Executive Summary

Q3 delivered in-line revenue and a clear margin beat: revenue $147.5M (+5.3% y/y) landed within guidance, while Adjusted EBITDA $46.5M (31.5% margin) exceeded the top end, driven by cost optimization and higher-margin mix .
Against S&P Global consensus, revenue was essentially in line (−$0.36M, −0.2%), but EPS missed (Primary EPS $0.093 vs $0.153 estimate) as the company continues to report GAAP EPS (diluted total $0.06) rather than a non-GAAP EPS metric* .
Management tightened FY25 revenue guidance to $584–$592M (midpoint down ~$3M vs prior) and raised FY25 Adjusted EBITDA to $174.5–$179.5M, citing durable SaaS growth and disciplined opex; Q4 guide: revenue $148–$152M, Adjusted EBITDA $39.5–$41.5M .
Strategic catalysts: acquisition of AI agentic platform ZyraTalk to accelerate AI roadmap and sale of Marketing Technology solutions (EverConnect) to narrow focus to core SaaS and payments; repurchased 2.6M shares for $29.1M in Q3 and expanded buyback authorization to $300M .

What Went Well and What Went Wrong

What Went Well
- Margin execution: Adjusted EBITDA rose to $46.5M with margin 31.5% (+140 bps y/y), above guidance, on cost optimization and mix shift toward higher-margin products .
- Payments & platform KPIs: Payments revenue grew ~6% y/y and represented ~21% of total; TPV annualized ~$13B; multi-solution attach/utilization improved (276k enabled; 116k utilizing) supporting NRR of 97% .
- Strategic focus and AI roadmap: Completed ZyraTalk acquisition (AI receptionist/scheduler/dispatch with agentic automation) and highlighted rapid integration across EverPro; management: “cementing EverCommerce's leadership position in providing AI-forward solutions for service SMBs” .
What Went Wrong
- Usage-based headwinds: ~$1.6M quarter-over-quarter softness in rebates (Service Nation GPO) tied to macro/tariff pressure in HVAC channels; impact is small to total revenue but weighed on usage-based streams .
- Slight consensus misses on EPS: S&P Global Primary EPS actual ($0.093*) below $0.153* estimate despite strong EBITDA execution, while company-reported diluted GAAP EPS totaled $0.06 .
- Revenue momentum steady but not accelerating: Q3 revenue grew 5.3% y/y and was within guide, but FY revenue guidance narrowed with a lower midpoint vs prior, reflecting prudence around usage-based impacts .

Financial Results

Metric	Q3 2024	Q2 2025	Q3 2025
Revenue ($M)	$140.1	$148.0	$147.5
Adjusted EBITDA ($M)	$42.1	$45.0	$46.5
Adjusted EBITDA Margin (%)	30.1%	30.4%	31.5%
GAAP Diluted EPS (Total)	$(0.05)	$0.04	$0.06

Results vs S&P Global Consensus (company actuals shown for “Actual”)

Metric	Period	Consensus*	Actual	Surprise
Revenue ($M)	Q3 2025	147.82*	147.47	−0.36
Primary EPS ($)	Q3 2025	0.1533*	0.0932*	−0.0601
Revenue ($M)	Q2 2025	145.80*	148.02	+2.21
Primary EPS ($)	Q2 2025	0.1409*	0.1004*	−0.0405
Values retrieved from S&P Global.*

Revenue Mix

Revenue Component ($M)	Q3 2024	Q2 2025	Q3 2025
Subscription & Transaction Fees	$136.3	$142.8	$142.2
Other	$3.8	$5.2	$5.3
Total Revenue	$140.1	$148.0	$147.5

KPIs (Q3 2025)

KPI	Q3 2025
Adjusted Gross Profit ($M)	$114.0
Adjusted Gross Margin (%)	77.3%
Payments Revenue YoY Growth	~6%
Payments as % of Revenue	~21%
Annualized TPV	~$13B
Annualized NRR	97%
Multi-solution Enabled (customers)	276,000
Multi-solution Utilizing (customers)	116,000
Shares Repurchased (Q3)	2.6M for $29.1M
Net Leverage (credit facility calc)	~2.1x

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$581–$601M (Q2 guide)	$584–$592M	Narrowed; midpoint ↓ ~$3M
Adjusted EBITDA	FY 2025	$171.0–$177.0M (Q2 guide)	$174.5–$179.5M	Raised
Revenue	Q4 2025	n/a	$148–$152M	New
Adjusted EBITDA	Q4 2025	n/a	$39.5–$41.5M	New

Reference (earlier baselines): FY25 initially $581–$601M revenue and $167.5–$175.5M Adjusted EBITDA from Q1 (raised EBITDA in Q2, raised again in Q3) .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 2025, Q2 2025)	Current Period (Q3 2025)	Trend
AI/Technology Initiatives	Q1: strategic investments in AI highlighted in outlook . Q2: embedded AI features in CX and marketing; early support AI agents resolving 25–50% chat tickets; SAT >85% .	ZyraTalk acquisition to accelerate agentic AI across FSM; AI receptionist/scheduler/dispatch; roadmap for AI project manager, training/QA, business coach .	Expanding scope and integration; from embedded features to full agentic workflows.
Payments attach/utilization	Q2: record attach in flagship systems; TPV ~$12.9B; payments ~21% of rev; >6.8% growth .	TPV ~$13B; payments +6% y/y, ~21% of rev; attach >60% in EverPro/EverHealth; 276k enabled, 116k utilizing .	Continued progress; attach/utilization improving.
Tariffs/Macro (usage-based)	—	Rebates/GPO softness (~$1.6M QoQ) tied to tariffs/HVAC; factored into guide .	Isolated headwind; monitored in Q4.
Cost optimization	Q2: opex ratio down; margin expansion; transformation ongoing .	>$10M operating cost reductions in 2025; sustained optimization embedded in model .	Ongoing, delivering margin expansion.
Capital allocation	Q1/Q2: buybacks; extended/ repriced debt saving ~$1.3M annual interest; revolver step-down noted .	2.6M shares repurchased for $29.1M; authorization lifted to $300M; net leverage ~2.1x; swaps hedge through Oct-2027 .	Continuing buybacks; balance sheet stable.
Portfolio focus	Q1: Martech marked as discontinued operations .	Martech sold to Ignite Visibility (EverConnect) on 10/31; sharpen focus on core SaaS/payments .	Portfolio simplification executed.

Management Commentary

CEO (press release): “Revenue results were in line with our guidance range and the Adjusted EBITDA results exceeded the top end... cost optimization plans overshadowing some macroeconomic impacts... The key highlight... was the acquisition of ZyraTalk, cementing EverCommerce's leadership position in providing AI-forward solutions for service SMBs” .
CEO (call): “Adjusted EBITDA of $46.5 million... margin of 31.5%. Payments revenue grew 6% y/y... [ZyraTalk] will serve as the center of our AI acceleration efforts” .
EverPro CEO on ZyraTalk: “AI receptionist... AI scheduler... AI dispatcher... automate the full workflow from first contact to final payment” with planned AI project manager and AI training/QA agent over next 12 months .
CFO on rebates headwind: “...about $1.6 million of softness... group purchasing program... tariffs... [impact] small... factored into guidance” .
CFO on margin/cost: “Adjusted EBITDA... 31.5%... improved due to continued cost optimization... mix shift... scale economies” and “we’ve reduced operating costs... over $10 million in 2025” .

Q&A Highlights

AI platform monetization: ZyraTalk to be sold primarily as SaaS with usage components (AI receptionist minutes), but thesis focuses on integrating agentic capabilities across FSM and broader verticals rather than standalone revenue .
Usage-based softness: ~$1.6M QoQ rebate shortfall tied to HVAC tariffs; considered isolated and included in guidance; core SaaS grew >8% in Q3 .
Pricing model mix: No strategic pivot away from seat-based; will evaluate variable/consumption elements as appropriate, particularly post-2026 planning .
Transformation benefits: >$10M opex reductions in 2025 and continued embedding of optimization into operating model to support margin expansion while funding product investments .
Capital and leverage: $107M cash, ~2.1x net leverage; swaps hedge floating rate to Oct-2027; buybacks expanded to $300M total authorization .

Estimates Context

Q3 2025: Revenue essentially in line vs S&P Global consensus ($147.47M actual vs $147.82M estimate*), while Primary EPS missed ($0.093 actual* vs $0.153 estimate*). Company reports GAAP diluted total EPS of $0.06, reflecting methodology differences with S&P’s “Primary EPS” series* .
Q2 2025: Revenue beat ($148.02M actual vs $145.80M estimate*), while Primary EPS came in below ($0.100 actual* vs $0.141 estimate*). Values retrieved from S&P Global.*

Key Takeaways for Investors

Execution remains centered on profitable growth: in-line revenue, continued margin expansion, and raised FY25 EBITDA outlook suggest durable cost discipline and favorable mix .
EPS optics may lag EBITDA due to GAAP-only EPS reporting and mix; consensus EPS shortfall contrasts with EBITDA outperformance—watch for continued mix shift to high-margin payments and AI-enabled efficiency levers .
AI as a differentiator: ZyraTalk provides production-ready agentic workflows now integrating into EverPro; near-term commercialization as SaaS add-ons and embedded feature pricing can support ARPU uplift and retention .
Usage-based exposure is manageable: rebate/GPO softness was modest and contained; core SaaS grew >8% with attach/utilization KPIs strengthening (NRR 97%), supporting resilient topline through macro noise .
Capital deployment remains shareholder-friendly: buyback cadence sustained (2.6M shares in Q3; $300M total authorization) with leverage ~2.1x and hedged rates, enabling continued opportunistic repurchases .
Near-term setup: Q4 guide implies steady sequential revenue and seasonal step-down in EBITDA vs Q3; focus on AI integration milestones, payments attach, and stabilization of usage-based revenues into 2026 .

Footnote: All estimate values and S&P “Primary EPS” figures marked with an asterisk (*) are values retrieved from S&P Global.

EverCommerce Inc. (EVCM)·Q3 2025 Earnings Summary