Thryv Holdings, Inc. Reports Strong Q3 2025 Performance Amid Strategic Transition

For the three months ending September 30, 2025, Thryv recorded a significant uptick in its financial performance, primarily driven by its SaaS segment. The total revenue for the quarter reached $201.5 million, an increase of $21.7 million or 12.1% compared to Q3 2024, which saw revenue of $179.8 million. This growth underscores the company's strategic shift towards SaaS solutions.

The SaaS segment was a standout performer, generating $115.9 million in revenue for the quarter, a remarkable increase from $87.1 million in Q3 2024. For the nine-month period, SaaS revenue totaled $342.0 million, reflecting a robust growth trajectory from $239.2 million in the previous year. This segment's growth is attributed to the successful uptake of the Thryv Platform, which includes various innovative tools such as the Thryv Marketing Center and Thryv Workforce Center, both of which utilize AI-driven analytics to optimize marketing performance for SMB clients.

Conversely, the Marketing Services segment reported a decline in revenue, bringing in $85.7 million for Q3 2025, down from $92.8 million in the same quarter of 2024. The nine-month revenue for this segment fell significantly to $251.4 million from $398.4 million in 2024. The decrease can be attributed to a strategic decision to phase out certain Marketing Services solutions by the end of 2028, coupled with a broader industry decline in print media.

Thryv's operating income for Q3 2025 stood at $20.03 million, a substantial recovery from a loss of $88.56 million in Q3 2024, which was heavily impacted by impairment charges. The company reported no impairment charges for the latest quarter, a significant improvement that reflects an enhanced financial outlook.

Gross profit margins improved as the cost of services decreased by $2.8 million, thanks to strategic cost-saving initiatives. This led to a noticeable increase in gross profit, showcasing the company's effective management of operational costs.

Thryv reported a net income of $5.65 million for Q3 2025, a remarkable turnaround from a net loss of $96.07 million in the same quarter of the previous year. The company's ability to generate positive cash flow from operating activities, amounting to $22.24 million, further signifies its improving financial health.

As of September 30, 2025, Thryv's total assets grew to $701.7 million, an increase from $654.7 million in 2024. The company's total equity rose to $221.0 million, bolstered by strategic initiatives and operational improvements. Current liabilities decreased to $169.3 million, while total non-current liabilities were reported at $311.3 million, reflecting a healthy balance sheet.

Thryv's strategic focus on transitioning clients from traditional marketing services to its SaaS offerings continues to yield positive results. Over the past year, approximately 16,000 clients were converted to the Thryv Platform, leading to an increase of 7,000 SaaS clients. While this transition is beneficial, it poses risks, including potential churn among converted clients, which Thryv is actively managing.

Additionally, the company is expanding its market presence through strategic acquisitions, including the purchase of Keap, a CRM and marketing automation firm, which is expected to enhance its SaaS capabilities.

Thryv Holdings, Inc. is effectively navigating a challenging landscape characterized by shifts in client preferences and macroeconomic factors. The company's strategic pivot towards SaaS solutions, coupled with a commitment to client transition and acquisition strategies, positions it for sustainable growth. While the decline in traditional Marketing Services is notable, the overall financial performance in Q3 2025 reflects a promising path forward for Thryv and its commitment to supporting SMBs with innovative marketing solutions.