Summary
EverCommerce reported $152.0 million of revenue for the quarter ended June 30, 2026, up 2.7% from the prior-year quarter. First-half revenue was $299.5 million, up 3.2%. Operating income was $17.5 million, up 10.6%, while first-half operating income of $30.1 million was flat compared with the prior-year period. Operating margin was 11.5%, up 0.8 percentage points, but the first-half operating margin of 10.0% slipped 0.3 percentage points. Net income was $9.7 million, up 19.2%, and first-half net income was $16.9 million, up from the prior-year period. Diluted EPS was $0.05, up 25.0%, and first-half diluted EPS was $0.09, up from a year earlier.
Adjusted EBITDA from continuing operations was $44.5 million, down from $45.0 million a year earlier. The company generated $28.5 million of operating cash flow in the quarter, up 5.8%, but first-half operating cash flow was $53.1 million, down 7.8%. Capital expenditures were $0.6 million in the quarter, up 26.1%, and $1.5 million in the first half, up 49.7%. Deferred revenue, current portion, was $22.1 million, down 4.6%. Remaining performance obligations were $21.1 million, up 10.5%.
Operational metrics showed pressure. Annualized net revenue retention was about 94% for the quarter ended June 30, 2026, down from 97% a year earlier. The company said it serves more than 745,000 SMB customers worldwide. Management highlighted the September 2025 ZyraTalk acquisition, an AI customer engagement platform bought for about $36.0 million in cash plus up to $6.5 million of contingent consideration. ZyraTalk is meant to support autonomous AI agents and field service management across the Home Services vertical. Pro forma revenue growth was 2.0% for the quarter, a measure that adjusts for acquisitions and divestitures. Management said the increase came from business management software and billing and payment solutions, partly offset by lower supplier rebate revenue. The company also repurchased and retired 1.4 million shares for approximately $14.8 million during the quarter, leaving $19.2 million available under its repurchase program.
Guidance points to slower momentum. For the third quarter of 2026, management expects revenue of $151.5 million to $154.5 million and adjusted EBITDA of $44 million to $46 million. For full-year 2026, revenue guidance is $612 million to $632 million and adjusted EBITDA guidance is $183 million to $191 million. Management now expects full-year results toward the lower end of those ranges. The company said its outlook for the balance of 2026 has moderated. The CEO transition adds another variable: founder Eric Remer said Alex will become CEO and focus on accelerating long-term growth.
Risks remain familiar but real. The company cited macroeconomic pressure from tariffs, inflation, interest rates, geopolitical conflicts, and supply chain disruptions. It also flagged intense competition, dependence on payment card networks and processors, cybersecurity threats, and evolving regulation of AI. The drop in net revenue retention from 97% to 94% signals more contraction and attrition among existing customers. Adjusted EBITDA declined year over year, first-half operating cash flow fell, and deferred revenue was lower than a year earlier. Those trends matter because the company still carries a large Term Loan balance and depends on operating cash flow to service it.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q2 FY2026 | Q1 FY2026 | QoQ | Q2 FY2025 | YoY |
|---|---|---|---|---|---|
| Revenue | $152.0M | $147.5M | +3.1% | $148.0M | +2.7% |
| Research & development | $21.4M | $21.2M | +0.9% | $19.5M | +9.7% |
| Sales & marketing | $33.7M | $33.1M | +1.9% | $30.6M | +10.2% |
| General & administrative | $31.6M | $32.7M | -3.2% | $32.1M | -1.5% |
| Total operating expenses | $134.5M | $134.9M | -0.3% | $132.2M | +1.8% |
| Operating income (loss) | $17.5M | $12.6M | +38.9% | $15.8M | +10.6% |
| Operating margin | 11.5% | 8.5% | +3.0 pp | 10.7% | +0.8 pp |
| Net income (loss) | $9.7M | $7.2M | +35.5% | $8.2M | +19.2% |
| Net margin | 6.4% | 4.9% | +1.5 pp | 5.5% | +0.9 pp |
| Diluted EPS | $0.05 | $0.04 | +$0.01 | $0.04 | +$0.01 |
| Customers | 745,000 | 745,000 | ±0.0% | 740,000 | +0.7% |
Risks
Annualized net revenue retention declined to approximately 94% for the quarter ended June 30, 2026 from approximately 97% for the quarter ended June 30, 2025, indicating increasing contraction or attrition within the existing customer base that could weigh on recurring revenue growth. Management attributes growth primarily to higher revenue per customer rather than expanding seat or product adoption.
For the six months ended June 30, 2026, cost of revenue, sales and marketing, product development and general and administrative costs combined rose to 79.8% of revenue from 78.1% in the prior year period, an increase of 170 basis points reflecting targeted investments for growth including ZyraTalk costs. Operating margin for the six months ended June 30, 2026 was down 0.3 pp versus the prior year period and operating cash flow for the same period was down 7.8% to $53.1 million.
MD&A cites pressure from international geopolitical conflicts including the war in the Middle East, increased and proposed US tariffs, rising inflation, currency fluctuations and supply chain disruptions. Revenue from supplier rebates through group purchasing programs, which management states is more closely connected to macroeconomic impacts than core business management software, declined $0.6 million and $1.4 million during the three and six months ended June 30, 2026, respectively.
The company is repositioning around an AI-powered platform and closed the ZyraTalk acquisition for approximately $36.0 million in cash, plus up to $6.5 million of contingent consideration tied to post-combination employment services payable over three years. Integration of agentic AI capabilities into the EverPro vertical and extension into other verticals carries execution risk, and failure to keep pace with AI-native competitors could erode the land and expand model.
As of June 30, 2026 the company had $523.9 million outstanding under its Credit Facilities, all under the Term Loan, with an effective interest rate of approximately 6.02% for the quarter ended June 30, 2026 excluding the effect of interest rate swap agreements. The Credit Facilities are secured by substantially all assets and contain negative covenants restricting indebtedness, liens, asset sales and stock repurchases, and the Revolver carries a first lien leverage ratio covenant.
SaaS KPIs
All quarters →Net Revenue Retention
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q2 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 1, 2026.