Weave Communications, Inc. (WEAV): Business Model Canvas [Dec-2025 Updated]

You're trying to get a handle on how this vertical SaaS player, focused squarely on the resilient SMB healthcare space, actually makes its money, and honestly, the model is cleaner than many you see today. As someone who's spent two decades in the weeds analyzing these growth stories, what stands out for Weave Communications, Inc. is the sticky, recurring nature of their business: subscription fees made up about 91% of their Q1 2025 revenue, supported by impressive customer stickiness with gross retention near 90% and net retention hitting 94-96% thanks to payments upselling. With full-year 2025 revenue guidance landing between $238 million to $239 million, the story is clearly about scaling AI-powered engagement within dental, optometry, and expanding medical verticals, so dive into the full canvas below to see exactly how their Key Resources and Activities drive that value proposition.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Key Partnerships

You're looking at the engine room of Weave Communications, Inc.'s growth-the partnerships that glue its platform into the daily workflow of healthcare practices. These aren't just casual connections; they are deep, technical integrations that make switching away from Weave Communications, Inc. a real pain for the customer, which is exactly what you want to see for sticky SaaS revenue.

Authorized integrations with Practice Management Systems (PMS) are the bedrock here. Weave Communications, Inc. has been aggressively expanding its reach across the market's systems of record. As of October 2025, the company boasts over 85 integration partners, which lets them work with almost any customer's preferred system. This deep connectivity is key to driving that $\text{96%}$ net revenue retention seen in Q2 2025, though it dipped slightly to $\text{94%}$ by Q3 2025. The platform facilitates millions of patient interactions monthly, relying on these connections to feed data for its communications and payments engine.

The focus in 2025 has clearly been on broadening the medical side of the house, alongside their established dental base. You saw new integrations announced with Prompt, Practice Fusion, and Veradigm in the first half of 2025, which, combined with existing ones, increased the addressable integrated market by approximately 60,000 locations as of Q1 2025. Furthermore, they locked in integrations with Ortho2's Edge Cloud in July 2025 and Neo in July 2025, further cementing their position across dental and veterinary segments.

The commitment to the dental vertical is underscored by a major ecosystem play. Weave Communications, Inc. became an authorized integration vendor in the Henry Schein One API Exchange in August 2025. This partnership specifically enables seamless integration with Dentrix and Dentrix Ascend, which are massive players in the dental software space. This isn't just about being listed; it means Weave Communications, Inc. is part of a curated, trusted network designed to increase practice efficiency.

Here's a look at some of the key integration milestones from 2025:

Integration Partner Type	Specific Vendor/System	Date of Announcement (2025)	Impact Metric
EHR/PMS	Practice Fusion	February 14, 2025	Expanded capabilities for medical practices
EHR/PMS	Veradigm	April 28, 2025	Automated Data Sync with Practice Fusion database
PMS	Ortho2's Edge Cloud	July 22, 2025	Streamlined communication workflows
PMS	Neo (Veterinary)	July 21, 2025	Improved client experiences for vets
PMS Ecosystem	Henry Schein One API Exchange	August 26, 2025	Authorized vendor for Dentrix/Dentrix Ascend

Regarding the strategic deal with Patterson Dental, while a partnership is noted in late 2024/early 2025 context, the most recent, concrete financial data surrounding Patterson Companies, Inc. indicates they were acquired by Patient Square Capital in April 2025 for approximately $4.1 billion. Specific 2025 joint selling revenue or volume figures resulting from the Weave Communications, Inc. partnership with Patterson are not available in the latest reports. That said, the company's overall customer base grew to over 35,000 locations by Q2 2025, spanning dental, optometry, veterinary, and specialty medical practices.

Payment processing partners for integrated solutions are critical because payments revenue is a high-growth area, even if it's still a small piece of the pie. Payments revenue grew at more than twice the rate of total company revenue in Q1 2025, but the attach rate-the percentage of customers using payments-remains under 10% as of Q3 2025. This under-$\text{10%}$ attach rate signals a massive upsell opportunity for Weave Communications, Inc. to drive more revenue per customer, especially as they launched new features like surcharging and bulk payments in Q3 2025 to enhance revenue cycle management workflows.

The core partnership strategy can be summarized by what they enable:

• Deepening reliance on Weave Communications, Inc. through authorized APIs.
• Expanding into mid-market with multi-site MSOs (e.g., two physical therapy MSOs signed in Q2 2025 covering 70 clinic locations).
• Driving AI adoption, such as the TrueLark acquisition, which complements existing integrations.
• Maintaining high customer satisfaction, evidenced by ranking first in 23 categories in the G2 2025 Winter Report.

Finance: draft the Q4 2025 partnership revenue contribution analysis by next Tuesday.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Key Activities

You're looking at the core engine driving Weave Communications, Inc.'s growth as of late 2025. These aren't just tasks; they are the specific actions that translate their platform vision into financial results, especially as they integrate the TrueLark acquisition.

Developing AI-powered patient engagement and payments features

The development focus is heavily weighted toward embedding intelligence across the platform to deepen customer reliance and expand share of practice spend. This activity is directly supported by significant R&D investment and the recent acquisition of TrueLark, an AI-powered receptionist solution, which closed in May 2025.

The impact of these AI features is already showing up in customer results. For instance, in just one quarter following integration, one of Weave Communications' largest customers reported that their locations booked over $320,000 in additional appointments, with 75% of those appointments scheduled without any staff involvement. This automation led to new patient volume increasing by over 25% year-over-year for that customer example. Payments revenue growth has been a key driver, growing at more than twice the rate of total company revenue in Q1 2025, though the attach rate for payments remains under 10% as of Q3 2025, signaling a major upsell opportunity.

R&D for new AI capabilities (e.g., voice functions, call intelligence)

Research and Development spending is a critical activity to maintain the product lead. For the second quarter of 2025, Weave Communications reported non-GAAP Research and Development expenses of $8.9 million, which represented 15% of non-GAAP revenue for that period. This spending was explicitly directed toward integrating TrueLark and advancing AI initiatives. Earlier in 2025, Weave Communications had already released features like AI-powered Call Intelligence for Healthcare Practices, which automates call categorization and revenue opportunity identification. Future planned AI capabilities include AI-powered billing systems, an AI Receptionist, AI Treatment Planning, and AI-driven claims processing.

Securing and maintaining authorized EHR/PMS integrations

Deep system integration is what makes the unified platform sticky, moving Weave Communications beyond being a simple point solution. The company manages over 85 integration partners as of late 2025. In Q1 2025, new integrations with Prompt, Practice Fusion, and Veradigm were launched, which increased the integrated market by approximately 60,000 locations. More recently, in Q2 2025, new authorized integrations launched for orthodontics with Ortho2Edge and for veterinary clinics with IDEXX Neo. Furthermore, Weave Communications became an authorized integration vendor in the Henry Schein One API Exchange in August 2025, which is key for expanding reach within the dental segment.

Direct sales and marketing to SMB healthcare practices

Driving customer acquisition and expansion into new verticals requires significant go-to-market investment. In Q2 2025, Sales and Marketing expenses totaled $23.2 million (non-GAAP), accounting for 40% of the non-GAAP revenue for that quarter, reflecting accelerated sales hiring to support mid-market and specialty medical expansion. The Specialty Medical vertical is now the company's second largest by customer count, though it still represents under 1% share of the total specialty medical market. The mid-market focus saw success in Q2 2025 with two multisite physical therapy MSOs signing, covering 70 clinic locations.

Managing and scaling the cloud-based SaaS platform

Scaling the platform involves managing a growing customer base while maintaining high service quality and retention. As of Q2 2025, Weave Communications' customer base expanded to over 35,000 locations, and the platform facilitates millions of patient interactions monthly. Retention metrics are crucial here; the Gross Revenue Retention rate was reported at 90% in Q2 2025 and remained at 90% in Q3 2025. Net Revenue Retention was 96% in Q2 2025 but slightly softened to 94% by Q3 2025. The platform's operational efficiency is reflected in the gross margin, which reached a record high of 73% in Q3 2025.

Here's a quick look at the key operational metrics as of the latest reported quarters:

Metric	Q2 2025 Value	Q3 2025 Value
Total Revenue	$58.5 million	$61.3 million
Non-GAAP Gross Margin	72.3%	73%
Gross Revenue Retention (GRR)	90%	90%
Net Revenue Retention (NRR)	96%	94%
Customer Locations	Over 35,000	Not explicitly updated

Finance: draft 13-week cash view by Friday.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Key Resources

You're hiring before product-market fit is fully proven across all segments, so the strength of your existing assets-your Key Resources-is what keeps the lights on and funds the next push. Weave Communications, Inc. relies on a few core, hard-to-replicate assets to maintain its position in the vertical SaaS space for small and medium-sized healthcare businesses.

The foundation is the proprietary vertical SaaS platform technology itself. This platform is designed as an all-in-one customer experience and payments software solution, connecting the entire patient journey from the first call to the final invoice. This unified approach is a key differentiator against a patchwork of point solutions many practices use.

A major recent addition to the AI/ML intellectual property stack is the TrueLark acquisition, which closed in Q2 2025. This brought agentic AI capabilities focused on front-office automation. The deal consideration was a total of $35 million, split into $25 million in cash and $10 million in equity. Management anticipated TrueLark would contribute $2.5 million in revenue for the 2025 fiscal year.

The platform's utility is cemented by its connectivity. Weave Communications, Inc. supports key partnerships, such as being an Authorized Integration Vendor for the Henry Schein One API Exchange as of August 26, 2025. This level of authorized integration with critical practice management systems is a significant barrier to entry for competitors.

The scale of adoption is a resource in itself. The customer base includes over 35,000 healthcare locations. This provides a massive installed base for upselling new features, especially payments and the newly acquired AI tools. The Net Revenue Retention rate for Q2 2025 was 96%, showing existing customers are spending more.

Finally, the human capital in the form of dedicated engineering and product development teams builds and maintains this technology. While I don't have a precise headcount for late 2025, the continued investment in R&D and the successful integration of the TrueLark team, described as lean, are vital for platform evolution. The estimated Total Addressable Market (TAM) following the TrueLark acquisition is cited at $10 billion domestic and $22 billion international.

Here's a quick look at the financial scale underpinning these resources as of the latest reported quarter:

Metric	Value (Late 2025)	Period/Context
Total Revenue	$61.3 million	Q3 2025
GAAP Gross Margin	72.3%	Q3 2025
Non-GAAP Gross Margin	73.0%	Q3 2025
Net Cash from Operations	$6.1 million	Q3 2025
Free Cash Flow	$5.0 million	Q3 2025
Full Year 2025 Revenue Guidance	$236.8 million to $239.8 million	Full Year 2025 Estimate

The platform's success is also reflected in its operational metrics, which are key indicators of resource efficiency:

• Gross Revenue Retention Rate: 90% (Q2 2025)
• Net Revenue Retention Rate: 96% (Q2 2025)
• 2024 Total Revenue: $204.3 million
• 2024 Gross Margin: 71%

If onboarding takes 14+ days, churn risk rises, so the efficiency of the engineering team in streamlining deployment is critical to protecting the customer base resource.

Finance: draft 13-week cash view by Friday.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Value Propositions

You're looking at the core reasons why healthcare practices choose Weave Communications, Inc. (WEAV) as of late 2025. These are the tangible results and capabilities driving their platform adoption.

All-in-one patient communication, engagement, and payments platform

• The platform connects the entire patient journey from the first phone call to the final invoice.
• Q3 2025 total revenue reached $61.3 million, up 17.1% year-over-year.
• Full-year 2025 revenue guidance was raised to a range of $238 million to $239 million.
• Non-GAAP Gross Margin hit a record high of 73.0% in Q3 2025.

AI-powered workflow automation for front-office staff

The integration of AI, particularly through acquired technology, is automating key front-office tasks. For example, one customer reported booking more than $320,000 in additional appointments in just 1 quarter, with 75% of those appointments scheduled without any staff involvement. This automation directly contributes to practice growth, as new patient volume increased by over 25% year-over-year for that customer. Furthermore, new AI features like Call Intelligence allow practices to extract actionable insights from call data through automated categorization and revenue opportunity identification.

Accelerating collections and reducing accounts receivable

Weave Communications seamlessly integrates billing and payment requests directly into communication workflows. This focus on streamlining the payment timeline supports practice profitability by reducing the time money sits in accounts receivable. The platform supports new payment features like surcharging and bulk payments, which saves time for multi-location practices by enabling multiple payment requests at once.

Unified communication (phone, text, email) from a single source

The platform consolidates phone, text, and email communications into one interface, which is crucial for standardizing workflows across small and medium-sized healthcare businesses. The company's strategy focuses on deepening customer reliance by nailing the workflows and ensuring authorized integrations with practice management software.

Improving patient experience and driving more 5-star reviews

Customer satisfaction metrics strongly validate the platform's impact on the patient experience. Weave ranked first in 23 categories in the G2 2025 Winter Report. Later in the year, the company ranked first in 34 categories in the G2's 2025 Summer Report, including leadership in the Grid for Patient Relationship Management (PRM) Software.

Here's a quick look at the key financial and operational metrics supporting these value propositions as of the third quarter of 2025:

Metric	Value (Q3 2025)	Comparison/Context
Total Revenue	$61.3 million	Up 17.1% year-over-year
Non-GAAP Gross Margin	73.0%	Up 50 basis points year-over-year
Free Cash Flow	$5.0 million	Up $1.5 million year-over-year
AI Automation Appointment Booking Impact	$320,000+	Additional appointments booked in 1 quarter by one customer
AI Automation Appointment Scheduling Rate	75%	Scheduled without staff involvement
G2 Leadership Categories	34	Ranked first in categories in the Summer 2025 Report

Weave Communications, Inc. (WEAV) - Canvas Business Model: Customer Relationships

You're running a small to mid-sized healthcare practice, and you need technology that just works, so you don't spend your day chasing down paperwork or missed calls. Weave Communications, Inc. (WEAV) structures its customer relationships to support this need through a mix of dedicated service and powerful self-sufficiency, which is key to their high retention rates.

The relationship model is clearly tiered, supporting their customer base of over 35,000 locations as of Q2 2025. The platform itself is designed to handle the day-to-day, but human touch remains available for critical or complex issues.

Dedicated customer success and support teams

Weave Communications, Inc. maintains dedicated support channels to help customers resolve issues quickly. For immediate software or phone problems, support is available via live chat or by calling 1-888-579-5668, with hours generally running Monday through Thursday from 6 am - 6 pm MST and Friday from 6 am - 5 pm MST. The company also uses customer feedback, such as G2 reviews, to understand and support specific, unique business needs. Furthermore, new features like the Service Issues Dashboard in November 2025 help practices pinpoint operational friction points like unresolved contact attempts or manager escalations, allowing for proactive internal fixes.

High-touch onboarding for complex integrations

While the platform is built for simplicity, the initial setup, especially for practices with complex needs or multi-location setups, requires a structured approach. Weave Communications, Inc. provides an Onboarding Checklist and dedicated video guides to navigate the setup process. For single-office locations, webinars are available to guide the initial stages of adoption. The focus is on getting the customer to realize value quickly, though some user feedback has noted that onboarding processes can sometimes be perceived as poorly managed.

Self-service SaaS platform for day-to-day use

The core of the relationship is the self-service nature of the fully redesigned, AI-powered platform. This allows staff to manage many operational aspects without needing to contact support. For instance, features like Visual Call Routing now let offices manage call flow directly in the app, removing the need to call Support for changes to routing setups. The platform facilitates millions of patient interactions monthly, and new dashboards help users measure the impact of their outreach, such as tracking how many missed call texts convert into scheduled appointments.

The platform's success in driving revenue-related actions is a key part of the ongoing relationship:

• 83% of Weave Communications, Inc. customers report collecting payments quicker with Weave Payments.
• The platform enables practices to automate tasks like appointment reminders, which is critical given no-show rates hover around 15%.
• AI features, like drafting responses to online reviews, help practices protect and enhance their reputation with minimal staff effort.

High gross revenue retention of approximately 90%

Weave Communications, Inc. maintains a top-tier gross revenue retention rate for SMB SaaS companies. For the third quarter of 2025, the Gross Revenue Retention (GRR) was 90%. This metric reflects the effect of customer terminations but excludes revenue expansion or contraction. This figure was consistent with the rate reported in Q2 2025.

Net revenue retention of 94-96% via upselling payments

The ability to grow revenue from the existing customer base is strong, driven by upselling features like payments. The Net Revenue Retention (NRR) rate for Q3 2025 was 94%, which follows the Q2 2025 NRR of 96%. This places the NRR in the stated range of 94-96%. The company explicitly links this expansion to deepening customer reliance on the platform and increasing their share of practice spend, often through the integration of payments workflows.

Here is a summary of the key 2025 retention metrics as of late in the year:

Metric	Q2 2025 Result	Q3 2025 Result	Relationship Implication
Gross Revenue Retention (GRR)	90%	90%	Low base churn; customers stay for core service.
Net Revenue Retention (NRR)	96%	94%	Strong net expansion driven by upselling, especially payments.
Customer Locations	Over 35,000	N/A	Scale of the relationship base.

Finance: draft 13-week cash view by Friday.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Channels

You're looking at how Weave Communications, Inc. (WEAV) gets its platform-the integrated communications and payments system-into the hands of small and medium-sized healthcare practices. The channel strategy as of late 2025 is clearly multi-pronged, balancing direct, high-touch sales with scalable digital efforts, all while leaning heavily on the recent TrueLark acquisition to boost mid-market and multi-location reach.

The company's total customer base stood at over 35,000 locations as of the second quarter of 2025. This scale is supported by a sales and marketing spend that, in Q2 2025, hit $23.2 million non-GAAP, representing 40% of that quarter's revenue. That's a significant investment to fuel the engine. Honestly, the real test is how efficiently that spend translates into new logos.

Here's a breakdown of the primary channels Weave Communications, Inc. uses to connect with its customer segments:

• Direct sales force targeting specific healthcare verticals
• Digital marketing and inbound lead generation
• Strategic partnerships and co-selling with industry vendors
• Industry events and trade shows (e.g., dental, optometry)
• Referral programs from existing customers

The focus on specific verticals is key, especially as the company expands beyond its core dental base. The specialty medical segment, for instance, marked a record quarter in Q2 2025 and is now the second largest by customer count as of Q3 2025. Management acknowledged that when entering new verticals, it is typical to see higher churn and lower average sales prices initially.

The direct sales team is clearly being leveraged for higher-value targets, evidenced by the accelerated hiring in Q2 2025 to push mid-market and specialty medical expansion. The Chief Executive Officer noted that the mid-market customer acquisition cost (CAC) is 'actually terrific. And lower than some of our other channels.' That suggests the direct sales force is finding better efficiency there compared to other segments. New customer acquisition in Q1 2025 was particularly strong in Specialty Medical, showing the direct sales channel is adapting its approach.

Digital marketing and inbound lead generation support the direct sales effort, creating a pipeline that feeds the field reps. The company's overall growth is supported by this inbound flow, which is crucial for maintaining the revenue growth rate that hit 17.1% year-over-year in Q3 2025. While specific digital marketing spend breakdown isn't public, the overall Sales and Marketing ratio gives you the scale of investment in demand creation.

Strategic partnerships and co-selling are gaining traction, particularly through deeper platform integrations. The acquisition of TrueLark in May 2025 is a major channel enhancer, as its momentum in multi-location healthcare is highly complementary to Weave Communications, Inc.'s distribution model. Furthermore, new authorized integrations, such as with Ortho2Edge for orthodontics and IDEXX Neo for veterinary clinics, expand the addressable market by connecting to thousands of new locations. These integrations act as a powerful co-selling channel by embedding Weave into the practice's existing workflow.

The following table summarizes the primary customer segments and the associated channel performance metrics we have for late 2025:

Customer Segment Focus	Primary Channel Focus	Key Metric (Latest Available)	Associated Financial/Volume Data
Dental & Optometry (Core)	Direct Sales, Partnerships	Gross Revenue Retention (GRR): 90% (Q3 2025)	Maintained strong base revenue stream.
Specialty Medical (Growth)	Direct Sales (Accelerated Hiring)	Customer Base Growth: Record quarter in Q2 2025	New patient volume increased over 25% year-over-year in one quarter due to automation features.
Mid-Market (Multi-Location)	Direct Sales, TrueLark Co-selling	Customer Acquisition Cost (CAC): Described as 'lower than some of our other channels'	Two multi-site physical therapy MSOs signed in Q2 2025, covering 70 clinic locations.
Existing Customer Base (Upsell)	Product/Feature Adoption (Inbound/Upsell)	Net Revenue Retention (NRR): 94% (Q3 2025)	Payments revenue grew at more than twice the total revenue growth rate in Q3 2025.

Industry events and trade shows remain a necessary touchpoint, especially for establishing presence in new sub-verticals within specialty medical. While specific event ROI isn't quantified, the company's platform is recognized, having been ranked first in 34 categories per the G2 summer 2025 report, which aids in lead quality at these venues.

Referral programs from existing customers are implicitly measured by retention rates. The Gross Revenue Retention (GRR) holding steady at 90% in Q3 2025 is top-tier for SMB SaaS, suggesting the core product delivers enough value to prevent base churn. However, the Net Revenue Retention (NRR) softening to 94% in Q3 2025 (down from 96% in Q2 2025) indicates that while the base is sticky, the rate of upselling, which often relies on referrals or strong customer success interactions, has slightly moderated after lapping a prior price increase.

The strategy is clearly shifting to deepen customer reliance on Weave Communications, Inc. and expand the share of practice spend, which is the ultimate goal of all these channel activities combined. Finance: draft 13-week cash view by Friday.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Customer Segments

You're looking at the core of Weave Communications, Inc. (WEAV)'s value capture-who they serve right now, late in fiscal 2025. Their entire model hinges on being the single platform for small and medium-sized healthcare businesses (SMBs) to manage patient engagement and payments. As of the second quarter of 2025, the platform supported over 35,000 locations.

The customer base is segmented by practice type, reflecting both historical strength and strategic expansion areas. Here's a quick look at the scale and opportunity within these segments:

Customer Segment Focus	Metric	Value as of Late 2025
Total Locations Served	Customer Locations (Q2 2025)	Over 35,000
Core Market TAM	Dental, Optometry, Veterinary (US)	$3 billion
Expanded Medical TAM	Select Specialty Medical Verticals (US)	$5 billion
Total Addressable Market	All US Medical Verticals	$10 billion

The historical core remains vital, but the growth story is shifting. You can see the clear progression in their focus areas:

• Small and medium-sized healthcare practices (SMBs)
• Dental, Optometry, and Veterinary clinics (historical core)
• Expanding Specialty Medical verticals (e.g., Physical Therapy, MedSpa)
• Multi-location practices (DSOs/MSOs) in the mid-market

Dental, Optometry, and Veterinary clinics are the foundation. These are the practices that need to automate appointment reminders, manage online reputation, and streamline payment collections without hiring extra front-office staff. Their continued performance is key, though the Specialty Medical segment is now outpacing them in growth rate.

The Expanding Specialty Medical verticals are where the company is seeing accelerated momentum. In fact, by Q2 2025, this segment had grown to become the second-largest by customer count. The company highlighted strong subvertical growth in areas like medical aesthetics and primary care during Q2 2025. This expansion is supported by new integrations, such as with Ortho2 Edge for orthodontics.

For the Multi-location practices (DSOs/MSOs), Weave Communications, Inc. is making targeted inroads into the mid-market. You saw two multisite physical therapy MSOs sign on in Q2 2025 alone, collectively covering 70 clinic locations. The introduction of features like bulk payments is specifically designed to save time for these larger operations by enabling multiple payment requests at once.

Geographically, the focus is clearly on the US and Canada-based healthcare providers, though the disclosed market sizing data centers on the US. The US core market alone represents a $3 billion Total Addressable Market (TAM), which grows to $5 billion when including select specialty medical verticals. If they capture the entire US medical vertical TAM, that number hits $10 billion. If onboarding takes 14+ days, churn risk rises, so speed in these new markets is defintely important.

Finance: draft 13-week cash view by Friday.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Cost Structure

You're looking at the expense side of the Weave Communications, Inc. model as of late 2025, based on the latest reported figures from the second quarter ending June 30, 2025. The total revenue for Q2 2025 was $58.5 million.

The cost structure is heavily weighted toward acquiring and supporting the customer base, which is typical for a high-growth SaaS platform. Here is a breakdown of the major operating expense categories for Q2 2025, using non-GAAP figures where percentages were explicitly tied to them:

Cost Component	Q2 2025 Dollar Amount (Approximate)	Percentage of Q2 2025 Revenue
Sales and Marketing Expenses	$23.2 million	40%
Research and Development Costs	$8.9 million	15%
General and Administrative Expenses	$10.1 million	17%

The total Cost of Revenue, based on the GAAP gross margin of 71.7% for Q2 2025, translates to approximately $16.56 million.

Cost of Revenue includes the expenses for platform hosting and the related costs for phone hardware. The company notes that revenue from phone hardware, recognized over the subscription period as embedded lease revenue, has associated costs that primarily represent depreciation. Furthermore, the variable cost for providing phone hardware and initial onboarding assistance has historically exceeded the related revenue, resulting in negative gross profit for those specific elements.

Personnel costs are a significant driver across the operating expenses, particularly within the growth-focused areas. You can see the direct dollar impact of the engineering, sales, and support teams reflected in the following major buckets:

• Sales personnel costs are embedded within the Sales and Marketing Expenses of $23.2 million for Q2 2025.
• Engineering personnel costs are a primary driver of the Research and Development Costs, totaling $8.9 million for Q2 2025.
• Support team costs are generally allocated within Cost of Revenue or General and Administrative Expenses, though specific dollar segmentation isn't explicitly provided outside the main operating expense lines.

The General and Administrative Expenses for Q2 2025 were $10.1 million.

Finance: draft 13-week cash view by Friday.

Weave Communications, Inc. (WEAV) - Canvas Business Model: Revenue Streams

You're looking at the core money-makers for Weave Communications, Inc. (WEAV) as of late 2025. The business is heavily weighted toward recurring software revenue, which is what investors like to see for predictability.

The majority of the money comes from the core SaaS platform. For the first quarter ended March 31, 2025, recurring subscription fees accounted for approximately 91% of total revenue. Considering Q1 2025 total revenue was $55.8 million, this means subscription fees generated roughly $50.78 million in that quarter alone.

Payment processing revenue, which comes from transaction fees, is a key growth driver within that recurring base. In Q1 2025, payments revenue grew at more than twice the rate of total revenue, which itself grew 18.3% year-over-year. The company's trailing twelve-month (TTM) subscription and payment processing revenue reached $217 million as of Q2 2025.

Here is a look at the official full-year financial expectations Weave Communications, Inc. provided based on their Q3 2025 results:

Financial Metric	Guidance Range
Full-Year 2025 Revenue Guidance	$238 million to $239 million
Full-Year 2025 Non-GAAP Operating Income Guidance	$3.3 million to $4.3 million

The company also generates revenue from hardware sales and professional services, though these components are less dominant than the subscription and payments streams. The onboarding and phone hardware segments, for instance, operated at negative gross margins in Q1 2025, suggesting these are treated as customer acquisition tools rather than primary profit centers.

The revenue mix can be broken down by its primary sources:

• Recurring subscription fees (core SaaS)
• Payment processing revenue (transaction fees)
• Revenue from hardware sales (ancillary/acquisition tool)
• Revenue from professional services

For context on the scale of the business, Q3 2025 revenue hit $61.3 million, and the TTM revenue as of that period was $229.79 million.

Finance: review the impact of the negative gross margin on hardware sales against the $3.3 million to $4.3 million non-GAAP operating income guidance by next Tuesday.