EVCM - NASDAQ

Thank you for standing by, and welcome to EverCommerce Inc.'s fourth quarter 2025 earnings call. My name is Josh, and I will be your operator for today. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. To ask a question, please press 11 on your telephone, and wait for your name to be announced. To withdraw your question, please press 11 again. As a reminder, this conference call is being recorded today, 03/12/2026. I would now like to turn the conference over to Brad Korch, SVP, Finance and Head of Investor Relations for EverCommerce Inc. Please go ahead.

Good afternoon, and thank you for joining. Today's call will be led by Eric Remer, EverCommerce Inc.'s Chairman and Chief Executive Officer, and Ryan Siurek, EverCommerce Inc.'s Chief Financial Officer. This call is being webcast with a slide presentation that reviews the key financial and operating results for the three months ended December 31, 2025. For a link to the live or replay webcast, please visit the Investor Relations section of the EverCommerce Inc. website at evercommerce.com. The slide presentation and earnings release are also directly available on the site. Please turn to Page 2 of our earnings call while I review our safe harbor statement. Statements made on this call and contained in the earnings materials available on our website that are not historical in nature may constitute forward-looking statements. Such statements are based on the current expectations and beliefs of management. Actual results may differ materially from these forward-looking statements due to risks and uncertainties that are described in more detail in our filings with the SEC. We undertake no obligation to publicly update or revise these forward-looking statements except as required by law. We will also refer to certain non-GAAP financial measures in our comments today. A reconciliation of non-GAAP to GAAP historical measures is provided in both our earnings press release and our earnings call presentation. As a quick reminder, last quarter, we announced that we had closed on the sale of the Marketing Technology business. I will now turn it over to our CEO, Eric Remer. Please continue.

Thank you, Brad. On today's call, I will highlight fourth quarter and full year 2025 results and share some exciting AI developments across our company, including a deeper dive within our EverHealth vertical before turning the call over to Ryan to discuss our financial performance in more detail. 2025 was a year of tremendous positive change for EverCommerce Inc. We entered the year having just begun to stand up the vertical business units for EverHealth and EverPro, and throughout the year, we focused on product, people, process, and technology improvements across our business to better serve our customers and drive shareholder return. From an organizational standpoint, we ended 2025 with robust functional organizations in both EverPro and EverHealth that each had enhanced core competencies in the areas of product strategy and development, customer experience, and go-to-market, among others. In 2025, we sold our Marketing Technology Solutions business that had been a detractor to both growth and predictability. We acquired

Thanks, Eric. Total reported revenue in the fourth quarter was $151.2 million, up 5.2% from the prior-year period. Subscription and transaction revenue, our primary recurring revenue base, was $144.1 million. Pro forma revenue, adjusted for the acquisition of

Thank you. Star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press 11 again. One moment for questions. Our first question comes from Alex Sklar with Raymond James. You may proceed.

Great. Thank you. First one, maybe, Eric or Matt, but just as you are building some of the more authentic functionality, and you have got

Thanks for the question. I think we will give a quick overview. Matthew will give some on EverPro, then Evan can talk about some of the penetration and interest we have seen with some of the AI integration and embedded capabilities that we have in EverHealth as well. Matthew, you want to kick off?

Yeah, sure. Thanks for the question, Alex. At EverPro, we really think about AI and our journey there in three phases, and I am going to get to your question about

Yeah. Alex, thanks for the question. And Eric mentioned some of the metrics on the call, and we have them in the presentation. I think the one callout that I would make on the AI Scribe launch, which we put out a press release earlier this week on, we are still in beta going to general availability by the end of the quarter, the end of the first quarter, but we have been incredibly pleased with both the metrics that were mentioned on the call in terms of performance, and we actually have a waitlist with hundreds of providers that are interested in paying for that feature and getting going once we get to general availability. So quite pleased with the early progress and the rollout of that. We have a robust roadmap to continue to enhance those features from that one specific workflow across the balance of the year.

Okay. Great color. I appreciate all of that. Maybe for you, Ryan, just in terms of the 2026 growth outlook, a little above 5% at the midpoint. It is kind of faster than where you just exited 2025. Can you just walk through some of those underlying assumptions as it relates to macro or NRR or new customer growth that are kind of underlying that growth cadence? Thanks.

Sure. Thank you for the question, Alex. I appreciate it. We feel good about the prospects for 2026. The assumptions that I outlined from a script perspective really relate to, you know, looking at where we exited the year, which we felt great about in terms of, you know, beating the consensus in our guidance with regard to revenue from a quarterly perspective, but then also the investments that we talked about from an AI perspective. We really focused in the latter half of 2025 on those investments, really from an AI point of view, and we will continue to do that in 2026. And we think that those investments, with regard to the things that both Matthew and Evan just talked about, will assist from a reacceleration perspective as we get through the rest of the year. So that is incorporated into the first quarter guide as well as our full-year guide from a revenue perspective.

Alright. Perfect. Thanks, everyone.

Thank you. Our next question comes from Aaron Kimson with Citizens. You may proceed.

Great. Thanks for the question. First one, I want to ask on payments revenue. It decreased from $29.4 million in Q4 2024 to $29.1 million in Q4 2025. You are giving the breakout of your top six payment solutions this quarter, which grew 6% year over year, and then payments revenue from other solutions, which declined about 6.5% year over year. How should we think about that year-over-year decline? Has any of the decline in the non-top-six solutions related to the Martech divestiture? Or is there something else going on there?

Thank you for the question. Appreciate it. Really not much in the way of payments revenue associated with Martech, so that is really not part of the explanation. The reason we gave the breakout in the slide and the dynamics is because there are really two parts, if you will, of our portfolio. We have a mature portfolio that is strongly cash-flow generating and allows us to continue to generate good cash flow for payments to fund other investments. Then we have a growth part of our portfolio, which is why we focus in on the top six solutions. That is where our time, effort, energy, and prioritization are focused in terms of the payments funnel for enablement, utilization, attach rate, making sure that our SaaS customers come on board, we are working to get them on board as quickly as possible. That is all part of the investments that we are making from a strategic perspective. So that is all kind of part and parcel to where we came out from a revenue perspective in totality. You will see that the top six solutions that we described—it is closer to 6% revenue growth on those—but it is based off of a TPV growth of more than 17% on a year-over-year basis.

Understood. And then second one is more high level. But much has been made about the end of the application software layer, at least the devaluing of the application software layer. What are the most important moats you see for your business as adoption of agentic AI accelerates in the coming years? Thank you.

Yeah. I can certainly start from an EverPro perspective. When we think about

And I think, Aaron, thanks for the question. It is a great one, obviously super timely. I think Matthew nailed it well. I think a lot of those same core themes are applicable to EverHealth. A couple of things I would add: the fact that we have got 100,000 plus customers in EverHealth is quite important in terms of an advantage for us to be able to build the embedded workflows that make our practices and our providers more efficient, drive revenue predictability for them, give them the opportunity to spend more time with patients, and drive better clinical outcomes. At the end of the day, if we can do that, they are going to rely on us as a core vendor and service provider and really partner to power their practice. I think the other thing is it is a highly regulated industry, and ultimately, our ability to deliver a digital end-to-end solution—obviously, that is compliant—is a huge advantage for those customers and obviously table stakes when they go to select a solution.

Great. Thank you, guys. Thank you.

Our next question comes from Bill McNamara with Evercore ISI. You may proceed.

Hi. This is Bill on for Kirk, and thanks for taking my question. If we could touch on the 600 customers currently using the no-show prediction tool, what level of incremental revenue per customer are you seeing? And how should we think about the magnitude and durability of that lift over time?

Yep. Thanks, Bill. This is Evan. Great question. I think for that particular workflow, today it is not a feature that we are pricing a la carte. It is included in our packages, but I will tell you for the products where we rolled it out, we are in the midst of rolling out an updated package set which will have increased prices. So as we add new features, even if they are not monetized individually or from an a la carte standpoint, the overall ASP of new practices purchasing our EverHealth solutions is going to go up. So from that perspective, for that particular feature, that is how we see the monetization moving forward.

Thank you. And as a reminder, to ask a question, please press star 11 on your telephone. Our next question comes from Matthew Hedberg with RBC. You may proceed.

Hey. It is Dan Bergstrom for Matthew Hedberg. Thanks for taking our questions. Just to build off an earlier question, looking at guidance for the first quarter and for the year, it implies building seasonality through the year, as you talked to in the prepared remarks. Maybe what are some confidence points around this? And then could you help us with the step down from Q4 as well?

Could you repeat the last part of your question? When you said help us with what? We did not hear that.

Yes. I think Q1 guidance is lower than the Q4 revenue number, so just the step down.

Alright. Got it. I want to make sure. Yeah. Q4 was a good quarter for us, and we continue to look at that in the context of the growth on a sequential basis but also on a year-over-year basis. Q4 grew from $148 million to $151 million. Q1, typically, from a seasonality perspective, is lower. As we talked about in the script, Q2 and Q3 are usually better from a seasonal perspective overall. But we are also stepping off of Q4, in totality looking into the rest of the year as we make continued investments in payments and also in our go-to-market strategy. So we are making deliberate execution decisions at this point in time, and that is in part the things that we are focusing on from a Q1 perspective as we head into the rest of the year. We do expect reacceleration from Q1 through the rest of the year. That is also part of the full-year guide from a revenue perspective. And then from an adjusted EBITDA perspective, you will see that we are expecting margins to be, you know, strong, over 30%. But we expect to make continued investments in the AI platforms that we have just recently discussed as well.

Thanks. That is helpful. And then nice to see EverHealth Scribe in beta here. I guess, could you help think of the timing around the AI product roadmap rollout for Pro and Health?

Yeah. I can start. Thanks for the question. I think from a Scribe standpoint, we will be in general availability by the end of the quarter, in the next few weeks. We have a robust roadmap of features that are either in market, as Eric had talked about on the call in his prepared remarks, and/or are in development and will be rolled out across the year. So look for us to add, you know, continued context across that, including metrics, performance, and monitoring across 2026. We are excited about the progress thus far, and even more excited about what is to come.

Yeah. And from an EverPro perspective, obviously, some of our generative components have hit the market. In the past year, some of them just rolled out at the end of Q4 into Q1. From an AI voice reception standpoint, as I mentioned earlier, traction with one of our core systems of action of getting that integration released and out to market, but the majority of the rest of the systems of action from a voice reception standpoint we expect in H2 and actually hope to beat that to market. And then, as I spoke to, really our shared agentic platform is a back-half-of-H2 component as well.

Thank you.

Thank you. I would now like to turn the call back over to Eric Remer for any closing remarks.

Thank you for that. Thank you again for joining the call today. As we look ahead to 2026, we remain focused on embedding AI across our platforms, expanding payment adoption, and continuing to drive operational efficiency. We believe these initiatives position EverCommerce Inc. to deliver durable revenue growth and strong free cash flow generation over time. I would like to thank our investors for their continued support and all of the EverCommerce Inc. employees for their hard work. Operator, this concludes our call.