Thryv Holdings, Inc. (THRY): Results of Operations and Financial Condition
Thryv Holdings, Inc. (THRY) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Thryv Reports Second Quarter 2026 Results and Launches Thryv Growth Platform – Q2 SaaS Revenue Grows to 76% of Total Revenue – Q2 SaaS Monthly ARPU Increases 12% Year-Over-Year to $394 – Company Announces Strategic Restructuring Plan to Improve Operating Efficiencies
How this was made
The 30-second read
Why it matters
The key tradable elements are the updated Q3 and full-year 2026 guidance for SaaS revenue and SaaS Adjusted EBITDA, plus quantified restructuring charges ($20M to $25M) and expected gross annualized cost savings ($55M to $60M) beginning in 2027.
Market read
Investors get a full set of Q2 metrics (SaaS mix, ARPU, margins) and forward guidance, plus a cost-structure reset with explicit charge timing and 2027 savings targets.
What to watch
SaaS revenue was slightly down year-over-year (-0.5%) despite ARPU growth, so investors may focus on whether client growth and retention (NRR 90%) can reaccelerate without further legacy headwinds.
Thryv Reports Second Quarter 2026 Results and Launches Thryv Growth Platform
SaaS represented 76% of total revenue and monthly ARPU increased 11.9% year-over-year, but SaaS revenue decreased 0.5% year-over-year, consolidated revenue was lower than the prior-year quarter, and the company reported a consolidated net loss of $16.7 million.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Consolidated total revenueGAAP | $ 150,728 (in thousands) | – | – |
| SaaS revenueother | $114.5 million | – | decrease of 0.5% year-over-year |
| Marketing Services revenueother | $36.2 million | – | – |
| Cost of servicesGAAP | $ 56,168 (in thousands) | – | – |
| Consolidated gross profitGAAP | $ 94,560 (in thousands) | – | – |
| Consolidated Adjusted Gross Profitnon-GAAP | $99.2 million | – | – |
| SaaS Gross Profitother | $72.7 million | – | – |
| SaaS Gross Marginother | 63.5% | – | – |
| SaaS Adjusted Gross Profitnon-GAAP | $76.2 million | – | – |
| SaaS Adjusted Gross Marginnon-GAAP | 66.6% | – | – |
| Sales and marketing expenseGAAP | $ 47,038 (in thousands) | – | – |
| Research and development expenseGAAP | $ 7,509 (in thousands) | – | – |
| General and administrative expenseGAAP | $ 41,156 (in thousands) | – | – |
| Total operating expensesGAAP | $ 95,703 (in thousands) | – | – |
| Operating lossGAAP | $ (1,143) (in thousands) | – | – |
| Interest expenseGAAP | $ (5,035) (in thousands) | – | – |
| Interest expense, related partyGAAP | $ (2,483) (in thousands) | – | – |
| Net periodic pension costGAAP | $ (357) (in thousands) | – | – |
| Other incomeGAAP | $ (446) (in thousands) | – | – |
| Loss before income tax expenseGAAP | $ (9,464) (in thousands) | – | – |
| Income tax expenseGAAP | $ (7,196) (in thousands) | – | – |
| Consolidated net lossGAAP | $ (16,660) (in thousands) | – | – |
| Basic net loss per common shareGAAP | $ (0.38) | – | – |
| Diluted net loss per common shareGAAP | $ (0.38) | – | – |
| Consolidated Adjusted EBITDAnon-GAAP | $20.8 million | – | – |
| Consolidated Adjusted EBITDA marginnon-GAAP | 13.8% | – | – |
| SaaS monthly ARPUother | $394 | – | an increase of 11.9% year-over-year |
| Seasoned Net Revenue Retentionother | 90% | – | – |
| SaaS clientsother | 95 thousand | – | – |
| Net cash provided by operating activities, six months ended June 30, 2026GAAP | $ 27,354 (in thousands) | – | – |
| Additions to fixed assets and capitalized software, six months ended June 30, 2026GAAP | $ (16,121) (in thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| SaaSMarket, Sell, Grow initiatives grew 21% year-over-year, offset by headwinds in legacy CRM products. | $114.5 million | – | a decrease of 0.5% year-over-year |
| Marketing ServicesMarketing Services Adjusted EBITDA was $7.3 million, representing an Adjusted EBITDA margin of 20.0%. | $36.2 million | – | – |
3rd Quarter 2026, 4th Quarter 2026 and Full Year 2026 outlook
- Note3rd Quarter 2026 SaaS Revenue: $111.0 - $112.0 million
- Note4th Quarter 2026 SaaS Revenue: $111.0 - $114.0 million
- NoteFull Year 2026 SaaS Revenue: $453.0 - $457.0 million
- Note3rd Quarter 2026 SaaS Adjusted EBITDA: $8.5 - $9.5 million
- Note4th Quarter 2026 SaaS Adjusted EBITDA: $9.0 - $10.0 million
- NoteFull Year 2026 SaaS Adjusted EBITDA: $42.0 - $44.0 million
- Note3rd Quarter 2026 Marketing Services Revenue: $34.0 - $35.0 million
- Note4th Quarter 2026 Marketing Services Revenue: $40.0 - $41.0 million
- NoteFull Year 2026 Marketing Services Revenue: $161.0 - $163.0 million
- Note3rd Quarter 2026 Marketing Services Adjusted EBITDA: $5.0 - $6.0 million
- Note4th Quarter 2026 Marketing Services Adjusted EBITDA: $5.5 - $6.5 million
- NoteFull Year 2026 Marketing Services Adjusted EBITDA: $31.0 - $33.0 million
What drove it
- SaaS represented 76% of total revenue in the second quarter of 2026.
- Market, Sell, Grow initiatives grew 21% year-over-year, excluding Keap.
- Quality customers accounted for 72% of SaaS revenue in the second quarter of 2026.
- SaaS monthly ARPU was $394 and increased 11.9% year-over-year.
- The company announced partnerships with Ooma and a planned strategic partnership with Wix.
- The restructuring plan realigns the cost structure to focus on a SaaS operating model and extends agentic AI capabilities embedded in the customer-facing platform.
Concerns
- SaaS revenue decreased 0.5% year-over-year, with Market, Sell, Grow growth offset by headwinds in legacy CRM products.
- Consolidated net loss was $16.7 million, compared with net income of $13.9 million for the second quarter of 2025.
- Operating loss was $ (1,143) (in thousands), compared with operating income of $ 29,540 (in thousands).
- The company expects total restructuring and related charges of approximately $20 million to $25 million.
- Seasoned Net Revenue Retention was 90% for the second quarter of 2026.
What to watch
- Execution against 3rd Quarter 2026 SaaS Revenue guidance of $111.0 - $112.0 million.
- Progress in reaccelerating SaaS growth and the impact of headwinds in legacy CRM products.
- Recognition of restructuring and related charges, with approximately 40% expected in the second half of 2026 and the remaining 50% expected in 2027.
- Delivery of approximately $55 million to $60 million in gross annualized cost savings upon completion, with savings anticipated to begin in 2027.
- Development of the Thryv Growth Platform and planned strategic partnership with Wix.
Balance sheet and cash flow
- Cash and cash equivalents as of June 30, 2026: $ 9,136 (in thousands).
- Current portion of Term Loan as of June 30, 2026: $ 21,000 (in thousands).
- Current portion of Term Loan, related party as of June 30, 2026: $ 14,000 (in thousands).
- Term Loan, net as of June 30, 2026: $ 115,886 (in thousands).
- Term Loan, net, related party as of June 30, 2026: $ 78,788 (in thousands).
- ABL Facility as of June 30, 2026: $ 14,057 (in thousands).
- Net cash provided by operating activities for the six months ended June 30, 2026: $ 27,354 (in thousands), compared with $ 19,075 (in thousands).
- Net cash used in investing activities for the six months ended June 30, 2026: $ (16,121) (in thousands), compared with $ (14,998) (in thousands).
- Net cash used in financing activities for the six months ended June 30, 2026: $ (12,984) (in thousands), compared with $ (10,060) (in thousands).
- Cash, cash equivalents and restricted cash at the end of the six months ended June 30, 2026: $ 9,179 (in thousands), compared with $ 12,369 (in thousands).
Analysis
Thryv reported second-quarter consolidated total revenue of $ 150,728 (in thousands), compared with $ 210,470 (in thousands) in the second quarter of 2025. SaaS revenue was $114.5 million and represented 76% of total revenue, but decreased 0.5% year-over-year. Market, Sell, Grow initiatives grew 21% year-over-year, excluding Keap, while legacy CRM products created an offsetting headwind. Marketing Services revenue was $36.2 million.
Customer monetization metrics remained a constructive element of the SaaS profile. SaaS monthly ARPU was $394, an increase of 11.9% year-over-year, while quality customers contributed 72% of SaaS revenue. The company ended the quarter with 95 thousand SaaS clients, and Seasoned Net Revenue Retention was 90%. These metrics accompany the launch of the Thryv Growth Platform and the stated focus on AI-native functionality for local service businesses.
Profitability deteriorated on a GAAP basis. Consolidated gross profit was $ 94,560 (in thousands), versus $ 146,620 (in thousands), and the company reported an operating loss of $ (1,143) (in thousands), versus operating income of $ 29,540 (in thousands). Consolidated net loss was $ (16,660) (in thousands), or $ (0.38) per diluted share, compared with net income of $ 13,931 (in thousands), or $ 0.31 per diluted share. Consolidated Adjusted EBITDA was $20.8 million with a 13.8% margin; SaaS Adjusted EBITDA was $13.6 million with an 11.8% margin and Marketing Services Adjusted EBITDA was $7.3 million with a 20.0% margin.
The company announced a restructuring plan with expected total restructuring and related charges of approximately $20 million to $25 million. Approximately 10% has already been incurred, approximately 40% is expected in the second half of 2026, and the remaining 50% is expected in 2027. Thryv anticipates cost savings to begin in 2027 and build to approximately $55 million to $60 million in gross annualized cost savings upon completion. The company stated these initiatives are expected to be accretive to Adjusted EBITDA margins in the future.
For the six months ended June 30, 2026, net cash provided by operating activities was $ 27,354 (in thousands), compared with $ 19,075 (in thousands), while additions to fixed assets and capitalized software were $ (16,121) (in thousands). Cash and cash equivalents were $ 9,136 (in thousands) at June 30, 2026. The company guided third-quarter SaaS revenue to $111.0 - $112.0 million and Marketing Services revenue to $34.0 - $35.0 million, with full-year SaaS revenue guidance of $453.0 - $457.0 million and Marketing Services revenue guidance of $161.0 - $163.0 million.
Management, verbatim
Our second quarter marked another step forward in the transformation of our business, with SaaS now representing 76% of our revenue and ARPU growing 12% year-over-year.
Joe Walsh, Thryv Chairman and CEO
Our SaaS profile now reflects our deliberate focus on the newly launched Thryv Growth Platform, the first platform purpose-built for the small business owner with AI running underneath to turn every lead into measurable revenue.
Joe Walsh, Thryv Chairman and CEO
We remain focused on optimizing the Thryv Growth Platform, a unified, AI-native growth offering, concentrating investments to scale the business and expand profitability. These initiatives are expected to be accretive to Adjusted EBITDA margins in the future, while strengthening the Company's free cash flow generation.
Paul Rouse, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter comparisons for quarterly operating metrics.
- GAAP gross margin.
- GAAP operating margin.
- Non-GAAP net income and non-GAAP EPS.
- Quarterly operating cash flow.
- Reported free cash flow.
- Capital return amounts, including repurchases and dividends.
- Quantitative reconciliation of forward-looking SaaS Adjusted EBITDA and Marketing Services Adjusted EBITDA to GAAP measures.
- Prior guidance, which was not provided in the documents.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Thryv filed an SEC 8-K with Exhibit 99.1 covering Q2 2026 operating results, a new Thryv Growth Platform emphasis, and an announced restructuring to align costs with a SaaS model.
Ticker impact
Thryv reported Q2 2026 results and issued Q3 and full-year 2026 SaaS revenue and SaaS Adjusted EBITDA guidance alongside a $20M to $25M restructuring plan.
Moderately positive bias for the stock if investors view the SaaS mix shift and margin trajectory as credible; near-term volatility possible around restructuring charge timing.
The filing includes specific SaaS revenue and SaaS Adjusted EBITDA guidance ranges plus quantified restructuring charges and expected annualized cost savings, which are actionable inputs for forward margin and cash-flow models.
Market effects
Reinforces the competitive pressure on local-services SaaS providers to shift revenue mix toward subscription and AI-native platforms, with restructuring as a lever to protect margins.
Limited direct regional spillover; primarily affects US small-cap SaaS sentiment and local advertising technology peers.
Low global relevance beyond investor sentiment for AI-enabled SMB growth platforms.
Counterpoint
The restructuring charges and delayed cost-savings realization (mostly 2027) could pressure near-term profitability and free cash flow, offsetting the SaaS mix improvement.
Key entities
- companyThryv Holdings, Inc.
Provider of an AI-native growth platform for local service businesses; subject of the 8-K results and guidance.
- productThryv Growth Platform
Unified AI-native growth offering highlighted as the focus for scaling SaaS and extending agentic AI capabilities.
- partnerOoma
Announced partnership with Thryv as part of a strategic partnership plan.
- partnerWix
Company plans to establish a strategic partnership with shared focus on helping small businesses succeed.
