EverCommerce Inc.

Thank you for standing by, and welcome to EverCommerce's second quarter 2025 earnings call. My name is Shannon, and I will be your operator for today. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. As a reminder, this conference call is being recorded today, Wednesday, August 6, 2025. And now I would like to turn the conference over to Brad Korch, SVP and Head of Investor Relations for EverCommerce. Please go ahead.

Good afternoon and thank you for joining. Today's call will be led by Eric Reamer, EverCommerce's Chairman and Chief Executive Officer, and Ryan Surak, EverCommerce's Chief Financial Officer. Joining them for the Q&A portion of the call is EverCommerce's President, Matt Feierstein, EverPro Chief Executive Officer, Josh McCarter, and EverHealth Chief Executive Officer, Evan Verlaine. This call is being webcast with a slide presentation that reviews the key financial and operating results for the three months ended June 30th, 2025. For links to the live or replay webcast, please visit the investor relations section of the EverCommerce website, www.evercommerce.com. The slide presentation and earnings release are also directly available on the site. Please turn to page two of our earnings call presentation while I review our safe harbor statement. Statements made on this call and containing the earnings material available on our website that are not historical in nature may constitute forward-looking statements. Such statements are based on the current expectations and beliefs of management. Actual results may differ materially from these forward-looking statements due to risks and uncertainties that are described in more detail in our filings of the SEC. We undertake no obligation to publicly update or revise these forward-looking statements except as required by law. We also refer to certain non-GAAP financial measures in our comments today. A reconciliation of non-gap-to-gap historical measures is provided in both our earnings press release and our earnings call presentation. As a reminder, following our announcement in March that we are seeking strategic alternatives to the marketing technology solutions business, we have classified marketing technology as discontinued operations. Our commentary today will focus on the continuing operations of our business, focused on our EverHealth, EverPro, and EverWell verticals. All financial and operating metric results are presented related to continuing operations only unless otherwise specified. I will now turn it over to our CEO, Eric Reamer. Please continue.

Thank you, Brad. I'll begin our prepared remarks focused on our strong results and trends before turning the call over to Ryan to discuss our financial performance in more detail. We had another strong quarter with financial results that exceeded guidance and solid progress on our key leading indicators. Our second quarter revenue exceeded the top end of our guidance range. Revenue increased 5.3% year-over-year, but increased 7.4% year-over-year on a pro forma basis, which adjusts prior year for the sale of fitness solutions. Adjusted EBITDA $45 million also beat the top vendor for guidance range, representing a 30.4% margin. Adjusted EBITDA margin expanded more than 230 basis points year-over-year. Payments revenue, excluding the fitness solutions, grew 6.8% year-over-year. Finally, I'd like to highlight that at the end of July, we repriced and extended our credit facility, increasing financial flexibility and resulting in approximately $1.3 million in annual interest savings. Pepper Commerce provides SaaS solutions for the service S&P economy. We offer tremendous value to our customers by providing the system of actions necessary to run their businesses with tailored, unique workflows. We provide end-to-end solutions to more than 725,000 customers across our three major verticals. EverPro for home and field services, EverHealth for physician practices, and EverWell for wellness, with the two former verticals representing 95% of consolidated revenue. Our large base of customers represents an immense embedded opportunity to provide value-added features and services like payments and customer rebates through our purchasing programs. On a pro-former basis, for the last 12 months, we generated $574.1 million of revenue, representing 7.9% year-over-year growth, with subscription and transaction revenue growing 8.1% year-over-year. We generated a 30.7% adjusted EBITDA margin on an LTN basis. Finally, our annualized total payment volume, or TPV, expanded to approximately $12.9 billion. Accelerating payments adoption and utilization continues to be one of our highest priorities, and in 2025, we are making specific investments in our product capabilities and go-to-market motions to prioritize payments attachments at the point of initial sale. These include product capability investments to expand addressable payments volume within our system of actions, as well as go-to-market and selling resources to catalyze incremental enablement and utilization. At the end of the second quarter, 261,000 customers were enabled for more than one solution, reflecting a 32% year-over-year growth. This is a 400 basis point acceleration in growth rate, over the prior quarter's year-over-year growth rate. At the end of the second quarter, approximately 112,000 customers were actually utilizing more than one solution, reflecting 29% year-over-year growth. This is 1,000 basis point acceleration in growth rate over the prior quarter's year-over-year growth rate. Enabling customers for more than one solution is the first step in the funnel that leads to increased revenue, retention, and ultimately profitability for these customers. As we noted before, we began prioritizing attach at the point of initial SaaS sale, and in just a few quarters, we are seeing really good results. In the second quarter, we had record attach rates in our two flagship system of action softwares within our EverPro and EverHealth verticals. Once customers are enabled, the next action item is for us to facilitate usage. In the case of payment, this is getting our customers to actively process on our platform. We measure this step in the funnel as utilization. Customers that purchase and utilize more than one solution are naturally some of our most profitable and sickiest customers. As we have illustrated past earnings call, the effect of more customers taking payments or other add-on features and services is higher net revenue retention. Looking back over the trailing 12 months, our annualized net revenue retention, or NRR, was 97%. Year over year, our payments revenue on a pro-form basis grew over 6.8% and accounted for approximately 21% of overall revenue. As a reminder, we report our payments revenue on a net basis, and therefore, it typically contributes approximately 95% gross margin. As such, payments revenue growth is a meaningful contributor to our overall adjusted EBITDA margin expansion. As I mentioned in my introductory comments, second quarter estimated annual total payments volume, or TPV, was approximately $12.9 billion, representing nearly 7% year-over-year growth. Within this, we continue to see higher TPV growth in our top solutions. offset by lower growth in legacy payment products. This can be a positive mixed shift over time, as our top solutions often have higher take rates. Now I'll pass it over to Ryan, who will review our financial results in more detail, as well as provide third quarter and updated full year 2025 guidance.