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EverCommerce Inc.

EVCM
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Business Summary

EverCommerce Inc. is a leading provider of integrated, vertically-tailored Software-as-a-Service (SaaS) solutions for service-based small- and medium-sized businesses (SMBs) . The company's platform supports the full lifecycle of interactions between consumers and service professionals across three core verticals: EverPro for Home Services, EverHealth for Health Services, and EverWell for Wellness Services . As of December 31, 2025, EverCommerce served more than 745,000 customers . The company's business model is primarily recurring, with approximately 93% of customers contributing less than $2 thousand in revenue and approximately 3% contributing more than $5 thousand in revenue for the year ended December 31, 2025 .

EverCommerce generates revenue through two primary sources: Subscription and Transaction Fees, which are primarily recurring, and Other revenue, consisting mainly of one-time streams . Subscription and Transaction Fees include recurring SaaS subscriptions, software license and maintenance fees from Business Management and Customer Engagement solutions, payment processing fees based on transaction volumes, and membership subscriptions and rebates from group purchasing programs . Other revenue encompasses consulting, implementation, training, professional services, website development, business development partnerships, event income, and hardware sales . Approximately 96% of the company's revenue was recurring or re-occurring in the year ended December 31, 2025 .

The company's solutions are organized into vertically-tailored suites. Business Management Software acts as the "system of action" for a service business, streamlining front- and back-office processes and providing customer-facing experiences . Billing & Payment Solutions offer integrated payments, billing and invoicing automation, and business intelligence, supporting omni-channel payments including point-of-sale, eCommerce, online bill payments, recurring billing, electronic invoicing, and mobile payments . Supported payment types include credit card, debit card, and Automated Clearing House (ACH) processing . As of December 31, 2025, EverCommerce processed an estimated annualized total volume of $13.0 billion , with an aggregate annualized payment processing opportunity in excess of $100 billion based on current customers and payment volumes . Customer Experience Solutions modernize customer engagement through listening and communication tools, including customer health scoring, support systems, real-time alerts, Net Promoter Score (NPS)-based feedback, review generation, reputation management, and a digital communication suite . The recent acquisition of ZyraTalk adds AI-powered virtual assistant capabilities and an agentic automation platform .

For the year ended December 31, 2025, total revenues from continuing operations were $588.907 million , an increase of 4.8% from $562.185 million in 2024 . Subscription and transaction fees accounted for $566.915 million , growing 4.4% year-over-year , while other revenue was $21.992 million , increasing 14.5% . Gross profit for continuing operations was $437.938 million , with an Adjusted Gross Profit of $456.844 million . Operating income was $59.250 million . Net income from continuing operations was $18.204 million , a significant improvement from a net loss of $15.197 million in 2024 . Diluted net income per share attributable to common stockholders from continuing operations was $0.10 , compared to a diluted net loss per share of $0.08 in 2024 . Net cash provided by operating activities was $111.456 million . As of December 31, 2025, cash and cash equivalents were $129.730 million , and total long-term debt, net of current maturities and deferred financing costs, was $517.891 million .

Year-over-year, total revenues increased by $26.722 million , or 4.8% , from 2024 to 2025. This growth was primarily driven by a $22.9 million increase in business management software revenues due to customer expansion and price increases , and a $3.1 million increase in billing and payment solutions revenues from higher transaction volumes, partially offset by a $2.1 million decline in revenues from group purchasing program rebates . Cost of revenues (exclusive of depreciation and amortization) increased by $7.3 million, or 5.8% , primarily due to higher API fees, software hosting, and communication services expenses . Sales and marketing expenses increased by $5.4 million, or 4.7% , mainly due to higher personnel and compensation expenses . Product development expenses rose by $2.8 million, or 3.7% , driven by outsourced services and software and tools investments . General and administrative expenses increased by $3.2 million, or 2.5% , due to outsourced services, professional and legal fees, software and tools, and bad debt expense . Depreciation and amortization decreased by $13.4 million, or 16.6% , primarily due to lower intangible assets’ amortization from a slowdown in business acquisitions .

During the year, EverCommerce completed the acquisition of ZyraTalk on September 15, 2025, an AI-powered customer engagement solution, for approximately $36.1 million in cash, with potential contingent consideration of up to $6.5 million . This acquisition is intended to establish EverCommerce as an AI-driven innovator, initially within the Home Services vertical, EverPro, with plans for broader application . The company also completed the sale of its marketing technology solutions business to Ignite Visibility on October 31, 2025, for approximately $45.0 million in cash . This business was classified as discontinued operations, and the sale resulted in a loss of $1.1 million and a goodwill impairment charge of $6.9 million . In 2024, the company sold its fitness solutions to Jonas Software, which did not qualify as a discontinued operation .

Business Outlook

EverCommerce aims to drive significant growth by attracting new customers, expanding Average Revenue per Unit (ARPU) and margin from existing customers, and expanding into new products and micro-verticals . The company believes there is a significant opportunity to attract new customers within its current offerings and market segments, estimating over 35 million service SMBs in North America and 456 million globally . The number of customers on its platform increased to approximately 745,000 at the end of 2025, up from approximately 110,000 at the end of 2018 .

A primary focus for ARPU expansion is cross-selling payments solutions to customers to prioritize margin growth . The acquisition of ZyraTalk is expected to establish EverCommerce as an AI-driven innovator, with plans to integrate its in-production features into EverPro systems of action and extend them across other verticals . These AI capabilities are intended to provide full end-to-end automation, enhancing product value .

The company plans to expand into new products by leveraging insights from its customer relationships to identify value-additive solutions . During 2023, EverCommerce introduced EverPro Edge, an expansion opportunity for customers to receive targeted business growth and education content, as well as cash-back rebates on supplies from leading vendors .

EverCommerce intends to increase investment in its solutions to maintain its position as a leading provider of integrated SaaS solutions for service SMBs, introducing new features and upgrading technology to drive adoption and penetration . In 2026 and beyond, incremental investments will be needed to support the ongoing transformation of its business and infrastructure, including Sarbanes-Oxley compliance . The company will continue to evaluate its suite of solutions and may pursue divestitures of non-core assets and other strategic transactions . EverCommerce has acquired 54 companies since its inception, primarily prior to 2022, and continues to pursue growth through a mix of organic revenue expansion and opportunistic acquisitions across its core verticals .

The company expects that working capital requirements, capital expenditures, acquisitions, the share repurchase program, debt servicing, and lease obligations will be its principal needs for liquidity . EverCommerce believes its existing cash, cash equivalents, restricted cash, availability under its Credit Facilities, and cash flows from operations will be sufficient to fund these needs for at least the next twelve months . The company's Board increased the authorization of its Repurchase Program by an additional $50.0 million on November 4, 2025, for a total authorization of up to $300.0 million in shares of common stock, extending the program through December 31, 2026 . As of December 31, 2025, $47.7 million remained available under the Repurchase Program .

Risk Factors

EverCommerce faces numerous risks, including those related to its limited operating history and evolving business, which make future prospects and challenges difficult to evaluate. Historical growth rates, including a 7.1% CAGR from 2022 to 2025 and 4.8% revenue growth from 2024 to 2025 , may not be sustainable or indicative of future growth, especially if the pace of acquisitions slows . The company has experienced net losses in the past, with a net income from continuing operations of $18.2 million in 2025 compared to a net loss of $15.2 million in 2024 , and may not achieve sustained profitability due to increasing operating expenses from growth investments and public company compliance . Quarterly and annual operating results may fluctuate significantly due to factors such as customer acquisition and retention, pricing, competition, success of acquisitions or divestitures, and general economic conditions . The company may need to incur additional indebtedness or seek new equity or debt financings to support growth and acquisitions, which may not be available on acceptable terms and could dilute existing stockholders . Failure to expand market share in existing or new vertical markets would inhibit growth and profitability . Intense competition from manual processes, basic PC tools, homegrown solutions, vertically-specialized competitors (e.g., Salesforce, Intuit, Square), and potential competition from current partners could negatively impact the business and market share . The rapidly evolving nature of the industries in which EverCommerce operates, particularly the immature market for technology-enabled services for SMBs, poses risks if the company cannot keep pace with developments or promote its solutions effectively . Dependence on payment card networks and processors like Visa, MasterCard, Worldpay, and PayPal means non-compliance with their requirements could lead to fines, suspension, or termination of agreements, severely impacting payment processing volumes and revenues . Real or perceived errors, failures, or bugs in solutions could adversely affect the business, reputation, and growth prospects . Cybersecurity risks and incidents, including those involving third-party providers, could result in damage to brand, financial penalties, and legal liability . The use of AI technologies may not be beneficial, could cause performance issues, or lead to liability from legal or contractual violations, especially given the rapidly evolving and uncertain regulatory framework for AI . Overestimation of the total addressable market, which was approximately $1.6 trillion globally in 2023 and $662 billion in North America , could limit future growth opportunities . Failure to effectively develop and expand sales and marketing capabilities, or to retain existing SMB customers and cross-sell additional services, could harm customer base growth and revenue . Impairment in the value of goodwill or intangible assets, such as the $6.9 million goodwill impairment in 2025 related to marketing technology solutions , has and may continue to adversely impact operating results . Information technology system failures or discontinuation of services by third-party providers could interrupt business and increase costs . Macroeconomic and political risks, business cycles of clients, and changes in consumer spending, including rising inflation and interest rates, could negatively impact financial performance . The company's indebtedness, with $526.6 million outstanding under Credit Facilities as of December 31, 2025 , could adversely affect financial health and competitive position, and restrictive covenants limit certain business activities . As a public company, EverCommerce incurs significant increased costs and management time for compliance, and a material weakness in internal control over financial reporting identified as of December 31, 2023, and not remediated as of December 31, 2025, could impair its ability to produce timely and accurate financial statements 89.

Management Priorities

Management emphasizes that EverCommerce is simplifying and empowering business owners through tailored, integrated SaaS solutions for home, health, and wellness services. The company's strategy focuses on addressing how service SMBs market their services, streamline operations, and retain and engage customers. Management highlights the "land and expand" strategy, where Business Management Software acts as a point-of-entry to cross-sell adjacent products, driving value for customers, improving stickiness, and increasing market share. The company reported a net income from continuing operations of $18.2 million for the year ended December 31, 2025, compared to a net loss of $15.2 million in the prior year, and Adjusted EBITDA from continuing operations reached $180.5 million , up from $164.4 million in 2024. Management also noted the attractive unit economics, estimating the lifetime value of customers to be approximately six times the cost of acquiring them. Strategic priorities include attracting new customers, expanding ARPU and margin from existing customers, and expanding into new products and micro-verticals, with a particular focus on leveraging the recent acquisition of ZyraTalk to establish EverCommerce as an AI-driven innovator. The Board has also authorized a stock repurchase program of up to $300.0 million through December 31, 2026 , with $47.7 million remaining available as of December 31, 2025.

View Source Annual Report on SEC.gov ↗

References

  1. [1] Item 1, Business — Overview
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  5. [5] Item 7, MD&A — Overview
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  12. [12] Item 1, Business — Our solutions
  13. [13] Item 1, Business — Our solutions
  14. [14] Item 7, MD&A — Overview
  15. [15] Item 7, MD&A — Overview
  16. [16] Item 7, MD&A — Results of Operations
  17. [17] Item 7, MD&A — Results of Operations
  18. [18] Item 7, MD&A — Results of Operations
  19. [19] Item 7, MD&A — Revenues
  20. [20] Item 7, MD&A — Results of Operations
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  22. [22] Item 7, MD&A — Adjusted Gross Profit
  23. [23] Item 7, MD&A — Adjusted Gross Profit
  24. [24] Item 7, MD&A — Results of Operations
  25. [25] Item 7, MD&A — Results of Operations
  26. [26] Item 7, MD&A — Results of Operations
  27. [27] Item 8, Consolidated Statements of Operations and Comprehensive Income (Loss)
  28. [28] Item 8, Consolidated Statements of Operations and Comprehensive Income (Loss)
  29. [29] Item 7, MD&A — Cash Flow from Operating Activities
  30. [30] Item 7, MD&A — Liquidity and Capital Resources
  31. [31] Item 7, MD&A — Liquidity and Capital Resources
  32. [32] Item 7, MD&A — Revenues
  33. [33] Item 7, MD&A — Revenues
  34. [34] Item 7, MD&A — Revenues
  35. [35] Item 7, MD&A — Revenues
  36. [36] Item 7, MD&A — Cost of Revenues
  37. [37] Item 7, MD&A — Cost of Revenues
  38. [38] Item 7, MD&A — Sales and Marketing
  39. [39] Item 7, MD&A — Sales and Marketing
  40. [40] Item 7, MD&A — Product Development
  41. [41] Item 7, MD&A — Product Development
  42. [42] Item 7, MD&A — General and Administrative
  43. [43] Item 7, MD&A — General and Administrative
  44. [44] Item 7, MD&A — Depreciation and Amortization
  45. [45] Item 7, MD&A — Depreciation and Amortization
  46. [46] Item 7, MD&A — Acquisition of ZyraTalk
  47. [47] Item 7, MD&A — Acquisition of ZyraTalk
  48. [48] Item 7, MD&A — Sale of Marketing Technology Solutions
  49. [49] Item 7, MD&A — Sale of Marketing Technology Solutions
  50. [50] Item 7, MD&A — Sale of Fitness Solutions
  51. [51] Item 1, Business — Our growth strategies
  52. [52] Item 1, Business — Our growth strategies
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  59. [59] Item 7, MD&A — Continued Investment in Growth
  60. [60] Item 7, MD&A — Continued Investment in Growth
  61. [61] Item 7, MD&A — Continued Investment in Growth
  62. [62] Item 7, MD&A — Continued Investment in Growth
  63. [63] Item 7, MD&A — Liquidity and Capital Resources
  64. [64] Item 7, MD&A — Liquidity and Capital Resources
  65. [65] Item 5, Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
  66. [66] Item 5, Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
  67. [67] Item 1A, Risk Factors — Risks Related to Our Business
  68. [68] Item 1A, Risk Factors — Risks Related to Our Business
  69. [69] Item 1A, Risk Factors — Risks Related to Our Business
  70. [70] Item 1A, Risk Factors — Risks Related to Our Business
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  80. [80] Item 1A, Risk Factors — Risks Related to Our Business
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  86. [86] Item 1A, Risk Factors — Risks Related to Our Business
  87. [87] Item 1A, Risk Factors — Risks Related to Our Business
  88. [88] Item 1A, Risk Factors — Risks Related to Our Business 89] Item 1A, Risk Factors — Risks Related to Our Business
  89. [90] Item 7, MD&A — Results of Operations
  90. [91] Item 7, MD&A — Results of Operations
  91. [92] Item 7, MD&A — Adjusted EBITDA
  92. [93] Item 7, MD&A — Adjusted EBITDA
  93. [94] Item 5, Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
  94. [95] Item 5, Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities
  95. [96] Item 5, Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities

Analysis on 5/22/2026