Thryv Holdings, Inc. Reports 2025 Annual Results: A Strategic Shift in Focus
Thryv Holdings, Inc. (NASDAQ: THRY) has released its 2025 annual report, showcasing a year marked by strategic transformation and a pivotal transition towards its Software as a Service (SaaS) offerings. With a commitment to empowering small and medium-sized businesses (SMBs), Thryv has streamlined its operations, resulting in notable shifts in revenue and client dynamics.
1. Overview of Financial Performance
For the year ended December 31, 2025, Thryv reported total revenues of $785 million, which reflects a 4.7% decrease from $824.1 million in 2024. This decline is largely attributed to a significant drop in revenue from its Marketing Services segment, offset by a robust growth in SaaS revenues.
Revenue Breakdown by Segment
- SaaS Revenue: $461 million, up from $343.5 million in 2024, marking a substantial increase of 34.2%.
- Marketing Services Revenue: $324 million, down from $480.6 million in 2024, a decline of 32.6%.
This strategic pivot towards SaaS solutions has allowed Thryv to enhance customer engagement and operational efficiency for its approximately 230,000 clients worldwide.
Geographic Revenue Distribution
Revenue by geography indicates a slight contraction, with the United States generating $659.3 million and international revenues at $125.6 million. The U.S. revenue saw a 3.93% decline, while international revenue fell by 8.83%.
2. Operating Results and Key Metrics
Despite experiencing a revenue decline, Thryv's operating income improved to $56.7 million in 2025, compared to an operating loss of $33.3 million in 2024. This shift is indicative of the company’s ongoing cost management efforts, which included a 12.1% reduction in the cost of services.
Key Financial Metrics
- Net Income: Thryv achieved a net income of $307,000, a remarkable recovery from the net loss of $74.2 million in 2024.
- Gross Margin: The gross margin showed improvement due to strategic cost-saving initiatives, despite a slight decrease in gross profit.
| Feb 2025 | Feb 2026 | |
|---|---|---|
Net Income | -74.21M | 307K |
Profit | -74.21M | 307K |
Net Income Continuing | -74.21M | 307K |
Income Tax Expense | 8.21M | 16.73M |
Pretax Income | -65.99M | 17.04M |
Non-operating Income | -32.69M | -39.66M |
Operating Income | -33.29M | 56.70M |
Revenue | 824.1M | 785.0M |
Costs and Expenses | 857.4M | 728.3M |
Cost of Revenue | 286.9M | 252.3M |
Operating Expenses | 570.5M | 476.0M |
Impairment Expense | 83.09M | 0 |
Research & Development | 0 | 39.11M |
Selling, General & Administrative | 487.4M | 436.8M |
3. Strategic Initiatives and Acquisitions
Thryv's growth strategy has been bolstered by strategic acquisitions, including the acquisition of Infusion Software, Inc. (operating as Keap) for $77 million in 2024. This acquisition added approximately 12,000 subscribers to Thryv's client base and significantly contributed to the increase in SaaS revenue.
Additionally, the company has been actively transitioning its clients from traditional Marketing Services to its SaaS platform, with a $9.4 million increase in SaaS revenue directly attributed to this conversion strategy.
4. Cost Management and Financial Health
In light of declining revenues, Thryv implemented several cost-control measures that resulted in a $34.6 million reduction in service costs. These measures, alongside a slight increase in research and development expenses driven by the integration of Keap, have helped stabilize the company’s financial position.
Balance Sheet Overview
As of December 31, 2025, Thryv's total assets stood at $688.5 million, with liabilities totaling $470.4 million. Total equity increased to $218.1 million, reflecting the company’s efforts to enhance shareholder value.
| Feb 2025 | Feb 2026 | |
|---|---|---|
Total Assets | 712.1M | 688.5M |
Total Current Assets | 210.7M | 178.8M |
Cash and Equivalents | 16.31M | 10.75M |
Accounts Receivable | 161.6M | 136.3M |
Non-trade Receivables | 6.21M | 8.13M |
Prepaid Expenses | 13.92M | 10.93M |
Other Current Assets | 12.64M | 12.63M |
Total Non-current Assets | 501.4M | 509.7M |
Intangible Assets | 287.5M | 279.7M |
Non-current Deferred Tax Assets | 143.4M | 133.2M |
Net PP&E | 44.47M | 50.88M |
Other Non-current Assets | 25.89M | 45.88M |
Total Liabilities and Equity | 712.1M | 688.5M |
Total Liabilities | 515.2M | 470.4M |
Total Current Liabilities | 196.2M | 179.5M |
Accounts Payable and Accrued Liabilities | 108.4M | 101.0M |
Current Debt | 13.12M | 17.5M |
Current Deferred Revenue | 40.31M | 28.87M |
Other Current Liabilities | 34.34M | 32.20M |
Total Non-current Liabilities | 318.9M | 290.8M |
Long-term Debt | 271.2M | 235.9M |
Other Non-current Liabilities | 47.77M | 54.86M |
Total Equity and Non-controlling Interests | 196.9M | 218.1M |
Total Equity | 196.9M | 218.1M |
Cash Flow and Financing Activities
Thryv reported a net change in cash of -$6.89 million for the year, primarily due to investment activities and share repurchase programs. The company has maintained compliance with all covenants under its debt agreements, ensuring financial stability moving forward.
| Feb 2025 | Feb 2026 | |
|---|---|---|
Net Change in Cash | -2.76M | -6.89M |
Effect of Exchange Rate Changes | -1.34M | 587K |
Net Cash from Operating Activities | 89.78M | 63.52M |
Operating Profit | -74.21M | 307K |
Adjustment to Operating Profit | 163.9M | 63.22M |
Net Cash from Investing Activities | -110.4M | -32.53M |
Business & Interest in Affiliates | 76.88M | 143K |
Productive Assets | 33.53M | 32.39M |
Net Cash from Financing Activities | 19.21M | -38.47M |
Debt | 0 | -934K |
Equity Issuance/Repurchase | 86.90M | -4.99M |
Other Financing Activities | -67.68M | -32.54M |
5. Future Outlook
Looking ahead, Thryv is focused on further expanding its SaaS offerings while strategically phasing out its traditional Marketing Services. The company aims to enhance customer acquisition and retention through innovative solutions, with a commitment to leveraging technology to meet the evolving needs of SMBs.
Thryv's management remains optimistic about the future, emphasizing their dedication to empowering small businesses and adapting to industry changes. As the company continues to navigate this transformative journey, stakeholders can expect a strong focus on operational excellence and strategic growth initiatives.
6. Conclusion
Thryv Holdings, Inc. is at a critical juncture as it pivots from traditional marketing services to a more sustainable SaaS business model. While the year 2025 brought its share of challenges, the company's strategic initiatives and focus on client transitions have positioned it well for future growth. As Thryv continues to evolve, its commitment to SMBs and innovative solutions will remain at the forefront of its operational strategy.
