EverCommerce Inc (EVCM) 2025 Q4 法說會逐字稿

Thank you for standing by, and welcome to EverCommerce's fourth-quarter 2025 earnings call. My name is Josh, and I will be your operator for today. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. (Operator Instructions)

As a reminder, this conference call is being recorded today, March 12, 2026. And I would now like to turn the conference over to Brad Korch, SVP Finance and Head of Investor Relations for EverCommerce. Please go ahead.

Good afternoon, and thank you for joining. Today's call will be led by Eric Remer, EverCommerce's Chairman and Chief Executive Officer; and Ryan Siurek, EverCommerce's Chief Financial Officer.

This call is being webcast with a slide presentation that reviews the key financial and operating results for the three months ended December 31, 2025. For a link to the live or replay webcast, please visit the Investor Relations section of the EverCommerce website, www.evercommerce.com. The slide presentation and earnings release are also directly available on the site.

Please turn to page 2 of our earnings call presentation while I review our safe harbor statement. Statements made on this call and contained in the earnings materials available on our website that are not historical in nature may constitute forward-looking statements. Such statements are based on the current expectations and beliefs of management. Actual results may differ materially from these forward-looking statements due to risks and uncertainties that are described in more detail in our filings with the SEC. We undertake no obligation to publicly update or revise these forward-looking statements, except as required by law.

We will also refer to certain non-GAAP financial measures in our comments today. A reconciliation of non-GAAP to GAAP historical measures is provided in both our earnings press release and our earnings call presentation. As a quick reminder, last quarter, we announced that we had closed on the sale of the Marketing Technology business. Our commentary today will center on the continuing operations of our business focused on our EverHealth, EverPro, and EverWell verticals. All financial and operating metric results are presented relating to continuing operations only unless otherwise specified.

I will now turn it over to our CEO, Eric Remer. Please continue.

Thank you, Brad. On today's call, I will highlight fourth quarter and full-year 2025 results and share some exciting AI developments across our company, including a deeper dive within our Ever health vertical before turning the call over to Ryan to discuss our financial performance in more detail.

2025 was a year of tremendous positive change for EverCommerce. We entered the year having just begun to stand up the vertical business units for EverHealth and EverPro. And throughout the year, we're focused on product, people, process, and technology improvements across our business to better serve our customers and drive shareholder return. From an orgational standpoint, we ended 2025 with robust functional organizations in both EverPro and EverHealth that each had enhanced core competencies in the areas of product strategy and development, customer experience and go-to-market among others.

In 2025, we sold our Market Technology Solutions business that have been a traction to both growth and predictability. We acquired ZyraTalk, which has proven to be a strong foundation for our current and future AI product initiatives. We deployed nearly $85 million of capital to repurchase 8.2 million shares of our common stock, and we repriced and extended our credit facility. In the midst of all of this positive progress and change across multiple aspects of our business, we met or exceeded our financial targets for the year, demonstrating our continued focus on financial performance.

During the fourth quarter, EverCommerce generated revenue of $151.2 million, above the midpoint of our guidance range. representing a 5.2% year over year growth. Adjusted EBITDA for the quarter of $44.2 million beat the top end of our guidance range, representing a 29.2% margin.

I'll expand more on our cross-sell motions in a few moments, but throughout 2025, we saw accelerated leading metrics compared to 2024. Finally, we repurchased 2.5 million shares for $24.8 million during the quarter.

EverCommerce is building the AI operating system for service SMB workflows. We offer tremendous value to our customers by providing the system of actions necessary to run their businesses with tailored unique workflows. We provide end-to-end solutions to more than 745,000 customers across our three major verticals. EverPro for home field services, EverHealth for medical practices and EverWell for wellness service providers with the two former verticals representing approximately 95% of consolidated revenue.

Our large base of customers represents an immense embedded opportunity to provide value-added features and services like payments and customer rebates through our purchasing programs. On a pro forma basis, for the last 12 months, we generated $591.7 million in revenue, representing 6.4% year over year growth. We also generated 30.7% adjusted EBITDA margin on an LTM basis.

Finally, our annualized total payment volume, or TPV, expanded to $13 billion. There's been a lot of market discussion about the impact in AI and software companies over the past several months. We see this moment in time as an opportunity to accelerate growth of advancements for our customers, as well as our own operating leverage.

We are in the business of simplifying and empowering the lives of business owners whose services support us every day. This has been a mission statement for EverCommerce since its inception. When you look deeper at who our customers are, almost by cognition, they are subscale operations, plumbers, HVAC technicians, electricians, healthcare providers and salons that range from pure sole proprietary to one who's at the handful of employees.

AI is not just an add-on for these customers. AI does not just save time or automate manual processes. AI is a force multiplier for our customers, providing a variety of growth opportunity and efficiencies.

For example, an AI-based 24-hour receptionist that can schedule jobs is not replacing human receptionist, but instead, [atlasing] an inbound call function that didn't exist. Outbound calling can generate new business. Billings and collection agents can run in the background to improve collections and working capital. Embedded ambient scribe increases time with patients in the exam room, and there are many more examples.

Because we view AI to be such an important value-creation driver for our customers, we have transformed our own business with an AI first focus. We are not just bolting on third-party capabilities to our existing solutions. We are building native AI agented features into our platforms.

We are reimagining workflows and making significant investments to be at the leading edge of AI capabilities for our customers. The acquisition of ZyraTalk was a step function move towards this goal, but our efforts began ahead a bit and will continue for many years to come. Last quarter, we highlighted many of the live and in development capabilities at EverPro. In a moment, I will highlight the same for EverHealth. As a reminder, our customers are small trades and small medical practices looking for simple yet vertical specific workflows needed to run their businesses.

Our small business customers are not likely to buy code their own solutions and the hands-on service our customers provide are not likely to replace with AI.

Further, we believe our targeted deep micro vertical specific expertise and embedded base of more than 745,000 customers puts EverCommerce in the driver's seat to be the natural provider of agentic capabilities within the system of actions they already buy from us. Our solutions are affordable with 93% of our customers spend less than $2,000 per year, we expect to both empower our customers with AI accelerants in their business and provide a path for continued ARPU acceleration in ours.

Bottom line, we view AI as an enabler and an accelerator, not a threat. We are already providing AI-powered revenue acceleration and better workflow capabilities to our customers, but it's just beginning with many more features in development. Looking inward for a moment, we will continue to use AI tools in our own operations, which we believe are table stakes in today's world to drive efficiency, speed, and cost savings.

Turning to EverHealth. AI is becoming a core component of EverHealth platform, enabling providers to automate administrative work, improve clinical workflows and enhance financial performance. Within our core solutions, we're introducing AI-driven documentation capabilities that reduced documentation time for visit, surface structure and clinical insights and support better diagnostic decisions.

The goal is simple, give physicians more time with patients while improving consistency and reducing administrative burden. Market has ever held scribed to customers. It has already received a 99.1% satisfaction rate. Across a broad set of customers, we're seeing an average documentation time savings of 8 minutes per patient. We're also applying AI to patient scheduling, intelligent no-show prediction, automated call routing and self-service booking tools can help practices optimize appointment utilization, while improving patient access and reducing staff workloads.

We have already rolled out a no-show predictor to over 675 providers, resulting in increased revenue capture for our customers of around $1,000 per month per provider due to a 60% reduction in the patient notional rate. On the revenue cycle side, we're building an intelligent revenue cycle management and building capabilities, including automated coating support, claim scrubbing and AI-driven rejection analysis which helps providers improve collection rates, reduce denials, and accelerated payment cycles.

Another important area is integrated patient communication. AI assist message triage and smart document analysis allow practices to respond to patients faster, while embedding workflow recommendations directly into the platform. Across all of these capabilities, the common strategies that AI is embedded directly into the workflow, helping our approximately 100,000 healthcare providers operate more efficiently and focus more time on care delivery. And internally, across our verticals, we're also deploying AI across sales enablement, customer smart automation, and product development to drive structural leverage, improve workforce signing, and continue optimizing our cost structure.

Overall, we see AI as a major opportunity to enhance the value of EverHealth platform while driving meaningful efficiency gains for providers. Enabling customers to multiple solutions remains a key driver of growth for EverCommerce, multi-solution customers generate higher revenue, demonstrate stronger retention, and expand wallet share over time. Our strategy focused on enabling payments at the point of initial SaaS sale while also drive cross-selling to our existing customer base, investments in onboarding automation and customer success are helping accelerate activation and utilization.

At the end of the fourth quarter, 286,000 customers were enabled more than one solution, reflecting a 26% year over year growth. At the end of the fourth quarter, approximately 121,000 customers were actively utilizing more than one solution, reflecting that 32% year over year growth. Enabling customers to more than one solution is the first step in the funnel that leads to increased revenue, retention and ultimately profitability of these customers.

We continue to focus the majority of our efforts in the front book attach or the enablement of payments at the point of initial SaaS sell, but we're all focused on our backward cross-sell motions. We are expanding our customer success capabilities to boost both activation, retention and wallet share. And we've streamlined and improved our onboarding workflows.

Over the trailing 12 months, net revenue retention was 96% with multi-solution customers continue to generate NRR above 100%. For each of the past several quarters, we've highlighted outsized payment revenue growth in our fastest-growing solutions. Our top six solutions, TPV grew 17.4% year over year and now represents 36% of total TPV, up from 32% in the fourth quarter of 2024. Comp solution payment revenue grew 5.9% year over year, now representing over 45% of total payment revenue.

Highlighting the payment performance in our growth solutions is important because this is where we focus our investments. The improvements in cross-sell metrics I highlighted a moment ago are largely due to the gains in our top six solutions. The remainder of our payment business drives meaningful cash flow generation at lower growth. As a reminder, we report payments revenue on a net basis, and therefore, it incrementally contributes approximately 95% gross margin within our core solutions. As such, payment revenue growth is a meaningful contributor to our overall adjusted EBITDA margin expansion.

Before I turn to our fourth quarter results, I want to briefly address the leadership update. We are excited to announce that Matt Feierstein, EverCommerce President has added the role of EverPro's CEO. Matt has been deeply involved in EverPro's strategy and operations plan for many years. With the foundational work of EverPro transformation behind us, that is uniquely positioned with more than 16 years at EverCommerce and deep expertise in sales and payments to focus on execution and growth across the EverPro business.

Now I'll pass over to Ryan, who'll review our financial results in more detail as well as provide first quarter and full year 2026 guidance.

Thanks, Eric. Total reported revenue in the fourth quarter was $151.2 million, up 5.2% from the prior year period. Subscription and transaction revenue, our primary recurring revenue base was $144.1 million, Pro forma revenue adjusted for the acquisition of Xyretok, which closed in Q3 2025 was $591.7 million on an LTM basis, an increase of 6.4% and $151.2 million for the quarter, an increase of 4.6%, both on a year over year basis.

Adjusted gross profit in the quarter was $117 million, representing an adjusted gross margin of 77.5%. Fourth quarter adjusted EBITDA was $44.2 million, which was flat year over year with an adjusted EBITDA margin of 29.2%. We've expanded margins by about 470 basis points since 2023, reflecting continued operational discipline and efficiency improvements.

Now turning to adjusted operating expenses, which are reconciled in the appendix of this presentation. For the quarter, adjusted operating expenses were relatively flat year over year as a percentage of revenue. increasing slightly from 47.6% to 48.3%, representing targeted growth investments across our sales and marketing functions. For the LTM period, as a percentage of revenue, adjusted operating expenses improved from 48.6% to 46.9%.

Next, I'll turn to some key liquidity measures, which include cash flow from operations. We continue to generate significant free cash flow as we invest to grow our business and invest in our AI-first products. As a reminder, cash flow metrics presented include both continuing and discontinued operations for all periods presented. Cash flow from operations for the year was $111.5 million as compared to the prior year of $113.2 million. The fourth quarter 2025 was impacted by the removal of our Marketing Technology Solutions business as a result of this sale on October 31, 2025.

Levered free cash flow for the year was $79.6 million as compared to the prior year of $94.3 million, a reduction of $14.7 million, which includes an increase in capitalized software costs of $12.2 million related to our strategic capital investments in product. Adjusted unlevered free cash flow for the year was $130.5 million as compared to the prior year of $134.5 million. The consolidated increase in adjusted EBITDA for the year was offset by increases in transaction-related and other non-recurring costs and capitalized software for investments.

We ended the quarter with $130 million in cash and cash equivalents and $155 million of undrawn capacity on our revolver, which will step down to $125 million in July 2026. As of December 31, we have $527 million of debt outstanding. Our total net leverage, as calculated for our credit facility was approximately 2.2x and continues to demonstrate our deleveraging from strong operational performance and free cash generation. We have $425 million of notional swaps at a weighted average rate of 3.91% that effectively hedge the floating rate component of our interest cost through October 2027.

Our long-term debt does not mature until July 2031, while our undrawn revolver capacity provides availability through July 2030, providing us with one way and financial flexibility for the foreseeable future. In terms of capital allocation, in addition to our focus on AI-first investments, in the fourth quarter, we repurchased approximately 2.5 million shares for $24.8 million at an average price of $9.91 per share based on the shares repurchased through December 31, 2025, we have approximately $47.7 million remaining in our total repurchase authorization of $300 million through the end of 2026.

I'd now like to finish by discussing our outlook for the first quarter and full year of 2026. For the first quarter of 2026, we expect total revenue of $145.5 million to $148.5 million, and adjusted EBITDA of $39 million to $41 million. For full year 2026, we expect revenue of $612 million to $632 million and adjusted EBITDA of $183 million to $191 million.

Our guide assumes typical seasonal performance with certain portions of our business that result in stronger second and third quarter growth. We expect continued investment in areas that drive additional growth in the latter portion of the year, which include the AI-based features Eric discussed, our payments enablement investments as well as our investments in our go-to-market organization.

A key focus for 2024 and 2025 was transformation and optimization. While optimization becomes a standard practice, 2026 is about executing our playbook for durable growth by delivering enhanced customer experiences through AI-based products and workflows, go-to-market efficiencies and continued operating leverage via operational excellence. While we don't provide specific cash flow guidance, I'd like to note that with the successful sale of the Marketing Technology business, we expect less seasonal variability in cash flow from operations, with the caveat that our first quarter is historically burdened by higher cash outflows as compared to other quarters.

As we begin the question-and-answer session, I'd like to welcome Matt Feierstein, EverCommerce's President and the CEO of EverPro as well as Evan Berlin, the CEO of EverHealth to join us. Operator, we are now ready to take the first question.

(Operator Instructions) Alex Sklar, Raymond James.

Great. Thank you. First one, maybe Eric or Matt, but just since you're building some of the more agentic functionality and you've got ZyraTalk now in market. Can you talk about what you've seen from a customer appetite some of these solutions? And I realize there's some variety across the capabilities in your end markets. But how demonstrable the ROI has been of what you have in market today in terms of helping drive adoption? Thanks.

Hello, thanks for the question. I think we'll give a quick all give some EverPro the Mac. I mean, Ethecon talk about some of the penetration and interest we've seen with some of the AI integration and betterment that we have in overheat as well.

Matt, you want to kick off?

Yeah, sure. Thanks for the question, Alex. At EverPro, we really think about AI and our journey there in three phases, and I'm going to get to your question about ZyraTalk within my answer.

First is the generative AI strategy that we've actually had in place for getting close to several years now embedded in workflow across our invoicing solutions across our customer experience solutions. And we've seen really nice uptake thus far from our customers in each of those spots, including some revenue acceleration in our customer experience solutions where we started first.

To your question about ZyraTalk, ZyraTalk is really as we think about the next pivot in our strategy from generative to voice. As I talked to the interaction layer there, we are excited about the progress that we've seen to date. We've seen earlier integrations with our first systems of actions that we've expected. And from an early sales perspective, the uptake has been as strong as we would have expected, but actually delivered earlier in the year. So again, nice progress from a ZyraTalk standpoint.

And then third, we really think about the future of the Agentic platform that we're building out. Obviously, as Arata, we believe, gives us foundation for that. but we will be creating a centralized shared genetic platform across EverPro that really will scale agent capabilities across the portfolio and provide a lot of workflow automation for our end customers that ultimately we will monetize through premium feature add-ons, increased packaging pricing, stronger retention.

And ultimately, we hope increased usage like payments driven by some of this automated job capture. So I'll pass it over to Evan for EverHealth.

Yeah, Alex, thanks for the question. And Eric mentioned some of the metrics on the call and we have them in the presentation. I think the one call that I'd make on the AI scribe launch, which we put out a press release earlier this week on, we're still in beta going to general availability by the end of the quarter than in the first quarter. But we've been incredibly pleased with both the metrics that were mentioned on the call, in terms of performance.

And we actually have a wait list with hundreds of providers that are interested in paying for that feature and getting going once we go to general availability. So quite pleased with the early progress and the rollout of that. We have a robust road map to continue to enhance those features from that one specific workflow across the balance of the year.

Okay. Great color. I appreciate all that. Maybe for you, Ryan, just in terms of the 2026 growth outlook, a little above 5% at the midpoint. It's kind of faster than where you just exited the second half of '25. Can you just walk through some of those underlying assumptions as it relates to macro, or NRR, new customer growth that are kind of underlying that growth cadence?

Yeah. We feel -- sure. Thank you for the question, Alex. So I appreciate it. We feel good about the prospects for 2026. The assumptions that I outlined from a script perspective, really, relate to looking at where we exited the year, which we felt great about in terms of beating the consensus and our guidance with regard to revenue from a quarterly perspective.

But then also the investments that we took out from an AI perspective, we really have focused in the latter half of '25 on those investments really from an AI point of view. We'll continue to do that in 2026, and we think that those investments with regard to the things that both Matt and Evan just talked about will assist from a reacceleration perspective as we get through the rest of the year. So that's incorporated into the first quarter guide as well as our full year guide from a revenue perspective.

All right, perfect. Thank you, everyone.

Eric Gibson, Citizens.

Great. Thans for the questions. First one, I want to ask on payments revenue. It decreased from $29.4 million in 4Q '24 to $29.1 million in 4Q '25. Given the breakout of your top six payments solutions this quarter which grew 6% year over year and the payments revenue from other solutions, which declined about 6.5% year over year. How should we think about that year over year decline? Is any of the decline in the non-top six solutions related to the Martech divestiture? Or is there something else going on there?

Yeah. Thank you for the question. I appreciate it. Really not much in the way of payments revenue associated with Martek, so that's really not part of the automation. The reason we gave the breakout in the slide and the dynamics is because there's really kind of two parts, if you will, of our portfolio. We have a mature portfolio that is strongly cash flow generating and allows us to continue to generate good cash flow from payments to fund other investments, and then we have a growth part of our portfolio, which is why we focus in on the top six solutions.

That's where our time and effort, energy and prioritization are focused in terms of the payments funnel for enablement utilization, attach rate, making sure that our SaaS customers come on board, we're working to get them on board as quickly as possible. That's all part of the investments that we're making from a strategic perspective. So that is all kind of part and parcel to where we came out from a revenue perspective in totality. You'll see at the top six solutions that we described that's closer to 6% revenue growth on those, but it's based off of a TPV growth of more than 17% on a year over year basis.

Understood. And then the second one is more high level, but much has been made about the end of the application software layer, at least the devaluing of the application software layer. What are the most important modes you see for your business as adoption of agentic AI accelerates in the coming years?

Yeah, I can certainly start from an EverPro's perspective. When we think about ZyraTalk is the driver of our kind of voice AI layer. We've got millions of minutes of home and field services conversations that, again, I won't call it a moat, I'll call it an advantage, in terms of data that we can use to train interaction and ultimately more successful engagement from that AI agent. So we certainly look at that as an advantage.

The other thing we think of from an advantage standpoint, is really our deep niche vertical expertise that comes in our workflows and in the data that we have around our customer base in those niche verticals. And so those -- looking at those two things together and playing that through the future agentic platform, I think those are advantages that EverPro will have with our customers and our ability to to augment our existing products with these agents and ultimately drive growth for our customers and for us.

And I think, Aaron, thanks for the question. It's a great one. Obviously, super timely. I think Matt nailed it well. I think a lot of us the same core themes are applicable Batra Health.

A couple of things I'd add. The fact that we've got 100,000 plus customers in EverHealth is quite important in terms of an advantage for us to be able to build the embedded workflows that make our practices and our providers more efficient, drive revenue predictability for them, give them the opportunity to spend more time with patients and drive better clinical outcomes.

At the end of the day, if we can do that, they're going to rely on us as a core vendor and service provider and really partner to power their practice. I think the other thing is this is a highly regulated industry and ultimately, our ability to deliver a digital end-to-end solution. Obviously, this compliance is a huge advantage for those customers and obviously, table stakes when they go to select a solution.

Bill McNamara, Evercore ISI.

Hi, thanks for taking my quesiton. This is Bill on for Kirk. If we could touch on the 600 customers currently using the no-show prediction tool, what level of incremental revenue per customer are you seeing? And how should we think about that magnitude and durability of that lift over time

Yeah. Thanks, Bill. This is Evan, great question. I think for that particular workflow, today, it is not a feature that we're pricing a la carte. It's included in our packages. But I will tell you for the products where we've rolled it out, we're in the midst of rolling out an updated package set, which will have increased prices.

So as we add new features even if they're not monetized individually or from an a la carte standpoint, the overall ASP of new practices purchasing our EverHealth solutions is going to go up. So from that perspective, for that particular feature, that's how we see the monetization moving forward.

Okay, thank you.

(Operator Instructions) Matt Hedberg, RBC.

It's Dan Bergstrom for Matt Hedberg. Just to build off an earlier question, looking at guidance for the first quarter and for the year, it implies building seasonality through the year as you talked to in the prepared remarks. Maybe what are some confidence points around this? And then could you help us with the step down from Q4 as well?

Yeah. Can you repeat the last part of your question? When you said help us with what? We didn't hear that one.

Yeah. I think Q1 guidance is lower than the Q4 revenue number. So just --?

I want to make sure. Yeah, Q4 was a good quarter for us, and we continue to look at that in the context of the growth on a sequential basis, but also on a year over year basis. Q4 grew from $148 million to $151 million. Q1, typically, from a seasonality perspective is lower as we talked about in the script. Q2 and Q3 are usually better from a seasonal perspective overall. But we're also stepping off of Q4 in totality looking into the rest of the year as we make continued investments in payments, and it's also in our go-to-market strategy.

So we're making deliberate execution decisions at this point in time. And that's in part the things that we're focused in on from a Q1 perspective as we head into the rest of the year. We do expect reacceleration from Q1 through the rest of the year. That's also part of the full year guide from a revenue perspective. And then from an adjusted EBITDA perspective, you'll see that we're expecting margins to be strong over 30%, but we expect to make continued investments in the AI platforms that we've just recently discussed as well.

That's helpful. And then you see EverHealth scribe and beta here. I guess could you help think of the timing around the AI product road map rollout for Pro and health?

Yeah, I can start. Thanks for the question. From a scratch standpoint, we'll be in general availability by the end of the quarter, so in the next few weeks. We have a robust road map of features that are either in market as we talk -- as Eric had talked about on the call in his prepared remarks and/or are in development and will be rolled out across the year. So look for us to add continue to context across that, including metrics performance and monetization across 2026. But we're excited about the progress thus far and even more excited about what's to come.

Yeah. And from an EverPro perspective, obviously, some of our generative components hit the market. And in the past year, some of them just rolled out at the end of Q4 into Q1.

From an AI voice reception standpoint, as I mentioned, earlier traction with one of our core systems of action of getting that integration released and out to market, but the majority of the rest of the systems of action from a voice reception standpoint, we expect in H2 and actually hope to beat that to market. And then as I spoke to, really, our shared agenetic platform is a back half of H2 component as well.

Thank you. I would now like to turn the call back over to Eric Remer for any closing remarks.

Thank you for that. Thank you again for joining the call today. As we look ahead to 2026, we remain focused on embedding AI across our platforms, expanding payment adoption and continue to drive operational efficiency. We believe these initiatives position EverCommerce to deliver durable revenue growth and strong free cash flow generation over time. I'd like to thank our investors for their continued support and all of the EverCommerce employees for their hard work.

Operator, this concludes our call.

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.