EverCommerce NASDAQ: EVCM reported second-quarter revenue that grew 2.7% year over year to $152 million, while adjusted EBITDA of $44.5 million exceeded the company’s guidance range. The company maintained its full-year outlook but said results are now expected to trend toward the lower end of its revenue and adjusted EBITDA ranges, reflecting slower-than-expected new customer acquisition in certain EverPro offerings.
The earnings call also marked a leadership transition. Chairman and Chief Executive Officer Eric Remer said he would step down as CEO effective Aug. 6 after nearly two decades leading the company, while remaining on EverCommerce’s board. Alex Goor will become CEO and join the board.
“Building EverCommerce has been the privilege of my professional life,” Remer said, citing the company’s evolution from a startup into a public company serving more than 745,000 customers across its EverPro, EverHealth and EverWell businesses.
Second-Quarter Results and Outlook
Revenue for the second quarter was in line with the midpoint of EverCommerce’s guidance range. Subscription and transaction revenue, the company’s primary recurring revenue base, totaled $147.4 million. On a pro forma basis including the ZyraTalk acquisition, which closed in the third quarter of 2025, revenue was $152 million for the quarter, up 2% year over year.
Adjusted gross profit was $119.5 million, producing an adjusted gross margin of 78.6%. Adjusted EBITDA rose to $44.5 million, equal to a 29.3% margin.
Chief Financial Officer Ryan Siurek said adjusted operating expenses increased as a percentage of revenue to 49.3% from 47.1% a year earlier, driven by targeted investments in sales, marketing and product development, including post-acquisition ZyraTalk costs. Those investments were partially offset by continued cost discipline.
For the third quarter, EverCommerce expects:
- Revenue of $151.5 million to $154.5 million.
- Adjusted EBITDA of $44 million to $46 million.
The company maintained its full-year 2026 guidance for revenue of $612 million to $632 million and adjusted EBITDA of $183 million to $191 million. However, Siurek said EverCommerce now expects results to land near the lower end of those ranges.
Management expects growth to increase from the second through fourth quarters, aided by pricing actions, improved customer acquisition efforts, expense discipline and stable customer retention. Siurek said pricing initiatives have already been implemented across several solutions, with their fuller revenue impact expected in the fourth quarter.
EverPro Customer Acquisition and AI Search Efforts
EverCommerce said slower customer acquisition in certain EverPro solutions was the primary factor affecting its outlook. Matt Feierstein, EverCommerce’s president and CEO of EverPro, said the softness was linked to evolving AI-driven search behavior that affected organic customer acquisition in some product lines during the first half of the year.
Feierstein said the issue was broad-based among products with substantial organic search exposure rather than concentrated in a specific geographic region. He described the affected offerings as national and international-serving products.
The company is pursuing technical optimization, AI-focused content and authority-building initiatives intended to improve visibility as search behavior changes. Feierstein said the company has begun to see leading indicators move in the desired direction, although he and Siurek stressed that the full-year outlook does not assume an immediate or unusually large recovery in customer acquisition.
“We are absolutely and with urgency working on what we believe will return the organic traffic trends to where they need to,” Feierstein said. “That’s not an overnight switch.”
EverCommerce also said retention in EverPro remained in line with expectations and was somewhat better during the second quarter. Feierstein said payment integration, customer-experience tools, AI voice reception and other workflow capabilities could further improve the value proposition for existing customers.
Payments, Cross-Selling and AI Investments
Management highlighted continued expansion in multi-solution adoption. At the end of the quarter, 314,000 customers were enabled for more than one solution, up 20% year over year. About 140,000 customers were actively using more than one solution, up 26% from a year earlier.
Over the trailing 12 months, net revenue retention was 94%. Multi-solution customers generated net revenue retention above 100%, according to the company. EverCommerce said reported net revenue retention was affected by declining third-party partner revenue in its legacy payments business and certain horizontal add-on products.
The company’s six priority growth solutions generated 16.4% year-over-year total payments volume growth and represented 36% of total payments volume, up from 31% in the second quarter of 2025. Payments revenue in those solutions increased 8.5% and accounted for more than 48.5% of total payments revenue.
Remer said EverCommerce is focused on AI-powered workflows for service-oriented small and midsize businesses, including home field services through EverPro, medical practices through EverHealth and wellness providers through EverWell. EverPro and EverHealth together represent about 95% of consolidated revenue.
Goor said his initial focus will be learning the business in detail during his first roughly 90 days as CEO. He said he expects technology to play a central role in improving execution and growth.
“Wherever I can bring technology to bear in strengthening our execution and basically doing what we do, but trying to do it in a better and more optimized way, will be the near-term path to greater growth,” Goor said.
Cash Flow, Debt and Share Repurchases
EverCommerce generated $28.5 million in cash flow from operations during the quarter, compared with $27 million in the prior-year period. Levered free cash flow was $19.5 million for the quarter and more than $71.7 million for the trailing 12 months. Adjusted unlevered free cash flow totaled $28.7 million in the quarter and $115.4 million over the trailing 12 months.
Siurek noted that year-over-year comparisons for cash-flow measures are not fully comparable because they include cash generated by the divested Marketing Technology Solutions business through Oct. 31, 2025.
At June 30, EverCommerce had $133 million of cash and cash equivalents, $524 million of debt outstanding and total net leverage of about 2.2 times under its credit facility. The company also had $155 million of undrawn revolver capacity at quarter-end, though that capacity stepped down to $125 million in July.
During the quarter, EverCommerce repurchased approximately 1.4 million shares for $14.8 million, or an average price of $10.32 per share. About $19.2 million remained under its existing $300 million share repurchase authorization through the end of 2026.
About EverCommerce (NASDAQ:EVCM)
EverCommerce, Inc is a provider of cloud-based software-as-a-service (SaaS) solutions designed for local service businesses. The company delivers an integrated platform that helps organizations manage customer interactions, streamline operations and facilitate recurring revenue. By combining multiple functions into a single interface, EverCommerce aims to simplify back-office processes and enhance the overall customer experience.
The company’s offerings encompass tools for appointment scheduling, payment processing, client relationship management, marketing automation, reputation management and reporting analytics.
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