EverCommerce revenue rises 2.7% to $151.4 million in third quarter
Key Facts
EverCommerce reported on November 5 results for the quarter ended September 30, posting continuing-operations revenue of $151.4 million, up 2.7% from the year-earlier period. Revenue came in below the low end of the range the company set in August, despite rising year over year. Meanwhile, net income from continuing operations was $6.0 million, or $0.03 per basic and diluted share. The company recorded net income of $5.8 million, or $0.03 per share, in the third quarter of 2025. The results showed a divergence between revenue growth and stable earnings per share under the company’s reported measure.
Subscription and transaction fee revenue, which includes recurring and transaction fees, rose to $148.2 million from $142.2 million a year earlier, an annual increase of 4.2%. Total continuing-operations revenue grew at a slower pace, reaching $151.4 million compared with $147.5 million. Adjusted EBITDA was $45.0 million, versus $46.5 million in the year-earlier period. The company’s August guidance for the metric was between $44 and $46 million, putting the actual result at the midpoint of the range. Revenue therefore came in below its stated range, while adjusted EBITDA landed within its range.
Chief Executive Alex Gore said revenue came in below the low end of the company’s guidance, attributing the shortfall mainly to items that do not recur monthly. He said these included vendor rebates and delays in stages of security and alarm projects. He added that continued weakness in customer acquisition through organic search weighed on performance. Gore said, “The revenue gap was primarily driven by items unrelated to monthly recurring revenue, including vendor rebates and delays in stages of security and alarm projects.” In his account, these factors reflected a mix of project timing and customer acquisition sources. Sales and marketing expenses were $33.311 million in the quarter, compared with $26.526 million a year earlier.
The comparison with the previous quarter shows annual revenue growth remained at 2.7%; the company reported $152.0 million in continuing-operations revenue in the second quarter, up 2.7% from the year-earlier period. Net income was $9.7 million, while adjusted EBITDA reached $44.5 million, compared with $45.0 million in the second quarter of 2025. In the third quarter, revenue edged down from its second-quarter level, while adjusted EBITDA rose to $45.0 million from $44.5 million. These figures provide context on activity and profitability through the year, alongside the company’s year-over-year comparison for the latest quarter. The company’s statement described its business as serving more than 745 thousand small and midsize businesses worldwide in sectors including home, health and wellness.
Cash and cash equivalents totaled $139.007 million on September 30, 2026, compared with $129.730 million on December 31, 2025. During the three months ended September, the company repurchased and canceled 1.6 million shares for about $15.7 million. It said $28.5 million remained available under its repurchase program on September 30. These figures place cash and buybacks within the quarter’s results, alongside fee growth and the year-over-year decline in adjusted EBITDA. The company also issued its full-year 2026 outlook, calling for revenue of about $600 million and adjusted EBITDA of about $170 million. Gore said the company is targeting a return to accelerating revenue as it exits 2027, and that the updated outlook includes targeted investment in paid advertising for its product-led growth businesses.