Thryv Holdings, Inc. Reports 2026 Q2 Financial Results: Navigating Transition Amidst Revenue Decline
Thryv Holdings, Inc., a prominent provider of software solutions for small and medium-sized businesses (SMBs), has released its financial results for the second quarter of 2026. As the company continues to transition its clients from traditional marketing services to its SaaS platform, the latest report highlights significant shifts in revenue distribution, client metrics, and strategic initiatives.
1. Overview of Operations
Thryv operates as a software-led platform focused on enhancing the operational efficiency of SMBs through its unified Software as a Service (SaaS) offerings. With approximately 215,000 SMB clients globally, the company is divided into two main segments: SaaS and Marketing Services. The ongoing demand for integrated technology solutions, particularly as businesses adapt to remote work, underpins Thryv's strategic initiatives.
Financial Highlights for Q2 2026
- Total Revenue: $150.7 million, down from $210.4 million in Q2 2025, marking a decline of $59.7 million (28.4%).
- Net Income: A net loss of $16.66 million, compared to a profit of $13.93 million in the same quarter of the previous year.
- SaaS Revenue: $114.5 million, a slight decrease from $115.0 million in Q2 2025.
- Marketing Services Revenue: $36.2 million, down from $95.5 million in Q2 2025, representing a staggering decline of 62.0%.
| Jul 2025 | Aug 2026 | |
|---|---|---|
Net Income | -83.87M | -16.12M |
Profit | -83.87M | -16.12M |
Net Income Continuing | -83.87M | -16.12M |
Income Tax Expense | 1.77M | 12.35M |
Pretax Income | -82.10M | -3.76M |
Non-operating Income | -12.83M | -36.88M |
Operating Income | -69.26M | 33.11M |
Revenue | 758.2M | 711.5M |
Costs and Expenses | 827.5M | 678.4M |
Cost of Revenue | 257.3M | 240.9M |
Operating Expenses | 570.1M | 437.5M |
Impairment Expense | 83.09M | 0 |
Research & Development | 0 | 58.05M |
Selling, General & Administrative | 487.0M | 379.4M |
2. Detailed Segment Performance
SaaS Segment
The SaaS segment continues to be the backbone of Thryv's operations, generating $114.5 million in revenue for Q2 2026. Although this represents a minor decline of 0.5% compared to the previous year, year-to-date performance shows an increase, with total revenue for the first half of 2026 reaching $231.2 million, up from $226.1 million in the prior year.
Key offerings within the Thryv Platform include the Thryv Marketing Center and Keap®, providing essential marketing tools and customer relationship management capabilities. The company’s strategic focus on enhancing these offerings aims to drive client engagement and retention.
Marketing Services Segment
In contrast, the Marketing Services segment has faced significant challenges. The revenue drop to $36.2 million in Q2 2026 from $95.5 million in Q2 2025 reflects a strategic decision made in 2024 to phase out these services by the end of 2028. As Thryv transitions clients towards its SaaS solutions, the company converted approximately 11,000 clients in the past year, though this shift has contributed to a decrease in total Marketing Services clients by 40,000.
3. Financial Position and Cash Flow
Balance Sheet Overview
As of June 30, 2026, Thryv reported total assets of $654.1 million, a decline from $687.7 million in 2025. The decrease in assets parallels a reduction in total liabilities, which stood at $442.5 million. The company's total equity decreased slightly to $211.5 million, with retained earnings reflecting a negative balance of $584.2 million.
| Jul 2025 | Aug 2026 | |
|---|---|---|
Total Assets | 687.7M | 654.1M |
Total Current Assets | 189.0M | 157.9M |
Cash and Equivalents | 10.83M | 9.13M |
Accounts Receivable | 133.6M | 127.7M |
Non-trade Receivables | 7.13M | 1.17M |
Prepaid Expenses | 21.71M | 11.04M |
Other Current Assets | 15.71M | 8.86M |
Total Non-current Assets | 498.6M | 496.1M |
Intangible Assets | 283.6M | 276.7M |
Non-current Deferred Tax Assets | 141.5M | 137.6M |
Net PP&E | 41.86M | 49.24M |
Other Non-current Assets | 31.65M | 32.52M |
Total Liabilities and Equity | 687.7M | 654.1M |
Total Liabilities | 472.8M | 442.5M |
Total Current Liabilities | 157.8M | 158.4M |
Accounts Payable and Accrued Liabilities | 89.53M | 94.26M |
Current Debt | 8.75M | 35M |
Current Deferred Revenue | 27.06M | 24.82M |
Other Current Liabilities | 32.55M | 4.36M |
Total Non-current Liabilities | 314.9M | 284.1M |
Long-term Debt | 266.8M | 208.7M |
Other Non-current Liabilities | 48.06M | 75.39M |
Total Equity and Non-controlling Interests | 214.8M | 211.5M |
Total Equity | 214.8M | 211.5M |
Cash Flow Dynamics
Thryv's cash flow statement indicates a net change in cash of $1.10 million for Q2 2026, a notable improvement from the $85,000 decrease in the same quarter last year. Operating activities generated $25.88 million in cash, although the company reported an operating loss of $16.66 million, indicating a need for ongoing adjustments in operational efficiency.
| Jul 2025 | Aug 2026 | |
|---|---|---|
Net Change in Cash | -8.62M | -3.19M |
Effect of Exchange Rate Changes | -304K | 56K |
Net Cash from Operating Activities | 81.19M | 71.80M |
Operating Profit | -83.87M | -16.12M |
Adjustment to Operating Profit | 165.0M | 87.93M |
Net Cash from Investing Activities | -109.1M | -33.65M |
Business & Interest in Affiliates | 76.88M | 143K |
Productive Assets | 32.16M | 33.65M |
Other Investing Activities | -143K | 143K |
Net Cash from Financing Activities | 19.67M | -41.39M |
Debt | 0 | -1.37M |
Equity Issuance/Repurchase | 87.40M | -4.99M |
Other Financing Activities | -67.73M | -35.02M |
4. Strategic Acquisitions and Future Outlook
Thryv has pursued strategic acquisitions to bolster its market presence and service offerings. The acquisition of Keap in late 2024 is expected to enhance its customer relationship management capabilities, thereby supporting its transition to a more extensive SaaS model.
Despite the challenges, Thryv remains committed to navigating a complex market landscape. The company aims to expand its SaaS solutions among existing Marketing Services clients while carefully managing operating expenses and mitigating churn rates.
5. Conclusion
Thryv Holdings, Inc. is currently at a pivotal juncture as it transitions from traditional marketing services to a robust SaaS model tailored for SMBs. While the Q2 2026 results reflect significant challenges, particularly in Marketing Services, the company's strategic initiatives and strong SaaS platform position it for potential growth in the future. As Thryv continues to innovate and adapt, stakeholders will be watching closely to see how these changes affect client satisfaction and overall financial performance in the coming quarters.
