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Investing.com - EverCommerce Inc (NASDAQ:EVCM) shares fell 19% on Friday following the company’s mixed third-quarter 2025 financial results released Thursday after market close. According to InvestingPro data, the stock’s RSI suggests it’s now in oversold territory, with a 18.13% decline over the past week.
The software provider reported revenue of $147.5 million, slightly below consensus estimates of $147.9 million, representing 5% year-over-year growth compared to 7% growth in the previous quarter. Core SaaS revenue grew by 8%, while payments revenue increased 6.0% year-over-year versus 6.8% in the prior quarter. The company’s trailing twelve-month revenue stands at $718.04 million, though InvestingPro data indicates analysts anticipate a sales decline for the current fiscal year.
EverCommerce ’s adjusted EBITDA outperformed expectations at $46.5 million, compared to the consensus estimate of $40.6 million, resulting in a 31.5% adjusted EBITDA margin. The company faced an approximately $1.6 million headwind from tariff-related impacts on rebate revenue in its HVAC businesses. InvestingPro shows the company maintains a healthy current ratio of 2.02, with liquid assets exceeding short-term obligations.
Citizens reiterated its Market Outperform rating on EverCommerce with a $15.00 price target despite the revenue miss. The firm acknowledged that while the rebate-oriented revenue shortfall was "frustrating," it continues to see value in the company at current levels. This aligns with InvestingPro’s Fair Value assessment, which suggests the stock is currently undervalued at its $9.35 price, despite four analysts revising earnings downward for the upcoming period.
The stock’s Friday decline contributed to a 15% year-to-date decrease for EverCommerce, underperforming compared to the Russell 3000’s 14% increase during the same period. Despite not being profitable over the last twelve months, InvestingPro data indicates net income is expected to grow this year, with analysts predicting the company will be profitable in 2025. Discover more insights with InvestingPro’s comprehensive research report on EVCM, one of 1,400+ US equities covered in-depth.
In other recent news, EverCommerce Inc. reported its third-quarter 2025 earnings, highlighting a steady growth trajectory and a focus on AI-driven solutions. The company achieved a revenue of $147.5 million, marking a 5.3% increase compared to the previous year, although slightly below the forecasted $147.89 million. Additionally, EverCommerce reported an adjusted EBITDA of $46.5 million, alongside a margin expansion of 140 basis points. These financial results underline the company’s ongoing commitment to enhancing its operational efficiency and strategic initiatives. There was no mention of any mergers or acquisitions in the recent developments. Analyst firms have not provided any recent upgrades or downgrades for EverCommerce. The company’s strategic focus on AI solutions continues to be a significant aspect of its growth strategy. Investors are keeping a close watch on these developments as they evaluate the company’s performance and future prospects.
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