What EverCommerce (EVCM) Said on Its Q3 Earnings Call

Key Points

• Q3 revenue missed guidance: EverCommerce generated $151.4 million, up 2.7% year over year, amid softer new-customer acquisition and lower-than-expected vendor rebates. Adjusted EBITDA was $45 million, with earnings meeting the midpoint of the company’s forecast.
• Outlook reflects ongoing growth pressure: The company expects about $600 million in full-year revenue and $170 million in adjusted EBITDA. CEO Alex Goor plans to invest in products, technology and customer acquisition, with management aiming to accelerate growth exiting 2027.
• Payments and cross-selling showed strength: Payments revenue grew about 6.4%, while payments volume in EverCommerce’s top six solutions rose 15.6%. Customers actively using multiple solutions increased 27% year over year, though overall net revenue retention was 93.3%.

EverCommerce NASDAQ: EVCM reported third-quarter revenue below its guidance range as weaker new customer acquisition and lower-than-expected vendor rebates slowed growth, while adjusted earnings met the midpoint of its forecast.

The software provider generated revenue of $151.4 million for the three months ended Sept. 30, up 2.7% from a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization were $45 million, representing a 29.7% margin.

CEO Alex Goor, speaking on his first earnings call in the role, said the company’s revenue growth has been decelerating and supported primarily by price increases. He outlined plans to invest in products, technology and customer acquisition, with an objective of achieving sustainable, profitable double-digit revenue growth.

“We intend to act with urgency and iterate proactively, even if those iterations have an impact on near-term results,” Goor said.

Growth Pressures and Updated Outlook

Goor described the quarter as mixed, citing vendor rebates that fell short of internal forecasts and softer new customer acquisition, particularly at the top of the sales funnel. Customer retention generally remained consistent with historical levels, he said.

The company’s updated full-year outlook calls for approximately $600 million in revenue and $170 million in adjusted EBITDA. CFO Ryan Siurek said the forecast reflects current customer acquisition pressures, including pressure on organic search, and an expectation that vendor rebate activity will be relatively flat with the prior year.

EverCommerce also expects some milestone-based projects in its security and alarm business to move from 2026 into 2027. Higher large healthcare claims are expected to increase benefits costs for the year, though Siurek said those costs are capped by stop-loss limits. The outlook includes additional fourth-quarter investment, primarily in paid media.

Goor said improvements in customer acquisition will take time to translate into stronger revenue growth because of the recurring nature of the company’s software and payments businesses. Management is prioritizing investments intended to support an acceleration in growth exiting 2027.

Payments and Cross-Selling

Subscription and transaction revenue rose 4.2% to $148.2 million in the third quarter. Other revenue declined by approximately $2 million, primarily because of the timing of milestone-based implementation projects in the security and alarm business, Siurek said.

Payments revenue grew approximately 6.4% year over year. In the company’s top six solutions, payments revenue rose 15% and total payments volume increased 15.6%. Those solutions accounted for 37% of total payments volume, up from 32% a year earlier, and approximately half of payments revenue.

At quarter-end, approximately 147,000 customers were actively using more than one solution, an increase of 27% year over year. Another metric showed approximately 324,000 customers were enabled for more than one solution, up 17.4%.

Trailing 12-month net revenue retention was 93.3%, while multi-solution customers continued to have retention above 100%. Siurek said the slight sequential decline in the overall figure was driven by declining third-party partner revenue in the legacy payments business and other horizontal add-ons.

Investment Priorities and Leadership

Goor said his initial priorities include funding growth investments, improving investment analysis, advancing AI technology and coding experiments, and evaluating the company’s technology infrastructure and cost base. EverCommerce operates across its EverPro, EverHealth and EverWell verticals; EverPro and EverHealth together account for 95% of consolidated revenue.

Recent leadership appointments include Andrew Hausman as EverPro president, Chris Rogers as chief technology officer and Gim Lau as chief strategy officer. EverHealth Chief Revenue Officer Brian Caulfield is leading that business on an interim basis while the company searches for a permanent president.

Asked about pricing, Goor said the company wants to price according to customer value and better understand the effects of pricing on retention and customer lifetime value. “I’m not ruling out price,” he said.

Margins and Balance Sheet

Adjusted gross margin improved to 79.3% from 77.3% a year earlier, but adjusted EBITDA margin fell from 31.5%. Siurek said the prior-year quarter benefited from approximately $2 million less in digital advertising spending than a normalized run rate. This year’s adjusted operating expenses also reflected targeted investments in sales, marketing and product development.

EverCommerce ended the quarter with $139 million in cash and cash equivalents, $522.5 million in debt and $125 million of undrawn revolving credit capacity. It repurchased approximately 1.6 million shares for $15.7 million during the quarter.

Quarterly operating cash flow was $32.9 million, and levered free cash flow was $24.6 million. Siurek cautioned that cash flow comparisons include cash generated by the marketing technology business through its sale on Oct. 31, 2025, and are therefore not fully comparable.

About EverCommerce (NASDAQ:EVCM)

EverCommerce, Inc is a software and technology company that provides integrated, cloud-based solutions for service-oriented small and midsize businesses. Its platforms are designed to help businesses manage operations, customer relationships, payments, marketing and other administrative functions through specialized applications tailored to specific industries.

The company serves a broad range of vertical markets, including home and field services, health and wellness, fitness, education, professional services and other appointment- or membership-based businesses.

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