[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) EverCommerce achieved strong financial performance in Q2 2025, exceeding guidance for revenue and Adjusted EBITDA, driven by revenue re-acceleration and cost optimization initiatives [Q2 2025 Financial Highlights](index=1&type=section&id=Q2%202025%20Financial%20Highlights) EverCommerce exceeded Q2 2025 revenue and Adjusted EBITDA guidance, achieving net income from continuing operations, reversing prior year's loss Q2 2025 Financial Highlights | Metric | Q2 2025 (Millions USD) | Q2 2024 (Millions USD) | YoY Growth (%) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------- | | Revenue from Continuing Operations | 148.0 | 140.5 | 5.3% | | Pro Forma Revenue from Continuing Operations | 148.0 | 137.8 | 7.4% | | Subscription and Transaction Fees Revenue from Continuing Operations | 142.8 | 135.7 | 5.3% | | Pro Forma Subscription and Transaction Fees Revenue from Continuing Operations | 142.8 | 133.0 | 7.4% | | Net Income (Loss) from Continuing Operations | 5.8 (Net Income) | (2.6) (Net Loss) | N/A | | Basic and Diluted Earnings (Loss) Per Share from Continuing Operations | 0.03 (Earnings) | (0.02) (Loss) | N/A | | Adjusted EBITDA from Continuing Operations | 45.0 | 39.4 | 14.2% | [CEO Commentary and Strategic Priorities](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Priorities) CEO Eric Remer highlighted Q2 performance exceeding guidance, attributing success to revenue re-acceleration and cost optimization, with focus on customer experience and AI integration - EverCommerce's second quarter results exceeded the high end of revenue and Adjusted EBITDA guidance[3](index=3&type=chunk) - Company strategic priorities include revenue re-acceleration and cost optimization[3](index=3&type=chunk) - The company is executing a transformation plan focused on improving customer experience, optimizing payment workflows and adoption, product enhancements, and embedded AI capabilities[3](index=3&type=chunk) [Share Repurchases](index=1&type=section&id=Share%20Repurchases) EverCommerce repurchased 2 million shares for approximately $20.6 million in Q2 2025, with $51.1 million remaining under the program - The company repurchased and retired **2 million shares** of common stock during the three months ended June 30, 2025[4](index=4&type=chunk) - The total repurchase amount was approximately **$20.6 million**[4](index=4&type=chunk) - As of June 30, 2025, **$51.1 million** remained available under the share repurchase program[4](index=4&type=chunk) [Business Outlook](index=2&type=section&id=Business%20Outlook) The company provides financial guidance for Q3 and full-year 2025, projecting continued growth in revenue and Adjusted EBITDA from continuing operations [Third Quarter 2025 Guidance](index=2&type=section&id=Third%20Quarter%202025%20Guidance) EverCommerce issued financial guidance for Q3 2025 continuing operations, expecting revenue and Adjusted EBITDA within specified ranges Q3 2025 Guidance | Metric | Q3 2025 Guidance (Millions USD) | | :------------- | :---------------------------- | | Revenue | 146.5 - 149.5 | | Adjusted EBITDA | 41.0 - 43.0 | [Full Year 2025 Guidance](index=2&type=section&id=Full%20Year%202025%20Guidance) The company provided full-year 2025 financial guidance for continuing operations, anticipating sustained growth in revenue and Adjusted EBITDA Full Year 2025 Guidance | Metric | Full Year 2025 Guidance (Millions USD) | | :------------- | :------------------------ | | Revenue | 581.0 - 601.0 | | Adjusted EBITDA | 171.0 - 177.0 | [Company Information](index=2&type=section&id=Company%20Information) This section provides an overview of EverCommerce's business model and details for investor and media engagement [About EverCommerce](index=2&type=section&id=About%20EverCommerce) EverCommerce is a leading service commerce platform offering integrated SaaS solutions to over 740,000 service businesses across various sectors - EverCommerce is a leading service commerce platform providing vertically-tailored, integrated SaaS solutions[10](index=10&type=chunk) - The company helps over **740,000** global service businesses accelerate growth, streamline operations, and improve customer retention[10](index=10&type=chunk) - Key brands include EverPro (home), EverHealth (health), and EverWell (wellness), offering end-to-end business management software, embedded payments, marketing technology, and customer experience applications[10](index=10&type=chunk) [Conference Call and Contact Information](index=2&type=section&id=Conference%20Call%20and%20Contact%20Information) EverCommerce will host a conference call on August 6, 2025, to discuss Q2 results, with investor and media contact details provided - A conference call will be held on August 6, 2025, at 5:00 PM ET to discuss second quarter results and outlook[9](index=9&type=chunk) - Investors can access the call and webcast, along with presentation materials, via the company's website (https://investors.evercommerce.com)[9](index=9&type=chunk) - Investor Contact: Brad Korch (SVP and Head of Investor Relations), Media Contact: Jeanne Trogan (VP of Communications)[10](index=10&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements subject to risks and uncertainties that may cause actual results to differ materially, with no obligation to update - This press release contains forward-looking statements regarding future operations, financial results, cost savings, transformation optimization, strategic alternatives, market opportunities, share repurchases, and growth potential[12](index=12&type=chunk) - These statements involve known and unknown risks, uncertainties, and other important factors that could cause actual results to differ materially from expectations[12](index=12&type=chunk) - The company undertakes no obligation to update such forward-looking statements, even if subsequent events cause views to change[12](index=12&type=chunk) [Non-GAAP Financial Measures and Key Performance Metrics Definitions](index=4&type=section&id=Non-GAAP%20Financial%20Measures%20and%20Key%20Performance%20Metrics%20Definitions) This section defines non-GAAP financial measures and key performance metrics used by EverCommerce, explaining their purpose and limitations [General Principles of Non-GAAP Measures](index=4&type=section&id=General%20Principles%20of%20Non-GAAP%20Measures) EverCommerce uses non-GAAP financial measures for internal analysis and investor evaluation, emphasizing they are not substitutes for GAAP metrics - EverCommerce uses non-GAAP financial measures for internal analysis and believes they are useful for investors to assess ongoing operating performance and trends[13](index=13&type=chunk) - Non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures and should be read in conjunction with the GAAP consolidated financial statements[14](index=14&type=chunk) - Reconciliations of historical non-GAAP financial measures to the most directly comparable GAAP measures are provided in this press release[14](index=14&type=chunk) [Pro Forma Revenue and Subscription & Transaction Fees Revenue](index=4&type=section&id=Pro%20Forma%20Revenue%20and%20Subscription%20%26%20Transaction%20Fees%20Revenue) Pro Forma Revenue and Subscription & Transaction Fees Revenue are key management metrics for evaluating combined operating performance, standardizing acquisition and divestiture impacts - Pro Forma Revenue and Pro Forma Subscription and Transaction Fees Revenue are key metrics used by management to evaluate the combined operating performance of continuing operations[15](index=15&type=chunk) - These metrics are calculated assuming all acquisitions and divestitures were completed at the beginning of the reporting period to measure the potential revenue growth of the business[16](index=16&type=chunk) - These metrics do not represent organic revenue generated by the business at the beginning of the period and are not necessarily indicative of future operating results[16](index=16&type=chunk) [Adjusted Gross Profit](index=4&type=section&id=Adjusted%20Gross%20Profit) Adjusted Gross Profit is a key management metric for assessing operational performance, reflecting revenue and direct costs by excluding depreciation and amortization - Adjusted Gross Profit is a key metric used by management to evaluate operating performance, reflecting the results of revenue and direct costs[17](index=17&type=chunk) - It is calculated by subtracting depreciation and amortization allocated to cost of revenue from gross profit[18](index=18&type=chunk) - This metric aims to reflect the operating gross margin and exclude the impact of indirect costs, financing methods, and income taxes[17](index=17&type=chunk) [Adjusted EBITDA](index=5&type=section&id=Adjusted%20EBITDA) Adjusted EBITDA is a key management metric for evaluating financial performance and internal planning, adjusting net income for various non-operating and non-cash items - Adjusted EBITDA is a key metric used by management to evaluate financial performance and for internal planning and forecasting[19](index=19&type=chunk) - It is calculated by adjusting net income (loss) to exclude interest and other expenses, income tax expense, depreciation and amortization, other amortization, stock-based compensation expense, and transaction-related and other non-recurring or unusual costs[21](index=21&type=chunk) - This metric aims to provide a comparable operating overview and assist investors in inter-company comparisons, but its inherent limitations include the exclusion of certain items and potential non-comparability with similar metrics used by other companies[19](index=19&type=chunk)[20](index=20&type=chunk) [Condensed Consolidated Financial Statements](index=6&type=section&id=Condensed%20Consolidated%20Financial%20Statements) This section presents EverCommerce's condensed consolidated financial statements, including balance sheets, statements of operations, and cash flows [Condensed Consolidated Balance Sheets](index=6&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, EverCommerce's balance sheet shows a slight decrease in total assets, an increase in cash, and minor shifts in liabilities and equity Condensed Consolidated Balance Sheets | Metric (Thousands USD) | June 30, 2025 | December 31, 2024 | | :------------------------ | :------------ | :------------- | | **Assets** | | | | Cash and cash equivalents | 151,060 | 135,782 | | Total current assets | 279,273 | 218,314 | | Goodwill | 867,205 | 863,152 | | Total assets | 1,419,005 | 1,421,268 | | **Liabilities and Stockholders' Equity** | | | | Total current liabilities | 117,921 | 110,726 | | Long-term debt (net) | 520,294 | 522,442 | | Total liabilities | 675,027 | 670,442 | | Total stockholders' equity | 743,978 | 750,826 | [Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) In Q2 2025, EverCommerce reported revenue growth and net income from continuing operations, a significant improvement from the prior year's net loss Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :----------- | :----------- | | Total revenue | 148,015 | 140,523 | 290,288 | 278,375 | | Operating income | 15,802 | 7,703 | 30,007 | 3,407 | | Net income (loss) from continuing operations | 5,761 | (2,552) | 6,695 | (18,562) | | Net income (loss) | 8,153 | (3,376) | 440 | (19,700) | | Basic and diluted earnings (loss) per share from continuing operations (USD) | 0.03 | (0.02) | 0.04 | (0.10) | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For H1 2025, EverCommerce saw increased cash flow from operations, higher cash used in investing, and reduced cash used in financing activities Condensed Consolidated Statements of Cash Flows | Metric (Thousands USD) | YTD 2025 | YTD 2024 | | :------------------------ | :----------- | :----------- | | Net cash provided by operating activities | 57,659 | 37,216 | | Net cash used in investing activities | (13,745) | (8,526) | | Net cash used in financing activities | (29,576) | (34,190) | | Net increase (decrease) in cash, cash equivalents, and restricted cash | 15,278 | (6,138) | | Cash, cash equivalents, and restricted cash at end of period | 151,060 | 90,041 | [Non-GAAP Financial Measures Reconciliations](index=11&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliations) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including pro forma revenue, adjusted gross profit, and adjusted EBITDA [Pro Forma Revenue Reconciliation](index=11&type=section&id=Pro%20Forma%20Revenue%20Reconciliation) This reconciliation details the calculation from GAAP revenue to pro forma revenue by excluding divestiture-related revenue for a comparable view Pro Forma Revenue Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------ | :------------- | :------------- | :----------- | :----------- | | Revenue | 148,015 | 140,523 | 290,288 | 278,375 | | Less: Divestiture revenue | — | (2,712) | — | (8,115) | | **Pro Forma Revenue** | **148,015** | **137,811** | **290,288** | **270,260** | [Pro Forma Subscription and Transaction Fees Revenue Reconciliation](index=11&type=section&id=Pro%20Forma%20Subscription%20and%20Transaction%20Fees%20Revenue%20Reconciliation) This reconciliation illustrates the conversion from GAAP subscription and transaction fees revenue to pro forma, excluding divestiture revenue Pro Forma Subscription and Transaction Fees Revenue Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------ | :------------- | :------------- | :----------- | :----------- | | Subscription and transaction fees revenue | 142,841 | 135,684 | 280,620 | 269,066 | | Less: Divestiture revenue | — | (2,688) | — | (8,013) | | **Pro Forma Subscription and Transaction Fees Revenue** | **142,841** | **132,996** | **280,620** | **261,053** | [Adjusted Gross Profit Reconciliation](index=11&type=section&id=Adjusted%20Gross%20Profit%20Reconciliation) This reconciliation shows the calculation from GAAP gross profit from continuing operations to Adjusted Gross Profit by adding back depreciation and amortization Adjusted Gross Profit Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------ | :------------- | :------------- | :----------- | :----------- | | Gross profit from continuing operations | 110,067 | 103,804 | 216,500 | 204,688 | | Add: Depreciation and amortization | 4,553 | 5,158 | 9,205 | 10,625 | | **Adjusted Gross Profit from Continuing Operations** | **114,620** | **108,962** | **225,705** | **215,313** | [Adjusted EBITDA Reconciliation](index=12&type=section&id=Adjusted%20EBITDA%20Reconciliation) This reconciliation details adjustments from GAAP net income (loss) from continuing operations to Adjusted EBITDA, providing a non-GAAP measure of core operating performance Adjusted EBITDA Reconciliation | Metric (Thousands USD) | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------------- | :------------- | :------------- | :----------- | :----------- | | Net income (loss) from continuing operations | 5,761 | (2,552) | 6,695 | (18,562) | | Add: Interest and other expenses (net) | 8,798 | 9,552 | 21,557 | 15,343 | | Add: Income tax expense | 1,243 | 703 | 1,755 | 6,626 | | Add: Depreciation and amortization | 16,589 | 19,901 | 33,357 | 40,805 | | Add: Other amortization | 1,541 | 1,321 | 3,023 | 2,632 | | Add: Stock-based compensation expense | 8,072 | 6,247 | 14,827 | 11,657 | | Add: Transaction-related and other non-recurring or unusual costs | 2,953 | 4,261 | 8,688 | 19,582 | | **Adjusted EBITDA from Continuing Operations** | **44,957** | **39,433** | **89,902** | **78,083** |

Core Insights - EverCommerce Inc. reported strong financial results for Q2 2025, exceeding guidance for both Revenue and Adjusted EBITDA, driven by strategic priorities of revenue reacceleration and cost optimization [3][8]. Financial Performance - Revenue from continuing operations for Q2 2025 was $148.0 million, a 5.3% increase from $140.5 million in Q2 2024. Pro Forma Revenue, excluding fitness, increased 7.4% to $148.0 million compared to $137.8 million in Q2 2024 [8]. - Subscription and transaction fees revenue from continuing operations was $142.8 million, up 5.3% from $135.7 million in Q2 2024. Pro Forma subscription and transaction fees revenue, excluding fitness, also increased 7.4% to $142.8 million from $133.0 million in Q2 2024 [8]. - Net income from continuing operations was $5.8 million, or $0.03 per share, compared to a net loss of $2.6 million, or $(0.02) per share, in Q2 2024 [8]. - Adjusted EBITDA from continuing operations was $45.0 million for Q2 2025, compared to $39.4 million in Q2 2024 [8]. Share Repurchase Program - The company repurchased and retired 2.0 million shares of common stock for approximately $20.6 million during Q2 2025. As of June 30, 2025, $51.1 million remained available under the Repurchase Program [4][5]. Business Outlook - For Q3 2025, revenue is expected to be in the range of $146.5 million to $149.5 million, and Adjusted EBITDA is anticipated to be between $41.0 million and $43.0 million [9]. - For the full year 2025, revenue is projected to be between $581.0 million and $601.0 million, with Adjusted EBITDA expected in the range of $171.0 million to $177.0 million [14]. Key Performance Metrics - Pro Forma Revenue for Q2 2025 was $148.0 million, compared to $137.8 million in Q2 2024, reflecting a year-over-year growth rate of 7.4% [36]. - Pro Forma Subscription and Transaction Fees Revenue for Q2 2025 was $142.8 million, up from $132.996 million in Q2 2024, indicating a growth rate of 7.4% [38]. - Adjusted EBITDA for Q2 2025 was $44.957 million, compared to $39.433 million in Q2 2024, showing a significant increase [39].

Core Insights - EverCommerce Inc. has successfully repriced and extended the maturities of its existing Term Loan B and Revolving Credit Facilities, enhancing its capital structure and financial flexibility [1][2] Financial Details - The company refinanced its $529.4 million term loan facility with a new class of Term B-2 Loans, extending the maturity by 3 years to July 6, 2031, and reducing the interest rate by 25 basis points to SOFR plus 2.25% [1] - The maturity date for $125 million of commitments under the existing revolver was extended to July 29, 2030, with a similar interest rate reduction of 25 basis points to SOFR plus 2.00% [1] - The expected annual cash interest expense is projected to decrease by approximately $1.3 million due to these changes [2] Company Overview - EverCommerce is a leading service commerce platform that provides integrated SaaS solutions to over 725,000 global service-based businesses, focusing on growth acceleration, operational streamlining, and customer retention [3] - The company operates under brands such as EverPro, EverHealth, and EverWell, specializing in Home, Health, and Wellness service industries [3]

Core Viewpoint - EverCommerce Inc. is set to report its second quarter 2025 financial results on August 6, 2025, after U.S. financial markets close [1] Group 1: Financial Reporting - The financial results will be discussed in a conference call scheduled for August 6 at 5:00 p.m. Eastern Time [2] - Access to the conference call will be available via the Company's Investor Relations page, with a replay archived on the website [2] Group 2: Company Overview - EverCommerce is a leading service commerce platform that provides integrated SaaS solutions for over 725,000 service-based businesses globally [3] - The company specializes in vertical markets such as Home, Health, and Wellness through its brands EverPro, EverHealth, and EverWell [3] - EverCommerce offers end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [3]

Core Insights - Security Information Systems (SIS) has formed a strategic partnership with Carahsoft Technology Corp. to enhance its presence in the Public Sector, allowing government entities to access SIS's advanced security solutions [1][2] - The collaboration aims to modernize security capabilities across government sectors, providing tools for improved situational awareness and streamlined alarm monitoring [2][4] Company Overview - EverCommerce, the parent company of SIS, is a leading service commerce platform that offers integrated SaaS solutions to over 725,000 service-based businesses globally [5] - Carahsoft is recognized as a trusted IT solutions provider for the Public Sector, delivering a wide range of technology solutions through various contract vehicles [7] Partnership Benefits - The partnership will enable government agencies to integrate legacy and modern security systems, enhancing operational efficiency and public safety [4][6] - SIS's solutions will allow for centralized command and control, optimizing responses to security alerts and automating alarm verification [6] - The collaboration simplifies procurement processes for government entities, ensuring quick and cost-effective access to the latest security technologies [6]

Core Insights - EverCommerce Inc. has appointed Amy Guggenheim Shenkan to its Board of Directors, enhancing its leadership team with her extensive experience in technology and digital transformation [1][2][3] Company Overview - EverCommerce is a leading service commerce platform that provides vertically-tailored, integrated SaaS solutions to over 725,000 global service-based businesses, focusing on growth acceleration, operational streamlining, and customer retention [4] - The company operates under brands such as EverPro, EverHealth, and EverWell, offering end-to-end business management software, payment acceptance, marketing technology, and customer experience applications [4] Leadership and Strategy - Ms. Shenkan's background includes leadership roles at notable companies such as Wells Fargo and McKinsey & Company, emphasizing innovation and digital transformation [2] - The CEO of EverCommerce expressed enthusiasm about Ms. Shenkan's appointment, highlighting her potential contributions to the company's ongoing transformation and AI integration efforts [3]

Core Insights - EverCommerce Inc. reported first-quarter sales of $142.27 million, exceeding analyst expectations of $139.57 million, while earnings per share were 1 cent, below the consensus estimate of 3 cents [1][2] - The company anticipates second-quarter sales between $144.5 million and $147.5 million, slightly below market estimates of $145.93 million [2] Financial Performance - First-quarter sales of $142.27 million surpassed the analyst consensus estimate by approximately 1.5% [1] - Quarterly earnings per share of 1 cent missed the analyst consensus estimate by 2 cents [1] Management Commentary - CEO Eric Remer highlighted strong execution and active cost management as key drivers of performance, along with ongoing transformation and optimization initiatives [2] - Strategic investments in high-margin areas, including payments monetization and artificial intelligence, are part of the company's growth strategy [2] Stock Performance - Following the earnings announcement, EverCommerce shares increased by 2.4%, reaching a trading price of $11.26 [3] - Analysts adjusted their price targets for EverCommerce, with Canaccord Genuity raising it from $13 to $14 and Barclays increasing it from $9 to $11 [8]

Company Performance - EverCommerce reported quarterly earnings of $0.01 per share, missing the Zacks Consensus Estimate of $0.04 per share, compared to a loss of $0.09 per share a year ago, representing an earnings surprise of -75% [1] - The company posted revenues of $142.27 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 1.71%, but down from year-ago revenues of $170.11 million [2] - Over the last four quarters, EverCommerce has not been able to surpass consensus EPS estimates, although it has topped consensus revenue estimates four times [2] Stock Outlook - EverCommerce shares have lost about 8.1% since the beginning of the year, while the S&P 500 has declined by -4.3% [3] - The company's earnings outlook will be crucial for future stock performance, with current consensus EPS estimates at $0.04 for the coming quarter and $0.18 for the current fiscal year [4][7] - The current estimate revisions trend for EverCommerce is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which EverCommerce belongs, is currently in the top 37% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact EverCommerce's stock performance [5]

Financial Data and Key Metrics Changes - For Q1 2025, GAAP revenue increased by 3.2% year over year, while on a pro forma basis, revenue grew by 7.4% year over year [8][17] - Adjusted EBITDA was $44.9 million, representing a margin of 31.6%, with a year-over-year margin expansion of nearly 360 basis points [9][18] - Total payment volume (TPV) for Q1 was approximately $12.7 billion, reflecting nearly 9% year-over-year growth [16] Business Line Data and Key Metrics Changes - Subscription and transaction revenue grew by 8.1% year over year, with adjusted gross profit of $111.1 million and an adjusted gross margin of 78.1% [11][19] - Payments revenue, excluding fitness solutions, grew by 8.4% year over year, accounting for approximately 21% of overall revenue [15][16] - The number of customers enabled for more than one solution grew by 20% year over year, reaching 240,000 [13] Market Data and Key Metrics Changes - The company serves over 725,000 customers across its three major verticals: EverPro, EverHealth, and EverWell, with the first two representing 95% of consolidated revenue [10] - Annualized net revenue retention (NRR) was 97%, indicating strong customer retention [15] Company Strategy and Development Direction - The company is focusing on integrating AI capabilities into its customer-facing software to enhance innovation and maintain a competitive edge [12] - Strategic investments are being made in the payments platform to drive adoption and revenue acceleration [16] - The company is prioritizing payment attachment at the point of initial SaaS sale as a core strategy [25] Management's Comments on Operating Environment and Future Outlook - Management has not observed any degradation in key metrics despite macroeconomic volatility, indicating a stable operating environment [32] - The guidance for Q2 and full year 2025 remains unchanged, reflecting confidence in the business's resilience [33][22] Other Important Information - The Board of Directors approved a $50 million increase to the share repurchase program, extending it to year-end 2026 [9][21] - Cash flow from operations for Q1 was $30.7 million, more than double the previous year's figure [20] Q&A Session Summary Question: How has prioritizing payment attachment at the point of sale impacted sales teams? - Management noted an increase in payment attachment with new customers in Q1, indicating positive results from this strategy [25][26] Question: What are the biggest upsell opportunities within EverPro, EverHealth, and EverWell? - Management highlighted payments as the largest opportunity, along with additional product integrations to enhance customer experience [27][28] Question: Any changes in pipeline activity or expansion metrics due to macroeconomic factors? - Management confirmed no degradation in key metrics, maintaining a "business as usual" stance [32] Question: Is there potential tariff exposure on the EverPro side of the business? - Management indicated that most EverPro business is break-fix, suggesting limited direct exposure to tariffs [41] Question: Any surprises or areas of improvement identified in the EverPro business? - Management expressed optimism about growth opportunities in payments and cross-selling other products [44]

Financial Data and Key Metrics Changes - In Q1 2025, GAAP revenue increased by 3.2% year over year, while on a pro forma basis, revenue grew by 7.4% year over year [7][17] - Adjusted EBITDA was $44.9 million, representing a margin of 31.6%, with a year-over-year margin expansion of nearly 360 basis points [8][18] - Total payment volume (TPV) for Q1 was approximately $12.7 billion, reflecting nearly 9% year-over-year growth [16] Business Line Data and Key Metrics Changes - Subscription and transaction revenue grew by 8.1% year over year, with adjusted gross profit of $111.1 million, resulting in an adjusted gross margin of 78.1% [10][19] - EverPro and EverHealth verticals accounted for 95% of consolidated revenue, with significant growth opportunities identified in payment integrations and additional product offerings [9][27] Market Data and Key Metrics Changes - The company reported a net revenue retention (NRR) of 97% over the trailing twelve months, indicating strong customer loyalty and revenue stability [15] - Approximately 240,000 customers were enabled for more than one solution, reflecting a 20% year-over-year growth [13] Company Strategy and Development Direction - The company is focusing on integrating AI capabilities into its products to enhance innovation and operational efficiency [11] - Strategic investments are being made in payment platforms to drive adoption and revenue growth, with a focus on optimizing go-to-market strategies [16][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their end markets, noting no significant degradation in key metrics despite macroeconomic volatility [31][33] - Guidance for Q2 2025 remains unchanged, with expected total revenue between $144.5 million and $147.5 million, and adjusted EBITDA between $39.5 million and $41.5 million [22] Other Important Information - The Board of Directors approved a $50 million increase to the share repurchase program, extending the authorization to year-end 2026 [8][21] - The company generated significant free cash flow, with cash flow from operations for the quarter at $30.7 million, more than double the previous year [20] Q&A Session Summary Question: How has prioritizing payment attachment at the point of sale impacted sales teams? - Management noted positive results in Q1, with increased payment attachment seen with new customers, and emphasized ongoing efforts to integrate payment selling into SaaS workflows [24][26] Question: What are the biggest upsell opportunities within EverPro, EverHealth, and EverWell? - Management highlighted payments as the largest growth opportunity, along with additional product integrations to enhance customer experience and value [27][28] Question: Any changes in pipeline activity or net expansion metrics due to macroeconomic factors? - Management reported no degradation in key metrics and stated that business operations remain stable despite macroeconomic concerns [31][32] Question: Is there potential tariff exposure on the EverPro side of the business? - Management indicated that most of the EverPro business is break-fix, suggesting limited direct exposure to tariffs, although some supply costs may be affected [40] Question: Any surprises or areas of improvement identified in the EverPro business? - Management expressed optimism about growth opportunities in payments and cross-selling other products, emphasizing the potential for significant improvements [42]