Thryv Holdings, Inc. (NASDAQ: THRY) reported fourth‑quarter 2025 results that highlighted a 14.1% year‑over‑year increase in SaaS revenue to $118.99 million, while total revenue rose modestly to $191.62 million, slightly beating the consensus estimate of $191.25 million. The company’s SaaS business now accounts for more than 62% of total revenue, underscoring the ongoing shift from legacy marketing services to a higher‑margin software‑as‑a‑service model.
The quarter’s adjusted EBITDA margin for the SaaS segment reached 16.8%, a 0.8 percentage‑point lift over the prior year, driven by a 15% rise in monthly SaaS ARPU to $373. However, the consolidated adjusted EBITDA margin fell to 20.3% from 20.9% in Q4 2024, reflecting higher operating costs associated with the integration of the Keap acquisition and increased investment in AI‑enabled platform development.
Thryv reported an earnings per share of –$0.22, missing the consensus estimate of $0.18 by $0.40, a miss of 222%. The loss was largely attributable to a $9.7 million net loss in the quarter, compared with a $7.9 million net income in Q4 2024, as the company continued to absorb one‑time integration expenses and higher marketing spend to accelerate SaaS adoption.
Marketing Services revenue declined 11.7% year‑over‑year to $72.6 million, a decline that contributed to the overall revenue beat but also to margin compression. The company’s management emphasized that the decline is part of a planned exit strategy from legacy services, which is expected to be completed by 2028.
In guidance, Thryv projected first‑quarter 2026 total revenue of $161–$163 million and adjusted EBITDA of $22–$24 million, while full‑year 2026 revenue guidance was $611–$631 million with adjusted EBITDA of $100–$110 million. The guidance reflects confidence in continued SaaS growth but signals a cautious outlook for near‑term profitability as the company balances investment in AI and integration costs.
Management highlighted the strategic importance of the Keap acquisition, which contributed $16.2 million to Q4 SaaS revenue, and reiterated plans to launch an AI‑enabled “Market, Sell, Grow” platform later in 2026. CEO Joe Walsh noted that the company’s focus on high‑margin SaaS contracts and AI capabilities positions it to capture a larger share of the small‑business software market.
The results illustrate a company in transition: strong SaaS growth and margin expansion in the core business are offset by a net loss and a decline in legacy services. Investors will likely view the EPS miss as a short‑term cost of transformation, while the guidance suggests a continued emphasis on scaling the SaaS platform and managing integration expenses.
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