EverCommerce (EVCM) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $142.3 million, up 3.2% year-over-year, with pro forma revenue up 7.4% year-over-year, reflecting the sale of Fitness Solutions; recurring revenue comprised 97% of total revenue.

• Adjusted EBITDA rose to $44.9 million (31.6% margin), up 16.3% year-over-year, exceeding guidance and expanding margin by 360 basis points.

• Payments revenue (excluding Fitness Solutions) grew 8.4% year-over-year, driven by nearly 9% growth in total payment volume (TPV), with annualized TPV reaching $12.7 billion.

• The board approved a $50 million increase to the share repurchase program, extending authorization to year-end 2026; 1.1 million shares were repurchased for $11.2 million in Q1 2025.

• Strategic focus remains on EverHealth, EverPro, and Everwell verticals, with Marketing Technology Solutions classified as discontinued operations and held for sale.

Financial highlights

• Q1 2025 reported revenue: $142.3 million; subscription and transaction revenue: $137.8 million, up 3.3% year-over-year; pro forma subscription and transaction revenue grew 7.6% year-over-year.

• Adjusted gross profit: $111.1 million (78.1% margin), up from 77.1% in Q1 2024.

• Cash flow from operations: $30.7 million, more than double Q1 2024.

• Levered free cash flow: $25.1 million for the quarter; $110.9 million for the trailing 12 months.

• Operating income reached $14.2 million, reversing a $4.3 million operating loss in Q1 2024.

Outlook and guidance

• Q2 2025 revenue guidance: $144.5–$147.5 million; adjusted EBITDA: $39.5–$41.5 million.

• Full-year 2025 revenue guidance: $581–$601 million; adjusted EBITDA: $167.5–$175.5 million, unchanged from prior guidance.

• No changes to outlook based on current macroeconomic conditions; guidance remains prudent.