Summary
EverCommerce opened fiscal 2026 with revenue of $147.5 million in the first quarter, up 3.6% from $142.3 million a year earlier. Pro forma revenue increased 3.0% to $147.5 million from $143.2 million, and pro forma subscription and transaction fees revenue rose 2.5% to $142.1 million from $138.7 million. The company said 96% of revenue was recurring or re-occurring in both periods. Annualized net revenue retention was approximately 95%, compared with 97% a year earlier, and the pro forma retention rate matched the reported rate. EverCommerce served more than 745,000 SMB customers as of December 31, 2025, spanning EverPro for home services, EverHealth for health services, and EverWell for wellness services. Management credited security and alarm products in home services, along with the EverHealth portfolio, with much of the growth. ZyraTalk, acquired on September 15, 2025, added AI-powered customer engagement tools.
Profitability was mixed. Net income was $7.2 million for the quarter, a swing from a loss in the prior-year quarter, and diluted EPS was $0.04, compared with a loss of $0.04 per diluted share a year earlier. Operating income fell 11.5% to $12.6 million from $14.2 million, and operating margin was 8.5%, down 1.5 percentage points from 10.0%. Adjusted EBITDA from continuing operations was $40.7 million, down $4.3 million from $44.9 million, while adjusted gross profit from continuing operations rose $3.7 million to $114.8 million. Management tied the expense pressure to targeted investments for future growth, including costs from ZyraTalk after the acquisition closed. Sales and marketing, product development, and general and administrative spending each rose as a percentage of revenue, and the company expects further increases in those areas.
Cash generation stepped back. Operating cash flow was $24.6 million, down 19.8% from $30.7 million a year earlier. Capital expenditures (purchases of property and equipment) were $0.86 million, up 73.6% from $0.49 million. Deferred revenue, current portion only, was $21.6 million, down 2.6% from $22.1 million, while remaining performance obligations were $20.2 million, up 5.8% from $19.1 million. The company repurchased and retired 1.3 million shares for approximately $13.9 million during the quarter, leaving $33.9 million available under the Repurchase Program as of March 31, 2026. EverCommerce ended the period with $129.3 million in cash, cash equivalents and restricted cash, $155.0 million of available borrowing capacity under its Revolver, and $525.3 million outstanding under its Term Loan. The effective interest rate on the Term Loan was approximately 6.08%.
Management guided second quarter 2026 top-line results to a range of $150.5 million to $153.5 million and Adjusted EBITDA to a range of $41 million to $43 million. For the full year 2026, the top-line range is $612 million to $632 million, with Adjusted EBITDA guided to $183 million to $191 million. The company said it feels confident about accelerating growth in the back half of the year and into 2027. It expects sales and marketing and product development expenses to rise in absolute dollars, and it plans to fund buybacks with cash on hand. Named risks include macroeconomic pressure from geopolitical conflicts, tariffs, inflation, currency swings, rising interest rates, and supply chain disruptions. The filing list also flags intense competition, cybersecurity incidents, the evolving regulatory framework for AI, dependence on payment networks such as Visa and MasterCard and processors such as Worldpay and PayPal, and possible impairment of goodwill or intangible assets. EverCommerce points to a limited operating history, the relatively immature market for technology-enabled services aimed at SMBs, and the possibility that profitability may not persist.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q1 FY2026 | Q4 FY2025 | QoQ | Q1 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $147.5M | $151.2M | -2.4% | $142.3M | +3.6% |
| Research & development | $21.2M | $20.2M | +5.1% | $20.0M | +6.2% |
| Sales & marketing | $33.1M | $33.6M | -1.5% | $28.8M | +15.0% |
| General & administrative | $32.7M | $33.0M | -1.0% | $31.3M | +4.4% |
| Total operating expenses | $134.9M | $137.9M | -2.2% | $128.1M | +5.3% |
| Operating income (loss) | $12.6M | $13.3M | -5.4% | $14.2M | -11.5% |
| Operating margin | 8.5% | 8.8% | -0.3 pp | 10.0% | -1.5 pp |
| Net income (loss) | $7.2M | $6.0M | +18.7% | -$7.7M | +193.0% |
| Net margin | 4.9% | 4.0% | +0.9 pp | -5.4% | +10.3 pp |
| Diluted EPS | $0.04 | $0.03 | +$0.01 | -$0.04 | +$0.08 |
| Customers | 745,000 | 745,000 | ±0.0% | 740,000 | +0.7% |
Risks
Annualized net revenue retention rate declined to approximately 95% for the quarter ended March 31, 2026 from 97% for the quarter ended March 31, 2025, reflecting contraction and attrition among existing customers.
Operating income decreased 11.5% to $12.58 million in the current quarter versus the prior-year quarter, and operating margin declined 1.5 percentage points to 8.5%, as combined cost of revenue, sales and marketing, product development, and general and administrative costs rose to 81.2% of revenue from 78.1%.
MD&A states the macroeconomic climate may continue to pressure results from geopolitical conflicts, tariffs and proposed tariffs, inflation, interest rate fluctuations, and supply chain disruptions, which could adversely affect demand, revenue, and costs.
Operating cash flow decreased 19.8% to $24.60 million in the current quarter versus the prior-year quarter, driven by higher personnel expenses and costs directly related to delivery of services and products, partially offset by higher subscription and transaction fee collections.
The ZyraTalk acquisition for approximately $36.0 million, plus up to $6.5 million of contingent consideration, contributed post-acquisition expenses and is central to the AI-driven innovation strategy, creating integration and execution risk.
The company had $525.3 million outstanding under its Term Loan as of March 31, 2026, with variable-rate exposure and interest rate swap agreements, making results sensitive to interest rate volatility.
SaaS KPIs
All quarters →Total Customers
Pro Forma Revenue Growth Rate
Adjusted Gross Profit
Annualized Net Revenue Retention Rate
Pro Forma Revenue
Pro Forma Subscription and Transaction Fees Revenue
Annualized Pro Forma Net Revenue Retention Rate
Pro Forma Subscription and Transaction Fees Revenue Growth Rate
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q1 FY2026 (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.