Revenue contracted 15.7% year-over-year to $152.0M in Q2 2026, yet gross margin improved to 78.6% and operating margin reached 11.5%, though EPS of $0.05 missed consensus by a wide margin.
EverCommerce Inc. (EVCM) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 598.1M | 588.91M | 698.76M | 675.37M | 620.75M | 490.14M | 337.52M | 242.14M |
| Revenue Growth % | -6.77% | -15.72% | 3.46% | 8.8% | 26.65% | 45.22% | 39.39% | - |
| Cost of Goods Sold | 147.8M | 132.06M | 228.38M | 231.01M | 217.38M | 162.23M | 115.02M | 73.1M |
| COGS % of Revenue | - | 22.43% | 32.68% | 34.2% | 35.02% | 33.1% | 34.08% | 30.19% |
| Gross Profit | 450.31M | 456.84M | 470.39M | 444.36M | 403.37M | 327.91M | 222.5M | 169.04M |
| Gross Margin % | 75.29% | 77.57% | 67.32% | 65.8% | 64.98% | 66.9% | 65.92% | 69.81% |
| Gross Profit Growth % | - | -2.88% | 5.86% | 10.16% | 23.01% | 47.37% | 31.63% | - |
| Operating Expenses | 385.49M | 397.59M | 470.13M | 441.94M | 433.96M | 355.1M | 244.54M | 223.3M |
| OpEx % of Revenue | - | 67.51% | 67.28% | 65.44% | 69.91% | 72.45% | 72.45% | 92.22% |
| Selling, General & Admin | 259.59M | 251.26M | 261.93M | 255.8M | 251.54M | 204.16M | 137.31M | 144.23M |
| SG&A % of Revenue | - | 42.67% | 37.48% | 37.88% | 40.52% | 41.65% | 40.68% | 59.56% |
| Research & Development | 82.15M | 79.02M | 79.67M | 75.61M | 71.62M | 49.51M | 30.39M | 26.12M |
| R&D % of Revenue | - | 13.42% | 11.4% | 11.2% | 11.54% | 10.1% | 9% | 10.79% |
| Other Operating Expenses | 2M | 67.31M | 128.53M | 110.53M | 110.8M | 101.44M | 76.84M | 52.95M |
| Operating Income | 64.82M | 59.25M | 252K | 2.43M | -30.59M | -27.19M | -22.04M | -54.26M |
| Operating Margin % | 10.84% | 10.06% | 0.04% | 0.36% | -4.93% | -5.55% | -6.53% | -22.41% |
| Operating Income Growth % | - | 23411.9% | -89.61% | 107.93% | -12.51% | -23.38% | 59.38% | - |
| EBITDA | 127.88M | 126.48M | 89.08M | 106.63M | 80.21M | 74.25M | 54.8M | -1.31M |
| EBITDA Margin % | 21.38% | 21.48% | 12.75% | 15.79% | 12.92% | 15.15% | 16.24% | -0.54% |
| EBITDA Growth % | 20.1% | 41.99% | -16.46% | 32.94% | 8.03% | 35.47% | 4296.4% | - |
| D&A (Non-Cash Add-back) | 63.06M | 67.23M | 88.82M | 104.2M | 110.8M | 101.44M | 76.84M | 52.95M |
| EBIT | 70.78M | 59.25M | 252K | 2.43M | -30.59M | -55.91M | -22.04M | -69.77M |
| Net Interest Income | -32.79M | -38.09M | -35.56M | -46.41M | -33.9M | -36.11M | -41.55M | -40M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 32.79M | 38.09M | 35.56M | 46.41M | 33.9M | 36.11M | 41.55M | 40M |
| Other Income/Expense | -33.12M | -38.18M | -35.56M | -46.41M | -33.9M | -64.83M | -41.55M | -55.52M |
| Pretax Income | 31.7M | 21.16M | -35.31M | -43.98M | -64.5M | -92.02M | -63.58M | -109.78M |
| Pretax Margin % | 5.3% | 3.59% | -5.05% | -6.51% | -10.39% | -18.77% | -18.84% | -45.34% |
| Income Tax | 3.3M | 2.96M | 5.78M | 1.64M | -4.68M | -10.05M | -3.63M | -16.03M |
| Effective Tax Rate % | 10.42% | 13.97% | -16.38% | -3.73% | 7.26% | 10.92% | 5.71% | 14.6% |
| Net Income | 34.05M | 17.6M | -41.09M | -45.62M | -59.82M | -81.97M | -59.95M | -93.75M |
| Net Margin % | 5.69% | 2.99% | -5.88% | -6.75% | -9.64% | -16.72% | -17.76% | -38.71% |
| Net Income Growth % | 262.52% | 142.83% | 9.93% | 23.73% | 27.02% | -36.71% | 36.05% | - |
| Net Income (Continuing) | 28.4M | 18.2M | -41.09M | -45.62M | -59.82M | -81.97M | -59.95M | -93.75M |
| Discontinued Operations | 1.34M | -605K | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.19 | 0.10 | -0.22 | -0.24 | -0.31 | -0.42 | -0.31 | -0.48 |
| EPS Growth % | 263.87% | 143.5% | 8.33% | 22.58% | 26.19% | -35.48% | 35.42% | - |
| EPS (Basic) | - | 0.10 | -0.22 | -0.24 | -0.31 | -0.42 | -0.31 | -0.48 |
| Diluted Shares Outstanding | 178.79M | 183.91M | 184.9M | 188.94M | 194.62M | 195.38M | 195.35M | 195.35M |
| Basic Shares Outstanding | 176.93M | 181.39M | 184.9M | 188.94M | 194.62M | 195.38M | 195.35M | 195.35M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying EVCM stock.
For fiscal year 2025, EverCommerce Inc. (EVCM) reported total revenue of $588.9M. This represents a 143.2% increase compared to $242.1M in 2019.
EverCommerce Inc. (EVCM) is profitable, generating $17.6M in net income for the fiscal year ending 2025 with a net profit margin of 3.0%.
EverCommerce Inc. (EVCM) reported an operating income of $59.3M, resulting in an operating profit margin of 10.1%. This margin reflects the operational efficiency of the business before interest and taxes.
EverCommerce Inc. (EVCM) generated $456.8M in gross profit for the year, representing a gross profit margin of 77.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Revenue contraction persists
Metrics are mathematically derived from official filings.
Revenue Contraction Persists
EverCommerce's revenue declined 15.7% year-over-year in Q2 2026, following a 13.6% drop in Q4 2025, indicating a sustained contraction rather than a temporary dip.
The reported revenue of $152.0M in Q2 2026 is down from $180.3M in the prior-year quarter (implied), reflecting a persistent decline. This trend appears to be driven by a combination of divestitures and organic weakness, as the company's three verticals face varying demand. The sequential stabilization from Q1 2026 ($147.5M) suggests a floor may be forming, but the lack of acceleration warrants caution.
Gross Margin Volatility Signals Mix Shift
Gross margin swung from 77.5% in Q2 2025 to 78.6% in Q2 2026, but dipped to 67.6% in Q1 2026, suggesting revenue mix changes or one-time costs.
The gross margin in Q1 2026 fell to 67.6%, a significant deviation from the typical 77-78% range, likely due to a shift toward lower-margin payment processing or a one-time adjustment. The recovery to 78.6% in Q2 2026 indicates the anomaly may be temporary, but investors should monitor whether this volatility reflects a structural change in revenue composition.
Operating Leverage Stalled
Operating margin improved to 11.5% in Q2 2026 from 10.7% a year earlier, but remains below the 12.3% achieved in Q1 2026, indicating limited scalability.
Despite a 77.6% gross margin, operating income has not expanded proportionally, with SG&A and R&D consuming a significant portion of revenue. The slight improvement in operating margin is offset by the revenue decline, suggesting that cost controls are not sufficient to drive meaningful leverage. The company's ability to scale will depend on reversing the revenue contraction.
EPS Miss Raises Quality Concerns
Q2 2026 EPS of $0.05 fell well below the $0.20 consensus, despite a 13.1% EPS growth, indicating potential one-time charges or margin pressure.
The reported EPS of $0.05 is significantly lower than the consensus estimate, suggesting that profitability is weaker than revenue trends imply. Stock-based compensation of $5.8M in Q2 2026 adds to non-cash expenses, but the gap between operating income and net income (net margin of 6.4% vs. operating margin of 11.5%) points to elevated interest or tax expenses. Investors should scrutinize the quality of earnings, as the EPS miss may indicate recurring cost issues.
SG&A Efficiency Under Pressure
SG&A expenses rose to $65.4M in Q2 2026 from $62.7M a year earlier, despite a 2.7% revenue increase, indicating rising cost intensity.
The increase in SG&A as a percentage of revenue (from 42.4% to 43.0%) suggests that the company is not achieving economies of scale. R&D spending remained relatively flat at $21.4M, but the overall cost structure is not flexing downward with revenue, which may indicate fixed cost rigidity. Management's expense discipline will be critical to restoring profitability.
What Could Invalidate the Base Case
The persistent revenue decline and EPS miss suggest that EverCommerce's multi-vertical strategy may be failing to generate synergies, and the market's 'conglomerate discount' appears justified.
Short-sellers could argue that the -15.7% revenue growth is not a temporary setback but a structural decline, as the company's three verticals lack cross-selling opportunities. The thin net margin of 3.0% and the significant gap between gross and net margins indicate that the business model is not converting its high gross margin into bottom-line profitability. If revenue continues to contract, the company may face margin compression and reduced cash flow, making it difficult to service debt or invest in growth.