the go-to-market changes Brett discussed get reflected in our results.

Speaker #1: Operating income for the quarter was 3.2 million dollars, compared to break-even in Q2, 2025, and exceeded the top end of our guidance. Operating margin was 4.7%, a 460 basis point improvement over the prior year, and an 80 basis point improvement sequentially.

Speaker #1: The improvement in sales and marketing directly contributed to these profitability improvements. Additionally, we converted 34% of the Q2 revenue growth year-over-year into incremental operating income, which we are really pleased with.

Speaker #1: That is a significant improvement over the 13% incremental margin in Q2 2025, and the 26% incremental margin in the prior quarter. Turning to the balance sheet and cash flow, we ended the quarter with $78.5 million in cash and short-term investments.

Jason Christiansen: That is a significant improvement over the 13% incremental margin in Q2 2025 and the 26% incremental margin in the prior quarter. Turning to the balance sheet and cash flow, we ended the quarter with $78.5 million in cash and short-term investments, an increase of $5.8 million sequentially. Cash from operating activities in Q2 was $10.2 million, and free cash flow was $8.7 million. We were free cash flow positive for H1 2026. Looking ahead, for the full year 2026, we now expect total revenue to grow to be in the range of $273 million to $275 million, which reflects the impact of the go-to-market transition adjustment period Brett discussed. As a result of the same initiatives, we are raising our non-GAAP operating income guidance to reflect the improvements in operating efficiency and now expect it to be in the range of $12 million to $14 million.

Speaker #1: An increase of 5.8 million dollars sequentially. Cash from operating activities in Q2 was 10.2 million dollars, and free cash flow was 8.7 million dollars.

Speaker #1: We were free cash flow positive for the first half of 2026. Looking ahead, for the full year, 2026, we now expect total revenue to grow to be in the range of 273 million dollars to 275 million dollars, which reflects the impact of the go-to-market transition adjustment period Brett discussed.

Speaker #1: As a result of the same initiatives, we are raising our non-GAAP operating income guidance to reflect the improvements in operating efficiency and now expect it to be in the range of 12 million dollars to 14 million dollars.

Speaker #1: We expect our enhanced go-to-market model to support sustained revenue growth, supported by a more focused and efficient sales and marketing organization. This should enable continued operating leverage as we scale, and create a clear path to greater profitability over time.

Jason Christiansen: We expect our enhanced go-to-market model to support sustained revenue growth, supported by a more focused and efficient sales and marketing organization. This should enable continued operating leverage as we scale and create a clear path to greater profitability over time. For Q3 2026, we expect total revenue to be in the range of $68.6 million to $69.6 million. We expect Q3 operating income to be in the range of $3 million to $4 million. We expect our weighted average share count for Q3 to be approximately 80.2 million shares and approximately 79.8 million shares for the full year. With that, I'll turn the call over to the operator for Q&A.

Speaker #1: For the third quarter of 2026, we expect total revenue to be in the range of 68.6 million dollars to 69.6 million dollars. We expect third quarter operating income to be in the range of 3 million dollars to 4 million dollars.

Speaker #1: And we expect our weighted average share count for Q3 to be approximately 80.2 million shares and approximately 79.8 million shares for the full year.

Speaker #1: With that, I'll turn the call over to the operator for Q&A.

Speaker #2: We will now begin the question and answer session. If you would like to ask a question, please press star, then 1 to raise your hand.

Operator: We will now begin the question and answer session. If you would like to ask a question, please press star then one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Alex Sklar from Raymond James. Your line is now open.

Speaker #2: To withdraw your question, press star, 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #2: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Alex Sklar from Raymond James.

Speaker #2: Your line is now open.

Speaker #1: Great. Thank you. Brett—and maybe for you too, Jason—a couple of questions on the revenue outlook to start here. Can you just help reconcile the comments about the record gross and net location in the quarter?

Alex Sklar: Great. Thank you. Brett, and maybe for you too, Jason, just a couple of questions on the revenue outlook to start here. Can you just help reconcile the comments about the record growth in net locations in the quarter? I think I heard payments continue to be 2x the growth rate of core subscription with your comments on the go-to-market disruption that you saw intra-quarter and how that all plays together with the lower growth outlook? Thanks.

Speaker #1: I think I heard payments continues to be 2x the growth rate of kind of core subscription. With your comments on kind of the go-to-market disruption, that you saw interquarter and how that all plays together with the lower growth outlook?

Speaker #1: Thanks.

Speaker #3: Yeah. Thank you. So as Brett highlighted, in his prepared remarks, so I guess let me back up. We had really strong growth in Q1 and Q2 from a location ads perspective.

Jason Christiansen: Thank you. As Brett highlighted in his prepared remarks, I guess let me back up. We had really strong growth in Q1 and Q2 from a location adds perspective. We've seen good strength there. Most of that is continued flow-through from new deals sold up to that point. As we got to the sales transition, that period between May and July that he referenced is where we'll begin to see some of the impacts of just some of the challenges on new sales as they came through. The demand remained very strong through that period. There were some challenges with the lead distribution side as we talked about. That's something that's really just going to flow through in the back half of the year from a revenue guidance perspective. That's what you're seeing within the revenue guide is the impact of that.

Speaker #3: We've seen good strength there. Most of that is continued flow-through from new deals sold up to that point. As we got to the sales transition, that period between May and July that he referenced is where we'll begin to see some of the impacts of just some of the challenges on new sales as they came through the demand remained very strong through that period.

Speaker #3: And there were some challenges with the lead distribution side, as we talked about. So that’s something that’s really just going to flow through in the back half of the year.

Speaker #3: From a revenue guidance perspective, and that's what you're seeing within the revenue guide is the impact of that.

Speaker #4: Yeah. So, booking shortfalls in May, June, and July—a bit of that would actually show up in Q2, but it's going to show up in Q3, and then the waterfall of that into Q4.

Brett White: Booking shortfalls in May, June, and July, only a bit of it would actually show up in Q2, and it's going to show up in Q3, and the waterfall of that into Q4.

Speaker #1: Okay. I appreciate that color. Maybe just a quick follow-up on that. In terms of linearity, since you've made these go-to-market changes, any color on that May to July period?

Alex Sklar: I appreciate that color. Maybe just a quick follow-up on that. In terms of linearity since you've made these go-to-market changes, any color on that May to July period, did you already start to see improvements? It looks like Q4 maybe embeds a little bit of an improvement versus Q3. Is that because you're already starting to see improvements? Is that AI Receptionist coming in? Related, any update on the relative size of the overall team now on the sales and marketing front? It sounds like more weighting to the SDR. Are quota heads down? Is it the same size team, we're just splitting them up a little bit differently in terms of verticals? Just a little bit more color on go-to-market. Thanks.

Speaker #1: Did you already start to see improvements? It looks like kind of Q4 maybe embeds a little bit of an improvement versus third quarter. Is that because you're already starting to see improvements?

Speaker #1: Is that AI receptionist coming in? And then related, any update on the relative size of the overall team now on the sales and marketing front?

Speaker #1: It sounds like more weighting to the SDR. Our quota had gone down. Is it kind of the same size team? We're just splitting them up a little bit differently in terms of verticals—just a little bit more color on go-to-market.

Speaker #1: Thanks.

Speaker #4: Sure. So, as far as timing and progress, we actually did two things there. We verticalized the inbound team, and we've seen positive results from that.

Brett White: As far as timing and progress, we have actually two things that we did there. We verticalized the inbound team, we've seen positive results on that. We verticalized them in Q1, that's part of what we saw the improvement in dental, also strong location adds there. That would be we're already seeing positive indicators there. On the outbound side, that's the part that got disrupted May to July. We originally planned to do a phased hybrid transition that was going to go, I think, through October, we actually pulled that transition completion date forward to the first week in August. We've just completed the transition first week in August, now, we'll see through August and September how the impact flows through.

Speaker #4: We verticalized them kind of in Q1, and that's part of why we saw the improvement in dental. And also, strong location ads there.

Speaker #4: So that would be we're already seeing positive indicators there. On the outbound side, that's the part that got disrupted May to July. We originally planned to do a phased hybrid transition that was going to go, I think, through October and we actually pulled that transition completion date forward to the first week in August.

Speaker #4: So we've just completed the transition. First week in August. And so now we'll see through August and September how the impact flows through. The early indicators are that the team likes the changes because we're putting our top sellers, we're giving our top sellers the best leads, and they don't have to do prospecting anymore.

Brett White: The early indicators are that the team likes the changes because we're putting our top sellers, we're giving our top sellers the best leads, and they don't have to do prospecting anymore. That just makes a more efficient model. The optimism is high on the team, and we just need to execute on the new model. As far as the team size, the team size is smaller. We did reduce the size of the outbound team. Some of the former sellers were actually offered SDR positions and accepted. The good news is a number of the new SDR positions that were created were actually those jobs were filled by existing team members, so the ramp time is much quicker, but the team is smaller for sure.

Speaker #4: So, that just makes a more efficient model. The optimism is high on the team, and we just need to execute on the new model.

Speaker #4: And then as far as the team size, the team size is smaller. So we did reduce the size of the outbound team, and some of the former sellers were actually offered SDR positions and accepted.

Speaker #4: And so the good news is a number of the new SDR positions that were created were actually those jobs were filled by existing team members.

Speaker #4: So that gets the ramp time much quicker. But the team is definitely smaller.

Speaker #1: Okay. Great color on that. Maybe just squeeze in one more for me, just on specialty medical specifically. Brett, you talked about the deeper integration with athenahealth.

Alex Sklar: Okay. Great color on that. Maybe just squeeze in one more for me, just on specialty medical specifically. Brett, you talked about the deeper integration with athenahealth. It appears to include some better payment workflow there. Can you just talk to us about the opportunity within specialty medical specifically versus those other verticals in terms of where the average revenue per customer size is today and how some of these deeper integrations offer you from an upsell unlock perspective?

Speaker #1: It appears to include some better payment workflow there. Can you just talk to us about the opportunity within specialty medical specifically versus those other verticals in terms of where the average revenue per customer size is today and how some of these deeper integrations offer you from an upsell unlock perspective?

Speaker #4: You bet. So one of the things that the data shows is, and we've talked about this a lot, you enter a vertical, you get the deep integrations, you're over time, your ASP goes up, your retention goes up, retention rate goes up, and your CAC goes down.

Brett White: You bet. One of the things that the data shows is, we've talked about this a lot. You enter a vertical, you get the deep integrations, over time, your ASP goes up, your retention rate goes up, and your CAC goes down. That is driven by vertical, but it's also most importantly driven by integrations. The deeper the integrations, the better the unit economics are. This data just proves that time and time again. We are relatively new in specialty medical versus dental, opto, vet, we had fewer integrations. We were newer to the market, so ASP was lower, retention rates were lower, and CAC was higher. Getting a deeper integration into athenahealth is huge. First of all, it's a big platform. It serves a lot of subverticals, but specifically in the subverticals where we are. They've got 160,000 locations, I think.

Speaker #4: And that is driven by vertical, but it's also most importantly driven by integrations. The deeper the integrations, the better the unit economics are. And this data is just proves out time and time again.

Speaker #4: Because we are relatively new and specialty medical versus dental opto vet, we had fewer integrations. We were newer to the market, so ASP was lower.

Speaker #4: The retention rates were lower, and CAC was higher. Getting a deeper integration into Athena Health is huge. First of all, it's a big platform.

Speaker #4: It serves a lot of subverticals, but specifically in the subverticals where we are, they've got 160,000 locations, I think. And we went from our integrations go from level one to level five.

Brett White: Our integrations go from level 1 to level 5. With this integration, we went from 1 to 4, which is fantastic. That'll definitely improve our revenue opportunity, our retention rates, and over time, retention rates, ASP. The integrations are the key, and going deeper in such a broad and significant platform is a big deal. We expect to continue to play this playbook through the medical vertical, which will improve those unit economics over time, which will obviously increase the average unit economics for the business.

Speaker #4: And with this integration, we went from one to four, which is fantastic. So that'll definitely improve our revenue opportunity, our retention rates, and over time, retention rates, ASP, but the integrations are the key.

Speaker #4: And going deeper in such a broad and significant platform is a big deal. And we expect to continue to play this playbook through the medical vertical, which will improve those unit economics over time, which will obviously increase the average unit economics for the business.

Speaker #1: Awesome. I appreciate that color and exciting opportunity there.

Alex Sklar: Awesome. I appreciate that color and exciting opportunity there.

Speaker #3: Can I add just a couple of things? Just as a reminder, level one integration is part of what makes Athena very exciting. Brett talked about the level one integration.

Jason Christiansen: Can I add just a couple of things? Just as a reminder, level 1 integration is part of what makes Athena very exciting. Brett talked about the level 1 integration. That's basically just a contact sync where we're reading patient names, basic information, phone numbers. Level 4 is where you start getting read and write capabilities across multiple tables within the EHR. That's a significant step to go from a level 1 to a level 4. Just to address your question about ASPs within the space, as you think about integrated versus non-integrated. In those areas within primary care and plastic surgery where we've got these integrations, we already see that we're able to start getting the improved ASPs that we talk about. You have to follow more of the integration strategy, and that's already starting to show.

Speaker #3: That's basically just a contact sync where we're reading patient names, basic information, phone numbers. Level four is where you start getting read and write capabilities across multiple tables within the EHR.

Speaker #3: Level which that's a significant step. To go from a level one to a level four. And just to address your question about ASPs within the space, as you think about integrated versus non-integrated, in those areas within primary care and plastic surgery where we've got these integrations, we already see that we're able to start getting the improved ASPs that we talk about.

Speaker #3: But you have to follow more of the integration strategy. And that's already starting to show.

Speaker #1: Perfect. Thank you both.

Alex Sklar: Perfect. Thank you both.

Speaker #2: The next question comes from Hannah Rudolph with Piper Sandler. Your line is now open.

Operator: The next question comes from Hannah Rudoff with Piper Sandler. Your line is now open.

Speaker #5: Hi guys. Thanks for taking my questions today. I just wanted to double-click on the go-to-market changes. It totally makes sense that there would be disruption from these changes, but Jason, as you were resetting the guide, I guess, how did you think about how long the disruption could persist?

Hannah Rudoff: Hi, guys. Thanks for taking my questions today. Just wanted to double-click on the go-to-market changes. It totally makes sense that there would be disruption from these changes. Jason, as you were resetting the guide, I guess, how did you think about how long the disruption could persist? Said kind of another way, how confident do you feel in the guide, and would you view it as de-risked here? What assumptions are you embedding in the guide around bookings, net adds, and AI adoption?

Speaker #5: And said kind of another way, how confident do you feel in the guide and would you view it as de-risked here? And what assumptions are you embedding in the guide around bookings, net ads, and AI adoption?

Speaker #3: Yeah. The guidance reflects our best thinking and projections right now. Based on these changes, we accelerated the timeline here to August for when we took action to fully cut over to some of the changes that Brett talked about with full closer versus full SDR motion to sourcing motions.

Jason Christiansen: Yeah. The guidance reflects our best thinking and projections right now based on these changes. We accelerated the timeline here to August for when we took action to fully cut over to some of the changes that Brett talked about with full closer versus full SDR motion to sourcing motions. With that, we anticipate that within the next couple of months, we should be back to executing more in line with what we had originally anticipated.

Speaker #3: And with that, we anticipate that within the next couple of months, we should be back to executing more in line with what we had originally anticipated.

Speaker #5: Got it. And just want to make sure there's nothing you're seeing beyond the internally executed changes. It sounds like you're saying no changes in the demand environment, but have you seen any changes to things like sales cycles or budget scrutiny and things like that?

Hannah Rudoff: Got it. Just want to make sure there's nothing you're seeing beyond the internally executed changes. Sounds like you're saying no changes in the demand environment. Have you seen any changes to things like sales cycles or budget scrutiny and things like that?

Speaker #4: So I recently was at DICOMA, which is a very large DSO event in Denver. It's actually the largest DSO event in the US several weeks ago.

Brett White: I recently was at Dykema, which is a very large DSO event in Denver. It's actually the largest DSO event in the US several weeks ago, and met with our largest customers and also really large prospects. One message that just came in over and over as we talked to these CEOs is their need to standardize workflows across all of their practices. A DSO may own hundreds of practices, and they don't all have the same infrastructure. They may have different practice management platforms. There's just this new sense of urgency around standardizing the workflows. When we sit and talk to them about what Weave can deliver as far as standardizing across hundreds of locations, just standardizing the front office locations, what we can deliver and what's on the roadmap.

Speaker #4: And met with our largest customers and also really large prospects. And one message that just came in over and over and over as we talked to these CEOs is their need to standardize workflows across all of their practices.

Speaker #4: So a DSO may own hundreds of practices. And they don't all have the same infrastructure. They may have different practice management platforms. They may have different.

Speaker #4: But there's just this new sense of urgency around standardizing the workflows. And when we sit and talk to them about what we can deliver, as far as standardizing across hundreds of locations, just standardizing the front office locations, what we can deliver, and what's on the roadmap.

Speaker #4: And when we talk to them about what AI receptions can do for them, their eyes light up. So I felt left there and subsequent confident conversations really optimistic around the industry's need for solutions that we offer so I felt really good coming out of there.

Brett White: When we talk to them about what AI Receptionist can do for them, their eyes light up. I felt left there in subsequent conversations, really optimistic around the industry's need for solutions that we offer. I felt really good coming out of there. We own, I think, what could be classified as the most defensible position in SMB healthcare, and that's the patient practice communication layer, which essentially all workflow originates or gets completed. I think we're in a great position, and I haven't seen any slackening of the demand environment. Certainly, these hiccups we had in this sales transition was not demand related at all. In fact, the SDR motion, actually, one of the reasons we had this hiccup is the SDR motion was doing so well.

Speaker #4: We've got this we own, I think, what could be classified as the most defensible position in SMB healthcare. And that's the patient practice communication layer, which essentially all workflow originates or gets completed.

Speaker #4: So I think our position we're in a great position. And I haven't seen any slacking a slackening of the demand environment, certainly this hiccups we had in this sales transition was not demand related at all.

Speaker #4: And in fact, the SDR motion actually one of the reasons we had this hiccup is the SDR motion was doing so well. They were beating their targets as far as setting up appointments, that the AEs calendars actually just got too full with lower value opportunities as opposed to still having free time on their own to prospect some of the higher value opportunities.

Brett White: They were beating their targets as far as setting up appointments that the AEs' calendars actually just got too full with lower value opportunities, as opposed to still having free time on their own to prospect some of the higher value opportunities. I'm not seeing anything on the demand side. I'm super optimistic about our future. In fact, we announced a partnership with the American Dental Association, I think, back in March, and it's doing really well. It's moved ahead to our second most productive affiliate program in just a few short months. The industry needs to standardize. The industry needs to solve the three problems that I talked about, and those are not going away. Those are getting more intense. I'm just super optimistic about our future.

Speaker #4: So I'm not seeing anything on the demand side. I'm super optimistic about our future. And in fact, we announced a partnership with the American Dental Association I think back in March and it's doing really well.

Speaker #4: It's already it's moved ahead to our second most productive affiliate program in just a few short months. So the industry needs to standardize. The industry needs to solve the three problems that I talked about.

Speaker #4: And those are not going away. Those are getting more intense. And so I'm just super optimistic about our future.

Speaker #5: Super helpful caller. Thanks, guys.

Hannah Rudoff: Super helpful color. Thanks, guys.

Speaker #2: The next question comes from the line of Parker Lane with Stiefel. Your line is now open. Please go ahead.

Operator: The next question comes from the line of Parker Lane with Stifel. Your line is now open. Please go ahead.

Speaker #1: Hey guys. Good afternoon. Thanks for taking the questions. Brett, if I heard you guys right, I think it was the most locations for dental in about eight quarters.

J. Parker Lane: Hey guys, good afternoon. Thanks for taking the questions. Brett, if I heard you guys right, I think it was the most locations for dental in about 8 quarters. I was wondering if you could dig into that a little bit more, if there was anything in particular this quarter, either from a demand perspective or some of the changes you've made that contributed to that. How do you view the sustainability of the trends you're seeing on the net add spaces in the dental vertical in particular?

Parker Lane: Hey guys, good afternoon. Thanks for taking the questions. Brett, if I heard you guys right, I think it was the most locations for dental in about 8 quarters. I was wondering if you could dig into that a little bit more, if there was anything in particular this quarter, either from a demand perspective or some of the changes you've made that contributed to that. How do you view the sustainability of the trends you're seeing on the net add spaces in the dental vertical in particular?

Speaker #1: So I was wondering if you could dig into that a little bit more. If there was anything in particular this quarter either from demand perspective or some of the changes you've made that contributed to that.

Speaker #1: And how do you view the sustainability of the trends you're seeing on the net ads basis in the dental vertical in particular?

Speaker #4: Yeah. Hey Parker. I think I attribute it to focus. Verticalizing the inbound sales force really got focus and got us putting the top sellers with industry expertise in front of our highest value leads.

Brett White: Yeah. Hey, Parker. I attribute it to focus. Verticalizing the inbound sales force really got focus and got us putting the top sellers with industry expertise in front of our highest value leads. Instead of having a seller split their time between a dental lead and a medical lead, we now have enough volume that we can split those up and really get focused conversations and the ability to address industry vertical specific pain points. That would be one. We've made a number of changes on the marketing side as well, on how we drive leads, and that's shown, I think, real progress. Anything you would add?

Speaker #4: So instead of having a seller split their time between a dental lead and a medical lead, we now have enough volume that we can split those up and really get focused conversations and the ability to address industry vertical specific pain points.

Speaker #4: So that would be one. We've made a number of changes on the marketing side as well, on how we drive leads, and that's shown, I think, real progress.

Speaker #4: Anything you would add?

Speaker #3: No. I think it really comes down to the focus, the verticalization across sales and marketing is Brett highlighted. I think things like the American Dental Association leaning into a relationships like that.

Jason Christiansen: No. I think it really comes down to the focus, the verticalization across sales and marketing, as Brett highlighted. I think things like the American Dental Association, leaning into relationships like that. All indications from my vantage point are that this is not a fleeting opportunity, that I think we're as encouraged as we've ever been on the opportunity long term. The position that we hold as we look forward, and the need for these practices as they modernize and standardize and digitalize their practices and their workflows, I think it's a real opportunity for us. Long-term outlook, the opportunity's still there for us. We haven't lowered our long-term prospects in view of our growth trajectory. We view this as more just a, I'll say, a ripple in the path that we're working through.

Speaker #3: And all indications from my vantage point are that this is not a fleeting opportunity. That I think we're as encouraged as we've ever been on the opportunity long term.

Speaker #3: And the position that we hold as we look forward and the need for these practices as they modernize and standardize and digitalize their practices and their workflows I think it's a real opportunity for us.

Speaker #3: So long term outlook, the opportunities still there for us. We haven't lowered our long term prospects in view of our growth trajectory. We view this as more just I'll say a ripple in the path that we're working through.

Speaker #1: Got it. Thanks for the feedback, guys.

J. Parker Lane: Got it. Thanks for the feedback, guys.

Parker Lane: Got it. Thanks for the feedback, guys.

Speaker #2: The next question comes from the line of Mark Shappell with Loop Capital Markets. Your line is now open. Please go ahead.

Operator: The next question comes from the line of Mark Schappel with Loop Capital Markets. Your line is now open. Please go ahead.

Speaker #6: Thank you for taking my question. Brett, AI engagement continues to grow. As reflected in the growth of AI interactions across the platform that you spelled out.

Mark Schappel: Thank you for taking my question. Brett, AI engagement continues to grow, as reflected in the growth of AI interactions across the platform that you spelled out. I was wondering if you could just talk a little about how that's translating into financial results, though. Specifically, are you expecting or seeing AI driving, say, higher ARPU, just better retention, or just other revenue opportunities? Could you just address that?

Speaker #6: I was wondering if you could just talk a little about how that's translating into financial results, though. Specifically, are you expecting or seeing AI driving say higher RPU, just better retention, or just other revenue opportunities?

Speaker #6: Could you just address that?

Speaker #4: Sure. So I think it's so first of all, most of these products are modules that are priced additionally and/or they're part of an upsell to a higher bundle.

Brett White: Sure. First of all, most of these products are modules that are priced additionally, and/or they are part of an upsell to a higher bundle. We monetize the key AI products that I mentioned, Call Intelligence, AI Receptionist, et cetera. That would be number one. It's been proven time and time again that the more functionality you offer on your platform, the stickier the platform is. Especially, this, I think one, is underappreciated. Since we own the trusted practice phone number and all interactions happen on the trusted practice phone number, the more functionality that we offer across that trusted phone number, the stickier the overall solution is. For sure, adding more functionality that takes place across our communication rails makes us stickier.

Speaker #4: So we monetize the key AI products that I mentioned, call intelligence, AI receptionists, etc. So that would be number one. The it's been proven time and time again that the more functionality you offer on your platform, the stickier the platform is.

Speaker #4: And especially and this I think one is underappreciated. Since we own the trusted practice phone number and all interactions happen on the trusted practice phone number, the more functionality that we offer across that trusted phone number, the stickier the overall solution is.

Speaker #4: So for sure adding more functionality that takes place across our communication rails makes us stickier. Another thing is it makes the product easier to sell because we're moving away from being a software tool that practices use to an actual 24/7 teammate side by side that actually is a system of action that performs tasks that previously staff either couldn't get to or are just incredibly time consuming often fall through the cracks.

Brett White: Another thing is it makes the product easier to sell because we're moving away from being a software tool that practices use to an actual 24/7 teammate side by side that actually is a system of action that performs tasks that previously staff either couldn't get to or are just incredibly time-consuming, often fall through the cracks. It's getting easier and easier to prove ROI, especially with some of these AI tools where you say, Okay, just give it a try. Just turn it on during lunchtime. Just turn it on at night. Just turn it on the weekends. See what happens. The proof points are really apparent. Additional monetization, additional stickiness, easier to sell. I think all of those things result in higher ARPU, higher LTV, lower CAC, all the good things that you want.

Speaker #4: And it's getting easier and easier to prove ROI. Especially with some of these AI tools where you say, okay, just give it a try.

Speaker #4: Just turn it on during lunchtime. Just turn it on at night. Just turn it on the weekends. See what happens. And the proof points are really apparent.

Speaker #4: So, additional monetization, additional stickiness, easier to sell—I think all of those things result in higher RPU, higher LTV, lower CAC, kind of all the good things that you want.

Speaker #3: And I'll add something to that, which if you think about our framework for how do we price and monetize AI and AI adoption, we really look at the capabilities that we're delivering and whether it's incremental to the existing solutions customers are already using.

Jason Christiansen: And I'll add-

Brett White: Richard

Brett White: something to that, which, if you think about our framework for how do we price and monetize AI and AI adoption, we really look at the capabilities that we're delivering and whether it's incremental to the existing solutions customers are already using that would just make those products stickier. Those ones we don't necessarily monetize explicitly. For instance, that's like our Respond Assistant, which helps you draft Context-aware responses to online reviews that you would get. That's not one that we monetize, but helps make the reviews product stickier. There are the other ones like Brett talked about that are just net new incremental capabilities like AI Receptionist.

Jason Christiansen: something to that, which, if you think about our framework for how do we price and monetize AI and AI adoption, we really look at the capabilities that we're delivering and whether it's incremental to the existing solutions customers are already using that would just make those products stickier. Those ones we don't necessarily monetize explicitly. For instance, that's like our Respond Assistant, which helps you draft Context-aware responses to online reviews that you would get. That's not one that we monetize, but helps make the reviews product stickier. There are the other ones like Brett talked about that are just net new incremental capabilities like AI Receptionist.

Speaker #3: That would just make those products stickier. Those ones we don't necessarily monetize explicitly. For instance, that's like our Reviews Assistant, which helps you draft very context-aware responses to online reviews that you would get.

Speaker #3: That's not one that we monetize, but helps make the reviews product stickier. Then there are the other ones like Brett talked about that are just that new incremental capabilities like AI receptionist.

Speaker #4: I think one other thing to think about here is not only do we monetize the subscription piece, but it also gives us greater opportunity on the payment side.

Brett White: I think one other thing to think about here is not only do we monetize the subscription piece, but it also gives us greater opportunity on the payment side. The more of these workflows that result in collecting balances, either before the appointment or after the appointment, we're able to monetize all the payments workflows. Actually, our H1, this is a statistic you can't see, but I'll share it with you. Our H1 growth in payments volume, the growth in payments volume in H1 of this year is greater than the growth in payments volume in H1 of last year. We've got accelerating payments volume growth, and I think we're just scratching the surface on how some of these AI technologies can drive greater payments volume.

Speaker #4: So the more of these workflows, that result in collecting balances, either before the appointment or after the appointment, we're able to monetize all the payments workflows.

Speaker #4: And our actually our first half, this is a statistic you can't see, but I'll share it with you. Our first half growth in payments volume is greater the growth in payments volume in the first half of this year is greater than the growth in payments volume in the first half of last year.

Speaker #4: So we've got accelerating payments volume growth. And I think we're just scratching the surface on how some of these AI technologies can drive greater payments volume.

Speaker #6: That's helpful. Thanks.

Mark Schappel: That's helpful. Thanks.

Speaker #2: There are no further questions at this time. I will now turn the call back to Brett White for closing remarks.

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

Speaker #4: Okay. Well, thank you. A huge thank you to the Weave team, our customers, and our shareholders for your continued support. And we look forward to talking to you again next quarter.

Brett White: Okay. Well, thank you. A huge thank you to the Weave team, our customers, and our shareholders for your continued support. We look forward to talking to you again next quarter. Thank you.

Speaker #4: Thank you.

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

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