THRY — Thryv Holdings, Inc.

Summary of Thryv Holdings, Inc. Q4 2025 Earnings Call

1. Key Financial Results and Metrics

• SaaS Revenue: Increased 14.1% to $119 million in Q4; full-year SaaS revenue grew 34.2% to $461 million.
• Adjusted EBITDA: SaaS adjusted EBITDA reached $20 million in Q4, with a margin of 16.8%. Full-year adjusted EBITDA was $73.8 million, maintaining a margin of 16%.
• SaaS Subscribers: Ended Q4 with 100,000 subscribers; average revenue per user (ARPU) increased 15% year-over-year to $373.
• Quality Customers: Customers spending $400/month or more grew 18% year-over-year, now representing 69% of revenue.
• Marketing Services Revenue: $72.6 million in Q4, down 34% year-over-year, reflecting a strategic shift to SaaS.
• Free Cash Flow: $31.1 million for 2025, expected to grow to $40 million–$50 million in 2026.
• Net Debt: Reduced by $15 million to $251 million, with a leverage ratio of 1.7 times.

2. Strategic Updates and Business Highlights

• Transition to SaaS: Thryv is evolving from legacy print and marketing services to a leading SaaS platform for small businesses, focusing on a unified growth platform called the Thryv Platform, set to launch in 2026.
• Marketing Center Growth: The Marketing Center, a key product, grew over 50% year-over-year and is now a major revenue driver.
• AI Integration: Significant investments in AI are being made to enhance product capabilities and customer experience, with initiatives like the Budget Optimizer and AI-driven customer interactions.
• Customer Segmentation: Thryv is focusing on "quality customers" (spending $400/month or more) and moving away from lower-value customers, which are more price-sensitive and prone to churn.

3. Forward Guidance and Outlook

• Q1 2026 Guidance: Expected SaaS revenue between $114 million and $115 million; adjusted EBITDA between $12 million and $13 million.
• Full-Year 2026 Guidance: SaaS revenue expected between $461 million and $471 million; adjusted EBITDA between $70 million and $75 million. Marketing services revenue projected at $150 million to $160 million.
• Growth Expectations: Near-term growth rates may moderate due to the transition phase, but the quality of growth is expected to improve as the company focuses on customer retention and expansion.

4. Challenges and Points of Concern

• Churn Rates: While overall churn is trending down, there was an initial spike following the migration of customers from legacy platforms, and the company anticipates some ongoing churn from lower-value customers.
• Marketing Services Decline: A significant drop in marketing services revenue reflects the strategic shift away from legacy services, which may impact short-term revenue.
• Transition Risks: The shift to the new Thryv Platform may create temporary disruptions for existing customers, and the company is managing this transition carefully.

5. Notable Q&A Insights

• Platform Adoption: CEO Joe Walsh indicated that the new platform is being sold and is performing well, with ongoing enhancements to functionality.
• Customer Retention: The retention metrics for quality customers are significantly better than for lower-tier customers, with a focus on larger businesses expected to reduce churn over time.
• Go-to-Market Strategy: Thryv is shifting its sales focus towards larger businesses, while developing a product-led growth approach for smaller businesses, reducing direct sales efforts for low-value customers.
• AI Functionality: AI is being embedded into the platform to streamline operations for small businesses, enhancing customer engagement and operational efficiency.

Overall, Thryv Holdings, Inc. is navigating a transformative phase with a strong focus on SaaS growth and AI integration, while managing the challenges associated with transitioning from legacy services.