Weave Communications, Inc.
For the period ended Jun 30, 2026. Filed Aug 6, 2026.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2026 · Filed Aug 6, 2026
WEAV$7.40+0.1%Stored close · as of Oct 23, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-03-31; filed 2026-05-05.
0001609151-26-000049
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-30; filed 2026-08-06.
0001609151-26-000074
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 125 previous paragraphs and 127 current paragraphs.
88 unchanged; 26 reworded; 7 added; 11 removed; 0 previous and 6 current paragraphs rearranged.
Tables are not compared: 18 previous and 24 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
The increase in sales and marketing expenses was attributable to a $1.5 million increase in spend on demand generation driven by online display advertising and partner-sponsored demand generation programs and a $0.7 million increase in personnel-related expenses driven by salary and commissions.
Current report
The decrease in general and administrative expenses was primarily due to a $1.2 million decrease in personnel-related expense that was driven by a decrease in stock-based compensation and employee development costs. In addition, professional fees decreased $0.4 million which were partially offset by a $0.3 million increase in overhead costs including computers, office supplies and business insurance.
Current report
Comparison of the Six Months Ended June 30, 2026 and 2025
Current report
Revenue
Current report
The increase in cost of revenue was primarily due to a $3.7 million increase in direct costs to support customer usage, particularly with increased telecommunications connectivity costs of $1.5 million, fees paid to our application providers of $1.2 million, payment processor fees of $0.6 million, and 0.4 million of amortization of internal-use software development costs. We also experienced a $0.5 million increase in allocated overhead related mainly to rent, utilities and office supplies. Additionally, payroll and employee related costs increased $0.2 million.
Current report
The increase in sales and marketing expenses was primarily attributable to a $3.0 million increase in personnel-related expenses, including increases in stock-based compensation, salaries and wages and costs related to contracted employees. In addition, demand generation expenses increased by $4.0 million primarily due to increased spend on online marketing of $3.5 million and partner demand generation of $0.5 million. Additionally, the increase in sales and marketing includes $0.2 million of allocated overhead costs.
Current report
The decrease in general and administrative expenses was primarily due to a $2.6 million decrease in personnel-related expenses, including a decrease of $2.3 million related to stock based compensation, and a decrease of $0.3 million in taxes. Additionally, professional fees and employee development costs decreased by $0.5 million. These decreases were offset by increases in other operating expenses of $0.6 million, driven primarily by accounts receivable write-offs and taxes. There was also an increase of $0.6 million in computer and office supplies.
Removed paragraphs (11)
Previous report
(1) Cost of revenue related to phone hardware represents depreciation of phone hardware over a 3-year useful life
Previous report
Sales and Marketing
Previous report
Research and Development
Previous report
General and Administrative
Previous report
Other Income (Expense), Net
Previous report
Sales and Marketing
Previous report
The increase in sales and marketing expenses was attributable in part to an increase of $2.3 million in personnel-related expenses, driven largely by salary and commission plan adjustments, which together caused approximately $1.6 million of the increase. The remaining $0.7 million increase of personnel-related expenses relates to increased costs for third-party contractors. We also increased demand generation expenses by $2.7 million. Of this, $2.5 million relates to our digital media and influencer marketing efforts and $0.2 million are travel-related expenses. The increase also includes $0.2 million of allocated rent, utilities and communications costs.
Previous report
Research and Development
Previous report
General and Administrative
Previous report
The decrease in general and administrative expenses was primarily due to a $1.7 million decrease in personnel-related expense that was driven by a decrease in stock-based compensation as previously granted awards became fully vested and reached the end of their recognition period, alongside the impact of forfeitures of previously granted awards. This decrease was offset by an increase of $0.5 million related to general operating expenses, $0.4 million of computer and office supplies, and $0.2 million of professional fees.
Previous report
Other Income (Expense), Net
Reworded paragraphs (26)
Previous wording
In this Quarterly Report on Form 10-Q, unless otherwise specified or the context otherwise requires, “Weave,” the “Company,” “we,” “us,” and “our” refer to Weave Communications, Inc. and its consolidated subsidiaries.
Current wording
In this Quarterly Report on Form 10-Q, unless otherwise specified or the context otherwise requires, “Weave,” the “Company,” “we,” “us,” and “our” refer to Weave Communications, Inc. and its wholly-owned subsidiaries.
Previous wording
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 90% and 91% of our revenue the three months ended March 31, 2026 and 2025, respectively. 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.
Current wording
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 90% and 91% of our revenue the three months ended June 30, 2026 and 2025, respectively and 90% and 91% for the six months ended June 30, 2026 and 2025, respectively. 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.
Previous wording
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 practice management systems (“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. Sustaining our growth requires continued adoption of our platform by new customers. We aim to add new customers through a combination of unpaid channels, such as recommendations and word of mouth, and paid channels, such as digital marketing, direct mail, trade shows and industry events, brand marketing and our teams of sales representatives. Historically, our go-to-market strategy focused on increasing the number of locations with most of our customers having a single location.
Current wording
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 practice management systems (“PMS”) and electronic health record (“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. Sustaining our growth requires continued adoption of our platform by new customers. We aim to add new customers through a combination of unpaid channels, such as recommendations and word of mouth, and paid channels, such as digital marketing, direct mail, trade shows and industry events, brand marketing and our teams of sales representatives. Historically, our go-to-market strategy focused on increasing the number of locations with most of our customers having a single location.
Previous wording
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. 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 three months ended March 31, 2026 and 2025 respectively.
Current wording
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. 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 the three months ended June 30, 2026 and 2025, respectively, and 78% and 77% for the six months ended June 30, 2026 and 2025, respectively.
Previous wording
We continue to add new products and functionality to our platform, broadening our use cases and applicability for different customers. In 2025, among other new products, we introduced our AI receptionist, powered by TrueLark, which automatically follows up missed calls with a fully interactive, AI-powered texting conversation and lets patients book appointments over text or from the practice’s website, any time of day. We also delivered Weave Insurance Eligibility, which links directly to multiple dental insurance portals to retrieve detailed patient insurance information to provide patients a more complete view of their insurance coverage.
Current wording
We continue to add new products and functionality to our platform, broadening our use cases and applicability for different customers. In 2026, we introduced our omnichannel AI Receptionist built on Google Cloud's Gemini Enterprise Agent Platform, enabling practices to preserve conversation context across voice and text, configure intelligent routing, and escalate to staff when needed (“AI Receptionist”). In 2025, among other new products, we also delivered Weave Insurance Eligibility, which links directly to multiple dental insurance portals to retrieve detailed patient insurance information to provide patients a more complete view of their insurance coverage.
Previous wording
In addition to our financial information that is presented in accordance with the generally accepted accounting principles in the U.S. (“U.S. 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. These metrics exclude the impact of the May 2025 TrueLark acquisition as the relevant inputs to the calculation require trailing twelve months of data to calculate.
Current wording
In addition to our financial information that is presented in accordance with the generally accepted accounting principles in the U.S. (“U.S. 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.
Previous wording
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. For retention rate calculations, we use adjusted monthly revenue (“AMR”), which is calculated for each location as the sum of (i) the subscription component of revenue for each month and (ii) the average of the trailing-three-month recurring payments revenue. Since payments revenue represents the revenue we recognize on payment processing volume, which is reported net of transaction processing fees, we believe the three-month average appropriately adjusts for short-term fluctuations in transaction volume. To calculate our NRR, we first identify the cohort of locations, or the “Base Locations”, that were active in a particular month, or the “Base Month”. We then divide AMR for the Base Locations in the same month of the subsequent year, or the “Comparison Month”, by AMR in the Base Month to derive a monthly NRR. AMR in the Comparison Month includes the impact of any churn, revenue contraction, revenue expansion, and pricing changes, and by definition does not include any new customer locations under subscription added between the Base Month and Comparison Month. We derive our annual NRR as of any date by taking a weighted average of the monthly net retention rates over the trailing twelve months prior to such date.
Current wording
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. For retention rate calculations, we use adjusted monthly revenue (“AMR”), which is calculated for each location as the sum of (i) the subscription component of revenue for each month and (ii) the average of the trailing-three-month recurring payments revenue. AMR does not include revenue associated with contracts acquired through the May 2025 TrueLark acquisition, as the revenue on these contracts is not directly measurable on a per customer location basis. Since payments revenue represents the revenue we recognize on payment processing volume, which is reported net of transaction processing fees, we believe the three-month average appropriately adjusts for short-term fluctuations in transaction volume. To calculate our NRR, we first identify the cohort of locations, or the “Base Locations”, that were active in a particular month, or the “Base Month”. We then divide AMR for the Base Locations in the same month of the subsequent year, or the “Comparison Month”, by AMR in the Base Month to derive a monthly NRR. AMR in the Comparison Month includes the impact of any churn, revenue contraction, revenue expansion, and pricing changes, and by definition does not include any new customer locations under subscription added between the Base Month and Comparison Month. We derive our annual NRR as of any date by taking a weighted average of the monthly net retention rates over the trailing twelve months prior to such date.
Previous wording
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. 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. To incentivize annual payments, we may offer pricing concessions that apply ratably over the twelve-month subscription plan. As of March 31, 2026 and 2025, approximately 26% and 33% of customer locations elected annual prepayments, respectively. Subscription revenue is recognized ratably over the term of the subscription agreement. Amounts billed in excess of revenue recognized are reported in deferred revenue on the Company’s unaudited condensed consolidated balance sheets.
Current wording
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. 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. To incentivize annual payments, we may offer pricing concessions that apply ratably over the twelve-month subscription plan. As of June 30, 2026 and 2025, approximately 24% and 31% of customer locations elected annual prepayments, respectively. Subscription revenue is recognized ratably over the term of the subscription agreement. Amounts billed in excess of revenue recognized are reported in deferred revenue on the Company’s unaudited condensed consolidated balance sheets.
Previous wording
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. However, our cost of revenue has been and will continue to be affected by a number of factors, including increased regulatory fees on text messaging and phone calls, the quantity and aging of phones provided to customers, changes to fees paid to application providers, adoption of AI-based features, future changes to the cloud infrastructure costs to support AI-based features, our stock-based compensation expense, and the timing of the amortization of internal-use software development costs, which could cause it to fluctuate as a percentage of revenue in future periods.
Current wording
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. However, our cost of revenue has been and will continue to be affected by a number of factors, including increased regulatory fees on text messaging and phone calls, the quantity and aging of phones provided to customers, changes to fees paid to application providers, adoption of AI-based features, future changes to the cloud infrastructure costs to support our product offering, our stock-based compensation expense, and the timing of the amortization of internal-use software development costs, which could cause it to fluctuate as a percentage of revenue in future periods.
Previous wording
Provision for income taxes consists primarily of income taxes related to foreign and state jurisdictions in which the Company conducts business. Historically, the Company’s U.S. operations have generated taxable losses, and as a result, the Company maintains a valuation allowance against its domestic net deferred tax assets, including net operating loss carryforwards.
Current wording
Provision for income taxes consists primarily of income taxes related to foreign and state jurisdictions in which the Company conducts business. The Company’s U.S. operations continue to generate losses and, as a result, the Company maintains a valuation allowance against substantially all of its U.S. deferred tax assets.
Previous wording
During each of the three months ended March 31, 2026 and 2025, the Company recorded income tax expense of $0.1 million. The tax expense for the three months ended March 31, 2026 reflects income taxes in foreign jurisdictions where the Company generates taxable income, while U.S. losses do not result in a tax benefit due to the valuation allowance.
Current wording
During the three and six months ended June 30, 2026, the Company recorded income tax expense of $0.1 million and $0.2 million, respectively, compared to income tax benefits of $1.1 million and $1.0 million for the corresponding periods in 2025. The tax expense for the three and six months ended June 30, 2026 reflects income taxes in foreign jurisdictions where the Company generates taxable income, while losses incurred in the U.S. generally do not result in an income tax benefit due to the Company’s valuation allowance.
Previous wording
Revenue increased by $9.7 million, or 17%, compared to the three months ended March 31, 2025. Approximately $8.7 million of our revenue growth was attributable to revenue generated from new customer locations acquired during the 12 months subsequent to March 31, 2025. Approximately $1.0 million of the increase was attributable to revenue generated from existing customer locations under subscription as of March 31, 2025.
Current wording
Revenue increased by $9.1 million, or 16%, compared to the three months ended June 30, 2025. Approximately $7.5 million of our revenue growth was attributable to revenue generated from new customer locations acquired during the 12 months subsequent to June 30, 2025. Approximately $1.5 million of the increase was attributable to revenue generated from existing customer locations under subscription as of June 30, 2025.
Previous wording
The increase in cost of revenue was primarily due to an increase of $1.5 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. In addition, there was an increase of $0.3 million in personnel-related costs, particularly related to merit increases and new hires, an increase of $0.2 million in rent, utilities and communications, and an increase of $0.1 million related to computer and office supplies.
Current wording
The increase in cost of revenue was primarily due to an increase of $2.2 million in direct costs to support customer usage and growth of our customer base, including $0.8 million in fees and revenue shares to application providers, $0.8 million in connectivity costs, $0.4 million in payment processing costs, and $0.2 million in amortization of previously capitalized internal-use software development costs . In addition, there was an increase of $0.2 million in allocated expenses, which include rent, utilities and communications, computer and office supplies, and business insurance.
Previous wording
The decrease in other income (expense), net is largely due to decreased realized gains on our short-term investments due to a lower average daily balance over the period, and to a lesser extent, a decrease in average interest rates over the period.
Current wording
The decrease in other income (expense), net is largely due to decreased realized gains and lower accretion on our short-term investments, which were offset by lower fees on our revolving line of credit.
Previous wording
The decrease in research and development expenses was primarily due to an increase in capitalized software development costs of $0.6 million, offset by an increase of $0.3 million in professional and personnel-related expenses.
Current wording
The decrease in research and development expenses was due to an increase of $1.2 million in amounts capitalized for software development costs. This was offset in part by an increase of $0.4 million in software and subscription fees and $0.5 million related to computer and office supplies.
Previous wording
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. We have generated losses from our operations as reflected in our accumulated deficit of $324.8 million as of March 31, 2026 but we have generally generated positive cash flows from operations since fiscal year 2023. Our future capital requirements will depend on many factors, including revenue growth and costs incurred to support customer usage and growth in our customer base, and increased research and development expenses to support the growth of our business and related infrastructure. We expect our operating cash flows to further improve as we increase our operational efficiency and experience economies of scale.
Current wording
June 30, 2026 but we have generally generated positive cash flows from operations since fiscal year 2023. Our future capital requirements will depend on many factors, including revenue growth and costs incurred to support customer usage and growth in our customer base, and increased research and development expenses to support the growth of our business and related infrastructure. We expect our operating cash flows to further improve as we increase our operational efficiency and experience economies of scale.
Previous wording
As of March 31, 2026, 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 $42.2 million, as well as $30.5 million in other short-term investments comprised primarily of treasury and commercial paper instruments.
Current wording
As of June 30, 2026, 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 $47.6 million, as well as $30.8 million in other short-term investments comprised primarily of treasury and commercial paper instruments.
Previous wording
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. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recorded as revenue over the subscription term. We had $37.1 million of deferred revenue recorded as a current liability as of March 31, 2026. This deferred revenue will be recognized as revenue when all of the revenue recognition criteria are met.
Current wording
A substantial source of our cash inflow comes from our deferred revenue, which is included on our consolidated balance sheets as a liability. Deferred revenue consists of the unearned portion of billed fees for our subscriptions, which is recorded as revenue over the subscription term. We had $37.3 million of deferred revenue recorded as a current liability as of June 30, 2026. This deferred revenue will be recognized as revenue when all of the revenue recognition criteria are met.
Previous wording
For the three months ended March 31, 2026, cash used in operating activities was $5.7 million, primarily due to a net loss of $5.8 million, adjusted for net non-cash charges of $16.2 million and net cash outflows of $16.2 million from changes in our operating assets and liabilities. The drivers of the changes in operating assets and liabilities were an $6.5 million increase in deferred contract costs comprised of sales commissions earned on bookings, a $3.3 million increase in prepaid expenses, a $0.9 million decrease in accounts payable, a $0.9 million decrease in accounts receivable, a $1.2 million decrease in deferred revenue, a $1.1 million decrease in operating lease liabilities, and a $2.2 million decrease in accrued liabilities.
Current wording
For the six months ended June 30, 2026, cash provided by operating activities was $4.5 million, primarily due to a net loss of $10.0 million, adjusted for net non-cash charges of $32.3 million and net cash outflows of $17.7 million from changes in our operating assets and liabilities. The drivers of the changes in operating assets and liabilities were an $11.5 million increase in deferred contract costs comprised of sales commissions earned on bookings, a $2.3 million decrease in operating lease liabilities, a $1.3 million decrease in accrued liabilities, a $1.2 million increase in prepaid expenses, a $1.1 million decrease in deferred revenue, and a $0.9 million increase in accounts receivable. These amounts were partially offset by a $0.6 million increase in accounts payable.
Previous wording
For the three months ended March 31, 2025, cash used in operating activities was $0.2 million, primarily due to a net loss of $8.8 million, adjusted for net non-cash charges of $16.1 million, and net cash outflows of $7.5 million from changes in our operating assets and liabilities. The drivers of the changes in operating assets and liabilities were a $4.4 million increase in deferred contract costs comprising mainly sales commissions earned on bookings, a $0.5 million increase in prepaid expenses, a $3.7 million decrease in accounts payable, a $1.1 million decrease in deferred revenue, and a $1.0 million decrease in operating lease liabilities. These amounts were partially offset by a $2.7 million increase in accrued liabilities and a $0.4 million decrease in accounts receivable.
Current wording
For the six months ended June 30, 2025, cash provided by operating activities was $5.2 million, primarily due to a net loss of $17.5 million, adjusted for net non-cash charges of $33.1 million and net cash outflows of $10.3 million from changes in our operating assets and liabilities. The drivers of the changes in operating assets and liabilities were an $9.0 million increase in deferred contract costs comprised of sales commissions earned on bookings, a $1.4 million decrease in prepaid expenses, $2.7 million increase in accounts payable, a $0.5 million decrease in deferred revenue, and a $2.0 million decrease in operating lease liabilities. These amounts were partially offset by a $2.5 million increase in accrued liabilities.
Previous wording
Cash used in investing activities for the three months ended March 31, 2026 was $5.0 million, due to $8.9 million in purchases of short-term investments, partially offset by $5.3 million in short-term investment maturities. Additional investing cash flow activities included $0.5 million of furniture and equipment additions and $0.9 million in personnel-related costs capitalized as internal-use software development.
Current wording
Cash used in investing activities for the six months ended June 30, 2026 was $6.8 million, due to $18.3 million in purchases of short-term investments, partially offset by $14.5 million in short-term investment maturities. Additional investing cash flow activities included $1.8 million in personnel-related costs capitalized as internal-use software development and $1.2 million of furniture and equipment additions.
Previous wording
Cash provided by investing activities for the three months ended March 31, 2025 was $2.3 million, due to $18.6 million in short-term investment maturities, partially offset by $15.5 million in purchases of short-term investments. Additional investing cash flow activities included $0.4 million of furniture and equipment additions and $0.4 million in personnel-related costs capitalized as internal-use software development.
Current wording
Cash used in investing activities for the six months ended June 30, 2025 was $10.1 million, due to $30.5 million in short-term investment maturities, partially offset by $15.5 million in purchases of short-term investments. Additional investing cash flow activities included $1.0 million of furniture and equipment additions and $0.8 million in personnel-related costs capitalized as internal-use software development, and $23.3 million of business acquisitions, net of cash acquired.
Previous wording
Cash used in financing activities for the three months ended March 31, 2026 was $2.0 million, primarily due to principal payments on finance lease obligations of $1.8 million and $1.6 million in payments made for taxes related to the net share settlement of equity awards. These outflows were partially offset by cash proceeds of $1.0 million from the employee stock purchase plan, and proceeds from employee stock option exercises of $0.3 million.
Current wording
Cash used in financing activities for the six months ended June 30, 2026 was $5.1 million, primarily due to principal payments on finance lease obligations of $3.7 million and $2.9 million in payments made for taxes related to the net share settlement of equity awards. These outflows were partially offset by cash proceeds of $1.0 million from the employee stock purchase plan, and proceeds from employee stock option exercises of $0.4 million.
Previous wording
Cash used in financing activities for the three months ended March 31, 2025 was $0.2 million, primarily due to principal payments on finance lease obligations of $1.8 million. These outflows were partially offset by cash proceeds of $1.1 million from the employee stock purchase plan, and proceeds from employee stock option exercises of $0.5 million.
Current wording
Cash used in financing activities for the six months ended June 30, 2025 was $2.0 million, primarily due to principal payments on finance lease obligations of $3.6 million. These outflows were partially offset by cash proceeds of $1.1 million from the employee stock purchase plan, and proceeds from employee stock option exercises of $0.5 million.
Previous wording
During the three months ended March 31, 2026, we acquired $2.1 million of additional right of use assets through new finance lease obligations.
Current wording
During the six months ended June 30, 2026, we acquired $5.2 million of additional right of use assets through new finance lease obligations.
Previous wording
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”). In July 2025, the Company amended the SVB revolving line of credit (the “July 2025 Amendment”). The line of credit, as amended, maintained a total borrowing capacity of up to $50.0 million and matures in May 2027. Amounts outstanding on the revolving line of credit accrue interest at the greater of prime rate less 0.25% and 3.50%. We are required to pay a recurring annual fee of $0.1 million beginning in July 2026 on the anniversary of the effective date of the July 2025 Amendment. The revolving line of credit is collateralized by substantially all of the Company’s assets. 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 $20.0 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. We did not take any advances on the revolving line of credit in the three months ended March 31, 2026. As of March 31, 2026, there was no outstanding balance on the line of credit, the full $50.0 million capacity was available for borrowing, and we were in compliance with all SVB loan covenants.
Current wording
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”). In July 2025, the Company amended the SVB revolving line of credit (the “July 2025 Amendment”). The revolving line of credit, as amended, maintained a total borrowing capacity of up to $50.0 million and matures in May 2027. Amounts outstanding on the revolving line of credit accrue interest at the greater of prime rate less 0.25% and 3.50%. We are required to pay a recurring annual fee of $0.1 million beginning in July 2026 on the anniversary of the effective date of the July 2025 Amendment. The revolving line of credit is collateralized by substantially all of the Company’s assets. 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
Rearranged current paragraphs (6)
Current report — wording carried from elsewhere
Research and development expenses remained relatively flat with an increase in capitalized software development costs of $0.6 million, offset by an increase of $0.5 million in software and subscription costs and $0.2 million in professional fees.
Current report — wording carried from elsewhere
Revenue increased by $18.8 million, or 16%, compared to the six months ended June 30, 2025. Of the increase, approximately $13.5 million of our revenue growth was attributable to revenue generated from new customer locations acquired during the 12 months subsequent to June 30, 2025. Approximately $5.3 million of the increase was attributable to revenue generated from existing customer locations under subscription as of June 30, 2025.
Current report — wording carried from elsewhere
Cost of Revenue and Gross Margin
Current report — wording carried from elsewhere
The decrease in other income (expense), net is largely due to decreased realized gains and lower accretion on our short-term investments, which were offset by lower fees on our revolving line of credit.
Current report — wording carried from elsewhere
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. We have generated losses from our operations as reflected in our accumulated deficit of $329.1 million as of
Current report — wording carried from elsewhere
$100.0 million, we must at all times thereafter maintain a consolidated minimum liquidity of $20.0 million, meaning unencumbered cash and short-term investments plus available borrowing on the revolving line of credit, and that we are required to meet specified minimum levels of EBITDA, as adjusted for stock-based compensation expense, changes in our deferred revenue balances, capitalized software development expense and certain non-recurring transaction costs. We did not take any advances on the revolving line of credit in the six months ended June 30, 2026. As of June 30, 2026, there was no outstanding balance on the revolving line of credit, the full $50.0 million capacity was available for borrowing, and we were in compliance with all SVB loan covenants.