EverCommerce's Earnings Call: Payments Stability, AI Delays, and Pricing Strategies Don't Match

Date of Call: Aug 5, 2026

Financials Results

• Revenue: $152 million, up 2.7% from the prior year period
• Gross Margin: 78.6% adjusted gross margin
• Operating Margin: Adjusted EBITDA margin of 29.3%

Guidance:

• Q3 2026 total revenue expected to be $151.5 million-$154.5 million.
• Q3 2026 adjusted EBITDA expected to be $44 million-$46 million.
• Full year 2026 revenue expected to be $612 million-$632 million.
• Full year 2026 adjusted EBITDA expected to be $183 million-$191 million.
• Full year results expected to trend toward the lower end of guidance ranges.

Business Commentary:

Revenue and EBITDA Performance:

• EverCommerce reported revenue of $152 million for the second quarter of 2026, representing a 2.7% year-over-year increase.
• The company's adjusted EBITDA was $44.5 million, with an adjusted EBITDA margin of 29.3%, exceeding the top end of their guidance range.
• The performance was driven by investments in strategic priorities such as AI-powered workflows and cross-selling initiatives.

Customer Growth and Cross-Sell Strategy:

• Approximately 26% growth was observed in customers utilizing more than one solution, with 140,000 customers actively using multiple solutions, reflecting a 26% year-over-year increase.
• This growth was largely attributed to gains in the company's top six solutions, which are focusing on integrated payments, intelligent automation, and AI-driven workflows.

Payment Volume and Revenue Trends:

• The total payments volume (TPV) for the trailing twelve months was $13 billion, with TPV in the top six solutions growing 16.4% year-over-year.
• Payments revenue within these top solutions grew 8.5% year-over-year, representing over 48.5% of total payments revenue.
• This was driven by the company's payment strategy focusing on enabling payments at the point of initial SaaS sale and driving cross-sell within the existing customer base.

Guidance and Growth Expectations:

• For the third quarter of 2026, EverCommerce expects total revenue of $151.5 million-$154.5 million and adjusted EBITDA of $44 million-$46 million.
• The company maintains its full-year guidance but expects results to trend toward the lower end of the range, primarily due to slower-than-expected new customer acquisition in certain solutions.
• The company is focusing on pricing actions, disciplined expense management, and improving customer acquisition to drive growth from Q3 to Q4.

Leadership Transition and Strategic Focus:

• Eric Remer announced his decision to step down as CEO after nearly two decades, with Alex Goor assuming the role effective August 6th.
• The transition is seen as an opportunity to accelerate growth, focusing on leveraging technology to strengthen execution and optimize operations.

Sentiment Analysis:

Overall Tone: Neutral

• Management highlighted solid performance with revenue in line with guidance and adjusted EBITDA exceeding the top end. However, the full-year outlook was revised to the lower end of ranges due to slower-than-expected new customer acquisition, indicating cautious optimism.

Q&A:

• Question from Bhavin Shah (Deutsche Bank): Can you talk about what attracted you to EverCommerce and the opportunities ahead?
  Response: Alex Goor: The company is financially healthy with great business units and people; the potential to accelerate growth is seen as a major opportunity.

• Question from Bhavin Shah (Deutsche Bank): What drives confidence in re-acceleration of new customer acquisition in Q4?
  Response: Ryan Siurek: Pricing actions are in place with full impact expected in Q4; organic growth is expected to ramp, though only a portion of total Q4 growth. Matt Feierstein: Customer acquisition fundamentals are strong; a comprehensive plan is addressing AI-driven search behavior headwinds, with leading indicators improving.

• Question from Saket Kalia (Barclays): Why was now the right time for the CEO transition, and where will the new CEO focus energy?
  Response: Eric Remer: After nearly two decades, it was a good time for a transition; the business is in a great space with strong verticals. Alex Goor: Will spend the first 90 days learning the business in detail, with a focus on applying technology to strengthen execution and drive growth.

• Question from Saket Kalia (Barclays): What is the outlook for the legacy payments business?
  Response: Ryan Siurek: The goal is to maintain or grow revenue from the legacy payments base while focusing on growing the top six solutions; it is not viewed as a bottom but as a continued cash flow-accretive base.

• Question from Aaron Kimson (Citizens): What drove the legacy payment solution back to year-over-year growth in Q2 and visibility going forward?
  Response: Ryan Siurek: Expect to continue maintaining or growing revenue in the legacy payments, though it may fluctuate; the objective is to maintain stability while focusing growth on the top six solutions.

• Question from Aaron Kimson (Citizens): How did the opportunity to lead EverCommerce come about, and what are the lowest hanging fruit to sharpen execution?
  Response: Alex Goor: The opportunity came through a long-standing relationship with Silver Lake; identifying the most growth-driving execution opportunities is the focus, but it's early in the journey.

• Question from John (Raymond James): What gives confidence in EverPro customer acceleration in H2, and what are TPV trends and competitive environment?
  Response: Matt Feierstein: TPV per merchant is stable and healthy, with growth in top solutions as payment workflows improve. Retention was slightly better than expected. Confidence in customer acquisition is based on strong fundamentals and AI/search optimization efforts addressing organic traffic softness.

• Question from John (Raymond James): What are you seeing in the M&A environment?
  Response: Ryan Siurek: The focus is entirely on transforming the existing business; M&A is not a current priority, though strategically focused deals like ZyraTalk are considered if they offer higher ROI.

• Question from Matt Hedberg (RBC): Does the guidance imply a pickup in new business for EverPro or continued softness?
  Response: Ryan Siurek: Guidance reflects the current forecast without expecting a herculean turnaround; improvements are being made which could provide upside. Matt Feierstein: The guidance is based on the current run rate; efforts to improve organic traffic are underway but take time.

• Question from Matt Hedberg (RBC): Was the EverPro weakness in new customer acquisition geographic or product-line specific?
  Response: Matt Feierstein: The weakness was broad-based across product lines with significant organic search presence, not geographic; these are national and international products.

Contradiction Point 1

Growth Expectations and Strategic Focus

Contradiction on the growth trajectory and strategic priorities for the EverPro business, impacting investor expectations for business recovery.

Matt Hedberg (RBC) - Matt Hedberg (RBC)

2026Q2: The guidance reflects the current forecast trend, not a herculean turnaround. - [Ryan Siurek](CFO) and [Matt Feierstein](CEO of EverPro)

Does the guidance indicate a pickup in new business for EverPro or continued softness? - Alex Sklar (Raymond James)

2026Q1: The separation of EverPro and EverHealth has led to more mature businesses. While executional challenges existed during the transition, the current re-acceleration is driven by this maturity. - [Eric Remer](CEO)

Contradiction Point 2

Legacy Payments Business Outlook

Contradiction on the strategic focus and financial outlook for the legacy payments business, shifting from expecting growth to focusing on stability.

What is the CFO's follow-up regarding Saket Kalia's question? - Ryan Siurek (CFO) - Follow-up on Saket Kalia's question

2026Q2: The focus is not on finding a bottom but on maintaining the cash flow and stability of the legacy payments business while investing in the high-growth top six solutions. - [Ryan Siurek](CFO)

Where do you see the bottom of the other payments businesses outside the top six solutions? - Bhavin Shah (Deutsche Bank)

2026Q1: The full-year guidance remains unchanged, expecting continued growth, especially in the back half. - [Ryan Siurek](CFO)

Contradiction Point 3

AI Product Roadmap and Release Timing

Contradiction on the timeline for key AI product releases between EverPro and EverHealth, affecting expectations for technological advancement and competitive positioning.

Saket Kalia (Barclays) - Saket Kalia (Barclays)

2026Q2: Focus will be on spending the first 90 days learning the business. Near-term, the priority is to apply technology to strengthen execution and drive better, more optimized growth. - [Alex Goor](CEO)

Why was now the right time for Eric to step aside, and where will Alex focus his efforts once settled in? - Dan Bergstrom (for Matt Hedberg, RBC)

20260313-2025 Q4: The AI voice reception component is expected to be released in the second half of 2026. The shared agentic platform is a second-half 2026 component. - [Matthew Feierstein](CEO of EverPro)

Contradiction Point 4

Primary Objective of the ZyraTalk Acquisition

Contradiction on whether the acquisition was mainly for technology/AI or for its customer base, affecting strategic focus and resource allocation.

John (Raymond James, on for Alex) - John (Raymond James, on for Alex)

2026Q2: The focus is entirely on transforming the existing business. M&A will be strategically focused and only pursued if it offers a higher ROI than internal transformation. Recent acquisitions like ZyraTalk have been valuable for AI capabilities. - [Ryan Siurek](CFO)

What are you seeing in the M&A environment? - Bhavin Shah (Deutsche Bank)

20251107-2025 Q3: The primary value of the acquisition is ZyraTalk's AI platform... The main acquisition thesis was the technology and AI capabilities... The revenue model includes both subscription and usage-based components... - [Eric Remer](CEO) and [Ryan Siurek](CFO)

Contradiction Point 5

Strategic Approach to Pricing Models

Contradiction on commitment to existing pricing models versus openness to consumption-based models, influencing revenue predictability and customer expectations.

What were Deutsche Bank's Q2 earnings highlights? - Bhavin Shah (Deutsche Bank)

2026Q2: The Q4 re-acceleration is based on: 1. Pricing Actions: Most pricing increases are in place... - [Ryan Siurek](CFO) and [Matt Feierstein](CEO of EverPro)

What factors or strategies are driving confidence in Q4's re-acceleration and ensuring a return to prior performance levels? - Matt Hedberg (RBC)

20251107-2025 Q3: ...EverCommerce will continue its existing pricing mechanisms. While they will evaluate the market, there is no strategic shift toward a purely variable or consumption-based model. - [Eric Remer](CEO) and [Josh McCarter](CPO)