Company: EVCM
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0001853145-25-000047
Chunk: 83

Company: EverCommerce Inc.
Filing Date: 2025-11-06
Form: 10-Q
Item: Item 8
Chunk 83
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 Contract assets represent rights to consideration in exchange for products or services that have been transferred (i.e., the performance obligation or portion of the performance obligation has been satisfied), but payment is conditional on something other than the passage of time. These amounts typically relate to contracts with the suppliers within our group purchasing programs for which payment is received at least one quarter in arrears from the service period. They also relate to contracts that include on-premise licenses and professional services where the right to payment is not present until completion of the contract or achievement of specified milestones and the fair value of products or services transferred exceed this constraint.Contract liabilities: Contract liabilities, or deferred revenue, represent our obligation to transfer products or services to a customer for which consideration has been received in advance of the satisfaction of performance obligations. Long-term deferred revenue is included within other non-current liabilities on the unaudited condensed consolidated balance sheets. Revenue recognized from the contract liability balance at December 31, 2024 was $20.8 million for the nine months ended September 30, 2025. Customer deposits: Customer deposits relate to payments received in advance for contracts, which allow the customer to terminate a contract and receive a pro rata refund for the unused portion of payments received to date.

11

EverCommerce Inc.Notes to Unaudited Condensed Consolidated Financial Statements

Accounts ReceivableActivity in our allowance for expected credit losses is as follows as of:September 30,20252024(in thousands)Allowance for expected credit losses, beginning of year$2,283 $3,328 Bad debt expense2,442 1,551 Write-offs, net of recoveries(1,465)(2,306)Disposition of Fitness Solutions— (96)Transfer to held for sale— (53)Allowance for expected credit losses, end of period$3,260 $2,424 Remaining Performance ObligationsRemaining performance obligations represent the transaction price of unsatisfied or partially satisfied performance obligations within contracts with an original expected contract term that is greater than one year for which fulfillment of the contract has started as of the end of the reporting period. Contracts that include 30-day termination rights are considered to be contracts with a term of one month and are therefore excluded from remaining performance obligations. Remaining performance obligations generally relate to those which are stand-ready in nature, as found within the subscription revenue streams. The aggregate amount of transaction consideration allocated to remaining performance obligations as of September 30, 2025 was $19.3 million. The