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    EVCM
    Earnings call· Jun 2026(Q2 FY26)

    EverCommerce Q2 FY26 earnings call EVCM

    Aug 5, 2026 Source

    Executive summary

    EverCommerce Q2 FY26 — Revenue in-line, EBITDA beat, CEO transition

    Eric Remer stepped down as CEO, succeeded by Alex Goor, marking a leadership transition. The company delivered solid Q2 results with revenue meeting guidance and adjusted EBITDA exceeding expectations, driven by strategic investments in AI and payments. Despite a softer new customer acquisition in EverPro, management expressed confidence in a second-half acceleration through pricing actions and improved organic traffic.

    Highlights

    5

    • Revenue of $152 million was consistent with the midpoint of guidance, representing 2.7% year-over-year growth.

    • Adjusted EBITDA of $44.5 million exceeded the top end of guidance, achieving a 29.3% margin.

    • Customers utilizing more than one solution grew 26% year-over-year, reaching 140,000.

    • Total Payments Volume (TPV) in the top 6 solutions grew 16.4% year-over-year, now representing 36% of total TPV.

    • The company repurchased 1.4 million shares for $14.8 million at an average price of $10.32 per share in Q2.

    Concerns

    3

    • Full year 2026 revenue and adjusted EBITDA are now expected to trend toward the lower end of guidance ranges.

    • Slower-than-expected new customer acquisition in certain EverPro solutions impacted the full-year outlook.

    • Net revenue retention was 94%, impacted by declining third-party partner revenue within legacy payments and other horizontal add-ons.

    Guidance & targets

    4
    CategoryTargetConfidence
    Total Revenue
    $151.5 million to $154.5 million
    high materiality
    High
    Adjusted EBITDA
    $44 million to $46 million
    high materiality
    High
    Full Year 2026 Revenue
    $612 million to $632 million (trending toward lower end)
    high materiality
    Medium
    Full Year 2026 Adjusted EBITDA
    $183 million to $191 million (trending toward lower end)
    high materiality
    Medium

    Operational metrics

    14
    Pro forma LTM Revenue
    $599 million+3.7% YoY
    LTM Q2 FY26

    Pro forma revenue adjusted for the acquisition of ZyraTalk.

    Pro forma Q2 Revenue (adjusted for ZyraTalk)
    $152 million+2% YoY
    Q2 FY26

    Pro forma revenue adjusted for the acquisition of ZyraTalk.

    Subscription and transaction revenue
    $147.4 million
    Q2 FY26

    Primary recurring revenue base.

    Non-GAAP gross margin
    78.6%
    Q2 FY26

    Adjusted gross margin.

    Adjusted operating expenses as % of revenue
    49.3%up from 47.1% YoY
    Q2 FY26

    Representing targeted growth investments across sales, marketing and product development, including ZyraTalk costs.

    Adjusted operating expenses as % of revenue
    48.4%up from 47.3% YoY
    LTM Q2 FY26

    For the LTM period.

    Cash and investments balance
    $133 million
    as of June 30, 2026

    Cash and cash equivalents.

    Undrawn revolver capacity
    $155 million
    as of June 30, 2026

    Stepped down to $125 million in July 2026. Availability through July 2030.

    Total debt outstanding
    $524 million
    as of June 30, 2026

    Long-term debt does not mature until July 2031.

    Total net leverage
    2.2x
    as of June 30, 2026

    Calculated for credit facility.

    Notional swaps
    $425 million
    through October 2027

    Effectively hedge the floating rate component of interest costs.

    Total Payments Volume (TPV)
    $13 billion
    LTM Q2 FY26
    TPV in top 6 solutions
    36%up from 31% in Q2 FY25 (+16.4% YoY growth)
    Q2 FY26

    Highlighting payments performance in growth solutions where investments are focused.

    Payments revenue in top 6 solutions
    48.5%++8.5% YoY
    Q2 FY26

    Meaningful contributor to overall adjusted EBITDA margin expansion due to ~95% gross margin.

    Industry KPIs

    5
    MetricValueDetails
    Revenue growth$152 millionUSD
    Customer account count745,000+customers
    Multi product platform attach140,000customers
    Operating FCF margin rule of 4029.3%%
    Net revenue net dollar retention94%%

    Deals & partnerships

    2
    Marketing Technology businessSale of non-core business segment

    Sale closed on October 31 last year (FY25). Financial and operating metric results are presented related to continuing operations, except for cash flow metrics.

    ZyraTalkAcquisition of a company

    Acquisition closed in Q3 2025. Costs included in adjusted operating expenses in the post-acquisition period. Fueled ability to move forward in some key AI capabilities.

    Risks & headwinds

    3
    Slower new customer acquisition in EverProH1 2026, expected to improve in H2 2026

    Impacted full year 2026 guidance, now trending toward lower end of range.

    Mitigation: Implementing comprehensive plan including technical optimization, AI-focused content, and authority building initiatives to improve organic traffic.

    Evolving AI-driven search behaviorH1 2026

    Created headwinds on organic acquisition in certain EverPro product lines.

    Mitigation: Executing against a comprehensive plan including technical optimization, AI-focused content, and authority building initiatives to improve visibility.

    Declining third-party partner revenueTrailing 12 months

    Impacted net revenue retention, contributing to 94% NRR.

    Mitigation: Focusing investment on fast-growing solutions and maintaining cash flow from legacy payments business.

    What to watch in Q3 FY26

    4

    EverPro new customer acquisition

    H2 2026 (Q3/Q4)
    CurrentSlower than expected
    TargetImproved organic traffic trends

    Why it matters

    Directly impacts full-year revenue guidance and overall growth trajectory, indicating the effectiveness of new go-to-market strategies.

    This outlook primarily reflects slower-than-expected new customer acquisition in certain EverPro solutions with an expectation of increasing growth from Q3 to Q4 through improved customer acquisition, pricing actions, disciplined expense management and consistency in customer retention.

    Q&A highlights

    6

    What attracted Alex Goor to EverCommerce and what opportunities does he see ahead?

    Alex Goor expressed excitement about the company's financial health, strong business units, and people. He believes there's significant potential to accelerate growth by applying technology to strengthen execution and optimize operations.

    “I mean this is a very healthy company financially with a lot of really great opportunities, really great strong business units and great people. So I think I look at it and I say, I think we can take what we're doing and really accelerate growth, and we have a lot of potential.”

    asked by Bhavin Shah · answered by Alexander Goor

    2 min read5 chapters

    Detailed Narrative

    01

    CEO Transition

    Eric Remer stepped down as CEO after nearly two decades, effective August 6, 2026, and will continue to serve on the Board of Directors. Alex Goor was appointed as the new Chief Executive Officer and Board member. This transition is described as smooth and timely, with the company having a strong foundation and strong leadership moving forward.

    02

    Strategic Focus and Vertical Performance

    EverCommerce continues to focus on its three verticals: EverPro (home field services), EverHealth (medical practices), and EverWell (wellness service providers). EverPro and EverHealth together represent approximately 95% of consolidated revenue. The company is investing in AI-powered workflows, integrated payments, and intelligent automation to expand value for its 745,000+ customers.

    03

    Payments Strategy and Growth

    The company's payments strategy focuses on enabling payments at the point of initial SaaS sale and driving cross-sell into the existing customer base. Investments in onboarding automation and customer success are growing activation and utilization. Payments revenue is reported on a net basis and contributes approximately 95% gross margin within core solutions, making its growth a meaningful contributor to overall adjusted EBITDA margin expansion.

    04

    EverPro Organic Acquisition Headwinds

    The EverPro segment experienced slower-than-expected new customer acquisition in certain solutions during the first half of 2026, attributed to evolving AI-driven search behavior. Management is implementing a comprehensive plan, including technical optimization, AI-focused content, and authority building initiatives, to improve visibility and expects improvements in organic traffic trends in the second half of the year.

    05

    Capital Allocation and Liquidity

    EverCommerce ended the quarter with $133 million in cash and cash equivalents and $155 million of undrawn capacity on its revolver, which stepped down to $125 million in July 2026. Total net leverage was approximately 2.2x. The new CEO will explore opportunities to accelerate long-term growth, including potential changes to investment pacing, go-to-market initiatives, and capital allocation priorities.

    AI-generated summary of the company’s earnings call. Not investment advice.