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EverCommerce (EVCM)
NASDAQ:EVCM
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EverCommerce
(NASDAQ:EVCM)
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Rating:70Outperform
Price Target:
$13.50
▲(31.32% Upside)
Action:UpgradedDate:03/13/26
The score is driven primarily by improved financial fundamentals (major deleveraging, return to profitability, and strong cash generation) and supportive earnings-call guidance around sustained ~30% adjusted EBITDA margins and AI/cross-sell momentum. The main constraint is valuation (very high P/E), with technicals moderately positive but not strong enough to outweigh valuation risk.
Positive Factors
Balance-sheet deleveraging
The dramatic reduction in debt and near-elimination of leverage materially improves financial flexibility. Lower interest burden and a stronger capital structure enable share repurchases, strategic M&A, and sustained investments in product and GTM without risking liquidity, a durable strength.
Consistent free cash generation
High and positive free cash flow that covered net income indicates cash-backed profitability. Persistent FCF supports capital returns and product investments over time, enabling execution of strategy while absorbing cyclical softness; some historical volatility remains but core cash generation is solid.
Cross-sell and AI product traction
Growing multi-solution adoption and strong AI product reception increase ARPU and customer stickiness. Cross-sell lifts lifetime value and NRR trends; durable AI features that reduce provider friction create tangible operational ROI, supporting long-term revenue per customer expansion.
Negative Factors
Revenue deceleration
A shift from prior high-growth to negative organic growth is structurally concerning: slower top-line expansion limits operating leverage and the ability to scale margins. Re-acceleration depends on successful cross-sell, AI monetization and payments recovery — execution risks persist.
Thin net margins
Despite very high gross margin, low net margins and modest ROE imply limited bottom-line capture of revenue. Sustaining profitability requires continued margin expansion and disciplined operating spend; margin sensitivity to investments or mix shifts threatens durable profitability.
Payments mix weakness & cash volatility
Concentration and mix shifts in payment revenue expose recurring take-rate economics to product mix risk. Combined with seasonal cash-flow patterns, divestitures and elevated capitalized software spending, this produces uneven cash conversion and structural variability in earnings durability.
EverCommerce (EVCM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.83B
Dividend YieldN/A
Average Volume (3M)356.29K
Price to Earnings (P/E)124.8
Beta (1Y)1.22
Revenue Growth-11.61%
EPS Growth99.07%
CountryUS
Employees2,000
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.03
Shares Outstanding177,566,860
10 Day Avg. Volume492,708
30 Day Avg. Volume356,290
Financial Highlights & Ratios
PEG Ratio-0.87
Price to Book (P/B)3.06
Price to Sales (P/S)3.73
P/FCF Ratio20.11
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue3.77
Enterprise Value/Gross Profit4.86
Enterprise Value/Ebitda17.56
Forecast
1Y Price Target
$10.58Price Target Upside2.92% Upside
Rating ConsensusHold
Number of Analyst Covering8
EPS Forecast (FY)0.24
Revenue Forecast (FY)$621.18M
EverCommerce Business Overview & Revenue Model
Company DescriptionEverCommerce Inc., together with its subsidiaries, engages in providing integrated software-as-a-service solutions for service-based small and medium sized businesses in the United States and internationally. The company's solutions include business management software, including route-based dispatching, medical practice management, and gym member management solutions; billing and payment solutions that comprise e-invoicing, mobile payments, and integrated payment processing; customer engagement applications, which include reputation management and messaging solutions; and marketing technology solutions that cover websites, hosting, and digital lead generation. It also provides EverPro suite of solutions in home services; EverHealth suite of solutions within health services; and EverWell suite of solutions in fitness and wellness services. In addition, the company offers professional services, including implementation, configuration, installation, or training services. It serves home service professionals, such as home improvement contractors and home maintenance technicians; physician practices and therapists in the health services industry; and personal trainers and salon owners in the fitness and wellness sectors. The company was formerly known as PaySimple Holdings, Inc. and changed its name to EverCommerce Inc. in December 2020. The company was incorporated in 2016 and is headquartered in Denver, Colorado.
How the Company Makes MoneyEverCommerce primarily makes money through recurring subscription fees and transaction-based revenue tied to payments and other usage-driven services. (1) Subscription/SaaS revenue: Customers pay recurring fees (monthly or annual) to use EverCommerce’s vertical software products. Pricing is typically tiered by feature set, number of users/locations, or usage limits, and may include fees for premium modules such as marketing automation, customer communications, online booking, reputation management, and other operational add-ons. This produces predictable, recurring revenue with relatively high gross margins typical of SaaS. (2) Payments/fintech (transaction) revenue: Many EverCommerce products are integrated with payment acceptance, allowing customers to process card-present or card-not-present transactions (e.g., invoices, online checkout, recurring billing). EverCommerce earns a portion of payment economics via per-transaction fees (a take rate/spread) and may also generate revenue from payment-related services such as chargeback handling, payout services, or payment-enabled subscriptions, depending on the product. Because this stream scales with customers’ payment volume, it can grow with end-customer sales activity. (3) Other services and usage-based revenue: The company can earn additional revenue from implementation, onboarding, training, support, and professional services, as well as pass-through or margin-bearing services like SMS/communications, email, or lead-generation/marketing services where pricing can be usage-based. (4) Product cross-sell within vertical platforms: A key earnings driver is attaching multiple modules to the same customer (e.g., software subscription plus payments plus marketing/reputation tools), increasing average revenue per user and improving retention. (5) Ecosystem/partner effects: Where applicable, EverCommerce’s integrations with card networks, payment processors/acquirers, and third-party software ecosystems can support its ability to offer embedded payments and complementary services; specific partnership counterparties and commercial terms are not available here and are therefore null.
EverCommerce Key Performance Indicators (KPIs)
Any
Total Payment Volume
Measures the total value of payments processed, reflecting the scale of operations and the company's role in facilitating transactions.
Measures the total value of payments processed, reflecting the scale of operations and the company's role in facilitating transactions.
Data provided by:
The Fly
The FlyEverCommerce Earnings Call Summary
Earnings Call Date:Mar 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 07, 2026
Earnings Call Sentiment Positive
The call communicated solid operational and financial progress: mid-single-digit revenue growth, strong adjusted EBITDA margins (~29–31%), favorable liquidity and deleveraging (net leverage ~2.2x), meaningful AI product traction (EverHealth Scribe satisfaction 99.1%, documentation time savings, no-show reductions), and improving cross-sell metrics (multi-solution customers +26% enabled, +32% active). Near-term headwinds include modest declines in some payments revenue segments, a decrease in levered free cash flow driven by strategic investments and capitalized software, flat Q4 adjusted EBITDA YoY, and expected seasonality with a Q1 step-down. Overall, the highlights around AI momentum, margin expansion, TPV growth, and cross-sell progress materially outweigh the manageable lowlights tied to cash flow timing, portfolio mix in payments, and one-time transition costs.Q4-2025 Updates
Positive Updates
Q4 Revenue Growth
Total reported revenue for Q4 2025 was $151.2M, up 5.2% year-over-year and above the midpoint of guidance; subscription and transaction revenue was $144.1M.
Adjusted EBITDA and Margin Outperformance
Q4 adjusted EBITDA was $44.2M with a 29.2% adjusted EBITDA margin, beating the top end of guidance; company has expanded adjusted EBITDA margin by ~470 basis points since 2023.
Pro Forma LTM Revenue and Margin
Pro forma last twelve months (LTM) revenue was $591.7M, up 6.4% year-over-year, with an LTM adjusted EBITDA margin of 30.7%.
Payments Volume and Mix Momentum
Annualized total payments volume (TPV) expanded to $13B. Top six solutions' TPV grew 17.4% year-over-year and now represent 36% of total TPV; comp solution payment revenue grew 5.9% year-over-year and now represents >45% of payment revenue.
Cross-Sell and Multi-Solution Adoption
Customers enabled for >1 solution increased to 286,000, up 26% year-over-year; active multi-solution customers reached ~121,000, up 32% year-over-year. Multi-solution customers continue to deliver NRR above 100% and overall LTM net revenue retention was 96%.
AI Product Traction — EverHealth Scribe
EverHealth Scribe achieved a 99.1% satisfaction rate in beta and delivered average documentation time savings of ~8 minutes per patient; a waitlist of hundreds of providers expressed willingness to pay at GA release.
AI No-Show Predictor Impact
No-show predictor rolled out to >675 providers, producing a ~60% reduction in patient no-show rates and ~ $1,000 of additional revenue capture per provider per month reported for customers using the tool.
Strategic AI & Platform Investments
Acquisition of ZyraTalk provides a voice/agent interaction foundation; company is building native agentic AI features across verticals (EverPro, EverHealth) and positioning AI as an accelerator for customer ARPU and operations.
Capital Allocation and Liquidity
Repurchased 2.5M shares in Q4 for $24.8M and deployed nearly $85M of capital in 2025 to repurchase 8.2M shares; ended Q4 with $130M cash and $155M undrawn revolver capacity; total debt outstanding $527M with net leverage ~2.2x and interest-rate swaps hedging $425M at a weighted average rate of 3.91%.
FY2026 Guidance and Margin Outlook
Full-year 2026 revenue guidance of $612M–$632M (implying mid-single-digit growth vs. LTM pro forma) and adjusted EBITDA guidance of $183M–$191M, implying continued margin expansion with expected adjusted EBITDA margins around or above 30% for the year.
Negative Updates
Flat Q4 Adjusted EBITDA Year-over-Year
Q4 adjusted EBITDA was flat year-over-year despite margin strength (Q4 adjusted EBITDA $44.2M, 0% change YoY), indicating limited near-term EBITDA growth in the quarter itself.
Payments Revenue Slight Decline in Q4
Payments revenue decreased modestly from $29.4M in Q4 2024 to $29.1M in Q4 2025 (≈ -1.0% YoY). Payments from non-top-six solutions declined ~6.5% year-over-year, offsetting growth in top growth solutions.
Free Cash Flow and Operating Cash Trends
Levered free cash flow declined to $79.6M for the year from $94.3M the prior year (≈ -15.6%); adjusted unlevered free cash flow decreased to $130.5M from $134.5M (≈ -3.0%); cash flow from operations modestly decreased from $113.2M to $111.5M (≈ -1.5%).
Higher Capitalized Software and Nonrecurring Costs
Increased capitalized software expense of $12.2M and higher transaction-related and other nonrecurring costs offset some consolidated adjusted EBITDA gains for the year.
Slight Increase in Q4 Operating Spend as % of Revenue
Q4 adjusted operating expenses as a percentage of revenue rose from 47.6% to 48.3% (a 0.7 percentage-point increase) due to targeted growth investments in sales and marketing.
Seasonality and Near-Term Step-Down Into Q1
Q1 2026 guidance ($145.5M–$148.5M) is lower than Q4 2025 ($151.2M) due to typical seasonality and planned investments, signaling a near-term step down before expected reacceleration later in 2026.
Ongoing Transition and One-Time Impacts
Q4 results were impacted by the divestiture of the Marketing Technology business (sold 10/31/2025), and the company noted transaction-related and other nonrecurring costs that weighed on year-over-year cash flow comparisons.
Company Guidance
EverCommerce guided first‑quarter 2026 revenue of $145.5–$148.5 million and adjusted EBITDA of $39–$41 million (implying a Q1 adjusted EBITDA margin of roughly 26–28%), and full‑year 2026 revenue of $612–$632 million with adjusted EBITDA of $183–$191 million (implying an annual adjusted EBITDA margin around 30%); the company said the outlook assumes typical seasonality with stronger Q2/Q3 growth, continued investments in AI features, payments enablement and go‑to‑market, expects reacceleration through the year, anticipates less seasonal cash‑flow variability after the Marketing Technology sale (while noting Q1 is historically cash‑flow‑burdened), and reiterated liquidity of $130 million cash plus $155 million revolver capacity (stepping down to $125 million in July 2026) and total net leverage of approximately 2.2x.EverCommerce Financial Statement Overview
Summary
Material balance-sheet improvement driven by dramatic deleveraging and a return to positive net income in 2025, supported by consistently strong operating and free cash flow. Offsetting strengths are decelerating growth that turned negative in 2025 and still-thin net margins, suggesting the turnaround is not yet fully proven.Income Statement
Revenue growth has decelerated sharply, moving from strong growth in 2020–2022 to modest growth in 2023–2024 and a decline in 2025 (annual revenue growth: -3.9%). Profitability improved meaningfully versus prior years: the company swung to positive net income in 2025 ($17.6M) after losses in 2021–2024, and gross margin expanded to a very strong ~77.6% in 2025. Offsetting this, net margin remains thin (~3.0% in 2025) and EBITDA margin fell versus 2023–2024, signaling the turnaround is still early and sensitive to cost pressures.62
Positive
Balance Sheet
The balance sheet strengthened dramatically in 2025, with total debt dropping to ~$5.5M from ~$528M in 2024, driving debt-to-equity down to ~0.01x (from ~0.70x). Equity remains sizable (~$717M) relative to the asset base (~$1.37B), and return on equity turned positive in 2025 (~2.5%) after several years of negative returns. The main weakness is that returns are still low for the industry, implying profitability needs to scale to fully capitalize on the improved capital structure.80
Positive
Cash Flow
Cash generation is a clear strength: operating cash flow remained strong in 2024–2025 (~$113M to ~$111M) and free cash flow stayed high in 2025 (~$109M). Free cash flow covered net income in 2025 (about 1.0x), indicating earnings are supported by cash rather than accounting-only gains. However, free cash flow declined in 2025 (-8.5% growth) after prior improvement, and earlier years showed weaker cash coverage (notably 2021–2022), suggesting some volatility across cycles.74
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 588.91M | 698.76M | 675.37M | 620.75M | 490.14M |
| Gross Profit | 456.84M | 470.39M | 444.36M | 403.37M | 327.91M |
| EBITDA | 126.56M | 89.08M | 106.63M | 80.21M | 45.53M |
| Net Income | 17.60M | -41.09M | -45.62M | -59.82M | -81.97M |
Balance Sheet | |||||
| Total Assets | 1.37B | 1.42B | 1.52B | 1.59B | 1.66B |
| Cash, Cash Equivalents and Short-Term Investments | 129.73M | 135.78M | 92.61M | 92.63M | 93.99M |
| Total Debt | 537.20M | 527.94M | 532.20M | 536.45M | 546.13M |
| Total Liabilities | 654.92M | 670.44M | 692.03M | 685.03M | 677.73M |
| Stockholders Equity | 716.87M | 750.83M | 826.04M | 906.69M | 985.65M |
Cash Flow | |||||
| Free Cash Flow | 109.23M | 94.26M | 81.53M | 46.72M | 22.69M |
| Operating Cash Flow | 111.46M | 113.16M | 104.61M | 64.80M | 37.48M |
| Investing Cash Flow | -30.57M | -12.30M | -38.02M | -18.08M | -379.67M |
| Financing Cash Flow | -87.56M | -59.61M | -66.63M | -47.31M | 341.18M |
EverCommerce Technical Analysis
Negative
10.28
Price Trends
11.43
Negative
10.97
Negative
10.93
Negative
Market Momentum
0.03
Positive
40.10
Neutral
41.31
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EVCM, the sentiment is Negative. The current price of 10.28 is below the 20-day moving average (MA) of 11.10, below the 50-day MA of 11.43, and below the 200-day MA of 10.93, indicating a bearish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 40.10 is Neutral, neither overbought nor oversold. The STOCH value of 41.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EVCM.
EverCommerce Risk Analysis
EverCommerce disclosed 59 risk factors in its most recent earnings report. EverCommerce reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
EverCommerce Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $1.83B | 124.82 | 0.04% | ― | -11.61% | 99.07% | |
64 Neutral | $1.82B | 12.96 | 23.21% | 0.68% | 9.67% | 75.67% | |
63 Neutral | $2.46B | 22.10 | 66.41% | ― | -8.18% | 46.26% | |
63 Neutral | $1.20B | 39.43 | 5.36% | ― | 12.48% | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
53 Neutral | $1.90B | 2,127.18 | -2.72% | ― | 15.97% | 91.88% |
* Technology Sector Average
EVCM
EverCommerce
10.28
0.30
3.01%
TDC
Teradata
26.67
3.40
14.61%
EVTC
Evertec
29.48
-7.17
-19.56%
FIVN
Five9
15.73
-14.15
-47.36%
APPN
Appian
25.65
-3.82
-12.96%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.