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What changed in Weave Communications, Inc.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of Weave Communications, Inc.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+362 added−337 removedSource: 10-K (2026-03-05) vs 10-K (2025-03-13)

Top changes in Weave Communications, Inc.'s 2025 10-K

362 paragraphs added · 337 removed · 288 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

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Biggest changeWeave Payments is a comprehensive payment processing solution that enables healthcare practices to streamline billing and collections while offering patients flexible payment options. Patients can pay in-office using a wireless terminal (tap, dip, or swipe), or remotely via Text to Pay, Online Bill Pay, or ACH direct debit.
Biggest changePatients can pay in-office using a wireless terminal, or remotely via Text to Pay, Online Bill Pay, or ACH direct debit. Practices can streamline collections with bulk payment requests, charging a payment method on file, and offering flexible financing options through Payment Plans or Buy Now, Pay Later through Affirm or Sunbit.
Key patient information is displayed at the outset of each call, including the caller's name, upcoming scheduled appointment information or when they are due for their next appointment, overdue balances, tasks, special notes, and follow-ups. Softphones. With Softphones from Weave, practices can make and receive calls from anywhere in the U.S. or Canada with an internet connection.
Key patient information is displayed at the outset of each call, including the caller's name, upcoming scheduled appointment information or when they are due for their next appointment, overdue balances, tasks, special notes, and follow-ups. Softphones. With Softphones, practices can make and receive calls from anywhere in the U.S. or Canada with an internet connection.
Information on or that can be accessed through our websites or these social media channels is not part of this Annual Report on Form 10-K and shall not be deemed incorporated by reference. The inclusion of our website addresses and social media channels are inactive textual references only. 9 Table of Contents
Information on or that can be accessed through our websites or these social media channels is not part of this Annual Report on Form 10-K and shall not be deemed incorporated by reference. The inclusion of our website addresses and social media channels are inactive textual references only. 10 Table of Contents
Missed Text Auto-Reply ensures prompt replies to patient text messages by automatically responding to messages received outside of a practice’s normal operating hours. Team Chat . Weave offers a modern, secure group messaging solution that enables practitioners and staff to communicate seamlessly within the Weave App. This feature supports enhances collaboration, and keeps teams connected.
Missed Text Auto-Reply ensures prompt replies to patient text messages by automatically responding to messages received outside of a practice’s normal operating hours. Team Chat . Weave offers a modern, secure group messaging solution that enables practitioners and staff to communicate seamlessly within the Weave App. This feature supports enhanced collaboration, and keeps teams connected.
When integrated with the healthcare practice’s system of record, Online Scheduling allows patients to request appointments from the practice’s website, send automatic scheduling reminders via text message, and personalize each reminder for the patient. This functionality keeps schedules full, reduces no-shows, and fills schedules more efficiently. Insurance Verification.
When integrated with the healthcare practice’s system of record, Online Scheduling allows patients to request appointments from the practice’s website, send automatic scheduling reminders via text message, and personalize each reminder for the patient. This functionality keeps schedules full, reduces no-shows, and fills schedules more efficiently. Insurance Eligibility .
We have a research and development presence in both the U.S. and India. Our Technology Weave Software Platform Our platform is composed of microservices in a highly containerized environment, which allows for rapid scaling of resources to meet the demands of our customers.
We have a research and development presence in both the U.S. and India. 5 Table of Contents Our Technology Weave Software Platform Our platform is composed of microservices in a highly containerized environment, which allows for rapid scaling of resources to meet the demands of our customers.
Regulatory In the U.S., at the federal level, we are subject to regulation by the Federal Communications Commission (“FCC”) as a provider of Voice over Internet Protocol (“VoIP”) as well as state and local regulations applicable to VoIP providers.
Regulatory In the U.S., at the federal level, we are subject to regulation by the Federal Communications Commission (“FCC”) as a provider of Voice over Internet Protocol (“VoIP”) as well as state and local 8 Table of Contents regulations applicable to VoIP providers.
We know that great ideas can come from anyone at any time. We go out beyond our circle and get involved. We ask questions and we are curious about the world around us, finding inspiration everywhere. We pay 6 Table of Contents attention to the little things. We constantly endeavor to challenge the old to make things better.
We know that great ideas can come from anyone at any time. We go out beyond our circle and get involved. We ask questions and we are curious about the world around us, finding inspiration everywhere. We pay attention to the little things. We constantly endeavor to challenge the old to make things better.
In particular, California has enacted the CPRA. The CPRA imposes obligations on qualifying for-profit companies, such as Weave, doing business in California, and substantially increases potential liability for such companies for failure to comply with data protection rules applicable to California residents.
The CPRA imposes obligations on qualifying for-profit companies, such as Weave, doing business in California, and substantially increases potential liability for such companies for failure to comply with data protection rules applicable to California residents.
Weave Digital Forms provide a secure, convenient, and modern way for healthcare practices to collect patient information before the patients arrive for an appointment — increasing staff efficiency, improving data accuracy, and saving money on paper costs. 3 Table of Contents Online Scheduling.
Weave Digital Forms provide a secure, convenient, and modern way for healthcare practices to collect patient information before the patients arrive for an appointment — increasing staff efficiency, improving data accuracy, and saving money on paper costs. Online Scheduling.
Globally, these regulations continue to be introduced and to change over time. Such regulations can impact our ability to offer services to various customer segments, and our cost to deliver our services. Corporate Information We were organized in Delaware in September 2008 as Recall Solutions, LLC.
Globally, these regulations continue to be introduced and to change over time. Such regulations can impact our ability to offer services to various customer segments, and our cost to deliver our services. 9 Table of Contents Corporate Information We were organized in Delaware in September 2008 as Recall Solutions, LLC.
Weave also generates demand and sells directly to healthcare practices at trade shows and other industry events. Subscriptions are primarily sold through our direct inside sales team. Most of our sales teams are focused on attracting new customers and are trained to sell into multiple SMB healthcare verticals, organized by sales motion (inbound, outbound, upsell, and mid-market).
Weave also generates demand and sells directly to healthcare practices at trade shows and other industry events. Subscriptions are primarily sold through our direct inside sales team. Most of our sales teams are focused on attracting new customers and are organized by sales motion (inbound, outbound, upsell, and mid-market) and by vertical focus.
Staff members can work from home, on the road, or in different office locations without missing any calls. Softphones do everything Weave Phones can do, but they operate in the cloud and do not require dedicated telephone hardware. 2 Table of Contents Text Messaging .
Staff members can work from home, on the road, or in different office locations without missing any calls. Softphones do everything Weave Phones can do, but they operate in the cloud and do not require dedicated telephone hardware. Text Messaging and SMS Response Assistant .
Our two-way Text Messaging function allows practices to communicate with patients in a way that is easy, simple and accessible. Practices can send a broad array of communications ranging from personalized birthday messages and appointment reminders to requests to pay overdue balances. In addition, our Bulk Texting feature allows for mass communications from the practice phone number. Missed Call Text.
Our two-way Text Messaging function allows practices to communicate with patients in a way that is easy, simple and accessible. Practices can send a broad array of communications ranging from personalized birthday messages and appointment reminders to requests to pay overdue balances. In addition, our Bulk Texting feature allows for text communications at scale.
We also enter into confidentiality and intellectual property rights agreements with our employees, consultants and contractors. Under such agreements, our employees, consultants and contractors are subject to invention assignment provisions designed to protect our proprietary information and ensure our ownership of intellectual property developed pursuant to such agreements.
Under such agreements, our employees, consultants and contractors are subject to invention assignment provisions designed to protect our proprietary information and ensure our ownership of intellectual property developed pursuant to such agreements.
Weave’s Text Connect enables practices to interact with their existing and potential patients online directly through their websites. This functionality gives practices the flexibility to respond when it is convenient for them, and enables multiple conversations at once. Weave Payments.
Weave’s Text Connect enables practices to interact with their existing and potential patients online directly through their websites. This functionality gives practices the flexibility to respond when it is convenient for them, and enables multiple conversations at once. Weave Payments. Weave Payments is a comprehensive payment processing solution that enables healthcare practices to streamline billing and collections.
Customers can start immediately with a library of pre-written templates and free images. Weave AI-powered Email Assistant streamlines the process further by generating email text in seconds based on key themes, which can be edited before sending. This tool helps healthcare providers personalize and automate email campaigns, driving patient engagement, retention, and awareness of their services. Text Connect .
Weave’s AI-powered Email Assistant streamlines the process further by generating email text in seconds based on key themes, which can be edited before sending. This tool helps healthcare providers personalize and automate email campaigns, driving patient engagement, retention, and awareness of their services. Text Connect .
Missed Call Text allows practices to respond instantly when a call is missed. This feature automatically sends a message asking how the office can assist, enabling quick patient engagement—even after hours or when staff are unavailable. Missed Text Auto-Reply.
Weave’s AI-powered Response Assistant uses generative AI technology to create custom, context-aware responses to patient. Missed Call Text. Missed Call Text allows practices to respond instantly when a call is missed. This feature automatically sends a message asking how the office can assist, enabling quick patient engagement—even after hours or when staff are unavailable. Missed Text Auto-Reply.
In many cases, our primary competition is the combination of existing point solutions, such as messaging, phone service, marketing tools, payments, CRM or PMS platforms, analytics and reviews management, that potential customers may already use to manage their practices and in which they have made significant investments.
In many cases, our primary competition is the combination of existing point solutions, such as messaging, phone service, marketing tools, payments, analytics, reviews management, and customer relationship management (“CRM”), electronic health 7 Table of Contents record (“EHR”) or practice management system (“PMS”) platforms, collectively “PMS”, that potential customers may already use to manage their practices and in which they have made significant investments.
Item 1. Business Our Mission Our mission is to elevate the patient experience through a unified platform that improves business operations so healthcare professionals can focus on patient care and realize their dreams. Overview Weave is a leading all-in-one customer experience and payments software platform for small and medium-sized healthcare businesses.
Item 1. Business Our Mission Our mission is to elevate the patient experience through a unified platform that improves business operations so healthcare professionals can focus on patient care and realize their dreams. Overview Weave is a leading AI-powered patient communications, engagement, and payments platform purpose-built for small and medium-sized (“SMB”) healthcare practices.
Our platform helps our customers’ practices keep their patients engaged through multi-channel communications—phone, text messaging, or email, and reduces friction with online appointments, digital forms, and convenient and flexible payment options, including text to pay, online bill pay, and payment plans. This results in increased patient loyalty and retention. • Improved Ability to Attract New Patients .
Our platform enables our customers to increase patient loyalty and retention by helping them keep their patients engaged through multi-channel communications—phone, text messaging, or email, and reducing friction with online appointments, digital forms, and convenient and flexible payment options, including text to pay, online bill pay, and payment plans. • Improved Ability to Attract New Patients .
Research and Development Our engineering and product teams are responsible for the creation and development of high-value features and functionality across our platform. Our teams strive to continuously deliver value to our customers, serving our broad customer base while also developing customized experiences and integrations to meet the specific needs of each healthcare SMB vertical we serve.
Our teams strive to continuously deliver value to our customers, serving our broad customer base while also developing customized experiences and integrations to meet the specific needs of each healthcare SMB vertical we serve.
Security We employ multiple layers of security to protect our systems, processes, buildings, proprietary data, customer data, and other assets. 5 Table of Contents At an organization-wide level, we have a dedicated security team with security compliance, security engineering, security operations, and application security expertise to influence the secure handling of customer data, and secure development and operation of our products.
At an organization-wide level, we have a dedicated security team with security compliance, security engineering, security operations, and application security expertise to influence the secure handling of customer data, and secure development and operation of our products.
We protect our intellectual property through a combination of domain names, copyright, trade secrets and trademarks, as well as through contractual provisions, our information security infrastructure and restrictions on access to or use of our proprietary technology.
We believe we compete favorably based on the factors described above. Intellectual Property Our intellectual property is an important part of our business. We protect our intellectual property through a combination of domain names, copyrights, trade secrets and trademarks, as well as through contractual provisions, our information security infrastructure and restrictions on access to or use of our proprietary technology.
The collection, use, processing, or disclosure of personal information may be subject to U.S. and Canadian federal, state and provincial regulations, including, but not limited to, the Health Insurance Portability and Accountability Act (“HIPAA”); the California Privacy Rights Act (“CPRA”) (California); US state data breach notification laws; and the Personal Information Protection and Electronic Documents Act (“PIPEDA”) (Canada). 8 Table of Contents In addition to these regulations, many states continue to consider enacting privacy legislation that may apply to companies such as Weave which collect, store, and process many types of data, including personal data.
The collection, use, processing, or disclosure of personal information may be subject to U.S. and Canadian federal, state and provincial regulations, including, but not limited to, the Health Insurance Portability and Accountability Act (“HIPAA”); the California Privacy Rights Act (“CPRA”) (California); US state data breach notification laws; and the Personal Information Protection and Electronic Documents Act (“PIPEDA”) (Canada).
Weave provides a smarter phone system that helps practices identify whether incoming calls are from new or existing patients, provides helpful and actionable information at every call, and manages heavy call volumes.
Patients can save the office number to their contacts, and multiple team members can manage conversations seamlessly. Customized Phone System. Weave provides a smarter phone system that helps practices identify whether incoming calls are from new or existing patients, provides helpful and actionable information at every call, and manages heavy call volumes.
Practices can also keep payment methods on file and offer flexible financing options, including Buy Now, Pay Later through Affirm or Sunbit. Payment Reminders automate follow-ups on outstanding balances, encouraging timely payments with minimal effort. By integrating payments into existing communication workflows, Weave helps practices improve cash flow, reduce administrative burden, and enhance the patient payment experience. Weave Digital Forms.
Payment Reminders automate follow-ups on outstanding balances, encouraging timely payments with minimal effort. Practices can also pass through credit card processing fees to patients with surcharging. By integrating payments into existing communication workflows, Weave helps practices improve cash flow, reduce administrative burden, and enhance the patient payment experience. Weave Digital Forms.
We have trademark applications for select marks in the U.S. and will pursue additional trademark applications to the extent we believe it will be beneficial. We also have registered domain names for the website that we use in our business. Additionally, we rely upon unpatented trade secrets, confidential know-how and continuing technological innovation to develop and maintain our competitive position.
We have trademark applications and one issued trademark for select marks in the U.S. and will pursue additional trademark applications to the extent we believe it will be beneficial. We also have registered domain names for the website that we use in our business.
We have democratized powerful communication and engagement capabilities previously only available to enterprises, made them intuitive and easy to use and put them in one solution. Our verticalized software platform streamlines the day-to-day operations of running an SMB healthcare practice.
We have democratized powerful communication and engagement capabilities previously only available to enterprises, made them intuitive and easy to use, and put them in one solution.
These partners refer customers to us on a commissioned basis. These referrals are then passed to the sales team to close.
These partners refer customers to us on a commissioned basis. These referrals are then passed to the sales team to close. We also focus on growing our channel partnership programs to promote and sell our products directly through partners.
Weave Reviews helps practices get discovered, rank higher in online searches, and grow their customer base. Weave’s AI-powered Response Assistant uses generative AI technology to create custom, relevant responses to patient reviews to increase reputation management efficiency. Weave Email Marketing and Email Assistant. Weave Email Marketing makes it easy for anyone to create professional emails quickly.
Weave’s AI-powered Response Assistant uses generative AI technology to create custom, relevant responses to patient reviews to increase reputation management efficiency. Weave Email Marketing and Email Assistant. Weave Email Marketing makes it easy for anyone to create professional emails quickly. Customers can start immediately with a library of pre-written templates and free images.
Our Platform Weave helps SMB healthcare practices manage essential patient interactions. We consolidate telephony, messaging, scheduling, payments, staff collaboration, digital forms, reviews, and email marketing into one simple, easy and elegant solution. We allow practitioners and their staff to facilitate and manage patient interactions in a unified, modernized and personalized manner that best fits their patients’ needs and preferences.
We consolidate technologies that our customers need to grow their practices, effectively engage with patients, and streamline practice operations into one simple, easy and elegant solution. We allow practitioners and their staff to facilitate and manage patient interactions in a unified, modernized and personalized manner that best fits their patients’ needs and preferences.
Our Customers As of December 31, 2024, we had approximately 35,000 locations under subscription and more than 30,000 customers in the U.S. and Canada. These customers represent many healthcare industries with the majority being in dental, optometry, veterinary, and other medical specialty services. No one single customer represents more than 5% of our revenue.
These customers represent many healthcare industries with the majority being in dental, optometry, veterinary, and other medical specialty services. No one single customer represents more than 5% of our revenue. Our Platform Weave’s vertical software platform helps SMB healthcare practices manage essential patient interactions.
Multi-location practices can filter and compare call data across offices for a comprehensive understanding of patient needs, helping staff improve engagement and maximize operational efficiency. Weave Enterprise . Weave Enterprise is designed for multi-location healthcare practices, including dental service organizations (“DSOs”), vision, veterinary, and medical groups, to standardize operations, enhance efficiency, and accelerate revenue cycle management.
Weave Enterprise is designed for multi-location healthcare practices, including dental service organizations (“DSOs”), vision, veterinary, and medical groups, to standardize operations, enhance efficiency, and accelerate revenue cycle management. Weave Enterprise provides a centralized way to seamlessly manage dozens or even hundreds of locations.
We integrate flexible payment options—including text to pay, buy-now-pay-later, and payment plans—directly into communication workflows. • Purpose-Built for SMB Healthcare Practices . Weave is designed to meet the unique needs of each healthcare specialty. Through authorized integrations with leading PMS, our platform optimizes specialized workflows and patient interactions.
We integrate flexible payment options—including text to pay, buy-now-pay-later, and payment plans—directly into communication workflows. • Purpose-Built for SMB Healthcare Practices . Weave has spent almost two decades building for the unique needs of SMB healthcare practices, including authorized integrations with more than 90 practice management systems. Healthcare workflows are highly customized.
All customer success, customer support, customer training and customer onboarding team members are currently located in the U.S., India, and the Philippines. In addition, we maintain an extensive training and self-help content hub on our website. We also offer certifications to develop Weave experts within a practice.
In addition, we maintain an extensive training and self-help content hub on our website. We also offer certifications to develop Weave experts within a practice. We strive to maintain an exceptional quality of service to promote retention and referrals.
Encryption keys are stored only in memory by our services, and are encrypted on disk behind our key management system. Human Capital As of December 31, 2024, we had 854 employees. We continued expanding our presence abroad during 2024 by hiring additional engineers and support representatives in India and engaging supplemental customer support and revenue operations in the Philippines.
Encryption keys are stored only in memory by our services, and are encrypted on disk behind our key management system. 6 Table of Contents Human Capital As of December 31, 2025, we had 904 employees.
We democratize enterprise-grade customer communications and engagement capabilities, saving our customers time and allowing them to effectively and efficiently communicate with their patients. • Unified Communications and Engagement .
We deliver enterprise-grade customer communications and engagement capabilities, saving our customers time and allowing them to effectively and efficiently communicate with their patients. • Unified Communications and Engagement . We unify phones, text messaging, appointment scheduling, staff collaboration, email marketing, reviews, payments, and digital forms products in one platform. • High ROI .
Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation. This information allows practices to identify areas of improvement and implement strategies to optimize their operations. Call Intelligence . Our AI-powered Call Intelligence product analyzes call recordings, providing deep insights without the need to manually review conversations.
When combined with Weave’s Digital Forms, the new patient intake process is streamlined, saving staff time and reducing long phone calls with insurance companies. Practice Analytics . Practice Analytics provides real-time data on patient retention, appointment scheduling, treatment acceptance rates, and revenue generation. This information allows practices to identify areas of improvement and implement strategies to optimize their operations.
We strive to maintain an exceptional quality of service to promote retention and referrals. We continuously monitor key customer service metrics such as phone hold time, ticket response time, ticket resolution rates, and customer satisfaction of our support interactions.
We continuously monitor key customer service metrics such as phone hold time, ticket response time, ticket resolution rates, and customer satisfaction of our support interactions. Research and Development Our engineering and product teams are responsible for the creation and development of high-value features and functionality across our platform.
Weave provides more functionality at a significantly lower cost than the combined cost of point solutions. • Reduced Churn for Our Customers .
Our platform helps our customers attract new patients, reduce appointment cancellations, keep schedules full, increase treatment acceptance rates, reduce outstanding accounts receivable, and improve staff efficiency and effectiveness. Weave provides more functionality at a significantly lower cost than the combined cost of point solutions • Reduced Churn for Our Customers .
Weave Enterprise provides a centralized way to seamlessly manage dozens or even hundreds of locations. With advanced analytics and reporting, practices can track trends, benchmark performance, and uncover actionable insights to drive operational excellence and business growth.
With advanced analytics and reporting, practices can track trends, benchmark performance, and uncover actionable insights to drive operational excellence and business growth. The combination of these features provides a control center from which our customers can monitor and affect multiple locations' operations and software configuration simultaneously.
We also focus on growing our channel partnership programs to promote and sell our products directly through partners. 4 Table of Contents Customer Success and Support We offer customer support via phone, online chat, and email to resolve technical and operational issues for our customers, if and when such issues arise.
Customer Success and Support We offer customer support via phone, online chat, and email to resolve technical and operational issues for our customers, if and when such issues arise. All customer success, customer support, customer training and customer onboarding team members are currently located in the U.S., India, and the Philippines.
Insurance Verification helps office staff spend more time creating an exceptional patient experience and less time calling insurers to verify patient coverage details. Within the Weave platform, users can get up-to-date and accurate insurance plan details, all with a click of a button.
Eligibility information is automatically pulled into our platform and displayed in a standardized format within existing patient engagement workflows—saving time, reducing hassle, and improving security. Insurance Verification. Insurance Verification helps office staff spend more time creating an exceptional patient experience and less time calling insurers to verify patient coverage details.
If a patient’s insurance information is unable to be verified, users can contact patients directly through text messaging to get information fast. When combined with Weave’s Digital Forms, the new patient intake process is streamlined, saving staff time and reducing long phone calls with insurance companies. Practice Analytics .
Within the Weave platform, users can get up-to-date and accurate insurance plan details, all with a click of a button. If a patient’s insurance information is unable to be verified, users can contact patients directly through text messaging to get information fast.
It categorizes patient sentiment, identifies key topics, and uncovers revenue opportunities, enabling practices to enhance customer service and optimize business performance. With automated call transcriptions and categorization, practices can quickly spot high-value follow-ups, track missed revenue opportunities, and make data-driven decisions.
Call Intelligence . Our AI-powered Call Intelligence product analyzes call recordings, providing deep insights without the need to manually review conversations. It categorizes patient sentiment, identifies key topics, and uncovers revenue opportunities, enabling practices to enhance customer service and optimize business performance.
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From the first phone call to the final invoice and every touchpoint in between, Weave connects the entire patient journey. Weave’s software solutions transform how healthcare practices attract, communicate with, and engage patients and clients to grow their business. Weave seamlessly integrates billing and payment requests into communication workflows, streamlining payment timelines, reducing accounts receivable, and supporting practice profitability.
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We strive to elevate patient experiences through a unified platform that improves business operations, allowing healthcare professionals to focus on what matters most: patient care. Weave serves as the orchestration layer for modern healthcare practices, bringing together voice, text, and AI-powered workflows into a single system of work.
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Instead of a fragmented set of tools, Weave offers an AI-powered solution that spans all forms of communication and engagement including physical and softphones, messaging, email marketing, insurance verification, online appointment scheduling, reviews, payments, digital forms, and more.
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Our platform is built on nearly two decades of domain expertise and billions of patient interactions, allowing us to leverage a vertically specialized data that allows us to deliver high-accuracy automation within strict privacy and regulatory frameworks. Our platform integrates with more than 90 practice management systems (“PMS”) to provide more personalized interactions between practices and patients.
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Through authorized and supported integrations with leading practice management systems (“PMS”), we automate and personalize patient communications while embedding FinTech solutions—such as text-to-pay, online bill pay, and payment plans—directly into communication workflows. By streamlining payment processes, Weave accelerates collections, reduces write-offs, and improves practice profitability.
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Key current capabilities include: • Communications: our proprietary telephony platform unifies voice and text interactions and manages the practice's trusted phone number. • AI-powered Workflows: we provide agentic AI functionality that handles scheduling automation, responds to frequently asked questions, and follows up on marketing leads. • AI-powered Insights: our analytic tools transcribe phone calls, assesses call sentiment, creates follow-up tasks, and surfaces opportunities for additional revenue in the practice. • Weave Payments: we provide payment processing, with point-of-sale and digital payment solutions that allow patients to make payments from anywhere, and patient financing solutions. • Practice Growth Tools: we offer a suite of solutions that help practices strengthen their brand reputation, attract new patients, and improve patient outreach. • Productivity Tools: we offer a suite of solutions that help practices improve in-office operations, communicate effectively with other staff and with patients, and improve the patient’s experience.
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Weave integrates with dozens of healthcare practice systems of record, including PMS, patient relationship management (“PRM”) platforms, electronic 1 Table of Contents health record (“EHR”) systems, enterprise resource planning software, or other third-party applications.
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The market for healthcare practice software is highly fragmented. We compete primarily against a "patchwork" of point solutions. We support the following verticals: Dental, Optometry, Veterinary, and Specialty Medical. Specialty Medical comprises 29 specialties and is now our second-largest and fastest-growing vertical by location count.
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Our platform unifies phones, text messaging, appointment scheduling, staff collaboration, email marketing, requesting reviews, collecting payments, and digitizing forms, all in one solution. • High ROI . Our platform helps our customers attract new patients, reduce appointment cancellations, keep schedules full, increase treatment acceptance rates, reduce outstanding accounts receivable, and improve staff efficiency and effectiveness.
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We are currently focused on four specialties within Specialty Medical: primary care, physical and occupational therapy, aesthetics, and med spa.
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In veterinary practices, pets—not clients—take center stage, allowing staff to quickly access and manage pet-specific records. In optometry, custom notifications like "eyewear ready" enhance patient communication and pickup efficiency. For dental practices, Weave Insurance Verification simplifies billing and pre-appointment workflows, ensuring a smoother patient experience.
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Looking ahead, we intend to further establish Weave as an "always-on teammate" for our customers to further help practices attract, communicate with, and engage patients and clients to grow their business around the clock using AI. 1 Table of Contents Our Customers As of December 31, 2025, we had nearly 40,000 locations under subscription and more than 30,000 customers in the U.S. and Canada.
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Our Products Weave provides an all-in-one customer experience and payments software platform for SMB healthcare businesses. Our vision is to elevate the patient experience through a unified platform that improves business operations, enabling healthcare professionals to focus on patient care and achieve their dreams. Unified Phone Number.
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Scheduling, billing, insurance verification, and patient communication vary by specialty and by location. Our platform optimizes specialized workflows and patient interactions. For example, in optometry, custom notifications like "eyewear ready" let the patient know when their eyewear is ready for 2 Table of Contents pickup..
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All communications from the Weave platform, including calls and text messaging, are sent from a single phone number. Patients can save the office number to their contacts, and multiple team members can manage conversations seamlessly without relying on individual devices. Customized Phone System.
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In dental, Weave Insurance Eligibility validates whether treatments are covered under the patient’s insurance and patient deductibles. Our Products As part of our unified platform, we provide a number of products purpose-built for SMB healthcare practices to help improve business operations, enabling healthcare professionals to focus on patient care. AI-receptionist .
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Weave AI . Weave leverages more than a decade of patient interactions to train large language models and deliver AI-powered features that foster practice growth, enhance staff productivity, and improve patient experiences. Weave Reviews and Response Assistant. Weave Reviews helps practices automatically request, collect, monitor, and respond to Google and Facebook reviews.
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Our AI-receptionist automatically follows up on missed calls around the clock with an agentic AI-powered text conversation that lets patients schedule appointments, answers frequently asked questions, and escalates to a staff member if needed. Unified Phone Number. All communications from the Weave platform, including calls and text messaging, are sent from the trusted practice phone number.
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Softphones facilitate remote work and enhance practice communication and productivity.
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Weave Reviews and Response Assistant. Weave Reviews helps practices automatically request, collect, monitor, and respond to Google and Facebook reviews. Weave Reviews helps practices get 3 Table of Contents discovered, rank higher in online searches, and grow their customer base.
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We believe we compete favorably based on the factors described above. 7 Table of Contents Intellectual Property Our intellectual property is an important part of our business.
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Our enhanced insurance tool uses RPA to access dental payer portals directly and retrieve detailed eligibility information. This provides a more complete view of coverage, including frequency limitations, remaining benefits, and code-specific details. Front desk staff no longer need to log into multiple payer websites or manage separate credentials.
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With automated call transcriptions and categorization, practices can quickly spot 4 Table of Contents high-value follow-ups, track missed revenue opportunities, and make data-driven decisions. Multi-location practices can filter and compare call data across offices for a comprehensive understanding of patient needs, helping staff improve engagement and maximize operational efficiency. Weave Enterprise .
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Softphones facilitate remote work and enhance practice communication and productivity. Security We employ multiple layers of security to protect our systems, processes, buildings, proprietary data, customer data, and other assets.
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We continued expanding our presence abroad during 2025 predominantly by hiring additional engineers in India, business support professionals in Mexico and Brazil, and by engaging supplemental customer support and revenue operations in the Philippines.
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Additionally, we rely upon unpatented trade secrets, confidential know-how and continuing technological innovation to develop and maintain our competitive position. We also enter into confidentiality and intellectual property rights agreements with our employees, consultants and contractors.
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In addition to these regulations, many states continue to consider enacting privacy legislation that may apply to companies such as Weave which collect, store, and process many types of data, including personal data. In particular, California has enacted the CPRA.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

138 edited+27 added−19 removed431 unchanged
Biggest changeBreaches of our applications, networks or systems, or those of GCP or our service providers, could degrade our ability to conduct our business, compromise the integrity of our products, platform and data, result in significant data losses and the theft of our intellectual property, damage our reputation, expose us to liability to third parties and require us to incur significant additional costs to maintain the security of our networks and data. 21 Table of Contents We depend upon our information technology (“IT”) systems to conduct virtually all of our business operations, ranging from the operation of our platform, our internal operations and research and development activities to our marketing and sales efforts and communications with our customers and integration partners.
Biggest changeEven if not successful, a claim brought against us by any of our customers would likely be time-consuming and costly to defend and could harm our reputation and brand, making it harder for us to sell our platform and products. 22 Table of Contents Breaches of our applications, networks or systems, or those of GCP or our service providers, could degrade our ability to conduct our business, compromise the integrity of our products, platform and data, result in significant data losses and the theft of our intellectual property, damage our reputation, expose us to liability to third parties and require us to incur significant additional costs to maintain the security of our networks and data.
Our expansion into new healthcare vertical markets also depends upon our ability to adapt our existing platform, develop additional features and functionality to meet the particular needs of each new vertical market, and may depend on our ability to integrate our platform with practice management software or other systems of record.
Our expansion into new healthcare or other vertical markets also depends upon our ability to adapt our existing platform, develop additional features and functionality to meet the particular needs of each new vertical market, and may depend on our ability to integrate our platform with practice management software or other systems of record.
In addition, we will face risks in doing business internationally that could adversely affect our business, including: • the difficulty of managing and staffing international operations and the increased operations, travel, infrastructure and legal compliance costs associated with servicing international customers and operating numerous international locations; • our ability to effectively price our products in competitive international markets; • new and different sources of competition or other changes to our current competitive landscape; • understanding, reconciling and complying with different technical standards, telecommunications and payment processing regulations, registration and certification requirements outside the U.S., which could prevent customers from deploying our platform and products and limit the features and functionality we may be able to provide or limit their usage; • potentially greater difficulty collecting accounts receivable and longer payment cycles; • higher or more variable network service provider fees outside of the U.S.; • the need to adapt and localize our products for specific countries; • the need to offer customer support in various languages; • difficulties in understanding and complying with local laws, regulations and customs in non-U.S. jurisdictions; • export controls and economic sanctions administered by the Department of Commerce Bureau of Industry and Security and the Treasury Department’s Office of Foreign Assets Control; 30 Table of Contents • compliance with various anti-bribery and anti-corruption laws such as the Foreign Corrupt Practices Act; • changes in international trade policies, tariffs and other non-tariff barriers, such as quotas and local content rules; • more limited protection for intellectual property rights in some countries; • adverse tax consequences; • fluctuations in currency exchange rates, which could increase the price of our products outside of the U.S., increase the expenses of our international operations and expose us to foreign currency exchange rate risk; • fluctuations in exchange rates and the resulting impact on our business; • restrictions on the transfer of funds; • deterioration of political relations between the U.S. and other countries; • the impact of natural disasters and public health epidemics or pandemics on employees, contingent workers, partners, travel and the global economy and the ability to operate freely and effectively in a region that may be fully or partially on lockdown; and • political or social unrest or economic instability in a specific country or region in which we operate, which could have an adverse impact on our operations in that location.
In addition, we will face risks in doing business internationally that could adversely affect our business, including: • the difficulty of managing and staffing international operations and the increased operations, travel, infrastructure and legal compliance costs associated with servicing international customers and operating numerous international locations; • our ability to effectively price our products in competitive international markets; • new and different sources of competition or other changes to our current competitive landscape; • understanding, reconciling and complying with different technical standards, telecommunications and payment processing regulations, registration and certification requirements outside the U.S., which could prevent customers from deploying our platform and products and limit the features and functionality we may be able to provide or limit their usage; • potentially greater difficulty collecting accounts receivable and longer payment cycles; • higher or more variable network service provider fees outside of the U.S.; • the need to adapt and localize our products for specific countries; • the need to offer customer support in various languages; • difficulties in understanding and complying with local laws, regulations and customs in non-U.S. jurisdictions; • export controls and economic sanctions administered by the Department of Commerce Bureau of Industry and Security and the Treasury Department’s Office of Foreign Assets Control; • compliance with various anti-bribery and anti-corruption laws such as the Foreign Corrupt Practices Act; • changes in international trade policies, tariffs and other non-tariff barriers, such as quotas and local content rules; • more limited protection for intellectual property rights in some countries; • adverse tax consequences; • fluctuations in currency exchange rates, which could increase the price of our products outside of the U.S., increase the expenses of our international operations and expose us to foreign currency exchange rate risk; • fluctuations in exchange rates and the resulting impact on our business; • restrictions on the transfer of funds; 32 Table of Contents • deterioration of political relations between the U.S. and other countries; • the impact of natural disasters and public health epidemics or pandemics on employees, contingent workers, partners, travel and the global economy and the ability to operate freely and effectively in a region that may be fully or partially on lockdown; and • political or social unrest or economic instability in a specific country or region in which we operate, which could have an adverse impact on our operations in that location.
Our ability to attract additional customers will depend on a number of factors, including the effectiveness of our sales team, the success of our marketing efforts, our levels of investment in expanding our sales and marketing teams, referrals by existing customers, our brand recognition within the markets we address, our efforts to provide satisfactory customer service, the stability and reliability of our platform, our ability to timely onboard new customers or timely expand functionality for our existing customers, the perceived value of our platform and the features and functionality it offers, our ability to integrate our platform with a broad range of PMS, our ability to leverage and scale our core sales efforts and marketing capabilities to focus on our core specialty healthcare verticals, and the nature and availability of competitive offerings.
Our ability to attract additional customers will depend on a number of factors, including the effectiveness of our sales team, the success of our marketing efforts, our levels of investment in expanding our sales and marketing teams, referrals by existing customers, our brand recognition within the markets we address, our efforts to provide satisfactory customer service, the stability and reliability of our platform, our ability to timely onboard new customers or timely expand functionality for our existing customers, the perceived value of our platform and the features and functionality it offers, our ability to integrate our platform with a broad range of PMS platforms, our ability to leverage and scale our core sales efforts and marketing capabilities to focus on our core specialty healthcare verticals, and the nature and availability of competitive offerings.
We expect to continue to expend substantial financial and other resources on, among other things: • sales and marketing, including the continued expansion of our direct sales organization and marketing programs and expanding our programs directed at increasing our brand awareness among current and new customers; • increased labor and compensation expenses; • investments in our customer support teams; • improvements in regulatory compliance and risk management, including security and data protection; • investments in our engineering team and the development of new products, new or deepened integrations with patient systems of record, features and functionality and enhancements to our platform, including developing the features and functionality required by new vertical markets that we choose to address in the future; • expansion of our operations and technology infrastructure; 13 Table of Contents • international expansion; and • general administration, including legal, accounting and other expenses related to being a public company.
We expect to continue to expend substantial financial and other resources on, among other things: • sales and marketing, including the continued expansion of our direct sales organization and marketing programs and expanding our programs directed at increasing our brand awareness among current and new customers; • increased labor and compensation expenses; • investments in our customer support teams; • improvements in regulatory compliance and risk management, including security and data protection; • investments in our engineering team and the development of new products, new or deepened integrations with patient systems of record, features and functionality and enhancements to our platform, including developing the features and functionality required by new vertical markets that we choose to address in the future; • expansion of our operations and technology infrastructure; 14 Table of Contents • international expansion; and • general administration, including legal, accounting and other expenses related to being a public company.
In many cases, our primary competition is the combination of existing point solutions, such as messaging, phone service, marketing tools, payments, CRM and PMS platforms, analytics and reviews management, that potential customers may already use to manage their practices and in which they have made significant investments.
In many cases, our primary competition is the combination of existing point solutions, such as messaging, phone service, marketing tools, payments, CRM, EHR and PMS platforms, analytics and reviews management, that potential customers may already use to manage their practices and in which they have made significant investments.
Enhancements and new products that we develop may not be introduced in a timely or cost-effective manner, may contain errors or defects, may require reworking features and capabilities, may have interoperability difficulties with our platform or other products or may not achieve the broad market acceptance necessary to generate significant revenue.
Enhancements and new products that we develop or acquire may not be introduced in a timely or cost-effective manner, may contain errors or defects, may require reworking features and capabilities, may have interoperability difficulties with our platform or other products or may not achieve the broad market acceptance necessary to generate significant revenue.
We may not be able to successfully identify suitable acquisition, partnership, or integration candidates in the future, and if we do, they may not provide us with the benefits we anticipated. Penetrating new healthcare vertical markets may also prove to be more challenging or costly or take longer than we may anticipate.
We may not be able to successfully identify suitable acquisition, partnership, or integration candidates in the future, and if we do, they may not provide us with the benefits we anticipated. Penetrating new healthcare or other vertical markets may also prove to be more challenging or costly or take longer than we may anticipate.
In these market segments, the decision to purchase our subscriptions may require the approval of more technical personnel and management levels within a potential customer’s organization and, therefore, sales to larger and multi-location organizations may require us to invest more time educating potential customers about the benefits of our subscriptions.
In these market segments, the decision to purchase our subscriptions may require the approval of more technical personnel and management levels within a potential customer’s organization and, therefore, sales to larger and multi-location organizations may require us to invest more time educating potential customers about the benefits of our subscriptions and platform.
Delays in addressing healthcare vertical markets may result in an increase in the investment required to address these markets, delay our ability to derive revenue from these markets and adversely affect our ability to address those markets if other companies are able to address those markets with competitive offerings before we are able to do so.
Delays in addressing healthcare or other vertical markets may result in an increase in the investment required to address these markets, delay our ability to derive revenue from these markets and adversely affect our ability to address those markets if other companies are able to address those markets with competitive offerings before we are able to do so.
Our future growth and profitability depend, in part, upon our continued expansion within the healthcare vertical markets, such as dentistry, optometry, veterinary, and other medical specialty services where our revenue is concentrated, as well as our ability to penetrate new healthcare vertical markets.
Our future growth and profitability depend, in part, upon our continued expansion within the healthcare vertical markets, such as dentistry, optometry, veterinary, and other medical specialty services where our revenue is concentrated, as well as our ability to penetrate new healthcare or other vertical markets.
We have experienced and may continue to experience rapid expansion and turnover of our employee ranks. From time to time, we have reduced our employee ranks and subsequently built them back up to support the growth of our business. We also have experienced transitions in our executive leadership team.
We have experienced and may continue to experience expansion and turnover of our employee ranks. From time to time, we have reduced our employee ranks and subsequently built them back up to support the growth of our business. We also have experienced transitions in our executive leadership team.
As a result, even though the number of customers using our platform has grown rapidly in recent periods, there can be no assurance that we will be able to retain these customers.
As a result, even though the number of customers using our platform has grown in recent periods, there can be no assurance that we will be able to retain these customers.
We may not have adequate financial or technological resources to develop effective and secure enhancements to our platform and new products that will satisfy the demands of these new healthcare vertical markets.
We may not have adequate financial or technological resources to develop effective and secure enhancements to our platform and new products that will satisfy the demands of these new healthcare or other vertical markets.
We have experienced, and may in the future experience, disruptions, 25 Table of Contents outages, and other performance problems related to our platform due to a variety of factors, including infrastructure changes, introductions of new functionality, human or software errors, delays in scaling our technical infrastructure if we do not maintain enough excess capacity and accurately predict our infrastructure requirements, capacity constraints due to an overwhelming number of users accessing our platform simultaneously, denial-of-service attacks, human error, actions or inactions attributable to third parties, earthquakes, hurricanes, floods, fires, natural disasters, power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks and other geopolitical unrest, computer viruses, ransomware, malware or other events.
We have experienced, and may in the future experience, disruptions, outages, and other performance problems related to our platform due to a variety of factors, including infrastructure changes, introductions of new functionality, human or software errors, delays in scaling our technical infrastructure if we do not maintain enough excess capacity and accurately predict our infrastructure requirements, capacity constraints due to an overwhelming number of users accessing our platform simultaneously, denial-of-service attacks, human error, actions or inactions attributable to third parties, earthquakes, hurricanes, floods, fires, natural disasters, power losses, disruptions in telecommunications services, fraud, military or political conflicts, terrorist attacks and other geopolitical unrest, computer viruses, ransomware, malware or other events.
Accordingly, our business model relies to a significant extent on our ability to renew subscriptions and sell additional products to existing customers, and, if we are unable to retain revenue from existing customers or to increase revenue from existing customers, our operating results could be adversely impacted even if such lost revenue were offset by an increase in revenue from new customers. 11 Table of Contents Our ability to attract new customers and retain existing customers depends in part on our ability to timely onboard new customers or timely expand functionality for our existing customers.
Accordingly, our business model relies to a significant extent on our ability to renew subscriptions and sell additional products to existing customers, and, if we are unable to retain revenue from existing customers or to increase revenue from existing customers, our operating results could be adversely impacted even if such lost revenue were offset by an increase in revenue from new customers. 12 Table of Contents Our ability to attract new customers and retain existing customers depends in part on our ability to timely onboard new customers or timely expand functionality for our existing customers.
We may not be able to continue to expand our share of our existing vertical markets or expand into new healthcare vertical markets, which would inhibit our ability to grow and increase our profitability.
We may not be able to continue to expand our share of our existing vertical markets or expand into new healthcare or other vertical markets, which would inhibit our ability to grow and increase our profitability.
Any of these events or other outcomes may: • materially and adversely affect our business and results of operations; • result in the loss of a substantial number of existing customers or prohibit the acquisition of new customers; • cause us to pay license fees for intellectual property we are deemed to have infringed; • cause us to incur costs and devote valuable technical resources to redesigning our products or platform; • cause our cost of revenue to increase; • cause us to accelerate expenditures to preserve existing revenue; • cause existing or new vendors to require pre-payments or letters of credit; • materially and adversely affect our brand in the marketplace and cause a substantial loss of goodwill; • cause us to change our business methods; • require us to cease certain business operations or offering certain products or features; and • lead to our bankruptcy or liquidation.
Any of these events or other outcomes may: 43 Table of Contents • materially and adversely affect our business and results of operations; • result in the loss of a substantial number of existing customers or prohibit the acquisition of new customers; • cause us to pay license fees for intellectual property we are deemed to have infringed; • cause us to incur costs and devote valuable technical resources to redesigning our products or platform; • cause our cost of revenue to increase; • cause us to accelerate expenditures to preserve existing revenue; • cause existing or new vendors to require pre-payments or letters of credit; • materially and adversely affect our brand in the marketplace and cause a substantial loss of goodwill; • cause us to change our business methods; • require us to cease certain business operations or offering certain products or features; and • lead to our bankruptcy or liquidation.
The market price of our common stock has and will likely continue to fluctuate significantly in response to numerous factors in addition to the ones described in the preceding risk factors, many of which are beyond our control, including: • overall performance of the equity markets and the economy as a whole; • changes in the financial projections we may provide to the public or our failure to meet these projections; • actual or anticipated changes in our growth rate relative to that of our competitors; • changes in the anticipated future size or growth rate of our addressable markets; • announcements of new products and services, technological and platform updates or enhancements, or of acquisitions, strategic partnerships, joint ventures or capital-raising activities or commitments, by us or by our competitors; • disruptions to our products and services or our other technology; • additions or departures of board members, management or key personnel; 46 Table of Contents • failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company or our failure to meet these estimates or the expectations of investors; • rumors and market speculation involving us or other companies in our industry; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business; • lawsuits threatened or filed against us or investigations by governmental authorities; • other events or factors, including those resulting from war, incidents of terrorism, or responses to these events; • health epidemics, such as the COVID-19 pandemic, influenza, and other highly communicable diseases; and • sales of shares of our common stock by us or our stockholders.
The market price of our common stock has and will likely continue to fluctuate significantly in response to numerous factors in addition to the ones described in the preceding risk factors, many of which are beyond our control, including: • overall performance of the equity markets and the economy as a whole; • changes in the financial projections we may provide to the public or our failure to meet these projections; • actual or anticipated changes in our growth rate relative to that of our competitors; • changes in the anticipated future size or growth rate of our addressable markets; • announcements of new products and services, technological and platform updates or enhancements, or of acquisitions, strategic partnerships, joint ventures or capital-raising activities or commitments, by us or by our competitors; • disruptions to our products and services or our other technology; • additions or departures of board members, management or key personnel; • failure of securities analysts to initiate or maintain coverage of us, changes in financial estimates by any securities analysts who follow our company or our failure to meet these estimates or the expectations of investors; • rumors and market speculation involving us or other companies in our industry; • new laws or regulations or new interpretations of existing laws or regulations applicable to our business; 48 Table of Contents • lawsuits threatened or filed against us or investigations by governmental authorities; • other events or factors, including those resulting from war, incidents of terrorism, or responses to these events; • health epidemics, influenza, and other highly communicable diseases; and • sales of shares of our common stock by us or our stockholders.
Risks that we face in undertaking future expansion include: • effectively recruiting, integrating, training, and motivating a large number of new employees, including our customer services representatives, direct sales force, and engineering resources, while retaining existing employees and reducing the rate of employee turnover, maintaining the beneficial aspects of our corporate culture, and effectively executing our business plan; • successfully improving and expanding the capabilities of our platform and introducing new products and services; • controlling expenses and investments in anticipation of expanded operations; and • managing the expansion of operations in the U.S. and potentially in additional countries in the future, which will place additional demands on our resources and operations.
Risks that we face in undertaking future expansion include: • effectively recruiting, integrating, training, and motivating new employees, including our customer services representatives, direct sales force, and engineering resources, while retaining existing employees and reducing the rate of employee turnover, maintaining the beneficial aspects of our corporate culture, and effectively executing our business plan; • successfully improving and expanding the capabilities of our platform and introducing new products and services; • controlling expenses and investments in anticipation of expanded operations; and • managing the expansion of operations in the U.S. and potentially in additional countries in the future, which will place additional demands on our resources and operations.
A claim brought against us that is uninsured or underinsured could result in unanticipated costs and could seriously harm our business. 51 Table of Contents Unfavorable conditions in our industry or the global economy or reductions in spending on vertically tailored software by SMBs could adversely affect our business, results of operations and financial condition.
A claim brought against us that is uninsured or underinsured could result in unanticipated costs and could seriously harm our business. 53 Table of Contents Unfavorable conditions in our industry or the global economy or reductions in spending on vertically tailored software by SMBs could adversely affect our business, results of operations and financial condition.
Our ability to expand among medium-sized businesses will depend upon our ability to successfully sell our new platform to multi-location organizations and effectively retain them.
Our ability to expand among medium-sized businesses will depend upon our ability to successfully sell our platform to multi-location organizations and effectively retain them.
The market for our platform and products could fail to grow significantly or there 16 Table of Contents could be a reduction in demand for our platform and products as a result of a lack of customer acceptance, technological challenges, competing products and services, decreases in spending by current and prospective customers, weakening economic conditions and other causes.
The market for our platform and products could fail to grow significantly or there 17 Table of Contents could be a reduction in demand for our platform and products as a result of a lack of customer acceptance, technological challenges, competing products and services, decreases in spending by current and prospective customers, weakening economic conditions and other causes.
In addition, any delay in creating 17 Table of Contents integrations with providers of systems or software used by our customers or potential customers could delay or impair our ability to enter new healthcare vertical markets or enhance the functionality of our platform and products, and reduce their competitiveness. Any such delay could adversely affect our business.
In addition, any delay in creating 18 Table of Contents integrations with providers of systems or software used by our customers or potential customers could delay or impair our ability to enter new healthcare vertical markets or enhance the functionality of our platform and products, and reduce their competitiveness. Any such delay could adversely affect our business.
Moreover, at least 18 other states have created state specific privacy laws. Compliance with any newly enacted privacy and data security laws or regulations may be challenging and cost and time-intensive, and we may be required to put in place additional mechanisms to comply with applicable legal requirements.
Moreover, at least 20 other states have created state specific privacy laws. Compliance with any newly enacted privacy and data security laws or regulations may be challenging and cost and time-intensive, and we may be required to put in place additional mechanisms to comply with applicable legal requirements.
The concentration of our share ownership may limit your ability to influence corporate matters. Our executive officers, directors, holders of more than 5% of our capital stock and affiliated entities together beneficially owned in excess of 25.0% of our total shares outstanding as of December 31, 2024.
The concentration of our share ownership may limit your ability to influence corporate matters. Our executive officers, directors, holders of more than 5% of our capital stock and affiliated entities together beneficially owned in excess of 25.0% of our total shares outstanding as of December 31, 2025.
We process business and personal information belonging to our customers and employees and because of this, we are subject to numerous federal, state, local, and foreign laws, orders, codes, regulations, and regulatory guidance regarding privacy, data protection, information security, and the processing of personal information and other content (collectively, “Data Protection Laws”), the number and scope of which are changing, subject to differing applications and interpretations, and may be inconsistent among countries, or conflict with other rules, laws, or Data Protection Obligations (defined below).
We process business and personal information belonging to our customers and employees and because of this, we are subject to numerous federal, state, local, and foreign laws, orders, codes, regulations, and regulatory guidance regarding privacy, data protection, information security, and the processing of personal information and other content (collectively, “Data Protection Laws”), the number and scope of which are changing, subject to differing applications and interpretations, and may be 39 Table of Contents inconsistent among countries, or conflict with other rules, laws, or Data Protection Obligations (defined below).
As part of our growth strategy, we are endeavoring to increase the depth and breadth of integrations of our platform with other third-party systems, including PMS, and we may not be successful in developing integrations or negotiating integration agreements on terms favorable to us.
As part of our growth strategy, we are endeavoring to increase the depth and breadth of integrations of our platform with other third-party systems, including PMS and EHR platforms, and we may not be successful in developing integrations or negotiating integration agreements on terms favorable to us.
If the assumptions that we use to plan our business are incorrect or change in reaction to changes in our market, or if we are unable to maintain consistent revenue or revenue 10 Table of Contents growth, our stock price could be volatile, and it may be difficult to achieve and maintain profitability.
If the assumptions that we use to plan our business are incorrect or change 11 Table of Contents in reaction to changes in our market, or if we are unable to maintain consistent revenue or revenue growth, our stock price could be volatile, and it may be difficult to achieve and maintain profitability.
Our risk management strategies may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk. 52 Table of Contents We operate in a rapidly changing industry. Accordingly, our risk management strategies may not be fully effective to identify, monitor and manage all risks that our business encounters.
Our risk management strategies may not be fully effective in mitigating our risk exposure in all market environments or against all types of risk. 54 Table of Contents We operate in a rapidly changing industry. Accordingly, our risk management strategies may not be fully effective to identify, monitor and manage all risks that our business encounters.
Our loan and security agreement, as amended in March 2024, includes financial covenants requiring that, at any time, if our total unrestricted cash and cash equivalents held at SVB, plus our short-term investments managed by SVB is less than $100.0 million, we must at all times thereafter maintain a consolidated minimum $20.0 million in liquidity, meaning unencumbered cash and short-term investments plus available borrowing on the line of credit, and that we meet specified minimum levels of earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as adjusted for stock-based compensation and changes in our deferred revenue.
Our loan and security agreement, as amended in July 2025, includes financial covenants requiring that, at any time, if our total unrestricted cash and cash equivalents held at SVB, plus our short-term investments managed by SVB is less than $100.0 million, we must at all times thereafter maintain a consolidated minimum $20.0 million in liquidity, meaning unencumbered cash and short-term investments plus available borrowing on the line of credit, and that we meet specified minimum levels of earnings before interest, taxes, depreciation, and amortization (“EBITDA”), as adjusted for stock-based compensation and changes in our deferred revenue.
Moreover, we will need to make investments to enter new markets in advance of deriving revenue from those markets, and, if we are unable to derive incremental revenue from new healthcare vertical markets in which we make investments to earn an adequate return on our investments, our business and results of operations will suffer.
Moreover, we will need to make investments to enter new markets in advance of deriving revenue from those markets, and, if we are unable to derive incremental revenue from new healthcare or other vertical markets in which we make investments to earn an adequate return on our investments, our business and results of operations will suffer.
Overall growth of our revenue and number of customers depends on a number of factors, including, but not limited to, our ability to: • price our products and services effectively to attract new customers and increase sales to our existing customers; • manage inflation and interest rate trends and impacts on our business and operations; • expand the functionality and scope of the products we offer on our platform; • maintain the rates at which customers subscribe to, and adopt additional products, such as Weave Payments and Call Intelligence, to extend their use of our platform and retain our existing customers; • hire new sales personnel to support our growth, and reduce the time for new personnel to achieve desired productivity levels; • provide our customers with high-quality customer support that meets their needs; • introduce our platform and products to new markets; • serve SMBs across a wide cross-section of vertical industries, such as those within specialized healthcare and to increase the number of vertical industries we serve; • successfully identify and acquire or invest in businesses, products, or technologies that we believe could complement or expand our platform; and • increase awareness of our brand and successfully compete with other companies.
Overall growth of our revenue and number of customers depends on a number of factors, including, but not limited to, our ability to: • price our products and services effectively to attract new customers and increase sales to our existing customers; • expand the functionality and scope of the products we offer on our platform; • successfully retain our customers and maintain their current levels of product usage; • maintain the rates at which customers subscribe to, and adopt additional products, such as Weave Payments and Call Intelligence, to extend their use of our platform and retain our existing customers; • hire new sales personnel to support our growth, and reduce the time for new personnel to achieve desired productivity levels; • provide our customers with high-quality customer support that meets their needs; • introduce our platform and products to new markets; • serve SMB healthcare practices across a wide cross-section of vertical industries, such as those within specialized healthcare and to increase the number of vertical industries we serve; • manage inflation and interest rate trends and impacts on our business and operations; • successfully identify and acquire or invest in businesses, products, or technologies that we believe could complement or expand our platform; and • increase awareness of our brand and successfully compete with other companies.
Some of the important factors that may cause our results of operations to fluctuate from quarter to quarter include: • inflation and interest rate trends and impacts on our customers and the U.S. economy in general; • our ability to retain and increase revenue from existing customers and attract new customers; • our ability to introduce new products and enhance existing products; 14 Table of Contents • our success in penetrating new vertical markets; • competition and the actions of our competitors, including pricing changes and the introduction of new products, services and geographies; • changes in laws, industry standards, regulations or regulatory enforcement in the U.S. or internationally; • changes in network service provider fees that we pay in connection with the delivery of communications on our platform; • changes in payment processing network and partner fees; • increases in fees from integration partners, such as PMS providers; • changes in cloud infrastructure fees that we pay in connection with the operation of our platform; • changes in our pricing as a result of our optimization efforts or otherwise; • the rate of expansion and productivity of our sales force; • change in the mix of our product offerings that our customers use; • the amount and timing of operating costs and capital expenditures related to the operations and expansion of our business, including investments in research and development of new features and functionality for our platform, products and services, our international expansion and additional systems and processes; • costs associated with defending and resolving intellectual property infringement and other claims; • significant security breaches of, technical difficulties with, or interruptions to, the delivery and use of our products on our platform; • expenses in connection with mergers, acquisitions or other strategic transactions and the follow-on costs of integration; • the timing of customer payments and any difficulty in collecting accounts receivable from customers; • general economic conditions that may adversely affect a prospective customer’s ability or willingness to adopt our products, delay a prospective customer’s adoption decision, reduce the revenue that we generate from subscriptions to our platform and use of our products or affect customer retention; • sales tax and other tax determinations by authorities in the jurisdictions in which we conduct business; • the impact of new accounting pronouncements; and • fluctuations in stock-based compensation expense.
Some of the important factors that may cause our results of operations to fluctuate from quarter to quarter include: • inflation and interest rate trends and impacts on our customers and the U.S. economy in general; • our ability to retain and increase revenue from existing customers and attract new customers; • our ability to introduce new products and enhance existing products; 15 Table of Contents • our success in penetrating new vertical markets; • competition and the actions of our competitors, including pricing changes and the introduction of new products, services and geographies; • changes in laws, industry standards, regulations or regulatory enforcement in the U.S. or internationally; • changes in network service provider fees that we pay in connection with the delivery of communications on our platform; • changes in payment processing network and partner fees; • increases in fees from integration partners, such as PMS and electronic heath record (“EHR”) platform providers; • changes in cloud infrastructure fees that we pay in connection with the operation of our platform; • cost increases (including those caused by tariffs or economic conditions, including inflation); • changes in our pricing as a result of our optimization efforts or otherwise; • the rate of expansion and productivity of our sales force; • change in the mix of our product offerings that our customers use; • the amount and timing of operating costs and capital expenditures related to the operations and expansion of our business, including investments in research and development of new features and functionality for our platform, products and services, our international expansion and additional systems and processes; • costs associated with defending and resolving intellectual property infringement and other claims; • significant security breaches of, technical difficulties with, or interruptions to, the delivery and use of our products on our platform; • expenses in connection with mergers, acquisitions or other strategic transactions and the follow-on costs of integration; • the timing of customer payments and any difficulty in collecting accounts receivable from customers; • general economic conditions that may adversely affect a prospective customer’s ability or willingness to adopt our products, delay a prospective customer’s adoption decision, reduce the revenue that we generate from subscriptions to our platform and use of our products or affect customer retention; • sales tax and other tax determinations by authorities in the jurisdictions in which we conduct business; • the impact of new accounting pronouncements; and • fluctuations in stock-based compensation expense.
The successful promotion of our brand will depend largely on our continued marketing efforts, our ability to continue to offer high quality products and support, our ability to successfully integrate our platform with a broad range of PMS, and our ability to successfully differentiate our platform and products from competing offerings.
The successful promotion of our brand will depend largely on our continued marketing efforts, our ability to continue to offer high quality products and support, our ability to successfully integrate our platform with a broad range of PMS and EHR platforms, and our ability to successfully differentiate our platform and products from competing offerings.
Although we have successfully transitioned cloud service providers in the past and we expect that we could receive similar services from other third parties in the future, if any of our arrangements with GCP are terminated, we could experience interruptions on our platform and in our ability to make our products available to customers, as well as delays and additional expenses in arranging alternative cloud infrastructure services.
Although we have successfully transitioned cloud service providers in the past and we expect that we could receive similar services from other third parties in the future, if any of our arrangements with GCP 25 Table of Contents are terminated, we could experience interruptions on our platform and in our ability to make our products available to customers, as well as delays and additional expenses in arranging alternative cloud infrastructure services.
As part of our strategy to expand into new healthcare vertical markets, we may look for acquisition opportunities and partnerships that will allow us to enhance our offerings and distribution channels for those verticals and increase our market penetration.
As part of our strategy to expand into new healthcare or other vertical markets, we may look for acquisition opportunities and partnerships that will allow us to enhance our offerings and distribution channels for those verticals and increase our market penetration.
Our platform must integrate with a variety of network, hardware, mobile and software platforms and technologies, and we need to continuously modify and enhance our products and platform to adapt to changes and innovation in these technologies if mobile phone operating system providers, network service providers, our customers or their end users adopt new software platforms or infrastructure, we may be required to develop new versions of our products to work with those new platforms or infrastructure.
Our platform must integrate with a variety of network, hardware, mobile and software platforms and technologies, and we need to continuously modify and enhance our products and platform to adapt to changes and innovation in these technologies if mobile phone operating system providers, network service providers, our customers or their end users adopt new software platforms or infrastructure, we may be required to develop new versions of our products to work with those new platforms or 21 Table of Contents infrastructure.
While we employ practices designed to monitor our compliance with the licenses of third-party open source software and protect our valuable internally-developed source code, we may inadvertently use third-party open source software in a manner that exposes us to claims of non-compliance with the applicable terms of such license, including claims for infringement of intellectual property rights or for breach of contract.
While we employ practices designed to monitor our compliance with the licenses of third-party open source software and protect our valuable internally-developed source code, we may inadvertently use third-party open source software in a manner that exposes us to claims of non-compliance with the applicable terms of such license, including claims for infringement of intellectual property rights or for 44 Table of Contents breach of contract.
If a significant portion of these intermediaries stop providing services or stop providing services on a cost-effective basis, our business could be adversely affected. 23 Table of Contents We also interconnect with internet service providers to enable the use of our communications products by our customers, and we expect that we will continue to rely on internet service providers for network connectivity going forward.
If a significant portion of these intermediaries stop providing services or stop providing services on a cost-effective basis, our business could be adversely affected. We also interconnect with internet service providers to enable the use of our communications products by our customers, and we expect that we will continue to rely on internet service providers for network connectivity going forward.
In 18 Table of Contents addition, some competitors may offer products or services that address one or a limited number of functions at lower prices, with greater depth than our products or in different geographies or in vertical markets.
In 19 Table of Contents addition, some competitors may offer products or services that address one or a limited number of functions at lower prices, with greater depth than our products or in different geographies or in vertical markets.
Assumptions and significant estimates used in preparing our 45 Table of Contents consolidated financial statements include the valuation allowance against deferred tax assets, allowance for credit losses, recoverability of long-lived assets, fair value of stock-based compensation, amortization period of deferred contract costs, the incremental borrowing rate used in determining the value of right-of-use assets and lease liabilities, and useful lives for depreciable assets.
Assumptions and significant estimates used in preparing our consolidated financial statements include the valuation allowance against deferred tax assets, allowance for credit losses, recoverability of long-lived assets, fair value of stock-based compensation, amortization period of deferred contract costs, the incremental borrowing rate used in determining the value of right-of-use assets and lease liabilities, and useful lives for depreciable assets.
The failure of our platform and products to comply, or delays in compliance, with various existing and evolving standards could delay or interrupt our introduction of new products, subject us to fines or other imposed penalties, or harm our reputation, any of which would have a material adverse effect on our business, financial condition or operating results.
The failure of our platform and products to comply, or delays in compliance, with various existing and evolving standards could delay or interrupt our 35 Table of Contents introduction of new products, subject us to fines or other imposed penalties, or harm our reputation, any of which would have a material adverse effect on our business, financial condition or operating results.
Because the TCPA provides for a private right of action under which a plaintiff may recover monetary damages, this may result in civil claims against Weave and requests for information through third party subpoenas.
Because the TCPA provides for a private right of action under which a plaintiff may recover monetary damages, this may result in civil claims against us and requests for information through third party subpoenas.
Moreover, despite our ongoing and substantial efforts to limit such use, certain customers may use our platform to transmit unauthorized, offensive or illegal messages, spam, phishing scams, and website links to harmful applications, reproduce and distribute copyrighted material or the trademarks of others 36 Table of Contents without permission, and report inaccurate or fraudulent data or information.
Moreover, despite our ongoing and substantial efforts to limit such use, certain customers may use our platform to transmit unauthorized, offensive or illegal messages, spam, phishing scams, and website links to harmful applications, reproduce and distribute copyrighted material or the trademarks of others without permission, and report inaccurate or fraudulent data or information.
Any of the above circumstances or events may harm our reputation, erode customer trust, cause customers to stop using our products, impair our ability to increase revenue from existing customers, 24 Table of Contents impair our ability to grow our customer base, subject us to financial penalties and liabilities under certain of our agreements and otherwise harm our business, results of operations and financial condition.
Any of the above circumstances or events may harm our reputation, erode customer trust, cause customers to stop using our products, impair our ability to increase revenue from existing customers, impair our ability to grow our customer base, subject us to financial penalties and liabilities under certain of our agreements and otherwise harm our business, results of operations and financial condition.
In addition, we will need to make sales and marketing investments to increase awareness of our platform and products in new healthcare vertical markets in which we have not historically had a presence.
In addition, we will need to make sales and marketing investments to increase awareness of our platform and products in new healthcare or other vertical markets in which we have not historically had a presence.
We incur chargeback liability when our customers refuse to or cannot reimburse chargebacks resolved in favor of their customers. While we have not experienced these issues to a significant 31 Table of Contents degree in the past, any increase in chargebacks not paid by our customer may adversely affect our business, financial condition or results of operations.
We incur chargeback liability when our customers refuse to or cannot reimburse chargebacks resolved in favor of their customers. While we have not experienced these issues to a significant degree in the past, any increase in chargebacks not paid by our customer may adversely affect our business, financial condition or results of operations.
These changes may yield unintended consequences and costs, such as additional attrition, the 32 Table of Contents distraction of employees, reduced employee morale and could adversely affect both our reputation as an employer and our company culture, which could make it more difficult for us to hire new employees in the future.
These changes may yield unintended consequences and costs, such as additional attrition, the distraction of employees, reduced employee morale and could adversely affect both our reputation as an employer and our company culture, which could make it more difficult for us to hire new employees in the future.
Non-compliance with these laws could subject us to investigations, sanctions, settlements, prosecution, other enforcement actions, disgorgement of profits, significant fines, 40 Table of Contents damages, other civil and criminal penalties or injunctions, adverse media coverage and other consequences. Any investigations, actions, or sanctions could harm our business, results of operations and financial condition.
Non-compliance with these laws could subject us to investigations, sanctions, settlements, prosecution, other enforcement actions, disgorgement of profits, significant fines, damages, other civil and criminal penalties or injunctions, adverse media coverage and other consequences. Any investigations, actions, or sanctions could harm our business, results of operations and financial condition.
To the extent we hire employees from competitors, we also may be subject to allegations that they have been improperly solicited or divulged proprietary or other confidential information. Volatility in, or lack of performance of, our stock price may also affect our ability to attract and retain key employees.
To the extent we hire employees from competitors, we also may be subject to allegations that they have been improperly solicited or divulged proprietary or other confidential information. Volatility in, or lack of performance of, our stock price has affected and may continue to affect our ability to attract and retain key employees.
Our capital needs will depend on our development efforts, business plans, expenditures to support the growth of our business and the enhancement of our platform and products, and financial performance. We cannot assure you that additional financing will be available to us on favorable terms when required, or at all.
Our capital needs will depend on our development efforts, business plans, expenditures to support the growth of our business and the enhancement of our platform and products, and financial performance. We cannot assure you that additional financing will be available to 50 Table of Contents us on favorable terms when required, or at all.
There is also a risk that due to regulatory changes, such as suspensions on the use of NOLs or other unforeseen reasons, our existing NOLs could expire or otherwise be unavailable to reduce future income tax liabilities, including for state tax purposes.
There is also a risk that due to regulatory changes, such as suspensions on the use of NOLs or other unforeseen reasons, our existing NOLs could expire or otherwise be unavailable to reduce future income 46 Table of Contents tax liabilities, including for state tax purposes.
Any such issuance of additional securities in the future may result in additional dilution to you or may adversely impact the price of our common stock. 47 Table of Contents Sales of substantial amounts of our common stock by existing holders in the public markets, or the perception that they might occur, could cause the market price of our common stock to decline.
Any such issuance of additional securities in the future may result in additional dilution to you or may adversely impact the price of our common stock. Sales of substantial amounts of our common stock by existing holders in the public markets, or the perception that they might occur, could cause the market price of our common stock to decline.
Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely 48 Table of Contents on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
Any determination to pay dividends in the future will be at the discretion of our board of directors. Accordingly, investors must rely on sales of their common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.
Under those sections of the Code, if a corporation undergoes an “ownership change,” the corporation’s ability to use its 44 Table of Contents pre-change NOL carryforwards and other pre-change attributes, such as research tax credits, to offset its post-change income or tax may be limited.
Under those sections of the Code, if a corporation undergoes an “ownership change,” the corporation’s ability to use its pre-change NOL carryforwards and other pre-change attributes, such as research tax credits, to offset its post-change income or tax may be limited.
To the extent that weak economic conditions, supply chain shortages, economic inflation, geopolitical developments, such as existing and potential trade wars, military conflicts, including the military conflicts between Russia and Ukraine as well as Israel and Palestine, and other events outside of our control, result in a reduced volume of business for, and communications and engagement by, our customers and prospective customers, demand for, and use of, our products may decline.
To the extent that weak economic conditions, supply chain shortages, economic inflation, geopolitical developments, such as existing and potential trade wars, military conflicts, including the military conflict between Russia and Ukraine, and other events outside of our control, result in a reduced volume of business for, and communications and engagement by, our customers and prospective customers, demand for, and use of, our products may decline.
It remains unclear how much private litigation will ensue under the data breach private right of action. Additionally, the CPRA, which became fully effective on January 1, 2023, expanded the rights of California residents with respect to their personal information.
It remains unclear how much private 40 Table of Contents litigation will ensue under the data breach private right of action. Additionally, the CPRA, which became fully effective on January 1, 2023, expanded the rights of California residents with respect to their personal information.
To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our amended and restated certificate of incorporation provides that the federal district courts of the U.S. of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act.
To prevent having to litigate claims in multiple jurisdictions and the threat of inconsistent or contrary rulings by different courts, among other considerations, our amended and restated certificate of incorporation provides that the federal district courts of the United States of America will be the exclusive forum for resolving any complaint asserting a cause of action arising under the Securities Act.
In addition, a significant percentage of our operating expenses is fixed in nature and is based on forecasted revenue trends. Accordingly, in the event of a revenue shortfall, we may not be able to mitigate the negative impact on our loss and margins in the short term.
In addition, a significant percentage of our operating expenses is fixed in nature and is based on forecasted revenue trends. Accordingly, in the event of a revenue shortfall, we may not be able to mitigate the negative impact 16 Table of Contents on our loss and margins in the short term.
For example, a settlement may require us to obtain a license to continue practices found to be in violation of a third-party’s rights, which may not be available on reasonable terms and may significantly increase our 41 Table of Contents operating expenses. A license to continue such practices may not be available to us at all.
For example, a settlement may require us to obtain a license to continue practices found to be in violation of a third-party’s rights, which may not be available on reasonable terms and may significantly increase our operating expenses. A license to continue such practices may not be available to us at all.
Due to these factors, sales of a substantial amounts of shares of our common stock in the public markets could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could cause the market price of our common stock to decline.
Due to these factors, sales of a substantial amounts of shares of our common stock in the public markets 49 Table of Contents could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could cause the market price of our common stock to decline.
As a result of disclosure obligations required in our public filings, our business and financial condition has become more visible, which may result in an increased risk of threatened or actual litigation, including by competitors and other third 49 Table of Contents parties.
As a result of disclosure obligations required in our public filings, our business and financial condition has become more visible, which may result in an increased risk of threatened or actual litigation, including by competitors and other third parties.
Further, as positive references from existing customers are vital to expanding into new vertical and geographic markets, any dissatisfaction on the part 26 Table of Contents of existing customers may harm our brand and reputation and inhibit market acceptance of our platform and products.
Further, as positive references from existing customers are vital to expanding into new vertical and geographic markets, any dissatisfaction on the part of existing customers may harm our brand and reputation and inhibit market acceptance of our platform and products.
If we fail to expand into new healthcare vertical markets and increase our penetration into existing vertical markets, we may not be able to continue to grow our revenue.
If we fail to expand into new healthcare or other vertical markets and increase our penetration into existing vertical markets, we may not be able to continue to grow our revenue.
The FCC requires VoIP providers, such as our company, to provide E-911 service in all geographic areas covered by the traditional wire-line 911 network. Under FCC rules, VoIP providers must transmit the caller’s phone number and dispatchable location information to the appropriate public safety answering point (“PSAP”) for the caller’s registered location.
The FCC requires VoIP providers, such as our company, to provide E-911 service in all geographic areas covered by the traditional wire-line 911 network. Under FCC rules, VoIP providers must transmit the 38 Table of Contents caller’s phone number and dispatchable location information to the appropriate public safety answering point (“PSAP”) for the caller’s registered location.
We may need to devote significant resources to the creation, support, and maintenance of our mobile application, and any failure of our platform and products to operate effectively with evolving or new platforms and technologies could reduce the demand 20 Table of Contents for our platform and products.
We may need to devote significant resources to the creation, support, and maintenance of our mobile application, and any failure of our platform and products to operate effectively with evolving or new platforms and technologies could reduce the demand for our platform and products.
While the Delaware courts have determined that such choice of forum provisions are facially valid, a stockholder may nevertheless seek to bring such a claim arising under the Securities Act against us, our directors, officers, or other employees in a venue other than in the federal district courts of the U.S. of America.
While the Delaware courts have determined that such choice of forum provisions are facially valid, a stockholder may nevertheless seek to bring such a claim arising under the Securities Act against us, our directors, officers, or other employees in a venue other than in the federal district courts of the United States of America.
If we fail to meet or exceed the expectations of investors or 15 Table of Contents securities analysts, then the trading price of our common stock could fall substantially, and we could face costly lawsuits, including securities class action suits.
If we fail to meet or exceed the expectations of investors or securities analysts, then the trading price of our common stock could fall substantially, and we could face costly lawsuits, including securities class action suits.
We pass USF, E-911 fees, and other surcharges through to our customers, which may result in our subscriptions becoming more expensive or require that we absorb 34 Table of Contents these costs. In the future, state public utility commissions may expand their jurisdiction over VoIP subscriptions like ours.
We pass USF, E-911 fees, and other surcharges through to our customers, which may result in our subscriptions becoming more expensive or require that we absorb these costs. In the future, state public utility commissions may expand their jurisdiction over VoIP subscriptions like ours.
However, as the popularity of text messaging increases over time, we expect the MNOs and the wireless communications industry to 29 Table of Contents continue to implement additional requirements, restrictions, and fees for sending non-consumer messages.
However, as the popularity of text messaging increases over time, we expect the MNOs and the wireless communications industry to continue to implement additional requirements, restrictions, and fees for sending non-consumer messages.
Approximately one quarter of our current customer service and support staff has been employed with us for less than one year and therefore may be less familiar with our platform and products than our more tenured employees.
Approximately forty percent of our current customer service and support staff has been employed with us for less than one year and therefore may be less familiar with our platform and products than our more tenured employees.
These and other developments may require us to make significant changes to our use of AI, including by limiting or restricting our use of AI, and which may require us to make significant changes to our policies and practices, which may necessitate expenditure of significant time, expense, and other resources.
These and other developments may require us to make significant changes to our use of AI, including by limiting or restricting our use of AI, and which may require us to make significant changes to our policies and practices, which may necessitate expenditure of significant time, 26 Table of Contents expense, and other resources.
The TCPA requires companies to obtain prior express written consent before making telemarketing calls or sending certain text messages and to not contact any number placed on either federal or state “do-not-call” registries or the company’s internal do-not-call list.
The TCPA requires companies to obtain prior express written consent before making telemarketing calls or sending certain text messages and to not contact any number placed on either federal or state “do-not-call” registries or the company’s internal do- 37 Table of Contents not-call list.
If our customers do not increase their use of Weave Payments, then our results of operations and future prospects may be harmed. We cannot accurately predict customers’ usage levels.
If our customers do not increase their use of Weave Payments, then our results of operations and future prospects may be harmed. 28 Table of Contents We cannot accurately predict customers’ usage levels.
Risks Related to Intellectual Property Failure to protect or enforce our intellectual property rights could impair our ability to protect our internally-developed technology and our brand, and our business may be adversely affected. Our success is dependent, in part, upon obtaining, maintaining and protecting our intellectual property rights, internally-developed technology and other proprietary information.
Risks Related to Intellectual Property Failure to protect or enforce our intellectual property rights could impair our ability to protect our internally-developed technology and our brand, and our business may be adversely affected. 42 Table of Contents Our success is dependent, in part, upon obtaining, maintaining and protecting our intellectual property rights, internally-developed technology and other proprietary information.
Sustaining our growth will place demands on our management as well as on our administrative, operational, and financial resources, particularly while we continue to navigate relatively recent transitions in management and challenging macroeconomic conditions. If we are unable to manage our growth effectively, our revenue and profits could be adversely affected.
Sustaining our growth will place demands on our management as well as on our administrative, operational, and financial resources, particularly while we continue to navigate challenging macroeconomic conditions. If we are unable to manage our growth effectively, our revenue and profits could be adversely affected.
If we do not continue to develop enhancements to our platform and products and introduce new products that achieve market acceptance, our business, results of operations and financial condition would be adversely affected.
If we do not continue enhance to our platform and products and introduce new products that achieve market acceptance, our business, results of operations and financial condition would be adversely affected.
We may be subject to lawsuits by parties claiming ownership of what we believe to be open source software, or claiming non­ 42 Table of Contents compliance with the applicable open source licensing terms.
We may be subject to lawsuits by parties claiming ownership of what we believe to be open source software, or claiming non­compliance with the applicable open source licensing terms.
We also may invest in the acquisition of complementary businesses, technologies, services, products and other assets that expand the products that we can offer our customers. We may make these investments without being certain that they will result in products or enhancements that will be accepted by existing or prospective customers.
We have invested in and may in the future invest in the acquisition of complementary businesses, technologies, services, products and other assets that expand the products that we can offer our customers. We have made and may make these investments without being certain that they will result in products or enhancements that will be accepted by existing or prospective customers.

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Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeThe Audit Committee has oversight responsibility for risks and incidents relating to cybersecurity threats, including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and other risks, and it reports any findings and recommendations, as appropriate, to the full Board for consideration.
Biggest changeThe Nominating and Governance Committee has oversight responsibility for risks and incidents relating to cybersecurity threats, including compliance with disclosure requirements, cooperation with law enforcement, and related effects on financial and other risks, and it reports any findings and recommendations, as appropriate, to the full Board for consideration.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeWe also maintain offices in Noida, India. 53 Table of Contents We believe that our existing facilities are adequate to meet our current needs, and we intend to add or change facilities as needs require. We believe that, if required, suitable additional or substitute space would be available to accommodate expansion of our operations.
Biggest changeWe believe that, if required, suitable additional or substitute space would be available to accommodate expansion of our operations.
Item 2. Properties As of December 31, 2024, we currently lease approximately 180,000 square feet of office space for our current corporate headquarters in Lehi, Utah under a lease agreement that expires in 2033.
Properties As of December 31, 2025, we currently lease approximately 180,000 square feet of office space for our corporate headquarters in Lehi, Utah under a lease agreement that expires in 2033. 55 Table of Contents We believe that our existing facilities are adequate to meet our current needs, and we intend to add or change facilities as needs require.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock. 55 Table of Contents *$100 invested on November 11, 2021 in stock or index, including reinvestment of dividends. Fiscal year ending December 31. Copyright© 2023 Standard & Poor's, a division of S&P Global.
Biggest changeThe performance shown in the graph below is not intended to forecast or be indicative of future stock price performance. 57 Table of Contents The comparisons in the graph below are based upon historical data and are not indicative of, nor intended to forecast, future performance of our common stock. *$100 invested on November 11, 2021 in stock or index, including reinvestment of dividends.
The following graph depicts the total cumulative stockholder return on our common stock from November 11, 2021, the first day of trading of our common stock on The New York Stock Exchange, through December 31, 2024, relative to the performance of the Standard & Poor's (“S&P”) 500 Index and the Russell 2000 Index.
The following graph depicts the total cumulative stockholder return on our common stock from November 11, 2021, the first day of trading of our common stock on The New York Stock Exchange, through December 31, 2025, relative to the performance of the Standard & Poor's (“S&P”) 500 Index and the Russell 2000 Index.
Prior to that date, there was no public market for our common stock. Holders of Record As of March 7, 2025, there were 10 holders of record of our common stock. This figure does not include a substantially greater number of beneficial holders of our common stock whose shares are held off record by banks, brokers and other financial institutions.
Prior to that date, there was no public market for our common stock. Holders of Record As of March 2, 2026, there were 35 holders of record of our common stock. This figure does not include a substantially greater number of beneficial holders of our common stock whose shares are held off record by banks, brokers and other financial institutions.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information for Common Stock Our common stock began trading on the New York Stock Exchange under the symbol “WEAV” on November 11, 2021 in connection with the IPO of our common stock.
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities Market Information for Common Stock Our common stock began trading on the New York Stock Exchange under the symbol “WEAV” on November 11, 2021 in connection with the initial public offering (“IPO”) of our common stock.
The graph assumes an initial investment of $100.00 at the close of trading on November 11, 2021 and that all dividends paid by companies included in these indices have been reinvested. The performance shown in the graph below is not intended to forecast or be indicative of future stock price performance.
The graph assumes an initial investment of $100.00 at the close of trading on November 11, 2021 and that all dividends paid by companies included in these indices have been reinvested.
All rights reserved. Copyright© 2023 Russell Investment Group. All rights reserved. Sale of Unregistered Securities and Use of Proceeds None. Issuer Purchases of Equity Securities None. Item 6. Reserved
Fiscal year ending December 31. Sale of Unregistered Securities and Use of Proceeds None. Issuer Purchases of Equity Securities None. Item 6. Reserved

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeBecause of the uncertainty of the realization of the deferred tax assets, we have a full valuation allowance for domestic net deferred tax assets, including net operating loss carryforwards. 62 Table of Contents Results of Operations The following table sets forth our consolidated statements of operations data for the periods indicated: Year Ended December 31, 2024 2023 (in thousands) Revenue $ 204,314 $ 170,468 Cost of revenue (1) 58,432 54,377 Gross profit 145,882 116,091 Operating expenses: Sales and marketing (1) 84,612 70,765 Research and development (1) 40,231 34,040 General and administrative (1) 52,452 45,652 Total operating expenses 177,295 150,457 Loss from operations (31,413) (34,366) Other income (expense): Interest income 1,851 2,196 Interest expense (1,523) (1,923) Other income (expense), net 2,928 3,322 Loss before income taxes (28,157) (30,771) Provision for income taxes (189) (260) Net loss $ (28,346) $ (31,031) ______________ (1) Includes stock-based compensation expense as follows: Year Ended December 31, 2024 2023 (in thousands) Cost of revenue $ 1,014 $ 971 Sales and marketing 6,582 4,233 Research and development 8,374 5,590 General and administrative 16,250 12,029 Total stock-based compensation $ 32,220 $ 22,823 See Note 12 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for further details on stock-based compensation expense. 63 Table of Contents The following table sets forth our consolidated statements of operations data expressed as a percentage of revenue for the periods indicated: Year Ended December 31, 2024 2023 (percentage of total revenue) Revenue 100 % 100 % Cost of revenue 29 32 Gross margin 71 68 Operating expenses: Sales and marketing 41 42 Research and development 20 20 General and administrative 26 27 Total operating expenses 87 88 Loss from operations (15) (20) Other income (expense): Interest income 1 1 Interest expense (1) (1) Other income (expense), net 1 2 Loss before income taxes (14) (18) Provision for income taxes — — Net loss (14) % (18) % Comparison of the Years Ended December 31, 2024 and December 31, 2023 Revenue Year Ended December 31, Change 2024 2023 Amount Percentage (dollars in thousands) Revenue $ 204,314 $ 170,468 $ 33,846 20 % Revenue increased by $33.8 million, or 20%, for the year ended December 31, 2024 compared to the year ended December 31, 2023.
Biggest changeNotwithstanding this release, we continue to maintain a valuation allowance against our remaining domestic deferred tax assets. 65 Table of Contents Results of Operations The following table sets forth our consolidated statements of operations data for the periods indicated: Year Ended December 31, 2025 2024 (in thousands) Revenue $ 239,024 $ 204,314 Cost of revenue (1)(3) 66,716 58,432 Gross profit 172,308 145,882 Operating expenses: Sales and marketing (1)(2)(3) 102,703 84,612 Research and development (1)(2) 44,462 40,231 General and administrative (1)(2) 55,753 52,452 Total operating expenses 202,918 177,295 Loss from operations (30,610) (31,413) Other income (expense): Interest income 1,811 1,851 Interest expense (1,700) (1,523) Other income (expense), net 1,523 2,928 Loss before income taxes (28,976) (28,157) Income tax benefit (provision) 924 (189) Net loss $ (28,052) $ (28,346) ______________ (1) Includes stock-based compensation expense as shown below (2) Includes acquisition transaction costs as shown below (3) Includes amortization of acquisition-related intangibles as shown below Year Ended December 31, 2025 2024 (in thousands) Cost of revenue $ 894 $ 1,014 Sales and marketing 7,510 6,582 Research and development 8,806 8,374 General and administrative 14,921 16,250 Total stock-based compensation $ 32,131 $ 32,220 66 Table of Contents See Note 14 to our consolidated financial statements included elsewhere in this Annual Report on Form 10-K for further details on stock-based compensation expense.
Dollar-Based Net Retention Rate We believe our dollar-based net retention rate (“NRR”) provides insight into our ability to retain and grow revenue from our customer locations, as well as their potential long-term value to us.
Dollar-Based Net Revenue Retention Rate We believe our dollar-based net revenue retention rate (“NRR”) provides insight into our ability to retain and grow revenue from our customer locations, as well as their potential long-term value to us.
Attract New Customers Our ability to attract new customers is dependent upon a number of factors, including the effectiveness of our pricing and products, the sum total of the features and pricing of the alternative point solution patchwork, the effectiveness of our marketing efforts, the effectiveness of our channel partners in selling and marketing our platform, our ability to integrate our platform with PMS, which strengthens our product market fit and increases the value our platform provides to customers, and the growth of the market for a customer experience and payments software platform.
Attract New Customers Our ability to attract new customers is dependent upon a number of factors, including the effectiveness of our pricing and products, the sum total of the features and pricing of the alternative point solution patchwork, the effectiveness of our marketing efforts, the effectiveness of our channel partners in selling and marketing our platform, our ability to integrate our platform with PMS and EHR software, which strengthens our product market fit and increases the value our platform provides to customers, and the growth of the market for a customer experience and payments software platform.
Dollar-Based Gross Retention Rate We believe our dollar-based gross retention rate (“GRR”) provides insight into our ability to retain our customers, allowing us to evaluate whether the platform is addressing customer needs. To calculate our GRR, we first identify the Base Locations that were under subscription in the Base Month.
Dollar-Based Gross Revenue Retention Rate We believe our dollar-based gross revenue retention rate (“GRR”) provides insight into our ability to retain our customers, allowing us to evaluate whether the platform is addressing customer needs. To calculate our GRR, we first identify the Base Locations that were under subscription in the Base Month.
We then divide Remaining AMR for the Base Locations by AMR in the Base Month for the Base Locations to derive a monthly gross retention rate. We calculate GRR as of any date by taking a weighted average of the monthly gross retention rates over the trailing twelve months prior to such date.
We then divide the Remaining AMR for the Base Locations by AMR in the Base Month for the Base Locations to derive a monthly gross revenue retention rate. We calculate GRR as of any date by taking a weighted average of the monthly gross revenue retention rates over the trailing twelve months prior to such date.
In this Annual Report on Form 10-K, unless otherwise specified or the context otherwise requires, “Weave,” the “Company,” “we,” “us,” and “our” refer to Weave Communications, Inc. and its consolidated subsidiaries. 56 Table of Contents We have elected to omit discussion of the earliest of the three years presented in the Consolidated Financial Statements of this Annual Report on Form 10-K.
In this Annual Report on Form 10-K, unless otherwise specified or the context otherwise requires, “Weave,” the “Company,” “we,” “us,” and “our” refer to Weave Communications, Inc. and its consolidated subsidiaries. 58 Table of Contents We have elected to omit discussion of the earliest of the three years presented in the Consolidated Financial Statements of this Annual Report on Form 10-K.
Direct costs associated with providing our platform include data center and cloud infrastructure costs, payment processing costs, amortization of finance lease right-of-use assets on phone hardware provided to customers, fees and revenue shares to application providers, voice connectivity and messaging fees, and amortization of internal-use software development costs.
Direct costs associated with providing our platform include data center and cloud infrastructure costs, payment processing costs, amortization of finance lease right-of-use assets on phone hardware provided to customers, fees and revenue shares to application providers, voice connectivity and messaging fees, and amortization of internal-use software development costs and acquired technology.
Securities and Exchange Commission (“SEC”) on March 13, 2024, for year-over-year comparisons of the results of operation between the year ended December 31, 2023 and December 31, 2022 as well as a discussion of 2022 performance metrics and cash flow activity, all of which are incorporated herein by reference.
Securities and Exchange Commission (“SEC”) on March 13, 2025, for year-over-year comparisons of the results of operation between the year ended December 31, 2024 and December 31, 2023 as well as a discussion of 2023 performance metrics and cash flow activity, all of which are incorporated herein by reference.
Refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the U.S.
Refer to “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” of our Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the U.S.
Supplemental Financial Information — Disaggregated Revenue and Cost of Revenue To supplement our discussion of our consolidated results of operations, we have separated our revenue and cost of revenue into recurring and non-recurring categories to disaggregate revenue and costs of revenue that are one-time in nature from those that are term-based and renewable.
Supplemental Financial Information — Disaggregated Revenue and Cost of Revenue To supplement our discussion of our consolidated results of operations, we have separated our revenue and cost of revenue into recurring and onboarding categories to disaggregate revenue and costs of revenue that are one-time in nature from those that are term-based and renewable.
The deployment of the Weave phone system as part of the platform at each of our customers improves retention and customer loyalty. Historically, our subscriptions have provided our new customers with immediate access to the majority of our products and functionality.
The deployment of the Weave phone system as part of the platform at each of our customers’ locations improves retention and customer loyalty. Historically, our subscriptions have provided our new customers with immediate access to the majority of our products and functionality.
We expect that our general and administrative expenses, including expenses for insurance, investor relations and fees for professional services, will increase in absolute dollars as our business grows but will decrease as a percentage of our revenue over time. Interest Income Interest income consists primarily of interest earned on our cash, cash equivalents, and short-term investments.
We expect that our general and administrative expenses, including expenses for insurance, investor relations and fees for professional services, will increase in absolute dollars as our business grows but will decrease as a percentage of our revenue over time. 64 Table of Contents Interest Income Interest income consists primarily of interest earned on our cash, cash equivalents, and short-term investments.
Customer retention also impacts our future financial performance given its potential to drive improved gross margin. The initial onboarding costs as well as the cost of hardware, which is depreciated over three years, represent substantial cost of revenue elements during the initial years of a customer’s life.
Customer retention also impacts our future financial performance given its potential to drive improved gross margin. The initial onboarding costs as well as the cost of phone hardware, which is depreciated over three years, represent substantial cost of revenue elements during the first few years of a customer’s life.
Financing Activities Cash used in financing activities for the year ended December 31, 2024 was $22.2 million, due to $18.9 million from payments made for taxes related to the net share settlement of equity awards and $7.1 million from principal payments made on finance lease obligations.
Cash used in financing activities for the year ended December 31, 2024 was $22.2 million, due to $18.9 million from payments made for taxes related to the net share settlement of equity awards and 73 Table of Contents $7.1 million from principal payments made on finance lease obligations.
We have not incurred any costs as a result of such indemnification obligations historically and have not accrued any liabilities related to such obligations in our consolidated financial statements as of December 31, 2024.
We have not incurred any costs as a result of such indemnification obligations historically and have not accrued any liabilities related to such obligations in our consolidated financial statements as of December 31, 2025.
Operating Expenses Our operating expenses consist of sales and marketing, research and development, and general and administrative expenses. Personnel costs are the most significant component of operating expenses and consist of salaries, benefits, bonuses, stock-based compensation and sales commissions. Operating expenses also include allocated overhead costs for facilities and shared IT-related expenses, including depreciation expense.
Operating Expenses Our operating expenses consist of sales and marketing, research and development, and general and administrative expenses. Personnel costs are the most significant component of operating expenses and consist of salaries, benefits, bonuses, stock-based compensation and sales commissions. Operating 63 Table of Contents expenses also include allocated overhead costs for facilities and shared IT-related expenses, including depreciation expense.
We evaluate the likelihood of any future benefit of deferred tax assets and, based on that evaluation, record a valuation allowance if we determine that a portion of that benefit will not be realized. Our valuation allowance is based on management’s judgment and estimates of future business performance and taxes to be paid.
We evaluate the likelihood of any future benefit of deferred tax assets and, based on that evaluation, record a valuation allowance if we determine that a portion of that benefit will not be realized. Our valuation allowance is based on management’s 74 Table of Contents judgment and estimates of future business performance and taxes to be paid.
The revenue and related costs associated with onboarding new customers are typically non-recurring and are primarily associated with the initial setup of a customer’s software and phone system. Revenue on phone hardware provided to our customers, deemed embedded lease revenue, is recognized over the related subscription period.
The revenue and related costs associated with onboarding new customers are primarily associated with the initial setup of a customer’s software and phone system. Revenue on phone hardware provided to our customers, deemed embedded lease revenue, is recognized over the related subscription period.
Recently Adopted Accounting Pronouncements For more information, see the sections titled “Basis of Presentation and Summary of Significant Accounting Policies—Accounting Pronouncements Adopted” and “—Accounting Pronouncements 71 Table of Contents Pending Adoption” in Note 2 to our consolidated financial statements in Part II, Item 8, "Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.
Recently Adopted Accounting Pronouncements For more information on recent accounting pronouncements, see the sections titled “Basis of Presentation and Summary of Significant Accounting Policies—Accounting Pronouncements Adopted” and “—Accounting Pronouncements Pending Adoption” in Note 2 to our consolidated financial statements in Part II, Item 8, "Financial Statements and Supplementary Data" in this Annual Report on Form 10-K.
However, we have released additional add-on products in recent years, such as Bulk Texting and Forms, which we are increasingly successful at cross-selling to our customer base. We intend to continue to invest in enhancing awareness of our platform, creating additional use cases, and developing more products, features and functionality.
However, we have released additional add-on products in recent years, such as Bulk Texting, Forms, Insurance Verification and Call Intelligence, which we are increasingly successful at cross-selling to our customer base. We intend to continue to invest in enhancing awareness of our platform, creating additional use cases, and developing more products, features and functionality.
We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide useful information to management and investors, even if negative, as they provide information about the amount of cash consumed by our combined operating and investing activities.
We believe that free cash flow and free cash flow margin are useful indicators of liquidity that provide useful information to management and investors, as they provide information about the amount of cash consumed by our combined operating and investing activities.
Our gross margin improvement is derived from a favorable customer mix as a greater portion of our customers had fully depreciated phone hardware, and from efficiencies with third-party costs incurred for specific platform features and overall data usage as part of our cost management efforts.
Our gross margin improvement is derived from a favorable customer mix as a greater portion of our customers had fully depreciated phone hardware, increasing contribution from payments revenue, and from efficiencies with third-party costs incurred for specific platform features and overall data usage as part of our cost management efforts.
We believe that Adjusted EBITDA provides management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of operations. Additionally, management uses Adjusted EBITDA to measure our financial and operational performance and prepare our budgets.
We believe that Adjusted EBITDA provides management and investors consistency and comparability with our past financial performance and facilitates period-to-period comparisons of 70 Table of Contents operations. Additionally, management uses Adjusted EBITDA to measure our financial and operational performance and prepare our budgets.
For example, as free cash flow has in the past been negative, we have needed to access cash reserves or other sources of capital for these investments. Adjusted EBITDA We define EBITDA as earnings before interest expense, interest income, other income/expense, provision for income taxes, depreciation, and amortization.
For example, as free cash flow has in the past been negative, we have needed to access cash reserves or other sources of capital for these investments. Adjusted EBITDA We define EBITDA as earnings before interest expense, interest income, other income/expense, income tax benefit (expense), depreciation, and amortization.
These cash outflows were partially offset by $2.0 million received from our employee stock purchase plan and $1.7 million in proceeds received from employee stock option exercises.
These cash outflows were partially offset by $2.0 million received from our employee stock purchase plan and $0.8 million in proceeds received from employee stock option exercises.
We believe our disaggregated revenue and cost of revenue financial data, particularly our subscription and payment processing gross margin, provide insight into the impact of customer retention on overall gross margin improvement. Our subscription and payment processing gross margin was 78% and 77% for the years ended December 31, 2024 and 2023, respectively.
We believe our disaggregated revenue and cost of revenue financial data, particularly our subscription and payment processing gross margin, provide insight into the impact of customer retention on overall gross margin improvement. Our subscription and payment processing gross margin was 78% for each of the years ended December 31, 2025 and 2024.
These cash outflows were partially offset by $12.9 million in proceeds received from employee stock option exercises, and proceeds of $1.3 million received from our employee stock purchase plan. Critical Accounting Estimates Our consolidated financial statements included elsewhere in this Annual Report on Form 10-K are prepared in accordance with U.S. GAAP.
These cash outflows were partially offset by $2.0 million received from our employee stock purchase plan and $1.7 million in proceeds received from employee stock option exercises. Critical Accounting Estimates Our consolidated financial statements included elsewhere in this Annual Report on Form 10-K are prepared in accordance with U.S. GAAP.
The depth of our platform’s functionality is dependent upon both our internally-developed technology and our platform partnerships and integrations. We expect our future success in winning new clients to be partially driven by our ability to continue to develop and deliver new, innovative products to SMBs in a timely manner.
We expect our future success in winning new clients to be partially driven by our ability to continue to develop and deliver new, innovative products in a timely manner, including those enabled by AI. The depth of our platform’s functionality is dependent upon both our internally-developed technology and our product partnerships and integrations.
The August 2021 Agreement, as amended in March 2024, includes financial covenants requiring that, at any time, if our total unrestricted cash and cash equivalents held at SVB, plus our short-term investments managed by SVB, is less than $100 million, we must at all times thereafter maintain a consolidated minimum $20 million in liquidity, meaning unencumbered cash and short-term investments plus available borrowing on the line of credit, and that we are required to meet specified minimum levels of EBITDA, as adjusted for stock-based compensation and changes in our deferred revenue.
The July 2025 Amendment includes financial covenants requiring that, at any time, if our total unrestricted cash and cash equivalents held at SVB, plus our short-term investments managed by SVB, is less than $100.0 million, we must at all times thereafter maintain a consolidated minimum liquidity of $20 million, meaning unencumbered cash and short-term investments plus available borrowing on the line of credit, and that we are required to meet specified minimum levels of EBITDA as adjusted for stock-based compensation expense and changes in our deferred revenue balances.
Our principal commitments consist of obligations under the Silicon Valley Bank Credit Facility (discussed below and within Note 11), operating leases for office space (Note 7), finance leases for phone equipment for our solution (Note 7), as well as non-cancellable purchase commitments (Note 10).
Our principal commitments consist of obligations under the Silicon Valley Bank Credit Facility (discussed below and within Note 13), operating leases for office space (Note 9), finance leases for phone equipment for our solution (Note 9), as well as non-cancellable purchase commitments (Note 12).
In addition, we provide recurring payment processing services through Weave Payments and derive revenue from transactions between our customers that utilize Weave Payments and their end consumers. We also derive revenue associated with non-recurring installation fees for onboarding customers and from embedded leases on phone hardware.
In addition, we provide recurring payment processing services through Weave Payments and derive revenue from transactions between our customers that utilize Weave Payments and their end consumers. We also derive revenue associated with installation fees for onboarding customers.
Additionally, we purchased $2.2 million in furniture, equipment and leasehold improvements, and capitalized $1.6 million of personnel-related costs as internal-use software development. Cash used in investing activities for the year ended December 31, 2023 was $7.7 million, primarily due to $66.2 million in purchases of short-term investments which were partially offset by $62.2 million of maturities of short-term investments.
Cash provided by investing activities for the year ended December 31, 2024 was $8.9 million, primarily due to $66.4 million of maturities of short-term investments, which were partially offset by $53.8 million in purchases of short-term investments. Additionally, we purchased $2.2 million in furniture, equipment and leasehold improvements, and capitalized $1.6 million of personnel-related costs as internal-use software development.
General and administrative expenses also include external legal, accounting, and other professional services fees, software and subscription services dedicated for use by our general and administrative functions, insurance and other corporate expenses.
General and administrative expenses also include external legal, accounting, and other professional services fees, software and subscription services dedicated for use by our general and administrative functions, insurance and other corporate expenses, such as acquisition transaction costs.
December 31, 2024 2023 Number of locations (at period end) 34,997 31,002 Dollar-based net retention rate 98 % 95 % Dollar-based gross retention rate 91 % 92 % Number of Customer Locations We believe the number of customer locations for each year provides us an indicator of our market penetration, the growth of our business and our potential future business opportunities.
December 31, 2025 2024 Number of locations (at period end) 39,625 34,997 Dollar-based net retention rate 93 % 98 % Dollar-based gross retention rate 89 % 91 % Number of Customer Locations We believe the number of customer locations for each year provides us an indicator of our market penetration, the growth of our business and our potential future business opportunities.
We have elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.
We have elected to use the extended transition period for complying with new or revised accounting standards and as a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates. We may take advantage of these exemptions up until December 31, 2026.
For stock options, the ESPP, and RSUs, the related stock-based compensation is recognized in the consolidated statements of operations using the straight-line attribution method. We recognize stock-based compensation expense over the requisite service period, which is the vesting period of the respective awards.
For stock options, the ESPP, and RSUs, the related stock-based compensation is recognized in the consolidated statements of operations and comprehensive loss using the straight-line attribution method. We recognize stock-based compensation expense over the requisite service period, which is the vesting period of the respective awards. Forfeitures are accounted for when they occur.
In addition, there was an increase of $0.9 million in personnel-related costs, particularly related to merit increases and new hires.
In addition, there was an increase of $2.0 million in personnel-related costs, particularly related to merit increases and new hires, and an increase of $0.8 million in allocated overhead costs.
Year Ended December 31, 2024 2023 (dollars in thousands) Net cash provided by operating activities $ 14,149 $ 10,221 Net cash provided by (used in) investing activities $ 8,882 $ (7,739) Net cash used in financing activities $ (22,191) $ (13,723) Free cash flow $ 10,364 $ 6,531 Net cash provided by operating activities as a percentage of revenue 7 % 6 % Free cash flow margin 5 % 4 % Net loss $ (28,346) $ (31,031) Adjusted EBITDA $ 4,538 $ (7,846) Free Cash Flow and Free Cash Flow Margin We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software costs, and free cash flow margin as free cash flow as a percentage of revenue.
Year Ended December 31, 2025 2024 (dollars in thousands) Net cash provided by operating activities $ 17,540 $ 14,149 Net cash provided by (used in) investing activities $ (6,846) $ 8,882 Net cash used in financing activities $ (7,331) $ (22,191) Free cash flow $ 12,860 $ 10,364 Net cash provided by operating activities as a percentage of revenue 7 % 7 % Free cash flow margin 5 % 5 % Net loss $ (28,052) $ (28,346) Adjusted EBITDA $ 8,055 $ 4,538 Free Cash Flow and Free Cash Flow Margin We define free cash flow as net cash provided by operating activities, less purchases of property and equipment and capitalized internal-use software costs, and free cash flow margin as free cash flow as a percentage of revenue.
Silicon Valley Bank Credit Facility In August 2021, we established a revolving line of credit with SVB with total borrowing capacity up to $50.0 million, subject to reduction should we fail to meet certain metrics for recurring revenue and customer retention (the “August 2021 Agreement”). The line of credit, as amended, matures in August 2025.
Silicon Valley Bank Credit Facility In August 2021, we established a revolving line of credit with SVB, a division of First-Citizens Bank & Trust Company (“SVB”) allowing for total borrowing capacity up to $50.0 million, subject to reduction should we fail to meet certain metrics for recurring revenue and customer retention (the “August 2021 Agreement”).
Expand to New Industry Verticals We believe we have built a flexible platform that encompasses the majority of the functionality needed for customer experience and engagement across industry verticals, and we have developed a repeatable playbook for assessing new industry verticals.
Expand to New Industry Verticals We believe we have built a flexible platform that encompasses the majority of the functionality needed for customer experience and engagement across industry verticals, and we have developed a repeatable playbook for assessing new industry verticals. We started in dental and have since successfully expanded to optometry, and veterinary.
GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures and to not rely on any single financial measure to evaluate our business. 67 Table of Contents Free Cash Flow and Free Cash Flow Margin U.S.
Investors are encouraged to review the related U.S. GAAP financial measures and the reconciliations of these non-GAAP financial measures to their most directly comparable U.S. GAAP financial measures and to not rely on any single financial measure to evaluate our business. Free Cash Flow and Free Cash Flow Margin U.S.
Forfeitures are accounted for when they occur. 70 Table of Contents Changes in the assumptions, which are subjective and generally require significant analysis and judgment to develop, can materially affect the valuation of our equity awards and impact how much stock-based compensation expense is recognized.
Changes in the assumptions, which are subjective and generally require significant analysis and judgment to develop, can materially affect the valuation of our equity awards and impact how much stock-based compensation expense is recognized.
We generate revenue primarily from recurring subscription fees charged to access our platform, which also include recurring hardware fees. These recurring revenues accounted for 92% of our revenue for each of the years ended December 31, 2024 and 2023, respectively.
We generate revenue primarily from recurring subscription fees charged to access our platform, which also includes embedded lease revenue on phone hardware. These recurring revenues accounted for 91% and 92% of our revenue for each of the years ended December 31, 2025 and 2024, respectively.
Further, Adjusted EBITDA excludes some costs, namely, non-cash stock-based compensation expense. Therefore, Adjusted EBITDA does not reflect the non-cash impact of stock-based compensation expense or working capital needs that will continue for the foreseeable future. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools. Investors are encouraged to review the related U.S.
Further, Adjusted EBITDA excludes some costs, namely, non-cash stock-based compensation expense, acquisition transaction costs, and amortization of acquisition-related intangible assets. Therefore, Adjusted EBITDA does not reflect the non-cash impact of stock-based compensation expense or working capital needs that will continue for the foreseeable future. All of these limitations could reduce the usefulness of these non-GAAP financial measures as analytical tools.
Our depreciation adjustment includes depreciation on operating fixed assets and we do not adjust for amortization of finance lease right-of-use assets on phone hardware provided to our customers. Our amortization adjustment includes the amortization of capitalized costs from both internal-use software development and cloud computing arrangements. We further adjust EBITDA to exclude stock-based compensation expense, a non-cash item.
Our depreciation adjustment includes depreciation on operating fixed assets and we do not adjust for amortization of finance lease right-of-use assets on phone hardware provided to our customers. Our amortization adjustment includes the amortization of capitalized costs from both internal-use software development and cloud computing arrangements.
Retain and Expand Within Our Customer Base Our ability to retain and increase revenue within our existing customer base is dependent upon a number of factors, including customer satisfaction with our platform and support, the sum total of the features and pricing of the alternative point solution patchwork, our ability to effectively enhance our platform by developing new applications and features and addressing additional use cases, and our ability to leverage and scale our core sales efforts and marketing capabilities to increase our penetration into our core specialty healthcare verticals.
Our ability to expand among medium-sized businesses will depend upon our ability to successfully sell our enhanced Weave platform to multi-location organizations, and effectively retain them. 60 Table of Contents Retain and Expand Within Our Customer Base Our ability to retain and increase revenue within our existing customer base is dependent upon a number of factors, including customer satisfaction with our platform and support, the sum total of the features and pricing of the alternative point solution patchwork, our ability to effectively enhance our platform by developing new applications and features and addressing additional use cases, and our ability to leverage and scale our core sales efforts and marketing capabilities to increase our penetration into our core specialty healthcare verticals.
For the year ended December 31, 2023, cash provided by operating activities was $10.2 million, primarily consisting of our net loss of $31.0 million adjusted for non-cash charges of $49.3 million, and net cash outflows of $8.1 million provided by changes in our operating assets and liabilities.
For the year ended December 31, 2024, cash provided by operating activities was $14.1 million, primarily consisting of our net loss of $28.3 million adjusted for non-cash charges of $60.8 million, and net cash outflows of $18.3 million provided by changes in our operating assets and liabilities.
We measure locations as the total number of customer locations under subscription active on the Weave platform as of the end of each month. A single organization or customer with multiple divisions, segments, offices or subsidiaries is counted as multiple locations if they have entered into subscriptions for each location.
We measure locations as the total number of customer locations under active subscription with Weave and its wholly-owned subsidiaries as of the end of each reporting period. A single organization or customer with multiple divisions, segments, offices or subsidiaries is counted as multiple locations if they have entered into subscription agreements for each location.
Actual results could differ and may materially impact our financial statements in future periods. Contractual Obligations and Commitments Refer to the notes to our consolidated financial statements within “Part II, Item 8. Financial Statements and Supplementary Data” of this Annual Report on Form 10-K for more details on contractual obligations.
Contractual Obligations and Commitments Refer to the notes to our consolidated financial statements within “Part II, Item 8. Financial Statements and Supplementary Data” of this Annual Report on Form 10-K for more details on contractual obligations.
(2) Represents amortization of capitalized internal-use software and cloud computing costs. Liquidity and Capital Resources Since inception, we have financed our operations primarily through cash generated from the sale of subscriptions to our platform, and the net proceeds received from issuances of our equity securities.
Liquidity and Capital Resources Since inception, we have financed our operations primarily through cash generated from the sale of subscriptions to our platform, and the net proceeds received from issuances of our equity securities.
Investing Activities Cash provided by investing activities for the year ended December 31, 2024 was $8.9 million, primarily due to $66.4 million of maturities of short-term investments, which were partially offset by $53.8 million in purchases of short-term investments.
Investing Activities Cash provided by investing activities for the year ended December 31, 2025 was $6.8 million, primarily due to $58.5 million of maturities of short-term investments, which were partially offset by $36.8 million in purchases of short-term investments.
In addition to pursuing continued customer growth among small businesses, we intend to pursue opportunities to expand our customer base among medium-sized businesses, with a particular focus on our core specialty healthcare verticals.
In addition to pursuing continued customer growth among small businesses, we intend to pursue opportunities to expand our customer base among medium-sized businesses through sales of Weave Enterprise, which is designed for multi-location businesses, with a particular focus on our core specialty healthcare verticals.
Cash used in financing activities for the year ended December 31, 2023 was $13.7 million, due to $10.4 million from payments made for taxes related to the net share settlement of equity awards, $10.0 million from principal payments made on our line of credit, and $7.5 million from principal payments made on finance lease obligations.
Financing Activities Cash used in financing activities for the year ended December 31, 2025 was $7.3 million, due to $2.9 million from payments made for taxes related to the net share settlement of equity awards and $7.2 million from principal payments made on finance lease obligations.
GAAP”), we review several operating and financial metrics, 59 Table of Contents including the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions.
GAAP”), we review several operating and financial metrics, including the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. Number of locations in the 61 Table of Contents table below includes the impact of the acquisition of TrueLark in May 2025.
GAAP Reconciliation Year Ended December 31, 2024 2023 (dollars in thousands) Revenue $ 204,314 $ 170,468 Net cash provided by operating activities $ 14,149 $ 10,221 Less: Purchase of property and equipment (2,185) (1,691) Less: Capitalized internal-use software costs (1,600) (1,999) Free cash flow $ 10,364 $ 6,531 Net cash provided by (used in) investing activities $ 8,882 $ (7,739) Net cash used in financing activities $ (22,191) $ (13,723) Net cash provided by operating activities as a percentage of revenue 7 % 6 % Free cash flow margin 5 % 4 % Adjusted EBITDA U.S.
GAAP Reconciliation Year Ended December 31, 2025 2024 (dollars in thousands) Revenue $ 239,024 $ 204,314 Net cash provided by operating activities $ 17,540 $ 14,149 Less: Purchase of property and equipment (2,389) (2,185) Less: Capitalized internal-use software costs (2,291) (1,600) Free cash flow $ 12,860 $ 10,364 Net cash provided by (used in) investing activities $ (6,846) $ 8,882 Net cash used in financing activities $ (7,331) $ (22,191) Net cash provided by operating activities as a percentage of revenue 7 % 7 % Free cash flow margin 5 % 5 % 71 Table of Contents Adjusted EBITDA U.S.
Cost of Revenue and Gross Margin Year Ended December 31, Change 2024 2023 Amount Percentage (dollars in thousands) Cost of revenue $ 58,432 $ 54,377 $ 4,055 7 % Gross margin 71 % 68 % The increase in cost of revenue was due primarily to an increase of $3.2 million in direct costs to support customer usage and growth of our customer base, including cloud infrastructure costs, fees paid 64 Table of Contents to application providers, and connectivity and messaging costs.
Cost of Revenue and Gross Margin Year Ended December 31, Change 2025 2024 Amount Percentage (dollars in thousands) Cost of revenue $ 66,716 $ 58,432 $ 8,284 14 % Gross margin 72 % 71 % The increase in cost of revenue was due primarily to an increase of $5.5 million in direct costs to support customer usage and growth of our customer base, including cloud infrastructure costs, fees paid to application providers, and connectivity and messaging costs.
The drivers of the changes in operating assets and liabilities were a $13.3 million increase in deferred contract costs, comprised primarily of sales commissions earned on new sales, a $3.7 million decrease in operating lease liabilities, an increase to accounts receivable of $1.4 million, and an increase in prepaid expenses and other assets of $0.7 million.
The drivers of the changes in operating assets and liabilities were a $18.3 million increase in deferred contract costs, comprised of sales commissions earned on bookings, a $4.2 million decrease in operating lease liabilities from payments made, an increase to accounts receivable of $1.6 million, a decrease in deferred revenue of $1.7 million and decrease in accounts payable of $1.1 million.
GAAP Reconciliation Year Ended December 31, 2024 2023 (dollars in thousands) Net loss $ (28,346) $ (31,031) Interest expense 1,523 1,923 Provision for income taxes 189 260 Interest income (1,851) (2,196) Other income/expense, net (2,928) (3,322) Depreciation (1) 2,189 2,441 Amortization (2) 1,542 1,256 Stock-based compensation 32,220 22,823 Adjusted EBITDA $ 4,538 $ (7,846) ______________ (1) Does not include amortization of finance lease right-of-use assets on phone hardware provided to our customers.
GAAP Reconciliation Year Ended December 31, 2025 2024 (dollars in thousands) Net loss $ (28,052) $ (28,346) Interest expense 1,700 1,523 (Benefit) provision for income taxes (924) 189 Interest income (1,811) (1,851) Other (income) expense, net (1,523) (2,928) Depreciation (1) 2,071 2,189 Amortization (2) 1,901 1,542 Amortization of acquisition-related intangibles 866 — Stock-based compensation 32,131 32,220 Acquisition transaction costs (3) 1,696 $ — Adjusted EBITDA $ 8,055 $ 4,538 ______________ (1) Does not include amortization of finance lease right-of-use assets on phone hardware provided to our customers.
As of December 31, 2024, there was no outstanding balance on the line of credit, the maximum borrowing capacity of $50.0 million was available to the Company, and we were in compliance with all SVB loan covenants.
We did not take any advances on the revolving 75 Table of Contents line of credit in the year ended December 31, 2025. As of December 31, 2025, there was no outstanding balance on the line of credit, the full $50.0 million in borrowing capacity was available to us, and we were in compliance with all SVB loan covenants.
Our customers may directly engage with third-party independent contractors to configure hardware, install the software and assist with upgrades, for which we do not derive any revenue. Cost of Revenue Cost of revenue consists of costs related to providing our platform to customers and costs to support our customers.
We also collect installation fees for onboarding customers, the revenue for which is recognized upon completion of the installation. Our customers may directly engage with third-party independent contractors to configure phone hardware, install the software and assist with upgrades, for which we do not derive any revenue.
As we acquire new customers and existing customers increase their use of our cloud-based platform, we expect that the dollar amount of our cost of revenue will continue to increase.
Our acquired technology is measured at its estimated fair value and is amortized over its estimated useful life, which is five years. As we acquire new customers and existing customers increase their use of our cloud-based platform, we expect that the dollar amount of our cost of revenue will continue to increase.
GAAP financial measures, evaluate growth trends, establish budgets and assess operating performance. These non-GAAP financial measures should not be considered by the reader as substitutes for, or superior to, the financial statements and financial information prepared in accordance with U.S. GAAP.
These non-GAAP financial measures should not be considered by the reader as substitutes for, or superior to, the consolidated financial statements and financial information prepared in accordance with U.S. GAAP. See below for a description of these non-GAAP financial measures, reconciliations of these non-GAAP financial measures to their most directly comparable U.S.
Research and Development Year Ended December 31, Change 2024 2023 Amount Percentage (dollars in thousands) Research and development $ 40,231 $ 34,040 $ 6,191 18 % The increase in research and development expenses was due to an increase of $6.2 million in personnel-related expenses, largely from salary adjustments and stock-based compensation related to grants for the new and existing employees enhancing our platform infrastructure and developing new product offerings.
We also incurred $0.8 million in additional event-related costs due to increased in-person trade show attendance, and $1.3 million in allocated overhead costs. 68 Table of Contents Research and Development Year Ended December 31, Change 2025 2024 Amount Percentage (dollars in thousands) Research and development $ 44,462 $ 40,231 $ 4,231 11 % The increase in research and development expenses was due to an increase of $5.0 million in personnel-related expenses, largely from salary adjustments and stock-based compensation related to grants for the new and existing employees enhancing our platform infrastructure and developing new product offerings, and an increase of $0.4 million in allocated overhead costs.
The table below sets forth the revenue and associated cost of revenue for our recurring subscription and payment processing services, as well as for our onboarding services and phone hardware: 57 Table of Contents Year Ended December 31, 2024 2023 (dollars in thousands) Subscription and payment processing: Revenue $ 196,106 $ 162,715 Cost of revenue (43,567) (38,194) Gross profit $ 152,539 $ 124,521 Gross margin 78 % 77 % Onboarding: Revenue $ 3,547 $ 3,232 Cost of revenue (7,793) (8,710) Gross profit $ (4,246) $ (5,478) Gross margin (120) % (169) % Hardware: Revenue $ 4,661 $ 4,521 Cost of revenue (1) (7,072) (7,473) Gross profit $ (2,411) $ (2,952) Gross margin (52) % (65) % ______________ (1) Cost of revenue related to hardware represents depreciation of phone hardware over a 3-year useful life.
We consider the net costs of onboarding and phone hardware, in addition to our sales and marketing activities, to be core elements of our customer acquisition approach. 59 Table of Contents The table below sets forth the revenue and associated cost of revenue for our recurring subscription and payment processing services, as well as for our onboarding services and phone hardware: Year Ended December 31, 2025 2024 (dollars in thousands) Subscription and payment processing: Revenue $ 228,769 $ 196,106 Cost of revenue (50,583) (43,567) Gross profit $ 178,186 $ 152,539 Gross margin 78 % 78 % Onboarding: Revenue $ 3,463 $ 3,547 Cost of revenue (8,757) (7,793) Gross profit $ (5,294) $ (4,246) Gross margin (153) % (120) % Phone Hardware: Revenue $ 6,792 $ 4,661 Cost of revenue (1) (7,376) (7,072) Gross profit $ (584) $ (2,411) Gross margin (9) % (52) % ______________ (1) Cost of revenue related to hardware represents depreciation of phone hardware over a 3-year useful life.
The associated costs, which primarily represent depreciation expense on phones financed under finance lease arrangements, are incurred over the useful lives of the phone hardware, which is 36 months. We consider the net costs of onboarding and hardware, in addition to our sales and marketing activities, to be core elements of our customer acquisition approach.
The associated costs, which primarily represent depreciation expense on phone hardware financed under finance lease arrangements, are incurred over the useful lives of the phone hardware, which is 36 months.
Additionally, we purchased $1.7 million in furniture, equipment and 69 Table of Contents leasehold improvements, and capitalized $2.0 million of personnel-related costs as internal-use software development.
Additionally, we purchased $2.4 million in furniture, equipment and leasehold improvements, capitalized $2.3 million of personnel-related costs as internal-use software development, and incurred $23.9 million in business acquisitions, net of cash acquired.
Accordingly, the majority of our research and development expenses result from employee-related costs, including salaries, benefits, bonuses, stock-based compensation and costs associated with technology tools used by our engineers. We expect that our research and development expenses will increase as our business grows, particularly as we incur additional costs related to continued investments in our platform and products.
Our platform is software-driven, and its research and development teams employ software engineers in the continuous testing, certification and support of our platform and products. Accordingly, the majority of our research and development expenses result from employee-related costs, including salaries, benefits, bonuses, and stock-based compensation, and costs associated with technology tools used by our engineers.
Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recorded as revenue over the subscription term. We had $40.0 million of deferred revenue recorded as a current liability as of December 31, 2024. This deferred revenue will be recognized as revenue when all of the revenue recognition criteria are met.
We had $38.1 million of deferred revenue recorded as a current liability as of December 31, 2025. This deferred revenue will be recognized as revenue when all of the revenue recognition criteria are met.
We have generated losses from our operations as reflected in our accumulated deficit of $291.0 million as of December 31, 2024 and, prior to 2023, have generated negative cash flows from operations.
We have generated losses from our operations as reflected in our accumulated deficit of $319.1 million as of December 31, 2025 but we have generally generated positive cash flows from operations since fiscal year 2023.
As of December 31, 2024, our principal sources of liquidity were cash held as deposits in financial institutions and cash equivalents consisting of highly liquid investments in money market securities of $51.6 million, as well as $47.5 million in other short-term investments comprised primarily of treasury and commercial paper instruments. 68 Table of Contents A substantial source of our cash inflow from operating activities is our deferred revenue, which is included on our consolidated balance sheets as a liability.
As of December 31, 2025, our principal sources of liquidity were cash held as deposits in financial institutions and cash equivalents consisting of highly liquid investments in money market securities of $55.0 million, as well as $26.8 million in other short-term investments comprised primarily of treasury and commercial paper instruments.
Of the total increase, approximately $20.0 million, or 59%, was attributable to new customer locations acquired during the year ended December 31, 2024, and $13.8 million, or 41%, was attributable to existing customer locations under subscription as of December 31, 2023. Customer locations totaled 34,997 and 31,002 as of December 31, 2024 and 2023, respectively.
Approximately $23.9 million, or 69% of our revenue growth was attributable to revenue generated from new customer locations acquired during the year ended December 31, 2025, and $10.8 million, or 31% of the increase was attributable to revenue generated from existing customer locations under subscription as of December 31, 2024.
The following table shows a summary of our cash flows for the periods presented: Year Ended December 31, 2024 2023 (in thousands) Net cash provided by operating activities $ 14,149 $ 10,221 Net cash provided by (used in) investing activities 8,882 (7,739) Net cash used in financing activities (22,191) (13,723) Operating Activities For the year ended December 31, 2024, cash provided by operating activities was $14.1 million, primarily consisting of our net loss of $28.3 million adjusted for non-cash charges of $60.8 million, and net cash outflows of $18.3 million provided by changes in our operating assets and liabilities.
We believe our current cash, cash equivalents, short-term investments, and amounts available under our senior secured credit facility will be sufficient to meet our working capital and capital expenditure requirements for at least the next twelve months. 72 Table of Contents The following table shows a summary of our cash flows for the periods presented: Year Ended December 31, 2025 2024 (in thousands) Net cash provided by operating activities $ 17,540 $ 14,149 Net cash provided by (used in) investing activities (6,846) 8,882 Net cash used in financing activities (7,331) (22,191) Operating Activities For the year ended December 31, 2025, cash provided by operating activities was $17.5 million, primarily consisting of our net loss of $28.1 million adjusted for non-cash charges of $63.7 million, and net cash outflows of $18.1 million provided by changes in our operating assets and liabilities.
General and Administrative General and administrative expenses consist primarily of personnel-related expenses for our finance, legal, human resources, facilities and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation.
In addition, research and development expenses that qualify as internal-use software development costs are capitalized and the amount capitalized may fluctuate significantly from period to period. General and Administrative General and administrative expenses consist primarily of personnel-related expenses for our finance, legal, human resources, facilities and administrative personnel, including salaries, benefits, bonuses, and stock-based compensation.
In addition, we provide payment processing services and receive a revenue share from a third-party payment facilitator on transactions between our customers that utilize our payments platform and their end consumers. These payment transactions are generally for services rendered at customers’ business location via credit card terminals or through several card-not-present modalities, including “Text-to-Pay” functionality.
These payment transactions are generally for services rendered at customers’ business location via credit card terminals or through several card-not-present modalities, including “Text-to-Pay” functionality. Revenue from payments services is recorded net of transaction processing fees and is recognized when the payment transactions occur.
Add New Products We continue to add new products and functionality to our platform, broadening our use cases and applicability for different customers. In 2024, we introduced our enhanced Weave platform and Weave Enterprise, which together bring an enhanced interface and experience for both single- and multi-location customers.
Add New Products We continue to add new products and functionality to our platform, broadening our use cases and applicability for different customers.
In addition to personnel-related expenses, marketing expenses consist of lead-generating and other advertising activities, as well as the cost of traveling to and attending trade shows. 61 Table of Contents We expect that our sales and marketing expenses will increase and continue to be our largest operating expense for the foreseeable future as we grow our business.
In addition to personnel-related expenses, marketing expenses consist of lead-generating and other advertising activities, as well as the cost of traveling to and attending trade shows. Sales and marketing expenses also include acquisition-related amortization expenses.
Entering a new industry vertical includes evaluating product-market fit and establishing key integration partnerships with the primary systems of record in that vertical. We started in dental and have since successfully expanded to optometry, veterinary and other specialty medical verticals.
Most recently, we entered the specialty medical vertical, which has quickly grown to be our second largest vertical by location count and remains our fastest growing. Entering a new industry vertical includes evaluating product-market fit and establishing key integration partnerships with the primary systems of record in that vertical.
Components of Results of Operations Revenue We generate revenue primarily from recurring subscription fees charged to access our software and phone services platform, and recurring embedded lease revenue on hardware provided to customers. The majority of these subscription arrangements have contractual month-to-month terms, with a small minority portion having contractual terms of 1-3 years.
The majority of these subscription arrangements have contractual month-to-month terms, with a small minority portion having contractual terms of 1-3 years. Subscription and phone hardware fees are prepaid and customers may elect to be billed monthly or annually, with the majority of our revenue coming from those that elect to be billed monthly.
GRR reflects the effect of customer locations that terminate their subscriptions, but does not reflect changes in revenue due to revenue expansion, revenue contraction, or the addition of new customer locations.
GRR reflects the effect of customer locations that terminate their subscriptions, but does not reflect changes in revenue due to revenue expansion, revenue contraction, or the addition of new customer locations. 62 Table of Contents Components of Results of Operations Revenue We generate revenue primarily from recurring subscription fees charged to access our software and phone services platform, and recurring embedded lease revenue on phone hardware provided to customers.
However, we expect that our research and development expenses will remain fairly consistent as a percentage of our revenue over time. In addition, research and development expenses that qualify as internal-use software development costs are capitalized and the amount capitalized may fluctuate significantly from period to period.
We expect that our research and development expenses will increase as our business grows, particularly as we incur additional costs related to continued investments in our platform and products. However, we expect that our research and development expenses will remain relatively consistent as a percentage of our revenue over time, although there may be fluctuations from period to period.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeA small portion of our operating expenses are incurred outside the U.S., denominated in foreign currencies, and subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian Dollar and the Indian Rupee. Additionally, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our consolidated statements of operations.
Biggest changeA small portion of our operating expenses are incurred outside the U.S., denominated in foreign currencies, and subject to fluctuations due to changes in foreign currency exchange rates, particularly changes in the Canadian Dollar and the Indian Rupee.
In future periods, we will continue to evaluate our investment policy in order to ensure that we continue to meet our overall objectives. Our credit facility bears an interest rate of the greater of Prime Rate plus 0.25% or 3.50%. Increases in Prime Rate would increase the interest rate on any borrowings.
In future periods, we will continue to evaluate our investment policy in order to ensure that we continue to meet our overall objectives. Our credit facility bears an interest rate of the greater of Prime Rate less 0.25% or 3.50%. Increases in Prime Rate would increase the interest rate on any borrowings.
As the impact of foreign currency exchange rates has not been material to our historical operating results, we have not entered into derivative or hedging transactions, but we may do so in the future if our exposure to foreign currency becomes more significant. 72 Table of Contents
As the impact of foreign currency exchange rates has not been material to our historical operating results, we have not entered into derivative or hedging transactions, but we may do so in the future if our exposure to foreign currency becomes more significant. 76 Table of Contents
As of December 31, 2024, we had no outstanding borrowing balance on our credit facility. Foreign Currency Exchange Risk The vast majority of our customer subscription agreements are denominated in U.S. dollars, with a small number of subscription agreements denominated in Canadian dollars.
As of December 31, 2025, we had no outstanding borrowing balance on our credit facility. Foreign Currency Exchange Risk The vast majority of our customer subscription agreements are denominated in U.S. dollars, with a small number of subscription agreements denominated in Canadian dollars.
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Additionally, fluctuations in foreign currency exchange rates may cause us to recognize transaction gains and losses in our consolidated statements of operations and comprehensive loss.

Other WEAV 10-K year-over-year comparisons