Weave Communications, Inc. (WEAV): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of Weave Communications' product portfolio, so here is the BCG Matrix breakdown, mapping their segments against 2025's financial reality. The core platform shines as a Star, delivering 17.1% growth and a 73% margin, while established customers churn out $5.0 million in Q3 free cash flow, funding the whole operation. Still, the picture isn't perfect; low-value hardware and onboarding services are definite Dogs, dragging margins down with losses like -173% gross margin on onboarding. The real future bets are the Question Marks-Payments and new AI features-which need heavy investment to capture their high-growth potential from a currently low market share. Dive in to see exactly where Weave Communications needs to invest, hold, or cut bait right now.

Background of Weave Communications, Inc. (WEAV)

You're looking at Weave Communications, Inc. (WEAV) as of late 2025, and the picture coming out of their Q3 results is one of solid, if not explosive, top-line momentum. Weave Communications, Inc. is known as a leading vertical SaaS platform, focusing on delivering AI-powered patient engagement and payment solutions specifically for small and medium-sized healthcare practices in the United States.

For the third quarter ending September 30, 2025, Weave Communications, Inc. reported total revenue of $61.3 million, which was a 17.1% increase year-over-year. Honestly, this marked their 15th consecutive quarter of exceeding the top end of their own revenue guidance, which is a strong indicator of execution. Based on this performance, management raised the full-year 2025 revenue guidance to a midpoint of $238.5 million.

Operationally, the company is seeing real traction in its higher-margin areas. The non-GAAP gross margin hit a record 73.0% in Q3 2025. Furthermore, the payments segment is accelerating faster than the rest of the business; payments revenue grew at more than double the total revenue growth rate, helped by new features like surcharging. They also recently acquired TrueLark, an AI-powered workflow automation platform, to bolster their offerings in online scheduling and missed call response.

Still, you can't ignore the bottom line. While non-GAAP income from operations was positive at $1.7 million (a 2.7% margin), the GAAP net loss widened to $8.7 million for the quarter. Despite generating $5.0 million in free cash flow, analysts note the company isn't forecast to reach overall profitability within the next three years. Also, while they are expanding into specialty medical verticals, key retention metrics showed some softening, with Net Revenue Retention settling at 94% in Q3 2025, down from 98% the prior year.

The market Weave is playing in is substantial; the US healthcare practice marketing and management software market is estimated to be worth $24.55 billion in 2025. Weave's current focus is on its core segment, which represents a $3 billion opportunity, with plans to grow that to $5 billion by expanding into select medical verticals.

Weave Communications, Inc. (WEAV) - BCG Matrix: Stars

You're looking at the engine room of Weave Communications, Inc. (WEAV) growth right now-the Core Subscription Platform in established verticals. This segment delivered 17.1% year-over-year revenue growth in the third quarter of 2025, pushing total revenue to $61.3 million for the quarter, up from $52.4 million in Q3 2024. Honestly, that acceleration in top-line performance is what puts this unit squarely in the Star quadrant.

This platform maintains a high relative market share within the dental and optometry SaaS communication space, which is a market segment growing at an estimated 8.4% Compound Annual Growth Rate (CAGR). Monopolies or first-to-market products often look like this, but because the market is expanding quickly, Weave Communications, Inc. (WEAV) must keep spending to stay ahead.

Here's a quick look at the financial muscle this Star segment is generating as of Q3 2025:

To maintain this leadership and fend off competitors in that market growing at an estimated 8.4% CAGR, Weave Communications, Inc. (WEAV) requires continued, significant investment in product development and sales placement. That's the trade-off for high growth; you spend to keep the share. If market share is kept, this unit is definitely positioned to become a Cash Cow when the high-growth market eventually slows down.

The operational strength supporting this investment thesis is clear from the retention figures:

• Gross revenue retention was 90%.
• Net revenue retention stood at 94%.
• New patient volume increased by over 25% year-over-year in one operational example.
• Locations booked over $320,000 in additional appointments in just one quarter.

The segment's high volume directly supports the company's record 73% non-GAAP gross margin, which is an improvement of 50 basis points year-over-year from 72.5% in Q3 2024. This high margin shows the inherent value capture from their leadership position in the core offering.

Finance: draft 13-week cash view by Friday.

Weave Communications, Inc. (WEAV) - BCG Matrix: Cash Cows

You're analyzing the core business units of Weave Communications, Inc. that fit the Cash Cow profile-those with high market share in mature segments, which are now reliably generating surplus cash. These established offerings are the engine funding the company's newer, higher-growth initiatives.

The established customer base, centered around the core vertical SaaS platform for small and medium-sized healthcare practices, is generating consistent, high-margin recurring revenue. This is clearly evidenced by the non-GAAP gross margin hitting a record 73.0% in the third quarter of 2025. This high margin on recurring revenue is the hallmark of a strong Cash Cow.

This segment funds the company's expansion, delivering $5.0 million in Q3 2025 free cash flow. That's a solid $1.5 million improvement year-over-year for that single quarter. Furthermore, net cash provided by operating activities was $6.1 million in Q3 2025, up $1.6 million compared to the third quarter of 2024. Year-to-date through Q3 2025, free cash flow totaled $8.5 million, representing a $4.3 million improvement over the same period last year.

The overall business is now non-GAAP operating income positive, with FY 2025 guidance of $3.3 million to $4.3 million. This positive outlook contrasts with the GAAP loss from operations of $8.9 million reported in Q3 2025, showing the cash-generating core is indeed profitable on an adjusted basis. The company also raised its full-year revenue guidance to a range of $238 million to $239 million.

Cash Cows require less aggressive investment to maintain their position, which translates to a low need for incremental capital expenditure to maintain its dominant position in core markets. The focus here is on efficiency, as seen by the 90% Gross Revenue Retention and 94% Net Revenue Retention in Q3 2025, indicating the existing base is sticky and provides a stable foundation.

Here are the key financial metrics underpinning this Cash Cow assessment for Q3 2025:

The growth in the payments component is particularly telling of the core business's strength and ability to extract more value from the existing base. You can see this in the performance drivers:

• Payments revenue grew at more than double the total revenue growth rate.
• Q3 2025 revenue growth accelerated to 17.1% year-over-year.
• The company achieved its 15th consecutive quarter of exceeding the top end of its revenue guidance.
• The core business is now driving the full-year non-GAAP operating income guidance range of $3.3 million to $4.3 million.

Weave Communications, Inc. (WEAV) - BCG Matrix: Dogs

You're looking at the segments Weave Communications, Inc. (WEAV) is actively trying to minimize, the ones that are clearly not driving value. These are the Dogs in the portfolio, characterized by low market share in low-growth areas, and honestly, they are just tying up capital.

Onboarding Services and associated costs are a prime example of this drag. For the third quarter of 2025, this line item posted a deeply negative -173% gross margin. That figure alone tells you the cost to deliver that service significantly outweighs the revenue it generates, which is why the company is prioritizing a software-led model.

Similarly, Phone Hardware Sales, which you need to provide to get some customers onto the platform, is a necessary but low-value component. This segment carried a negative -5% gross margin in Q3 2025. It's a clear cash drain, even if it's a small part of the overall picture.

These two segments are a defintely drag on consolidated margins, requiring minimal strategic investment. To put their impact in perspective against the core business, look at the contrast:

The consolidated GAAP gross margin for Weave Communications, Inc. (WEAV) in Q3 2025 was 72.3%, and the Non-GAAP margin was 73.0%. The negative margins from the hardware and onboarding services pull that otherwise strong software margin down. These units exist primarily to enable the core software sale, which is where the real profitability lies, as evidenced by the core subscription and payments business posting a 77% gross margin in Q1 2025.

The strategic implication here is clear: avoid expensive turn-around plans for these areas. They are low growth and low profitability, serving only as a means to an end for the software adoption. You should be looking to minimize exposure here, not invest.

• Low market share in low growth markets.
• Frequently break even or consume cash.
• Prime candidates for divestiture.
• Expensive turn-around plans usually fail.

Finance: draft the 13-week cash view by Friday, explicitly modeling the phase-out cost of the onboarding team.

Weave Communications, Inc. (WEAV) - BCG Matrix: Question Marks

You're looking at the areas of Weave Communications, Inc. (WEAV) that are burning cash today but hold the potential for significant future returns. These are the Question Marks, operating in markets that are expanding rapidly but where Weave Communications, Inc. has not yet secured a dominant position.

The primary candidates for this quadrant are centered around new revenue streams and advanced product development, which naturally require heavy upfront capital deployment. For instance, the Payments Revenue segment is a clear example of high growth meeting low current penetration.

Here are the key financial and statistical indicators for these Question Marks as of the third quarter of 2025:

The strategy here is clear: either invest heavily to convert these into Stars or divest if the path to market share gain is too costly or slow. Weave Communications, Inc. is currently choosing the investment route.

The specific areas demanding this strategic focus include:

• Payments Revenue, a high-growth area expanding at more than double the total revenue rate of 17.1% year-over-year in Q3 2025.
• This segment still holds a low market share, accounting for under 10% of total revenue via its attach rate.
• Expansion into Specialty Medical Verticals, which is cited as less than 1% penetrated but is accelerating and is now the second-largest vertical by customer count.
• New AI/Automation features, like the voice-enabled AI receptionist, which require heavy Research and Development investment of $9 million in Q3 2025, or 15% of that quarter's revenue.

The acquisition of TrueLark for $35 million in cash and equity is a concrete example of the investment being made to fuel the AI/Automation component of these Question Marks, aiming to capture the unproven market share in intelligent patient engagement.

The current financial reality is that these units consume cash; for example, GAAP loss from operations in Q3 2025 was $8.9 million, reflecting these investments and integration costs. Still, the potential payoff is significant, as the total addressable market (TAM) for all US medical verticals is estimated at $10 billion, dwarfing the trailing twelve-month revenue of $229.79 million as of the end of Q3 2025.

Finance: draft 13-week cash view by Friday.