Summary
EverCommerce reported first quarter fiscal 2025 revenue of $142.27 million, up 3.2% from the prior-year quarter. Operating income was $14.20 million, compared with an operating loss in the prior-year quarter, and operating margin was 10.0%, up 13.1 percentage points. The net loss narrowed 52.8% to $7.71 million, or $0.04 per diluted share. Operating cash flow rose 130.7% to $30.68 million. Capital expenditures were $0.49 million, up 22.6%.
Pro forma revenue, which excludes fitness solutions, increased 7.4% to $142.3 million. Pro forma subscription and transaction fees revenue rose 7.6% to $137.8 million. Adjusted EBITDA from continuing operations was $44.9 million, compared with $38.7 million in the prior-year period. Management said the quarter reflected strong execution and active cost management, with transformation and optimization initiatives in high-margin areas like payments monetization and artificial intelligence. Subscription and transaction fees revenue growth came primarily from business management software and billing and payment solutions, according to the MD&A. The company served more than 740,000 global service-based businesses, or more than 725,000 excluding marketing technology solutions. Annualized net revenue retention from continuing operations was approximately 97%, compared with approximately 99% for the prior-year quarter, and about 97% of revenue was recurring or re-occurring.
For the second quarter of 2025, management guided to a top line range of $144.5 million to $147.5 million and Adjusted EBITDA of $39.5 million to $41.5 million. For full year 2025, the company guided to a top line range of $581 million to $601 million and Adjusted EBITDA of $167.5 million to $175.5 million. The guidance is from continuing operations, which excludes discontinued operations related to marketing technology solutions. Management's outlook does not include a reconciliation of Adjusted EBITDA to net income because certain charges are not available without unreasonable efforts.
The company continues to work on the sale of its marketing technology solutions, which it expects to complete in 2025. That disposal group recorded an impairment charge in the quarter. Risks include macroeconomic pressure from tariffs, inflation, interest rates and geopolitical conflicts. The company has a history of net losses and faces intense competition. It is also dependent on payment networks and processors, and it faces risks related to its limited operating history and the need to keep pace with rapid developments in electronic payments. Deferred revenue declined 14.6% to $22.12 million, and remaining performance obligations fell 2.1% to $19.10 million. On capital allocation, EverCommerce repurchased 1.1 million shares for approximately $11.2 million during the quarter. On May 1, 2025, the board approved a $50.0 million increase to the repurchase authorization and extended it through December 31, 2026. The total authorization since the program began allows for up to $250.0 million in share purchases. As of March 31, 2025, $21.6 million remained available under the program.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2025 | Q4 FY2024 | QoQ | Q1 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $142.3M | $175.0M | -18.7% | $170.1M | -16.4% |
| Research & development | $20.0M | $19.2M | +3.9% | $20.2M | -1.2% |
| Sales & marketing | $28.8M | $31.2M | -7.8% | $29.8M | -3.3% |
| General & administrative | $31.3M | $35.6M | -12.3% | $33.8M | -7.4% |
| Total operating expenses | $128.1M | $186.9M | -31.5% | $174.7M | -26.7% |
| Operating income (loss) | $14.2M | -$11.9M | +219.0% | -$4.6M | +408.1% |
| Operating margin | 10.0% | -6.8% | +16.8 pp | -2.7% | +12.7 pp |
| Net income (loss) | -$7.7M | -$12.2M | +36.9% | -$16.3M | +52.8% |
| Net margin | -5.4% | -7.0% | +1.6 pp | -9.6% | +4.2 pp |
| Diluted EPS | -$0.04 | -$0.07 | +$0.03 | -$0.09 | +$0.05 |
| Customers | 740,000 | 740,000 | ±0.0% | 708,000 | +4.5% |
Risks
EverCommerce committed to a plan to sell its marketing technology solutions in Q1 2025 and expects a sale transaction in 2025. The company recognized a $9.4 million impairment charge in the quarter, including a $6.9 million goodwill impairment and a $2.6 million valuation allowance to adjust the disposal group to fair value less cost to sell, while loss from discontinued operations, net of income tax increased $8.3 million to $8.6 million versus the prior-year quarter.
Annualized net revenue retention rate from continuing operations declined to approximately 97% for the quarter ended March 31, 2025 from approximately 99% for the quarter ended March 31, 2024. This decrease may signal contraction or attrition pressure even as total revenue rose 3.2% year over year.
MD&A cites pressure from increased tariffs and proposed tariffs between the United States and other nations, trade restrictions, rising inflation, rising interest rates and supply chain disruptions. These developments have had and may continue to have an adverse effect on EverCommerce's revenues, demand for its products and services, and costs of doing business.
Interest and other expense, net increased $7.0 million, or 120.3%, for the quarter ended March 31, 2025 versus the prior-year quarter, driven primarily by an unrealized loss of $3.9 million on interest rate swaps compared with an unrealized gain of $4.8 million in the prior period. The company also had $530.8 million outstanding under its Term Loan as of March 31, 2025.
Product development expenses increased 3.4% for the quarter ended March 31, 2025 and management expects them to increase as a percentage of revenue during 2025. Sales and marketing expenses also increased 4.4%, which could pressure operating margins if revenue growth remains modest.
SaaS KPIs
All quarters →Total Customers
Pro Forma Revenue Growth Rate
Pro Forma Revenue
Pro Forma Subscription and Transaction Fees Revenue
Pro Forma Subscription and Transaction Fees Revenue Growth Rate
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q1 FY2025 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.