Weave Communications, Inc.

Hello, everyone. Thank you for joining us and welcome to the Weave second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Mariah Shilton, Investor Relations. Mariah, please go ahead.

Thank you, Al. Good afternoon, everyone, and welcome to Weave's second quarter 2026 earnings call. With me on today's call are Brett White, CEO, and Jason Christiansen, CFO. During the course of this conference call, we will make forward-looking statements regarding the anticipated performance of our business. These forward-looking statements are based on management's current views and expectations, entail certain assumptions made up as of today's date, and are subject to various risks and uncertainties described in our SEC filings. Weave disclaims any obligation to update or revise any forward-looking statements. Further, on today's call, we will also discuss certain non-GAAP metrics that we believe aid in the understanding of our financial results. Unless otherwise noted, all numbers we talk about today will be on a non-GAAP basis, which excludes acquisition related costs, costs related to certain shareholder matters, amortization of acquired intangible assets, and stock-based compensation. A reconciliation to comparable gap metrics can be found in today's earnings release, which is available on our Investor Relations website and as an exhibit to the Form 8-K furnished with the SEC before this call, as well as the earnings presentation on our Investor Relations website. And with that, I will now turn the call over to Brett.

Thank you, Mariah, and thank you all for joining us today. We've delivered strong results in the second quarter. Total revenue was $67.5 million, 15.5% growth over last year, and payments grew at roughly double that rate. Revenue retention measured on a quarterly basis also improved sequentially. We added the most new locations ever in a single quarter, both on a gross and net basis. Dental, our largest vertical, had a strong quarter, adding more locations on a gross and net basis than it has in the last eight quarters. On the medical front, we released a significantly deeper integration with the Athena One platform and joined Athena Health's marketplace, making our innovative solutions available to more than 160,000 specialty medical providers. As part of our commitment to deliver increasingly profitable growth, we made significant progress optimizing our go-to-market motion, and sales and marketing expense as a percentage of revenue was down sequentially. Overall, we expanded our operating margin to almost 5% up sharply from roughly break-even in the same quarter last year. Over the last 12 months, we have increased our revenue by $37 million and seen over 19% of that incremental improvement convert to adjusted EBITDA, demonstrating that our business gets substantially more profitable at scale. With that financial context in mind, I'd like to dive deeper into the fundamentals of our business and why we're so confident in our long-term position. Weave is the unified AI-powered patient engagement and payments platform purpose-built for healthcare practices. We bring together AI agents and practice staff interactions across voice and text into unified workflows. Acting as an always-on teammate, Weave is the orchestration layer that helps practices continuously improve patient relationships, proactively assign tasks for staff follow-up, and deliver insights so practice owners can measure, analyze, and optimize their businesses. Whether I'm talking to owners of independent practices or operators running hundreds of locations, they all share the same need, increasing production. They also share the same three challenges impacting their businesses. Scheduling and keeping treatment chairs full, staffing shortages and rising costs, and revenue leakage. Our primary focus at Weave is ensuring that our value to customers in addressing these challenges is a large and increasing multiple of their spending on our solutions. Starting with the most complicated and critical challenge to address, scheduling. Practice owners face increasing margin pressure, making efficient scheduling table stakes and full schedules a top priority. A recent survey found that appointment scheduling and confirmation topped the list of tasks front desk staff wish were automated, with 49% citing it as their primary concern. We've keep schedules full by closing the gaps that drain production. Our platform has significant advantage because we own the patient practice communication layer through which almost every workflow originates or gets completed. This allows us to execute workflows through the trusted primary business phone number rather than from a random unknown phone number or a five-digit short code leading to higher patient engagement with important messages. Weave ensures no call or text goes unanswered and converts inquiries into appointments. The impact is real. One doctor put it, Weave's automated texts in response to missed calls drove a 70% decrease in missed opportunities. Automated recall and reactivation campaigns bring lapsed patients back before they slip away for good. When a cancellation opens up a slot on the schedule, Weave's waitlist workflows can be activated to convert the empty chair to revenue without manual back and forth between the staff and patients. Once someone on the waitlist books, staff are notified instantly, so no one is double booked or contacted about an appointment that's already gone. Automated smart reminder workflows help keep appointments from being forgotten, and our AI receptionist lets patients book, confirm, cancel, and reschedule appointments by voice or text around the clock. For one Weave customer, staff members spent hours of each day manually calling patients to confirm their upcoming visits, and the practice still suffered from a consistent pattern of no-shows. Rather than hoping staff would find time during their busy workday to call and nudge patients, the practice implemented a customized automated reminder sequence with Weave. Their no-show rate plummeted from multiple missed appointments every day to just one no-show every two weeks. A single automated text sequence captured substantial otherwise lost revenue, and the doctor noted that the investment in Weave paid for itself almost instantly. Moving to challenge number two, staffing shortages and rising labor costs. Over 60% of practices surveyed have experienced a staffing shortage in the last 12 months. These vacant roles often impact scheduling and office production, resulting in reduced patient volume, lower treatment plan acceptance, and longer collection cycles. Additionally, employment costs for these positions have increased significantly due to a shortage of qualified office staff. Weave helps practices streamline their workload by automating the high-volume manual tasks that eat up staff hours so leaner teams can focus on deeper-level work. The goal is simple. Give people hours back so they can focus on patience, not paperwork. With Weave's 24-7 coverage, a front office team manages a single unified inbox instead of a backlog of missed calls and voicemails. Workflow automation runs across the entire patient journey, from the first intake form to the final balance collection. Pre-appointment insurance verification and eligibility checks reduce the amount of time sitting on hold with the insurance payers. The depth and breadth of the work Weave completes alters the way practices think about staffing and expenses. One doctor told us, quote, I conservatively save over $50,000 a year in salary and overhead expenses by automating tasks and running a leaner team with Weave, end quote. Following the departure of their front desk manager, a Virginia-based practice used Weave to automate their front office workflows, which eliminated the need to backfill the role. In another example, a customer was buried in insurance verification tasks and noted that their practice administrator could spend over an hour on hold with the insurance payer for a single patient. After they implemented Weave's insurance verification, calls to the payers were significantly reduced and time spent on verification per patient dropped to just a few minutes. Finally, our customers face the challenge of revenue leakage throughout the patient journey, from booking to final collection. Revenue leakage often goes unnoticed. According to multiple industry reports, the average dental practice writes off 9% or more of their gross billings annually. We've plugged those leaks by embedding payments and revenue cycle management solutions directly into patient interaction workflows. It starts before the visit. Insurance eligibility is confirmed and co-pays are collected up front with a card on file or text to pay. Text to pay sends an automatic payment link from the practice number that patients already trust, helping practices collect money they may otherwise never receive. A practice administrator at a Florida-based dental office was responsible for verifying insurance for 60 to 100 patients a day. After adopting Weed's insurance verification, she went from struggling to finish a single day's work to comfortably completing the work in half the time. In addition to the time saved, those verifications represented timely payments instead of denials landing weeks later. What used to be a source of lost revenue and a real strain on the team became something that they could stay ahead of. In-house or third-party payment plans are also available through Weave, allowing providers to offer flexible financing options to help payments say yes to critical treatment. After the appointment, Weave automates follow-up for the small unpaid balances that typically fall to the bottom of the priority list. No front desk team wants to spend a valuable time chasing dozens of $30 copays, but those balances add up. After a payment request is created in Weave, reminders are sent automatically so balances don't linger. One doctor told us that Weave reduced their billing process to just five seconds per invoice via our text-to-pay solution. A practice administrator in Massachusetts said with Weave Text-to-Pay, payments came in in just five to 10 minutes after patients were notified. As a result, they've collected more than $2 million through Weave payments. Revenue that once aged in receivables or slipped away entirely is now collected almost immediately. We continue to address these challenges by adding new AI-powered products and features. In just one year, we added 70% more AI-powered features to the Weave platform. In the second quarter, custom AI interactions on our platform totaled 70 million and increased by 165% compared to last year. Call Intelligence, our longest tenured standalone AI product, had a 143% increase in interactions. Customers using call intelligence analyzed more than 14.5 million calls in Q2, servicing 810,000 unscheduled opportunities for staff follow-up. Only a portion of these opportunities were acted upon by staff. While millions of dollars in production value were captured, millions more were missed, a gap our AI receptionist is uniquely positioned to close. Our AI receptionist helps solve the core problem of 24-7 scheduling automation, keeping schedules full without requiring additional staff, providing clear benefits for single location practices and scalable impact for multi-location organizations. Our AI receptionist takes action after work hours or when the front office desk staff are busy. Today, our AI receptionist answers inbound calls and text messages, responds to common patient questions, and books and manages appointments. As communicated on our last call, in May we provided early access to voice capabilities on our AI receptionist, representing the first step in moving beyond text to omnichannel patient engagement. The practice now has a complete view of all patient interactions and an agent that acts. Customer feedback has been incredibly positive. A customer in Georgia told us that using this product doubled the effectiveness of the receptionist function in just 30 days. A dentist office shared with us that their AI receptionist gave their front desk staff much needed breaks while ensuring 100% of missed calls received an immediate response. Another customer described the relief of having patient scheduling captured over the weekend. They told us that the best part of Monday morning is now seeing all the appointments the AI receptionist booked while the team was away. As AI agents take on more of the routine administrative work, practice owners are able to run their business with technology working alongside their team. We see this freeing up staff to focus on things machines can't do. Front office teams become the reason patients feel known and cared for. They take on managing and directing the practice's AI workforce, and they become the engine behind new patient acquisition. In short, AI perceptions isn't just automating tasks, it's elevating the role of the front office. Before I turn the call over to Jason, I want to spend a couple of minutes updating you on our go-to-market strategy. In previous calls we shared our goal to improve the productivity of our go-to-market functions. We have implemented some key changes in our go-to-market organization with sharper focus on ensuring that function is structured to support stronger growth with expanding profitability as we continue to scale. In the first half of the year, we verticalized our inbound sales function, putting specialized sellers in front of our key end markets. As new locations from Specialty Medical accelerate, we see increasing value in having experts showcase our value proposition and speak to vertical specific pain points. We have now reached the scale that makes verticalization a cost-effective investment. Additionally, we gradually implemented an SDR model in our outbound sales function so that account executives can focus on demoing and closing. This moves prospecting from our account executives to our specialized SDR team, which now feeds a growing flow of qualified opportunities into the funnel. This change gives us a team of more senior account executives with our top closers running full calendars with higher quality meetings. Early indications from these changes are very positive. As stated earlier, we added a record number of new locations in the quarter, both gross and net, with particularly strong performance in dental. Importantly, we did that while reducing sales and marketing expenses as a percentage of revenue by 240 basis points sequentially. That is exactly the combination that we are building toward, more growth per dollar of sales and marketing. As with any change of this nature, the transition came with an adjustment period. Over the May to July period, as lead generation gradually moved to our SDR team and our account executives shifted onto demoing and closing, it took time to calibrate the lead distribution with the appropriate execution, resulting in booking slightly below our expectation, despite very strong demand. This impact is reflected in our revenue outlook, which Jason will walk through in a moment. This is a normal cost of moving to a more focused sales model. We have already sharpened lead routing and tightened incentive alignment. Given how positive the early indications have been, we recently made the decision to accelerate and complete this transition in August to compress the remainder of the adjustment period and build on our momentum. These adjustments to our go-to-market function set us up for stronger, higher-performing business going forward. Our current pipeline is stronger than ever, our sales organization is now operating as designed, and our conviction in this model is high. We believe we are well positioned for long-term success with a more efficient operating infrastructure, a growing customer base, and an expanding market opportunity. With that, I'll turn the call over to Jason to walk through the financials in more detail.