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EI

EverCommerce Inc. (EVCM)·Q2 2025 Earnings Summary

Executive Summary

  • Q2 2025 delivered revenue of $148.0M and Adjusted EBITDA of $45.0M, both above the top end of guidance; GAAP profitability improved with $0.03 diluted EPS from continuing operations and $0.04 total diluted EPS .
  • S&P Global consensus indicated a revenue beat ($148.0M vs $145.8M*) and an EPS miss on “Primary EPS” (0.1004* actual vs 0.1409*), while GAAP EBITDA also missed S&P’s EBITDA consensus (actual 29.9M* vs 40.5M*), contrasted by strong Adjusted EBITDA (company-reported) beating guidance; non-GAAP adjustments drove margin expansion (see Estimates Context).
  • Management raised FY 2025 Adjusted EBITDA guidance to $171–$177M from $167.5–$175.5 while keeping revenue guidance at $581–$601M; Q3 2025 guidance set at revenue $146.5–$149.5M and Adjusted EBITDA $41–$43M .
  • Strategic and operational catalysts: accelerating payments adoption (TPV ~$12.9B; payments ~21% of revenue), multiproduct attach/usage momentum, credit facility repricing (annualized interest savings ~$1.3M), and ongoing share repurchases ($20.6M in Q2; $51.1M remaining authorization) .

What Went Well and What Went Wrong

  • What Went Well

    • Revenue and Adjusted EBITDA beat guidance; “second quarter results exceeded the top end of our guidance range… driven by revenue reacceleration and cost optimization” (Eric Remer, CEO) .
    • Payments momentum: pro forma payments revenue +6.8% YoY; annualized TPV ~$12.9B; payments ~21% of revenue, contributing ~95% gross margin and aiding Adjusted EBITDA margin expansion (CEO prepared remarks) .
    • Multiproduct attach/usage acceleration: enabled customers for >1 solution up 32% YoY to 261K; utilization up 29% YoY to ~112K; “record attach rates” in flagship products (CEO) .

  • What Went Wrong

    • On S&P metrics, EPS and EBITDA (GAAP) missed consensus despite strong non-GAAP results, underscoring reliance on adjustments for margin expansion (see Estimates Context)*.
    • Management prudently held FY revenue guidance despite consecutive top-line beats, reflecting caution on back-half trajectory and investment timing (CFO) .
    • Legacy payment products and portfolio mix tempered TPV growth vs top solutions; management noted lag across funnel stages (attach → utilization → wallet share) and lower growth in legacy products (President) .

Financial Results

MetricQ4 2024Q1 2025Q2 2025
Revenue ($USD Millions)$175.0 $142.3 $148.0
Diluted EPS – Continuing Ops ($USD)($0.07) $0.01 $0.03
Total Diluted EPS ($USD)($0.07) ($0.04) $0.04
Adjusted EBITDA ($USD Millions)$50.4 $44.9 $45.0
Adjusted EBITDA Margin (%)28.8% 31.6% 30.4%
Adjusted Gross Margin (%)70.9% 78.1% 77.4%
  • Q/Q trajectory: revenue +4.0% vs Q1; Adjusted EBITDA +0.1% vs Q1; adjusted margins remained elevated (timing of expenses noted by CFO) .
  • Y/Y trajectory: revenue +5.3%; Adjusted EBITDA +14% and ~230bps margin expansion vs Q2 2024 .

Vs S&P Global Consensus – Q2 2025

MetricConsensusActualSurprise
Revenue ($USD Millions)145.8*148.0 +$2.2M (beat)
Primary EPS ($USD)0.1409*0.1004*-0.0405 (miss)
EBITDA ($USD Millions)40.5*29.9*-$10.6M (miss)
Revenue – # of Estimates10*——
Primary EPS – # of Estimates7*——

Values marked with * retrieved from S&P Global.

KPIs and Operating Metrics

KPIQ4 2024Q1 2025Q2 2025Notes
Payments Revenue (% of total)~17% ~21% ~21% Net basis; ~95% gross margin contribution
Annualized TPV ($USD Billions)~12.6 ~12.7 ~12.9 Growth stronger in top solutions vs legacy
NRR (LTM, %)96% 97% 97% Higher multiproduct utilization supports NRR
Customers enabled >1 solution (000s)219 244 261 +32% YoY at Q2
Customers utilizing >1 solution (000s)91 99 112 +29% YoY at Q2

Segment breakdown: Not disclosed numerically; management highlights EverPro and EverHealth as ~95% of revenue and strategic focus (EverWell smaller) .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Revenue ($USD Millions)Q3 2025—$146.5–$149.5 New
Adjusted EBITDA ($USD Millions)Q3 2025—$41.0–$43.0 New
Revenue ($USD Millions)FY 2025$581–$601 $581–$601 Maintained
Adjusted EBITDA ($USD Millions)FY 2025$167.5–$175.5 $171.0–$177.0 Raised

Management rationale: Prudence on back-half revenue trajectory and reallocation of some H1 favorability; confidence to raise FY Adjusted EBITDA amid cost optimization and mix shift .

Earnings Call Themes & Trends

TopicQ4 2024 (Q-2)Q1 2025 (Q-1)Q2 2025 (Current)Trend
AI/technology initiativesEmphasis on transforming product roadmaps; payments + AI mentioned Detailed AI use cases in products and internal workflows; plans for cost discipline via AI AI features across product lines; chat AI agents resolving 25–50% tickets; roadmap expansion (EverHealth) Broadening deployment; tangible efficiency gains
Payments adoptionTPV ~$12.6B; payments ~17% revenue TPV ~$12.7B; payments ~21% revenue; attach-at-sale strategy TPV ~$12.9B; pro forma payments +6.8% YoY; record attach rates; mix shift to top solutions Accelerating; top solutions outpacing legacy
Macro/tariffsNo discernible impact; resilient end markets (break-fix home, health) Monitoring; prudent guide; resilient verticals Continued resilience; prudence on revenue guide Stable, cautious backdrop
Capital structureTerm loan repriced (Dec) -50bps; net leverage ~2.2x Strong liquidity; net leverage ~2.1x Repriced/extended term loan to SOFR+2.25%; ~$1.3M annual interest savings; revolver extended Improving terms; added flexibility
Strategic scopePreparing martech divestiture to focus on SaaS + payments Continued focus on core verticals; repurchase authorization increased Martech discontinued ops; improved visibility; optimization continues Narrowed to core; visibility up

Management Commentary

  • “EverCommerce's second quarter results exceeded the top end of our guidance range for both Revenue and Adjusted EBITDA, driven by continued progress against our strategic priorities of revenue reacceleration and cost optimization.” — Eric Remer, CEO .
  • “Adjusted EBITDA of $45,000,000… representing a 30.4% margin. Adjusted EBITDA margin expanded more than two thirty basis points year over year.” — Eric Remer, CEO .
  • “In July, we repriced and extended our outstanding term loan… to SOFR plus 2.25%… interest cost savings of approximately $1,300,000 on an annualized basis.” — Ryan Siurek, CFO .
  • “We are actively leaning in an AI-forward way… AI agents within our chat channel… now resolving between 25% to 50% of all support tickets… customer SAT scores above 85%.” — Matt Feierstein, President .
  • “At the end of the second quarter, 261,000 customers were enabled for more than one solution… approximately 112,000 customers were actually utilizing more than one solution.” — Eric Remer, CEO .

Q&A Highlights

  • Guidance philosophy: Maintained FY revenue, raised FY Adjusted EBITDA; prudence on back-half revenue, reallocation of H1 expense timing; macro remains resilient (CFO) .
  • AI roadmap and functional impact: Product features (survey tools, targeting, embedded AI), support AI agents resolving 25–50% tickets with high satisfaction; EverHealth clinical efficiency features planned (President; EverHealth CEO) .
  • Payments strategy: Integrated sales motion, attach → activation → wallet-share funnel; new capabilities (tap-to-pay, ACH, mobile check, Apple/Google Pay); Canadian processing to expand addressable base .
  • Stablecoins: Not on near/mid-term roadmap given zero customer demand to date; will be responsive if market sentiment shifts (CEO) .
  • Visibility post-martech discontinuation: More linear seasonality; focus on EverPro/EverHealth; ongoing optimization to remove costs and fund growth (CFO) .

Estimates Context

  • Q2 2025 vs S&P Global: revenue beat (actual $148.0M vs $145.8M*), EPS miss on “Primary EPS” (0.1004* actual vs 0.1409*), EBITDA miss (29.9M* actual vs 40.5M*). Company-reported Adjusted EBITDA of $45.0M beat guidance, highlighting non-GAAP adjustments (stock comp, transaction-related costs, amortization) that reconcile to higher profitability .
  • Forward quarters (S&P Global): consensus revenue ~$147.8M* (Q3), ~$150.1M* (Q4); Primary EPS ~0.148–0.171* (Q4–Q1’26); EBITDA consensus ~$40.6–$47.8M* (Q4–Q2’26). As the company continues mix shift to higher-margin payments and optimizes costs, we expect estimates to reflect improving non-GAAP margins but GAAP EPS/EBITDA comparisons may remain sensitive to adjustments.

Values marked with * retrieved from S&P Global.

Key Takeaways for Investors

  • Revenue and Adjusted EBITDA momentum are intact; the company is consistently beating guidance and raised FY Adjusted EBITDA, a positive near-term sentiment catalyst.
  • Expect the stock narrative to focus on payments adoption and multiproduct attach/usage metrics (record attach rates; TPV ~$12.9B), as these drive margin and cash flow leverage .
  • Watch for continued credit profile improvements and capital returns: extended facilities, ~$1.3M interest savings, and $51.1M remaining buyback authorization .
  • Near-term trading: potential support from beat-and-raise (Adjusted EBITDA), but headline EPS/EBITDA misses versus S&P consensus (GAAP) could cap upside; the market will parse non-GAAP vs GAAP deltas carefully.
  • Medium-term thesis: payments-led expansion, AI-enabled efficiency, and martech divestiture sharpening focus on core SaaS/payments should support sustained margin accretion and cash generation .
  • Monitor guidance prudence: management maintained revenue guidance despite beats; look for conversion of top-of-funnel attach into utilization and wallet share in H2 to underpin revenue acceleration .
  • Execution risks: legacy payment products growth drag and funnel lag; continued optimization and product workflow enhancements are key mitigants .

Additional References and Source Documents

  • Q2 2025 8-K earnings press release, financials and guidance .
  • Q2 2025 earnings call transcript (prepared remarks and Q&A) .
  • Q1 2025 8-K and call (prior quarter trend; guidance baseline) .
  • Q4 2024 8-K and call (two quarters prior trend) .
  • Relevant Q2 press release (SIS-Carahsoft partnership) .