Company: EVCM
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0001853145-25-000017
Chunk: 56

Company: EverCommerce Inc.
Filing Date: 2025-05-08
Form: 10-Q
Item: Item 1
Chunk 56
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Other non-current liabilitiesDecember 31, 2024Balance Sheet ClassificationLevel 1Level 2Level 3Total(in thousands)Asset:Money market$9,324 $— $— $9,324 Cash equivalentsInterest rate swaps— 2,443 — 2,443 Other non-current assetsLiability:Interest rate swap$— $947 $— $947 Other non-current liabilities

Note 16. Income Taxes Our provision for income taxes in interim periods is based on our estimated annual effective tax rate plus the impact, if any, of discrete items recognized in the interim period. We record cumulative adjustments in the quarter in which a change in the estimated annual effective rate is determined.

The income tax expense was $0.5 million and $5.9 million for the three months ended March 31, 2025 and 2024, respectively. The difference in income tax expense for the three months ended March 31, 2025 as compared to the corresponding period in 2024 was driven primarily by an increase in pre-tax book income from continuing operations and discrete items, including the sale of North American Fitness during the three months ended March 31, 2024. 

Note 17. Commitments and ContingenciesThe Company has non-cancelable contractual purchase obligations incurred in the normal course of business to help deliver our services and products and provide support to its customers. These contracts with vendors primarily relate to software service, targeted mail costs, third-party fulfillment costs and software hosting. Unrecognized future minimum payments due under these agreements are as follows (in thousands):Year ended December 31,2025 (remainder of year)$8,695 20263,745 20272,625 20282,750 2029687 Thereafter— Total future minimum payments due$18,502 From time to time, the Company is involved in various lawsuits and legal proceedings which arise in or outside the ordinary course of business. Litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business. Accruals for loss contingencies are recorded when a loss is probable, and the amount of such loss can be reasonably estimated. An adverse determination in one or more of these pending matters could have an adverse effect on the Company’s consolidated financial position, results of operations or cash flows.

17

EverCommerce Inc.Notes to Unaudited Condensed Consolidated Financial Statements

On