Executive Summary

Q1 2025 revenue from continuing operations grew 3.2% YoY to $142.3M and Adjusted EBITDA rose to $44.9M; both exceeded the top end of internal guidance, driven by execution and cost management . However, revenue was below S&P Global consensus of $146.3M*, while Adjusted EBITDA beat the ~$40.8M* consensus .
Management reiterated FY25 guidance (Revenue $581–$601M; Adjusted EBITDA $167.5–$175.5M) and issued Q2 guidance (Revenue $144.5–$147.5M; Adjusted EBITDA $39.5–$41.5M) .
Strategic focus remains on payments monetization and AI; payments represented ~21% of revenue with ~9% TPV growth and ~95% gross margin contribution to mix improvement .
Capital return: Buyback authorization increased by $50M and extended to YE 2026; repurchased 1.1M shares for ~$11.2M in Q1 .
Tone: Executives highlighted margin expansion (Adj. EBITDA margin 31.6%) and transformation progress; Q1 margin outperformance partly reflects timing that shifts some expenses into later quarters .

What Went Well and What Went Wrong

What Went Well
- Exceeded internal guidance top end for both Revenue and Adjusted EBITDA; CEO: “results exceeded the top end of our guidance range… driven by strong execution and continued active cost management” .
- Margin expansion: Adjusted EBITDA margin 31.6% (+~360 bps YoY), aided by mix shift to high-margin payments/rebates and cost optimization; adjusted gross margin 78.1% .
- Payments engine gaining traction: payments ~21% of revenue; TPV annualized ~$12.7B (+~9% YoY); multi-product enablement and utilization up 28% and 20% YoY, respectively .
What Went Wrong
- Top-line below Street: Revenue of $142.3M trailed S&P consensus $146.3M* despite beating company guidance .
- Interest headwind: Interest and other expense rose to $12.8M vs $5.8M YoY, pressuring GAAP earnings; total net loss was $(7.7)M including discontinued operations loss .
- Expense timing caveat: Q1 margin outperformance benefited from timing of investments; CFO expects some favorability to shift into later quarters—limiting read-through for run-rate margins .

Financial Results

Metric	Q3 2024	Q4 2024	Q1 2025
Revenue ($M)	176.260	174.999	142.273
Subscription & Transaction Fees ($M)	137.566	139.013	137.779
Other Revenue ($M)	4.333	6.375	4.494
Adjusted EBITDA ($M)	44.511	50.385	44.945
Adjusted EBITDA Margin %	—	—	31.6%
Adjusted Gross Profit ($M)	116.985	124.035	111.085
Adjusted Gross Margin %	—	—	78.1%
Net Income (Loss), Total ($M)	(9.156)	(12.233)	(7.713)
Diluted EPS (Total)	$(0.05)	$(0.07)	$(0.04)

Segment/mix detail (revenue type):

Metric	Q3 2024	Q4 2024	Q1 2025
Subscription & Transaction Fees ($M)	137.566	139.013	137.779
% of Revenue (calc.)	78.1%	79.4%	96.8%
Other ($M)	4.333	6.375	4.494
% of Revenue (calc.)	2.5%	3.6%	3.2%

KPIs (Q1 2025 unless noted):

Payments revenue ~21% of revenue; payments reported on net basis at ~95% gross margin .
Annualized TPV ~$12.7B (+~9% YoY) .
Customers enabled for >1 solution: ~244k (+28% YoY); actively utilizing >1 solution: ~99k (+20% YoY) .
Annualized NRR ~97% (TTM) .
Cash from operations $30.7M; cash & equivalents $148.4M; debt $531M (matures Jul-2028); undrawn revolver $190M .
Share repurchases: 1.1M shares for ~$11.2M; authorization topped up by $50M and extended to YE 2026 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	Q2 2025	n/a	$144.5M–$147.5M	New
Adjusted EBITDA	Q2 2025	n/a	$39.5M–$41.5M	New
Revenue	FY 2025	$581M–$601M	$581M–$601M	Maintained
Adjusted EBITDA	FY 2025	$167.5M–$175.5M	$167.5M–$175.5M	Maintained

Note: Q1 2025 actuals exceeded prior Q1 guidance (Rev $138–$141M; Adj. EBITDA $39–$41M) set on Mar 13, 2025 , with actual Rev $142.3M and Adj. EBITDA $44.9M .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3’24)	Previous Mentions (Q4’24)	Current Period (Q1’25)	Trend
AI/Technology initiatives	Focus on transformation/optimization, future growth acceleration	“Planned strategic investments… including AI initiatives”	Embedded AI in products and internal workflows; AI to drive innovation and cost efficiency	Increasing emphasis
Payments monetization	Not highlighted in Q3 PR	Strategy refinement, investments in SaaS and embedded payments	Payments ~21% of revenue, ~9% TPV growth; attach/utilization focus; high-margin contributor	Strengthening
Macro/tariffs	—	—	No degradation in funnel metrics; monitoring tariffs/macro; guidance prudent	Stable demand; vigilant
Multi-product attach/utilization	—	—	244k enabled (+28% YoY); 99k utilizing (+20% YoY)	Improving
Marketing Tech divestiture	—	Strategic alternatives announced; expect sale within 12 months	Reclassified as discontinued ops; loss in discontinued ops this quarter	Executing divestiture
Capital returns	Repurchased 1.4M shares for ~$14.6M	Repurchased 0.6M shares; $32.7M remaining	Repurchased 1.1M; authorization +$50M; ~$71.6M remaining	Increased capacity

Management Commentary

Strategy and execution: “First quarter results exceeded the top end of our guidance range for both Revenue and Adjusted EBITDA… strong execution and continued active cost management” — Eric Remer, CEO .
Investment priorities: “Strategic investments in high margin areas… payments monetization as well as artificial intelligence” — Eric Remer .
Margin dynamics: “Q1 margin expansion… aided by the timing of certain expenses… favorability… expected to be reallocated to later periods” — Ryan Siurek, CFO .
Payments and customer monetization: Payments ~21% of revenue with ~95% gross margin; TPV ~$12.7B (+~9% YoY); payments a “meaningful contributor” to margin expansion .
Balance sheet and buyback: Net leverage ~2.1x; $148M cash; $190M revolver capacity; buyback authorization increased by $50M, extended to 2026 .

Q&A Highlights

Payments attach at point of sale: Sales motions now integrate payments at initial SaaS sale and “sell-behind” by payments team; observed increases in attach in Q1 .
Upsell/bundling: Beyond payments, bundling integrated capabilities (patient engagement, RCM, clearinghouse) in EverHealth; EverPro growth via products like EverPro Edge and reviews integrations .
Macro/tariffs: No observed degradation across lead-gen to onboarding; monitoring tariff/macro developments; no change embedded in outlook, guidance remains prudent .
Multi-product adoption → TPV: Record sequential growth in multiproduct adoption; product enhancements (tap‑to‑pay, ACH, mobile) expected to expand TPV and retention .
EverPro outlook: New CEO sees cross-sell opportunities (rebates, CES, marketing), process streamlining, and revenue operations—leveraging lessons from prior transformation experience .

Estimates Context

Q1 2025 actual vs S&P Global consensus:

Metric	Company Actual	S&P Global Consensus*	Beat/Miss
Revenue ($M)	142.273	146.282*	Miss
Adjusted EBITDA ($M)	44.945	40.755*	Beat
Diluted EPS (GAAP, total)	$(0.04)	$0.138* (Primary EPS)	Miss/Not directly comparable

Notes: EVCM emphasizes Adjusted EBITDA and does not guide to non-GAAP EPS; S&P “Primary EPS” may not be directly comparable to company-reported GAAP diluted EPS. Values retrieved from S&P Global.*

Q2 2025 setup:

Company guidance: Revenue $144.5–$147.5M; Adjusted EBITDA $39.5–$41.5M .
S&P Global consensus: Revenue ~$145.803M*; EBITDA ~$40.516M* — broadly in-line midpoints. Values retrieved from S&P Global.*

Key Takeaways for Investors

Execution/mix drove a quality beat vs internal guidance and a Street EBITDA beat; revenue miss vs consensus likely weighed by divestiture restatement optics and conservative top-line trajectory .
Payments monetization is the near-term lever: high-margin, rising attach/utilization, and product adds (tap-to-pay, ACH, mobile) underpin margin durability and TPV growth .
FY25 outlook maintained; Q1 margin upside included timing benefits that should normalize—expect some reallocation of spend into later quarters .
Capital returns are supportive (authorization +$50M, extension to 2026) alongside a solid liquidity profile (net leverage ~2.1x, ample revolver) .
Strategic simplification continues: marketing tech solutions classified as discontinued operations; management reiterated intent to pursue a sale in 2025, allowing focus on core EverPro/EverHealth .
Near-term setup: Q2 guidance is aligned with Street on revenue/EBITDA midpoints; estimate revisions likely modest, with more upside tied to payments conversion and multi-product adoption trends .
Watchlist: cadence of payments KPIs, evidence of AI-driven efficiency gains, and any updates on the marketing tech divestiture timeline that could alter growth/margin mix .

Footnotes:

“Calculated” percentages/margins are derived from cited reported figures where explicit percentages were not disclosed.
Asterisk (*) indicates values retrieved from S&P Global.

EverCommerce Inc. (EVCM)·Q1 2025 Earnings Summary