Thryv Holdings, Inc. (NASDAQ: THRY) has made headlines following its recent press release on February 26, 2026, announcing impressive financial results for the fiscal year 2025. The company reported a remarkable 34% year-over-year growth in Software as a Service (SaaS) revenue, reflecting its successful transition from traditional marketing services to a leading small business (SMB) software platform. This article delves into the key financial metrics and strategic outlook shared by the company.

1. Fourth Quarter Financial Highlights

Thryv's fourth-quarter results showcased a solid performance with SaaS revenue reaching $119.0 million, indicating a 14.1% increase compared to the same quarter last year. The company also reported that SaaS revenue excluding the Keap acquisition stood at $102.8 million, a 13.1% increase year-over-year. However, marketing services revenue fell to $72.6 million, reflecting an 11.7% decline.

Consolidated Total Revenue for Q4 was $191.6 million, marking a 2.7% increase from the previous year.

Despite the increase in revenue, the company reported a net loss of $9.7 million, or $(0.22) per diluted share, contrasting with a net income of $7.9 million, or $0.19 per diluted share, for the same quarter in 2024.

The Adjusted EBITDA stood at $38.9 million, representing a margin of 20.3%, with SaaS Adjusted EBITDA at $20.0 million and a margin of 16.8%.

2. Full-Year 2025 Financial Overview

For the full year 2025, Thryv reported a total revenue of $785.0 million, a decrease of 4.7% from the previous year. Despite this overall decline, SaaS revenue surged to $461.0 million, representing a 34.2% increase year-over-year, demonstrating the company's successful pivot towards a software-centric business model.

Marketing Services revenue reached $324.0 million, which signifies a substantial decline of 32.6% compared to 2024.

The company recorded a net income of $0.3 million, or $0.01 per diluted share, a significant turnaround from a net loss of $74.2 million in the previous year.

The SaaS Adjusted EBITDA for the year was $73.8 million, representing a 16.0% margin, while marketing services Adjusted EBITDA was $78.0 million with a margin of 24.1%.

3. Strategic Shift Towards AI-Enabled Solutions

In his remarks, Joe Walsh, Thryv's Chairman and CEO, emphasized the company's commitment to enhancing its offerings through artificial intelligence. Walsh stated, "We are shifting to a unified growth offering enabled by AI—the Thryv Platform—designed to help small businesses market, sell, and grow." This strategic pivot aims to leverage AI technologies to empower small business owners and streamline their operations.

4. Business Highlights and Metrics

The press release also highlighted several noteworthy operational metrics that underscore Thryv's growth trajectory:

The SaaS client base reached 100,000 by the end of Q4 2025, with quality customers contributing 69% of SaaS revenue.

The Net Revenue Retention rate was reported at 94%, showcasing strong customer loyalty and retention.

The monthly Average Revenue per Unit (ARPU) for the SaaS segment was $373, marking a 15% increase year-over-year.

The Marketing Center revenue experienced a remarkable growth of 56% in Q4 and more than 100% for the entire year.

5. Conclusion

Thryv Holdings, Inc. is positioning itself as a formidable player in the SMB software sector, as evidenced by its impressive SaaS revenue growth and strategic focus on AI-enabled solutions. While the overall revenue may have seen a decline, the significant growth in SaaS revenue and the positive shifts in operational metrics provide a strong foundation for future growth. The upcoming earnings conference call is anticipated to provide further insights into Thryv's strategies and expectations for 2026.

Original press release