Summary
EverCommerce finished fiscal 2025 with a fourth quarter that outpaced the full year on revenue growth. Fourth quarter revenue was $151.2 million, up 5.2% from the prior year quarter. Full year revenue was $588.9 million, up 4.8%. Operating income for the quarter was $13.3 million, up 5.1%, and full year operating income reached $59.3 million, up 126.1%.
The bottom line swung hard. Fourth quarter net income was $6.0 million against a loss of $12.2 million in the prior year quarter, and full year net income was $17.6 million against a prior year loss of $41.1 million. Diluted EPS for the year was $0.10 compared with a loss of $0.22 per share. Full year operating margin improved 5.4 percentage points to 10.1% from 4.7%, though the fourth quarter margin was 8.8%, flat year over year.
Revenue mix stayed heavily recurring. Subscription and transaction fees produced $566.9 million for the year, up 4.4%, while other revenue rose 14.5% to $22.0 million. Business management software drove a $22.9 million increase in subscription and transaction fees, and billing and payment solutions added $3.1 million, partly offset by a $2.1 million drop in supplier rebate revenue. Adjusted EBITDA from continuing operations was $180.5 million for the year, compared with $164.4 million, and adjusted gross profit from continuing operations was $456.8 million versus $437.4 million. Annualized net revenue retention was approximately 96%, 91% and 93% for the quarters ended December 31, 2025, 2024 and 2023. The customer base totaled more than 745,000 at year end. Pro forma revenue growth for the full year was 6.4%.
Cash flow was the weak spot. Fourth quarter operating cash flow was $21.3 million, down 56.1% from $48.4 million a year earlier, and full year operating cash flow was $111.5 million, down 1.5%. Management tied the decline to lower collections as marketing technology solutions wound down, plus added personnel expense, partly offset by lower service delivery costs and lower interest payments. Capital expenditures were $0.3 million in the quarter, up 15.4%, and $2.2 million for the year, up 52.3%. At December 31, 2025 the company held $129.7 million of cash, cash equivalents and restricted cash, with $155.0 million of revolver capacity and $526.6 million outstanding on the Term Loan at an effective interest rate of about 6.32%. Deferred revenue of $21.7 million fell 2.0% and remaining performance obligations of $18.4 million fell 8.9%.
Portfolio reshaping drove much of the year's activity. EverCommerce sold its marketing technology solutions business on October 31, 2025 for about $45.0 million in cash, recording a $1.1 million loss and a $6.9 million goodwill impairment. It acquired ZyraTalk in September 2025 for about $36.1 million plus up to $6.5 million of contingent consideration, which added $1.2 million of revenue during the year and an AI agent platform aimed first at EverPro. The 2024 Fitness Solutions divestiture carried $4.9 million of losses and $6.4 million of allocated goodwill impairment. Risks stack up: tariff and inflation pressure on service SMBs, floating rate exposure, and a swing in interest rate swaps to an unrealized loss of $6.2 million in 2025 from an unrealized gain of $6.4 million in 2024. Deferred tax valuation allowance judgments and integration risk across 54 acquisitions since inception remain open. Buybacks absorbed 8.2 million shares for $85.6 million, leaving $47.7 million authorized under the Repurchase Program.
The annual report carries no revenue or earnings guidance for the coming quarter or the full year. What it does offer is directional. Product development expense is expected to increase in absolute dollars and as a percentage of revenue in 2026. General and administrative expense is expected to rise in absolute dollars for the foreseeable future, with incremental investment needed in 2026 and beyond for the business and infrastructure transformation, including Sarbanes-Oxley compliance. That spending outlook sits against a full year operating margin of 10.1% and a fourth quarter margin that did not budge from 8.8%.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2025 | Q3 FY2025 | QoQ | Q4 FY2024 | YoY |
|---|---|---|---|---|---|
| Revenue | $151.2M | $147.5M | +2.5% | $175.0M | -13.6% |
| Research & development | $20.2M | $19.4M | +4.0% | $19.2M | +5.0% |
| Sales & marketing | $33.6M | $26.5M | +26.6% | $31.2M | +7.6% |
| General & administrative | $33.0M | $35.4M | -6.7% | $35.6M | -7.4% |
| Total operating expenses | $137.9M | $131.5M | +4.8% | $186.9M | -26.3% |
| Operating income (loss) | $13.3M | $16.0M | -16.7% | -$11.9M | +211.4% |
| Operating margin | 8.8% | 10.8% | -2.0 pp | -6.8% | +15.6 pp |
| Net income (loss) | $6.0M | $11.1M | -45.6% | -$12.2M | +149.4% |
| Net margin | 4.0% | 7.5% | -3.5 pp | -7.0% | +11.0 pp |
| Diluted EPS | $0.03 | $0.06 | -$0.03 | -$0.07 | +$0.10 |
| Customers | 745,000 | 740,000 | +0.7% | 740,000 | +0.7% |
Risks
The company is making significant investments in AI Technologies throughout its business, including the ZyraTalk acquisition for approximately $36.1 million. Risks include incorrectly designed models, inadequate or biased data, reliance on third-party AI, regulatory uncertainty, and potential liability or reputational harm if AI offerings underperform.
Payment-related transactions comprised approximately 20% of revenue in 2025, and the company depends on card networks such as Visa and MasterCard and processors including Worldpay and PayPal. Failure to comply with network rules or termination of processor agreements could suspend operations, and if card transactions were precluded the company would lose substantially all of its revenue.
MD&A cites pressure from international geopolitical conflicts, increased and proposed tariffs, rising inflation, interest rates and supply chain disruptions, which may adversely affect demand for the company's solutions and its costs of doing business.
The company completed the sale of its marketing technology solutions for approximately $45.0 million on October 31, 2025, recognized a $6.9 million goodwill impairment charge, and acquired ZyraTalk for approximately $36.1 million. It expects to continue evaluating divestitures of non-core assets and acquisitions, which pose integration, impairment and execution risks.
The market is highly competitive and fragmented, with vertically specialized and horizontal competitors including Salesforce for CRM, Intuit for financial products and Square for payments. Low barriers to entry, partner disintermediation and greater resources of competitors could cause market share declines.
The company uses independent contractors in India, Russia and Ukraine for software development and maintains operations in Canada, the UK, Australia and New Zealand. Sanctions, geopolitical conflict or instability in Russia and Ukraine could disrupt development or render resources unavailable.
A putative class action filed in Delaware Chancery Court, Vladimir Gusinsky Revocable Trust v. Remer et al., challenges the Sponsor Stockholders' CEO approval right under Section 141(a) of the DGCL. The outcome and costs of litigation are difficult to quantify and could divert management attention and harm financial condition.
The company is subject to federal, state and international taxes and does not collect sales, use, value added or similar taxes in all jurisdictions where it has sales. Jurisdictions may assert such taxes, and changes from digital services taxes or the OECD BEPS Project could increase tax costs and liabilities.
Historical revenue growth may not be sustainable, and acquisitions have significantly contributed to growth. Revenue growth was 4.8% for 2025 vs. 5.1% for 2024, and the company may make fewer or no acquisitions in the future.
SaaS KPIs
All quarters →Total Customers
Annualized Net Revenue Retention Rate
Annualized Pro Forma Net Revenue Retention Rate
Summary, forecast, risks and KPIs are extracted from EverCommerce Inc.'s SEC filings for Q4 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.