EverCommerce Q3 Revenue Below Guidance, 2026 Sales Seen Near $600M

EverCommerce (EVCM) reported third-quarter 2026 revenue of $151.4 million, up 2.7% from a year earlier but slightly below the low end of its guidance range, as new-customer acquisition remained soft and rebates and other revenue fell short of the company’s expectations. Adjusted EBITDA was $45.0 million, at the midpoint of guidance, with an adjusted EBITDA margin of 29.7%.

The software provider said third-quarter pro forma revenue increased 2.1% year over year, including estimated pre-acquisition revenue from ZyraTalk in prior-year periods. Pro forma revenue for the 12 months ended in the quarter was $602.1 million, representing growth of 2.9%.

Profitability remained supported by cost discipline even as EverCommerce invested in artificial intelligence capabilities and other growth initiatives. The adjusted gross margin rose to 79.3% from 77.3% a year earlier, while the adjusted EBITDA margin declined from 31.5%.

Payments and cross-selling support growth

Payments revenue increased 6.4% year over year, led by 15.0% growth across six products that are the company’s primary focus for payments investment: Invoice Simple, Joist, Service Fusion, DrChrono, CollaborateMD and Timely.

Those six solutions accounted for 50% of third-quarter payments revenue, up from 46% a year earlier, and 37% of pro forma total payments volume, compared with 32%. Their pro forma trailing-12-month payments volume rose 15.6%, while EverCommerce’s overall pro forma payments volume reached $13.1 billion.

Management said payments generate an incremental adjusted EBITDA margin of more than 95%. The company characterized the rest of its payments portfolio as durable, cash-generating assets that can help fund investment in its priority products.

Cross-selling also continued to expand. About 147,000 customers actively used more than one EverCommerce solution at the end of the quarter, an increase of 27.0% from a year earlier and a roughly 30% compound annual growth rate since the first quarter of 2025. The number of customers enabled for multiple solutions rose 17.4% to approximately 324,000.

Cash generation and capital allocation

EverCommerce generated $32.9 million from continuing operations during the quarter and ended September with $139 million in cash and equivalents. Its leverage ratio was 2.2 times, with gross debt of $523 million and trailing-12-month adjusted EBITDA of $174 million. The company also had $125 million of undrawn revolving-credit capacity available through July 2030.

Third-quarter levered free cash flow was $24.6 million, while adjusted unlevered free cash flow was $31.9 million. On a trailing-12-month basis, those measures totaled $73.0 million and $114.9 million, respectively, representing margins of 11.9% and 18.8%. Both non-GAAP cash-flow measures include continuing and discontinued operations.

The company repurchased 1.6 million shares for $15.7 million during the quarter. At Sept. 30, $28.5 million remained under its $325 million repurchase authorization.

2026 outlook and operating priorities

EverCommerce expects full-year 2026 revenue of approximately $600 million and adjusted EBITDA of about $170 million. The outlook incorporates additional fourth-quarter spending on paid marketing and other growth initiatives, reduced new-customer acquisition consistent with current trends, rebates in line with the prior-year period and lower other revenue because of expected delays in milestone implementations.

The company also outlined leadership changes intended to strengthen execution. Alex Goor is serving as chief executive officer and a board member, while Chris Rogers has been appointed chief technology officer. Andrew Hausman is leading EverPro, Brian Caulfield is serving as interim president of EverHealth during the search for a permanent leader, and Gim Lau has become chief strategy officer.

Management identified customer-focused product development, platform improvements, value-based pricing and greater accountability for customer and growth outcomes as key priorities. The company said it plans to invest dynamically as it identifies opportunities to support growth.

The presentation highlighted slower new-customer acquisition, macroeconomic effects and timing issues affecting rebates, and implementation delays as near-term constraints. EverCommerce also cautioned that its outlook depends on current expectations and is subject to operational, strategic and financial uncertainties. Because of the variability of items including stock-based compensation, the company did not provide a reconciliation of forecast adjusted EBITDA to the most directly comparable GAAP measure.