EverCommerce Inc. (EVCM) Earnings

Management highlights

### Leadership Transition - After nearly 20 years leading the company, founder Eric Remer will step down as CEO, effective August 6 2026, and will remain on the board of directors. - Alex Gore will take over as CEO and join the board; the board and outgoing management are aligned on the company's long-term strategy, and the transition is expected to be smooth. ### Core Operational Progress - Total customer count across all verticals exceeds 745,000; 314,000 customers are enabled for multiple solutions (20% year-over-year growth), and 140,000 customers actively use multiple solutions (26% year-over-year growth), driven by cross-sell initiatives focused on payments and AI tools. - Net revenue retention (NRR) across the full customer base is 94% for the LTM period; multi-solution customers maintain NRR above 100%. The slight overall NRR decline is driven by falling third-party partner revenue in the legacy payments business, which does not impact high-growth segments. - The company reports 26% year-over-year growth in customers that use more than one solution, supporting margin expansion goals. ### Payments Strategy - Payments revenue is reported on a net basis and contributes approximately 95% gross margin when embedded in core SaaS solutions, making it a key driver of adjusted EBITDA margin expansion. - Legacy low-growth payments businesses continue to generate stable, high-margin cash flow that funds investment in the company's top six high-growth solutions. ### Capital Allocation & Liquidity - The company ended Q2 2026 with $133 million in cash and cash equivalents, $155 million in undrawn revolver capacity (which stepped down to $125 million in July 2026), and $524 million in total debt outstanding. - Net leverage is approximately 2.2x, with strong interest rate hedging in place through October 2027; long-term debt matures in 2031, providing long-term financial flexibility. - In Q2 2026, the company repurchased 1.4 million shares for $14.8 million at an average price of $10.32 per share, with approximately $19.2 million remaining under its existing $300 million share repurchase authorization through the end of 2026. ### Strategic Priorities - The company is focused on building AI-powered tailored workflows for small and medium-sized service businesses, expanding integrated payments penetration, and growing multi-solution adoption to drive long-term margin and revenue growth.

Guidance

- The company maintained its full year 2026 guidance range originally issued in March, expecting total revenue of $612 million to $632 million and adjusted EBITDA of $183 million to $191 million. - Management now expects full year 2026 results to trend toward the lower end of the stated guidance ranges, driven by slower-than-expected new customer acquisition in certain EverPro solutions. - For Q3 2026, management expects total revenue of $151.5 million to $154.5 million and adjusted EBITDA of $44 million to $46 million. - Management expects revenue growth to accelerate sequentially from Q3 2026 to Q4 2026, supported by implemented pricing actions, go-to-market optimization for customer acquisition, disciplined expense management, and stable customer retention.

Segment performance

EverCommerce reports three core vertical segments for continuing operations, following the divestment of its marketing technology business in October 2025: EverPro (home field services), EverHealth (medical practices), and EverWell (wellness service providers). EverPro and EverHealth together account for approximately 95% of total consolidated revenue. Total Q2 2026 revenue from continuing operations was $152 million, representing 2.7% year-over-year growth. For the trailing 12 months (LTM) ended Q2 2026, pro forma total revenue was $599 million, with 3.7% year-over-year growth. Total payments value (TPV) on an LTM basis was $13 billion. The company's top six high-growth solutions now represent 36% of total TPV (up from 31% in Q2 2025), with payments revenue in these solutions growing 8.5% year-over-year to account for 48.5% of total payments revenue. Adjusted EBITDA for Q2 2026 was $44.5 million, with an adjusted EBITDA margin of 29.3%.

Risks & headwinds

- Evolving AI-driven search behavior has created near-term headwinds for organic new customer acquisition in select EverPro product lines, which has driven the full year guidance outlook toward the lower end of the range. - The company's legacy payments business is experiencing declining third-party partner revenue, which has pulled down overall net revenue retention. - Optimization of organic search for new customer acquisition requires time to deliver results, and near-term improvements may not meet expectations. - Forward-looking results carry inherent uncertainty, and actual outcomes may differ materially from management projections due to unforeseen market and operational changes, as noted in the company's SEC filings.

Analyst Q&A

• Q: What attracted Alex Gore to the EverCommerce CEO role, and what is driving management's confidence in a Q4 2026 growth acceleration after slower-than-expected new customer acquisition? /

  A: Gore noted EverCommerce is a financially healthy company with strong business units, talented teams, and significant untapped growth potential. Slower growth has been driven by shifting AI search behavior that hurt organic acquisition for select EverPro products. The company is executing technical optimization, AI-focused content, and authority-building initiatives to improve search visibility. Leading indicators already show improvement, and newly implemented pricing actions will also contribute to sequential Q4 growth, with growth expected to ramp from 2% in Q2 to ~3% in Q3 to ~5.5% in Q4 at the low end of guidance.

• Q: How does management view the legacy payments business, which has been shrinking, and why did it return to year-over-year growth in Q2 2026? /

  A: Management does not view the legacy business as a declining asset to be wound down. Instead, it generates stable, high-margin cash flow that funds investment in the company's top six high-growth solutions. Revenue will fluctuate quarter to quarter, and the company's goal is to maintain stable revenue and cash flow from the legacy base, not pursue aggressive growth, which aligns with the Q2 return to growth. The strategy of growing high-growth solutions with cash from the legacy base remains on track.

• Q: What are incoming CEO Alex Gore's immediate priorities, and what is the origin of his appointment? /

  A: Gore has a 20-year relationship with lead investor Silverlake, having worked at three of the firm's prior portfolio companies, which led to the opportunity. His immediate priority over the first 90 days is to conduct a deep, detailed review of the business to identify high-impact opportunities. Gore's near-term focus will be on applying technology and optimization to strengthen existing execution, with a goal of accelerating growth after the review phase.

• Q: Does the full year guidance that now trends to the lower end of the range include expected improvements in EverPro new customer acquisition, or does it assume continued softness? /

  A: Guidance is based on current observed run-rate trends, and does not assume large, material unproven improvements in organic search performance. Management is working urgently to fix organic traffic trends, which take time to impact results, and leading indicators are moving in the right direction. Any faster-than-expected improvement would create upside to the current guidance, but upside is not baked into the current outlook.