EverCommerce outlines $584M-$592M 2025 revenue guidance as AI integration advances

Earnings Call Insights: EverCommerce Inc. (EVCM) Q3 2025

Management View

• Eric Remer, Founder, Chairman & CEO, announced "EverCommerce generated revenue of $147.5 million within the previously provided guidance range. This represents a 5.3% year-over-year growth, both on a reported and pro forma basis as we fully lap the sale of the fitness solutions and the acquisition of ZyraTalk had an immaterial impact on the quarter." Remer highlighted the acquisition of ZyraTalk, describing it as "a best-in-class AI Agentic platform company, highly focused on the field service management industry, which will serve as the center of our AI acceleration efforts."
• Remer explained, "As we continue to execute EverCommerce's transformation optimization program, we believe narrowing our focus to provide best-in-class AI-powered vertical software is the most effective path to maximize long-term growth, margin accretion and ultimately, shareholder value."
• The CEO stated, "Our annualized total payments volume, or TPV, expanded to approximately $13 billion. As I've highlighted in the past, accelerating payments adoption and utilization continues to be one of our highest priorities."
• Remer emphasized improvements in cross-sell and product adoption: "At the end of the third quarter, 276,000 customers were enabled for more than one solution, reflecting a 33% year-over-year growth. At the end of the third quarter, approximately 116,000 customers were actively utilizing more than one solution, reflecting a 32% year-over-year growth."
• Chief Financial Officer Ryan Siurek reported, "Total reported revenue in the third quarter was $147.5 million, up 5.3% from the prior year period. Subscription and transaction revenue, our primary recurring revenue base was $142.2 million. For Q3 2025, year-over-year pro forma subscription and transaction revenue growth was 4.4%."
• Siurek added, "Adjusted EBITDA of $46.5 million, which is a 10.3% growth year-over-year. Adjusted EBITDA margins of 31.5% compares to 30.1% in Q3 2024, representing margin expansion of 140 basis points."

Outlook

• Siurek provided guidance: "For the fourth quarter of 2025, we expect total revenue of $148 million to $152 million and adjusted EBITDA of $39.5 million to $41.5 million. For the full year 2025, we are narrowing both our revenue and adjusted EBITDA guidance ranges with an increase to the top end of the adjusted EBITDA range. We expect total revenue of $584 million to $592 million and adjusted EBITDA of $174.5 million to $179.5 million."
• Management stated that guidance for revenue and adjusted EBITDA for 2025 excludes Marketing Technology Solutions and includes ZyraTalk, "but the expected contribution in the fourth quarter is immaterial."

Financial Results

• Siurek reported, "Adjusted gross profit in the quarter was $114 million, representing an adjusted gross profit margin of 77.3% versus 78.1% in Q3 2024."
• Operating expenses as a percentage of revenue improved year-over-year: "from 48.1% to 45.8% on a year-over-year basis."
• Cash flow from operations for the quarter was $32.5 million. "Leveraged free cash flow was $23.3 million in the quarter and for the trailing 12-month period, we generated more than $111 million in levered free cash flow."
• The company ended the quarter with $107 million in cash and cash equivalents and $155 million of undrawn capacity on the revolver. Debt outstanding stood at $528 million.
• In Q3, EverCommerce repurchased approximately 2.6 million shares for $29.1 million. The Board authorized an increase in the share repurchase program to $300 million, an increase of $50 million through the end of 2026.

Q&A

• Bhavin Shah, Deutsche Bank, asked about the ZyraTalk acquisition's business model and potential attach rates. Remer responded that "we're not kind of breaking out the basis of kind of subscription versus integrated to the rest of the system at this point" but emphasized the focus on integration and the product's fit for the company's customer base. Siurek added, "There is a book of business that comes with ZyraTalk. That wasn't our primary thesis though for the acquisition. The primary thesis was the integration...in terms of the capabilities that it's going to bring to the SMB space."
• Shah followed up on the rebate program. Siurek stated, "That was probably the one space that we had any particular headwinds in the business in Q3...there was about $1.6 million of softness...tariffs in particular, were probably one of the areas where we saw some impact."
• Jessica Wang, Raymond James, asked about spending optimization and cost leverage. Siurek responded, "We continue to have a really solid tracking mechanism against those efforts...we've been able to reduce operating costs pretty substantially, over $10 million in 2025."

Sentiment Analysis

• Analysts' tone was inquisitive and focused on strategic integration (AI, ZyraTalk), cost leverage, and macro-related headwinds, showing a neutral to slightly positive sentiment as they probed for details on product integration and margin sustainability.
• Management maintained a confident tone in prepared remarks and Q&A, highlighting operational progress and strategic focus. Remer and Siurek both positioned the AI integration and margin expansion as central to the company's outlook, using phrases such as "we believe narrowing our focus to provide best-in-class AI-powered vertical software is the most effective path" and "we continue to see opportunity for us to expand on the overall margin expansion."
• Compared to the previous quarter, management's tone remains confident, with increased emphasis on AI acceleration and operational discipline. The analyst tone continues to reflect a focus on execution and sustainability of improvements.

Quarter-over-Quarter Comparison

• Revenue for Q3 was $147.5 million, compared to $148 million in Q2; adjusted EBITDA increased from $45 million in Q2 to $46.5 million in Q3.
• Adjusted EBITDA margin expanded to 31.5% from 30.4% in Q2.
• Payments revenue growth (6% year-over-year in Q3) remained steady compared to Q2 (6.8% year-over-year growth).
• Customer enablement and utilization of multiple solutions continued to accelerate, with 276,000 customers enabled for more than one solution in Q3 versus 261,000 in Q2.
• Guidance for full-year 2025 revenue was narrowed to $584 million to $592 million from $581 million to $601 million previously, with an increase to the top end of adjusted EBITDA guidance.
• Strategic focus shifted further to AI-driven solutions with the ZyraTalk acquisition and divestiture of the Marketing Technology Solutions business.

Risks and Concerns

• Siurek identified macroeconomic and tariff-related impacts on the company's rebate program, resulting in $1.6 million softness in Q3.
• Management noted that rebates "are really just group purchasing programs that we have as part of our Service Nation program overall," and signaled no significant ongoing impact, with these trends factored into guidance.
• No substantial macro impacts were cited beyond this rebate softness; management cited continued resilience in the SMB customer base.

Final Takeaway

EverCommerce management reported continued momentum in SaaS and payment solutions, with meaningful margin expansion and a strengthened focus on AI-driven innovation following the ZyraTalk acquisition. The company narrowed its full-year guidance and increased the top end of its adjusted EBITDA outlook, citing ongoing cost optimization and the benefits of strategic divestitures. Management emphasized that the transformation and operational discipline position EverCommerce to capitalize on embedded customer opportunities, drive long-term growth, and differentiate solutions with AI-powered automation across key verticals.

Read the full Earnings Call Transcript