Summary
EverCommerce reported second quarter fiscal 2025 revenue of $148.0 million, up 5.3% from the prior-year quarter. Operating income rose 105.1% to $15.8 million. Net income was $8.15 million, swinging to a profit from a prior-year loss. Diluted EPS was $0.04, also swinging to a profit. Operating margin was 10.7%, up 5.2 percentage points. Pro forma revenue, which excludes fitness, increased 7.4% to $148.0 million. Adjusted EBITDA from continuing operations was $45.0 million, compared with $39.4 million in the prior-year quarter. Management tied the quarter to revenue reacceleration and cost optimization. The revenue increase was driven by business management software and billing and payment solutions, according to the filing. The company also said its transformation plan is focused on simplifying the customer experience and improving payments workflows.
The company serves more than 740,000 global service-based businesses, or more than 725,000 excluding marketing technology solutions. Annualized net revenue retention rate from continuing operations was approximately 97% for both the second quarter of 2025 and the second quarter of 2024. The platform includes business management software, billing and payment solutions, and customer experience solutions. These tools help service SMBs market services, streamline operations, and retain customers. The company's customers operate in home services, health services, and wellness services. The transformation plan targets customer experience, payments workflows and adoption, product enhancements, and embedded AI functionality. EverCommerce is also pursuing a sale of its marketing technology solutions, which it expects to complete in 2025. That business is reported as discontinued operations.
Cash generation improved. Operating cash flow was $26.98 million for the quarter, up 12.8%. Year to date operating cash flow was $57.66 million, up 54.9%. Capital expenditures were $0.50 million for the quarter, down 21.3%. Deferred revenue was $23.16 million, down 13.8% from the prior-year quarter. Remaining performance obligations were $19.10 million, up 1.1%. The company repurchased and retired 2.0 million shares for approximately $20.6 million during the quarter. As of June 30, 2025, $51.1 million remained available under the repurchase program. The company expects to fund repurchases with cash on hand. The increase in operating cash flow for the six months was driven by lower costs from transformation and optimization initiatives, lower interest payments, and higher cash collections.
Guidance for the third quarter of 2025 includes Adjusted EBITDA of $41.0 million to $43.0 million. For the full year 2025, Adjusted EBITDA is expected to be $171.0 million to $177.0 million. Both guidance ranges are from continuing operations and exclude the marketing technology solutions that are classified as discontinued operations. The third quarter guidance is for the next quarter, while the full year guidance is for the full fiscal year. The company is issuing this guidance based on information as of August 6, 2025. The company said a reconciliation of Adjusted EBITDA to net income is not available without unreasonable efforts on a forward-looking basis.
Risks remain. The macroeconomic climate has pressure from geopolitical conflicts, tariffs and proposed tariffs, trade restrictions, inflation, currency fluctuations, interest rates, and supply chain disruptions. EverCommerce faces intense competition in each industry it serves. It depends on payment card networks such as Visa and MasterCard and payment processors such as Worldpay and PayPal. The company has a limited operating history, has experienced net losses in the past, and may not achieve profitability in the future. Other risks include data security and cyber breaches, the evolving regulatory framework for artificial intelligence, goodwill and intangible asset impairment, and the planned marketing technology sale. Interest rate swap volatility also affects interest and other expense, net. The company remains subject to covenants under its credit facilities. It also noted risks related to its sponsor stockholders agreement and qualifying as a controlled company under Nasdaq rules. The company's forward-looking statements note that its recent growth rates may not be sustainable or indicative of future growth.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2025 | Q1 FY2025 | QoQ | Q2 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $148.0M | $142.3M | +4.0% | $177.4M | -16.6% |
| Research & development | $19.5M | $20.0M | -2.3% | $20.2M | -3.3% |
| Sales & marketing | $30.6M | $28.8M | +6.4% | $31.0M | -1.1% |
| General & administrative | $32.1M | $31.3M | +2.7% | $35.7M | -9.9% |
| Total operating expenses | $132.2M | $128.1M | +3.2% | $170.5M | -22.5% |
| Operating income (loss) | $15.8M | $14.2M | +11.2% | $6.9M | +129.7% |
| Operating margin | 10.7% | 10.0% | +0.7 pp | 3.9% | +6.8 pp |
| Net income (loss) | $8.2M | -$7.7M | +205.7% | -$3.4M | +341.5% |
| Net margin | 5.5% | -5.4% | +10.9 pp | -1.9% | +7.4 pp |
| Diluted EPS | $0.04 | -$0.04 | +$0.08 | -$0.02 | +$0.06 |
| Customers | 740,000 | 740,000 | ±0.0% | 708,000 | +4.5% |
Risks
MD&A states the macroeconomic climate may continue to face pressure from international geopolitical conflicts, increased and proposed United States tariffs, trade restrictions, rising inflation, US Dollar fluctuations, rising interest rates and supply chain disruptions. These developments may adversely affect revenue, demand and costs, and the company cannot assure its mitigation efforts will be effective.
EverCommerce is actively selling its marketing technology solutions and expects a sale transaction in 2025, with the disposal group classified as held for sale and measured at fair value less cost to sell. Execution, timing and accounting impairment risks remain as the company completes this strategic shift.
The company's Credit Facilities include a Term Loan and Revolver with variable-rate interest exposure, and it uses interest rate swaps to convert a portion of the floating rate component. Interest and other expense, net increased for the six months ended June 30, 2025, driven primarily by an unrealized loss on interest rate swaps compared with an unrealized gain in the prior-year period.
SaaS KPIs
All quarters →Total Customers
Pro Forma Revenue Growth Rate
Adjusted Gross Profit
Adjusted EBITDA
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 Q2 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.