Thryv Holdings, Inc. Reports Mixed Results in 2025 Q2: A Shift Towards SaaS

For the three months ended June 30, 2025, Thryv reported total revenue of $210.4 million, a decrease of $13.6 million (6.1%) from the same period last year. The company's net income to common shareholders reached $13.93 million, significantly up from $5.54 million in 2024, indicating improved profitability despite the revenue decline.

The highlight of Thryv's Q2 report was the remarkable performance of its SaaS segment, which generated $115.0 million in revenue for the quarter, marking a 47.8% increase from $77.8 million in Q2 2024. For the first half of 2025, SaaS revenue totaled $226.1 million, a substantial rise from $152.1 million in the previous year. This growth can be attributed to the successful integration of the Thryv® platform and the acquisition of Keap, which has enhanced Thryv's service offerings.

In stark contrast, the Marketing Services segment experienced a significant decline in revenue, generating only $95.5 million in Q2 2025, down from $146.3 million in 2024. This decline is part of a strategic decision made in late 2024 to phase out certain Marketing Services by 2028, reflecting broader trends in the print media industry and increased competition in digital marketing.

Thryv's total number of clients decreased by 46,000, or 15%, as of June 30, 2025. This decline was primarily driven by a loss of 72,000 Marketing Services clients. However, the company successfully gained 21,000 new SaaS clients, representing a 25% increase, as it transitioned former Marketing Services clients to the Thryv Platform. Remarkably, the Seasoned Net Revenue Retention (NRR) for the SaaS segment improved to 103%, highlighting effective client retention strategies.

Thryv's cost management initiatives yielded a decrease in the cost of services by $11.6 million (15.4%) for Q2 2025. Although gross profit saw a slight decrease, the overall gross margin improved due to increased SaaS revenues.

The balance sheet as of June 30, 2025, showed total assets of $687.7 million, a decrease from $785.4 million in the previous year. Total liabilities stood at $472.8 million, down from $602.4 million in 2024, reflecting Thryv's efforts to manage its debt levels effectively.

Thryv's cash flow statement indicates a net change in cash of negative $85,000 for Q2 2025. The company generated $29.55 million from operating activities, although it faced challenges with investing and financing activities, which resulted in outflows of $7.77 million and $22.33 million, respectively.

Despite a generally challenging economic environment characterized by inflation and potential trade issues, Thryv has not yet observed a significant impact on demand for its services. The company remains committed to navigating these macroeconomic factors while focusing on strategic growth and client conversion.

Thryv Holdings is strategically focused on expanding its SaaS offerings while maintaining profitability in its Marketing Services segment until the planned phase-out. The company aims to enhance its market presence through acquisitions and innovative service offerings as it adapts to the evolving needs of SMBs.

In conclusion, Thryv Holdings, Inc. is at a pivotal moment in its business trajectory, leveraging its strengths in SaaS while addressing challenges in Marketing Services. The company's ability to navigate these transitions will be crucial for its continued growth and success in the competitive landscape of digital marketing and customer experience solutions.