EverCommerce Inc. Q4 FY2025 earnings call

2025 was a year of change with standing up vertical business units, selling marketing technology business, acquiring ZyraTalk, deploying capital for share repurchase and credit facility repricing. Met or exceeded financial targets. Built AI operating system for service S&P workflows. Offered end-to-end solutions to over 745,000 customers. AI is a force multiplier for customers, not a threat. In EverHealth, AI enables administrative work automation, clinical workflow improvement, financial performance enhancement. Examples include EverHealth Scribe with 99.1% satisfaction rate, eight minutes per patient documentation time savings, no-show predictor resulting in increased revenue capture. Enabling customers to multiple solutions is key driver of growth, with 286,000 customers enabled for more than one solution and 121,000 actively utilizing more than one solution at end of fourth quarter. Net revenue retention 96%, multi-solution customers above 100%. Top six solutions TPV grew 17.4% y-o-y, representing 36% of total TPV. Matt Feierstein added role of EverPro's CEO.

In the fourth quarter, revenue was $151.2 million, up 5.2% y-o-y. Subscription and transaction revenue was $144.1 million. Adjusted EBITDA for the quarter was $44.2 million, 29.2% margin. EverPro and EverHealth verticals represent approximately 95% of consolidated revenue. Pro-former LTM revenue was $591.7 million, 6.4% y-o-y growth. Annualized TPV expanded to $13 billion. Fourth quarter adjusted gross profit was $117 million, 77.5% margin. Adjusted operating expenses were relatively flat y-o-y as % of revenue, increasing slightly from 47.6% to 48.3% for the quarter, and improved from 48.6% to 46.9% for LTM. Cash flow from operations for the year was $111.5 million. Levered free cash flow for the year was $79.6 million. Adjusted unlevered free cash flow for the year was $130.5 million. Ended the quarter with $130 million in cash and cash equivalents and $155 million of undrawn capacity on revolver, stepping down to $125 million in July 2026. $527 million of debt outstanding, total net leverage approximately 2.2 times. Repurchased 2.5 million shares for $24.8 million in fourth quarter.

For first quarter 2026, expect total revenue $145.5 million to $148.5 million and adjusted EBITDA $39 million to $41 million. For full year 2026, expect revenue $612 million to $632 million and adjusted EBITDA $183 million to $191 million. Guide assumes typical seasonal performance with stronger second and third quarter growth. Focus on AI-based features, payments enablement, and go-to-market organization investments. Less seasonal variability in cash flow from operations expected with successful sale of marketing technology business, though first quarter historically has higher cash outflows.

Q: Alex Klar with Raymond James asked about customer appetite for agentic functionality and ROI of existing solutions.

A: Matt talked about EverPro's AI journey phases, ZyraTalk's role, and future agentic platform. Evan talked about EverHealth's AI Scribe launch with positive metrics.

Q: Eric Kimson with Citizens asked about payments revenue decline and modes for business as agentic AI accelerates.

A: Revenue decline not related to MarTech divestiture, top six solutions focus. Matt and Evan discussed advantages like ZyraTalk's data, deep niche vertical expertise for EverPro and EverHealth.

Q: Bill McNamara with Evercore ISI asked about incremental revenue per customer using no show prediction tool.

A: Evan said no show prediction tool is not a la carte, included in packages, and updated package set with increased prices will drive ASP.

Q: Matt Hedberg with RBC asked about confidence points in guidance and AI product roadmap timing.

A: Ryan talked about seasonality and reacceleration expectations. Matt and Evan talked about EverHealth Scribe general availability by end of quarter, EverPro and EverHealth AI product roadmap timelines