EverCommerce Reports Q1 2025 Revenue of $142.3 Million, Operating Income Turnaround

EverCommerce Inc. reported its financial results for the first quarter of 2025, revealing total revenues of $142.3 million, a 3.2% increase from $137.9 million in the same period of 2024. The growth was primarily driven by a rise in subscription and transaction fees, which reached $137.8 million, up from $133.4 million a year earlier. The company recorded an operating income of $14.2 million, a significant turnaround from an operating loss of $4.3 million in the prior year. However, the net loss for the quarter was $7.7 million, an improvement from a net loss of $16.3 million in Q1 2024.

The company’s financial performance was bolstered by a reduction in total operating expenses, which fell to $128.1 million from $142.1 million year-over-year. This decrease was attributed to lower depreciation and amortization costs, as well as a significant reduction in losses related to held-for-sale assets. Notably, EverCommerce recognized a $9.4 million impairment charge related to its marketing technology solutions, which are classified as discontinued operations. This strategic decision to divest these assets is expected to have a major impact on the company's future operations.

As of March 31, 2025, EverCommerce served over 740,000 customers across its three core verticals: EverPro for Home Services, EverHealth for Health Services, and EverWell for Wellness Services. The company reported a net revenue retention rate of approximately 97%, indicating strong customer loyalty and engagement. The company’s cash and cash equivalents increased to $148.4 million, up from $135.8 million at the end of 2024, reflecting improved cash flow from operations, which provided $30.7 million during the quarter.

In terms of strategic developments, EverCommerce is actively pursuing the sale of its marketing technology solutions, which it expects to complete in 2025. This decision aligns with the company's focus on its core SaaS offerings and is part of a broader strategy to streamline operations and enhance profitability. The company also repurchased approximately 1.1 million shares of its common stock for $11.2 million during the quarter, with $21.6 million remaining under its stock repurchase program.

Looking ahead, EverCommerce anticipates continued revenue growth driven by its subscription-based model and the expansion of its service offerings. The company remains committed to optimizing its operations and improving margins, despite the challenges posed by macroeconomic conditions. The management expressed confidence in the company’s ability to navigate these challenges and achieve its strategic objectives, while also addressing the material weakness in internal controls over financial reporting that was identified in previous filings.