EverCommerce Reports $148M Revenue in Q2 2025, Achieves Profitability Turnaround

EverCommerce Inc. reported a total revenue of $148.0 million for the second quarter of 2025, marking a 5.3% increase from $140.5 million in the same period of 2024. For the first half of 2025, revenues reached $290.3 million, up 4.3% from $278.4 million year-over-year. The growth was primarily driven by a rise in subscription and transaction fees, which increased by 5.3% to $142.8 million in Q2 2025, and by 4.3% to $280.6 million for the six-month period. The company also reported a net income of $8.2 million for the second quarter, a significant turnaround from a loss of $3.4 million in the prior year, while the net income for the first half of 2025 was $440,000 compared to a loss of $19.7 million in the same period of 2024.

In terms of operational metrics, EverCommerce served over 740,000 customers as of June 30, 2025, with a notable focus on three core verticals: home services, health services, and wellness services. The company has been actively engaged in a strategic review of its marketing technology solutions, which it plans to sell, classifying these assets as held for sale. This strategic shift is expected to significantly impact the company's operations and financial results. The company also reported a goodwill impairment charge of $6.9 million related to these marketing technology solutions during the first half of 2025.

EverCommerce's total operating expenses for the second quarter of 2025 were $132.2 million, slightly down from $132.8 million in the previous year. The company has made efforts to optimize its cost structure, resulting in a decrease in general and administrative expenses as a percentage of revenue. The company’s employee headcount remained stable, with a focus on maintaining operational efficiency while continuing to invest in product development and marketing initiatives. The company’s cash and cash equivalents increased to $151.1 million as of June 30, 2025, compared to $135.8 million at the end of 2024.

Looking ahead, EverCommerce anticipates continued revenue growth driven by its subscription-based business model and the expansion of its service offerings. The company maintains a strong annualized net revenue retention rate of approximately 97%, indicating solid customer loyalty and engagement. However, the company also acknowledges potential challenges posed by macroeconomic conditions, including inflation and rising interest rates, which could impact future performance. The company plans to leverage its existing cash reserves and available credit facilities to support ongoing operations and strategic initiatives, including potential acquisitions and investments in technology enhancements.

Overall, EverCommerce's financial performance in the second quarter of 2025 reflects a positive trajectory, with significant improvements in profitability and operational efficiency, alongside strategic initiatives aimed at enhancing its market position and customer offerings.