Total revenue for the quarter fell 7.5% to $167.7 million, driven by a 27.5% decline in marketing services revenue to $50.9 million. In contrast, SaaS revenue grew 5.0% to $116.7 million, reflecting the company’s ongoing shift toward higher‑margin software and services.
Net income rose to $4.54 million, a turnaround from a $9.62 million loss in the same quarter a year earlier. Basic earnings per share of $0.10 beat the consensus estimate of –$0.07, a $0.17 or 240% beat, largely due to the stronger mix and cost discipline that preserved margins even as total revenue slipped.
SaaS adjusted gross profit reached $78.2 million, giving an adjusted gross margin of 67.0%, while marketing services margin was lower, underscoring the profitability advantage of the software segment. The mix shift to SaaS is a key driver of the company’s improving financial health.
Management raised its full‑year 2026 SaaS revenue guidance to $463 million–$471 million from a lower range, and projected Q2 SaaS revenue of $114 million–$115 million. CEO Joe Walsh said, "We delivered a strong start to 2026, with SaaS revenue exceeding our guidance and now representing 70% of total revenue," highlighting confidence in the transition. Senior Vice President Cameron Lessard added, "For the second quarter, we expect SaaS revenue in the range of $114 million to $115 million," and that the full‑year low end of SaaS revenue was raised to $463 million–$471 million.
The market reacted strongly, with the stock rising 10.11% in pre‑market trading, driven by the earnings beat and the optimistic guidance. Analysts noted that the company’s ability to turn a loss into profit and to raise guidance signals effective execution of its strategic pivot.
Thryv’s broader strategy is to exit the legacy marketing services business by 2028, focusing on AI‑enabled features and “quality customers” who contribute more than $400 in monthly recurring revenue. The company’s emphasis on higher‑margin SaaS, coupled with AI integration, positions it to capture a larger share of the SMB software market while improving profitability.
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