Breaking Down Thryv Holdings, Inc. (THRY) Financial Health: Key Insights for Investors

You're looking at Thryv Holdings, Inc. (THRY) because you see the core Software as a Service (SaaS) platform potential, but you're defintely wary of the legacy business drag. Honestly, the numbers from the Q3 2025 earnings call tell a clear story: the strategic pivot is accelerating, but it's not a clean break yet. For the full fiscal year 2025, the company is guiding toward a strong SaaS revenue range of $460 million to $463 million, which is the future of the business, but this growth is still partially offset by the Marketing Services segment, which is projected to bring in a separate $323 million to $325 million. The real opportunity lies in the profitability of the software side, with full-year SaaS Adjusted EBITDA expected to land between $73 million and $75 million, plus the company generated $14.6 million in free cash flow in Q3 alone, which helps pay down the debt. The market consensus, with an average analyst price target of $15.00 as of November 2025, suggests there's still significant upside if they execute the final stages of this transformation and stabilize total revenue.

Revenue Analysis

If you're looking at Thryv Holdings, Inc. (THRY), the most critical thing to understand is that the company is in a massive, deliberate transition. Your quick takeaway: The total revenue picture is messy, but the core Software as a Service (SaaS) business is growing fast enough to offset the planned decline of a legacy segment. This is a classic pivot play.

The company's revenue comes from two distinct streams: Thryv SaaS, which is the high-growth, modern small business management platform, and Thryv Marketing Services, the legacy print and digital advertising business that is being strategically wound down. This shift is what drives the volatility in the consolidated numbers.

For the third quarter of 2025, Thryv Holdings, Inc. reported consolidated total revenue of $201.6 million, which was an encouraging 12% increase year-over-year. But that consolidated number hides the real action, which is the segment performance.

The SaaS division is the future, and its numbers are strong. In Q3 2025, SaaS revenue hit $115.9 million, a robust 33% jump from the prior year. This growth reflects the success of their strategy to move customers to the Thryv platform and integrate acquisitions like Keap. The SaaS segment now represents the majority of the business, accounting for 58% of total revenue in Q3 2025, up from 48% a year earlier.

The Marketing Services segment is the drag, but it's an intentional one. This legacy business is expected to be fully exited by 2028. In Q3 2025, Marketing Services revenue was $85.7 million, an 8% decrease year-over-year. To be fair, a controlled decline is better than a collapse.

Here's the quick math on the full-year 2025 guidance, which shows you exactly where the company is headed:

What this estimate hides is the geographic concentration. While the company serves clients globally, the United States accounted for $172.1 million of Q2 2025 revenue, with International revenue at $38.3 million. Australia, for instance, contributed approximately 15.8% of the total revenue in Q2 2025, so you defintely need to keep an eye on their performance outside the US.

The core of the business is now a software company.

The significant changes in revenue streams are all about the strategic pivot:

• SaaS Growth Acceleration: Q2 2025 saw SaaS revenue grow 48% year-over-year to $115.0 million.
• Marketing Services Contraction: This segment's revenue fell 35% year-over-year in Q2 2025, which is part of the plan.
• Vertical Expansion: The launch of industry-specific products like 'Thryv for HVAC' is a key move to increase Average Revenue Per Unit (ARPU) and deepen client engagement.

If you want to dig deeper into who is betting on this transition, you should check out Exploring Thryv Holdings, Inc. (THRY) Investor Profile: Who's Buying and Why?

Profitability Metrics

You want to know if Thryv Holdings, Inc. (THRY) is finally turning the corner on profitability. The short answer is yes, especially in the core Software as a Service (SaaS) business, but the consolidated numbers still show the drag from the legacy segment. The crucial shift is the swing from a significant net loss in 2024 to a positive net income through the first nine months of 2025.

For the nine months ended September 30, 2025, Thryv Holdings, Inc. reported total revenue of $593.4 million and a consolidated net income of $9.97 million, translating to a modest net profit margin of approximately 1.7%. This is a massive turnaround from the net loss of $82.1 million reported for the same period a year prior.

• Q3 2025 Consolidated Revenue: $201.6 million.
• Q3 2025 Net Income: $5.7 million.
• Q3 2025 Net Profit Margin: 2.8% (Calculated).

Here's the quick math on the most recent quarter, Q3 2025, which really shows the progress. Consolidated gross profit landed at $136.5 million on $201.6 million in revenue, giving a GAAP gross profit margin of about 67.7%. Looking at the second quarter of 2025, the company achieved an operating income of $29.54 million on $210.47 million in revenue, which is a solid operating profit margin of 14.0%.

Operational Efficiency and Industry Comparison

The real story is in the operational efficiency of the SaaS segment, which is what investors should focus on. Thryv Holdings, Inc. is executing a difficult pivot away from its legacy Marketing Services (print and directories) business, which is declining but still contributes a high Adjusted EBITDA margin of 24.8%. The company's core SaaS business is where the long-term value lies, and its efficiency is strong.

In Q3 2025, the SaaS Adjusted Gross Margin improved to 73.0%. This is a key metric, as a good SaaS gross margin is generally considered to be in the 70% to 80%+ range. Thryv Holdings, Inc. is firmly in that healthy band, showing its software delivery costs are well-managed and scalable. That 73.0% margin is defintely a green light for the core business model.

To be fair, the industry median operating margin for public SaaS companies was still around -8% in Q2 2025, with many still prioritizing growth over GAAP profitability. The fact that Thryv Holdings, Inc.'s consolidated business is generating positive GAAP net income and a 14.0% operating margin (Q2 2025) while still aggressively transitioning is a huge differentiator. They are balancing growth in SaaS with consolidated profitability, which is rare in this market.

This strategic transition, where SaaS revenue now accounts for 58% of total revenue as of Q3 2025, is the primary driver of the improving overall margins. The company's consolidated Adjusted EBITDA margin for Q3 2025 was 20.3%, which is a sign of strong cost control across the board as the higher-margin SaaS revenue grows.

For a deeper look at the institutional interest driving these trends, you might want to check out Exploring Thryv Holdings, Inc. (THRY) Investor Profile: Who's Buying and Why?

The next action is clear: Finance needs to model the impact of the Marketing Services wind-down on the consolidated gross margin over the next two years, as that segment's high Adjusted EBITDA margin of 24.8% will be a headwind as it shrinks.

Debt vs. Equity Structure

You're looking at Thryv Holdings, Inc.'s balance sheet and seeing a company in transition-moving from a capital-intensive legacy business to a pure-play Software-as-a-Service (SaaS) model. The debt-to-equity (D/E) ratio is the first place you should look to understand how they're funding that shift, and the current number tells a clear story: they rely heavily on debt, but they've also taken smart steps to manage that risk.

As of the most recent quarter in 2025, Thryv Holdings, Inc.'s total debt stood at approximately $272.80 million. The vast majority of this is long-term debt, primarily from a Term Loan B. Here's the quick math on their financial leverage:

• Total Debt (MRQ): $272.80 million
• Debt-to-Equity Ratio (MRQ): 1.23 (or 123.40%)

This debt-to-equity ratio of 1.23 is a critical figure. It means the company is using about $1.23 of debt for every dollar of shareholder equity. To be fair, a D/E ratio above 1.0 isn't always a red flag, but when you compare it to the median for the broader SaaS industry, the leverage is striking. The median D/E ratio for publicly traded SaaS companies in 2025 has fallen sharply to just 5.2% (or 0.052), reflecting a major industry shift toward more conservative, equity-heavy balance sheets. Thryv's ratio is defintely high for a software company, which is a hangover from its legacy print business.

The company's management has been proactive in managing this debt load. In May 2024, they executed a significant refinancing, replacing their prior facility with a new $350 million Term Loan B that extended the maturity date from 2026 all the way to 2029. This move bought them crucial time to complete their business model transition. As of March 31, 2025, the outstanding principal on this New Term Loan was $271.3 million, which accrues interest at the Secured Overnight Financing Rate (SOFR) plus 6.75%.

This refinancing also changed their capital allocation flexibility. The new loan terms allow Thryv Holdings, Inc. to use up to 50% of its free cash flow for purposes other than mandatory debt repayment, like the $40 million share repurchase program they initiated. This is a clear signal that management feels the debt risk is mitigated and they can now focus on returning capital to shareholders and funding growth. Their credit rating reflects this stability, with S&P Global Ratings assigning a 'B' issuer credit rating with a stable outlook, and Moody's assigning a corporate family rating of B3 with a positive outlook as of February 2025.

The balance between debt financing and equity funding is now less about survival and more about opportunistic growth. They are using debt-a lot of it, compared to peers-to fuel the rapid growth of the SaaS segment, which saw Q2 2025 revenue increase 48% year-over-year. This is a high-risk, high-reward strategy: use cheap debt (relatively speaking, thanks to the refinancing) to accelerate the high-margin business, while the legacy business pays down the principal. You can read more about the core business strategy in Breaking Down Thryv Holdings, Inc. (THRY) Financial Health: Key Insights for Investors.

Liquidity and Solvency

You need to know if Thryv Holdings, Inc. (THRY) can cover its near-term bills while managing a major business transition. The quick answer is yes, they can, but the liquidity picture is complex because of the planned wind-down of their legacy Marketing Services segment. Their focus on debt reduction and strong SaaS growth is defintely a positive signal for long-term solvency.

Assessing Thryv Holdings, Inc.'s Liquidity Position

The most direct measure of a company's short-term health is the current ratio (current assets divided by current liabilities). As of the most recent reporting, Thryv Holdings, Inc.'s Current Ratio is hovering around 1.08, with some recent figures showing a slight dip to 0.96. A ratio near or slightly above 1.0 is generally acceptable, meaning current assets just cover current liabilities.

The Quick Ratio, which strips out less-liquid inventory, is also around 0.96. Since Thryv Holdings, Inc. is a software and service company, their inventory is minimal, so the quick ratio is nearly identical to the current ratio. This suggests a tight, but manageable, liquidity position. It's not a fortress balance sheet, but it's not a crisis either.

• Current Ratio: 1.08 (acceptable, but tight).
• Quick Ratio: 0.96 (indicates reliance on receivables).

Working Capital and Transitional Drag

Analyzing working capital trends shows the pressure from the strategic shift. The company's net cash from operating activities decreased by $8.6 million in the second quarter of 2025, which management attributed largely to changes in working capital. This is a temporary headwind, not a structural flaw. Here's the quick math on what's happening:

The legacy Marketing Services business, which the company plans to exit by 2028, is causing working capital timing issues. For example, in Q2 2025, accounts receivable increased by $15.392 million. This is common during a wind-down where revenue is recognized but cash collection is delayed due to the long billing cycles of the old print directory contracts. What this estimate hides is that as the legacy business shrinks, this working capital drag should reverse, leading to improved cash conversion down the road.

Cash Flow Statements Overview (2025 Trends)

The cash flow statement for the trailing twelve months (TTM) ending September 2025 paints a clearer picture of financial discipline and strategic investment.

Operating Cash Flow (OCF): Thryv Holdings, Inc. generated $67.46 million in OCF TTM as of September 2025. More importantly, the year-to-date Free Cash Flow (FCF) stood at $18.8 million as of Q3 2025, with $14.6 million generated in Q3 alone. That's strong momentum.

Investing Cash Flow: The company is still investing, with Capital Expenditures (CapEx) TTM at -$31.3 million. They also had cash acquisitions of -$76.89 million TTM, which includes the integration of Keap, a key part of their SaaS growth strategy. You have to spend money to make money, and these are strategic investments in their future SaaS platform.

Financing Cash Flow: Financing activities show a clear focus on deleveraging. In Q2 2025, they reduced term debt by $26 million. Earlier in Q1 2025, they utilized their ABL Facility with proceeds of $109.647 million, which is a smart way to manage short-term liquidity during the transition.

Liquidity Concerns and Strengths

The primary liquidity strength is the company's ability to generate cash and reduce debt even while managing the Marketing Services runoff. Thryv Holdings, Inc. has reduced its net debt to $265 million as of Q3 2025. This puts their leverage ratio at a comfortable 1.9x net debt to EBITDA, well below the 3x covenant threshold. This strong solvency position gives them the flexibility to continue investing in their high-growth SaaS platform.

The main concern remains the temporary cash flow volatility caused by the legacy business wind-down, but management is confident they have ample liquidity to meet its obligations during the transition to a fully SaaS focused model. The path to a fully SaaS-focused model is clear, and the financial metrics show they are executing the plan effectively.

Valuation Analysis

You're looking at Thryv Holdings, Inc. (THRY) and wondering if the recent stock dip makes it a bargain or a value trap. Based on key 2025 fiscal year metrics, the stock appears undervalued relative to its growth potential, especially when you factor in the strong analyst consensus.

The market is defintely pricing in risk, but the core valuation multiples suggest a discount. For instance, the trailing Price-to-Earnings (P/E) ratio is sitting at 13.37, which is quite reasonable for a company transitioning to a Software-as-a-Service (SaaS) model. The forward P/E ratio is slightly higher at 13.97, indicating analysts expect a modest near-term earnings dip before growth accelerates. Here's the quick math on the enterprise value.

The Enterprise Value-to-EBITDA (EV/EBITDA) ratio is particularly compelling at 6.30. This ratio, which measures a company's total value against its operating cash flow (Earnings Before Interest, Taxes, Depreciation, and Amortization), is low. It signals that Thryv Holdings, Inc. is trading cheaply compared to its ability to generate cash from its core business, especially when its trailing twelve months (TTM) EBITDA through September 2025 was around $110.1 million. Anything under 10x is often considered a good value signal in the tech space.

Still, you can't ignore the stock price action. The stock has been in a clear downtrend, which is why the valuation looks so attractive right now. Over the last 12 months, the stock has seen a massive swing, hitting a 52-week high of $20.92 and a 52-week low of $6.21, though the most recent close on November 20, 2025, was $5.39. That's a huge drop, and it shows the market is worried about the legacy print business dragging down the SaaS growth story. You need to look closer at what's driving that fear, and you can start by reading Exploring Thryv Holdings, Inc. (THRY) Investor Profile: Who's Buying and Why?

What this estimate hides is the lack of a dividend. Thryv Holdings, Inc. does not currently pay a dividend, so your return will be entirely dependent on capital appreciation. The dividend yield is N/A, and the payout ratio is also N/A. This isn't a stock for income investors; it's a pure growth/value play.

The good news is that Wall Street analysts see the same deep value. The consensus rating from four analysts is a strong Buy. The average 12-month price target is $14.00. This target represents a potential upside of over 149% from the current $5.39 price. That's a significant conviction that the stock is materially undervalued right now, but it requires the company to execute its transition plan well.

• Average Analyst Rating: Buy
• 12-Month Price Target: $14.00
• Implied Upside: Over 149%

Risk Factors

You're looking at Thryv Holdings, Inc. (THRY) because the Software as a Service (SaaS) growth story is compelling, but you need to be a realist about the risks. The direct takeaway is that Thryv Holdings, Inc.'s primary risk is an operational one: successfully completing the strategic pivot away from its high-margin, but declining, legacy business before the financial strain of that decline outweighs the SaaS segment's growth.

The company is defintely at a critical inflection point where the old revenue stream is shrinking, and the new one needs to accelerate faster to compensate. This is a classic transition risk, and it maps directly to your investment time horizon.

The Dual-Engine Operational Challenge

The most significant internal risk is the structural decline of the Marketing Services segment, which is expected to wind down completely by 2028. This legacy business, while declining, still brought in a substantial amount of revenue, with full-year 2025 guidance for Marketing Services revenue set at $323 million to $325 million. The challenge is that as this revenue base shrinks, it creates a margin headwind that the SaaS business must overcome.

Here's the quick math: the SaaS segment is growing fast-Q3 2025 revenue was $115.9 million, up 33.1% year-over-year. But this growth is currently masking flat subscriber numbers and ongoing subscriber losses. The overall revenue stability hinges on increasing the Average Revenue Per User (ARPU) and driving multi-product adoption. If onboarding takes 14+ days, churn risk rises, especially for smaller businesses.

• SaaS Subscriber Risk: Growth is driven by higher ARPU, not new client volume.
• Integration Risk: Slow synergy capture from the Keap acquisition could hinder platform efficiency.
• Competition: Intense competitive threats in the SMB software space require accelerated R&D spend.

Financial and Market Headwinds

From a financial perspective, Thryv Holdings, Inc. carries a notable debt load, which is a key consideration for any value-driven investor. The company's debt-to-equity ratio stands at 1.23 as of late 2025, which is a higher leverage point than many pure-play software peers. Also, while the company's net income has improved, its operating cash flow hit a recent low of $81.2 million, which constrains its ability to invest aggressively in new client acquisition.

To be fair, the management team is aware of this and has been taking clear action. They successfully reduced net debt by $24 million and lowered the leverage ratio to 2.2x, effectively navigating a financial pinch point ahead of schedule. This debt reduction is a concrete mitigation strategy that frees up capital for growth initiatives.

The external market conditions also play a role. The recent Federal Reserve pivot to rate cuts in late 2025, bringing the federal funds rate target to 3.75% to 4.00%, is a double-edged sword. While lower rates generally improve free cash flow for growth firms like Thryv Holdings, Inc. by reducing borrowing costs, the underlying reason-a cooling job market-could signal a recessionary environment where small business customers (Thryv's core) cut their discretionary software spending first. You need to watch that SMB spending closely.

Mitigation and Forward Action

Thryv Holdings, Inc.'s mitigation strategy is a focused, two-pronged attack: increase customer lifetime value (LTV) and improve profitability. The company is leaning heavily on its existing customer base, which is a smart, capital-efficient move. This strategy is working in terms of retention, with a Seasoned Net Revenue Retention (NRR) rate of 103% in Q2 2025. This means existing customers are spending 3% more than they were a year ago, which is a strong signal of product stickiness.

The operational goal is to get customers on more products. As of September 2025, the number of clients using two or more paid SaaS products is growing, a key metric for LTV expansion. The company is accelerating its shift to a SaaS-majority business, with software now accounting for 58% of total revenue in Q3 2025. For a deeper look into the company's long-term vision guiding this pivot, you can check out the Mission Statement, Vision, & Core Values of Thryv Holdings, Inc. (THRY).

Your next step should be to model the revenue crossover point: when will the SaaS Adjusted EBITDA of $19.6 million (Q3 2025) definitively eclipse the Marketing Services EBITDA, and how much new debt capacity does the $24 million reduction really unlock for R&D? Finance: draft a sensitivity analysis on the SaaS subscriber churn rate by next Friday.

Growth Opportunities

You're looking at Thryv Holdings, Inc. (THRY) and seeing a company in the middle of a major pivot, but that pivot is exactly where the growth opportunity lies. The direct takeaway is this: the declining legacy Marketing Services segment is masking a profitable, high-growth Software-as-a-Service (SaaS) engine that is on track to deliver up to $463 million in revenue this year. Your focus should be entirely on the SaaS segment's ability to scale its multi-product platform for small-to-medium businesses (SMBs).

The company's strategic transformation from a traditional Yellow Pages publisher to a premier SMB software provider is well past the halfway point. As of Q1 2025, SaaS revenue already represented over 60% of total revenue. For the full fiscal year 2025, Thryv Holdings, Inc. is guiding for SaaS revenue between $460 million and $463 million, which translates to a high-teens to mid-thirties year-over-year growth rate, depending on the final Q4 results. This growth is fueling strong profitability, with full-year SaaS Adjusted EBITDA expected to be between $73 million and $75 million. That's a rare level of margin expansion for a company in this growth phase.

Here's the quick math: the analyst consensus for full-year 2025 earnings per share (EPS) sits at about $0.55 per share, but the real value driver is the long-term goal of reaching $1 billion in SaaS Annual Recurring Revenue (ARR) by 2030.

Key Growth Drivers and Product Innovation

The future growth for Thryv Holdings, Inc. isn't about acquiring a massive number of new clients; it's about getting more revenue from the 103,000 SaaS subscribers they already have. This is a classic cross-selling strategy, and it's working. As of Q2 2025, 17,000 customers were already using multiple products, which creates a sticky ecosystem that's hard for competitors like Zoho or HubSpot to crack.

The company is defintely leaning into product innovation to drive this expansion, primarily through Artificial Intelligence (AI) and verticalization. The launch of the Workforce Center in 2025, for example, extends their platform into payroll automation and tax compliance, which is a high-value service for SMBs. You're seeing new AI-powered tools like the AI Website Builder and CaptionAI for social media content, all designed to make the platform indispensable. They are also focusing on specific verticals, like the launch of Thrive for HVAC, to better serve high-spend segments.

• AI-Powered Tools: Drive efficiency and content creation.
• Vertical Solutions: Deepen penetration in high-value segments like home services.
• Keap Integration: Accelerates SaaS client adoption from the 2024 acquisition.
• ARPU Expansion: Targeting an increase in annual Average Revenue Per Unit (ARPU) from the current ~$4,200 toward the $8,000 target band.

Competitive Moat and Near-Term Risk

Thryv Holdings, Inc.'s competitive advantage lies in its comprehensive, bundled platform. They are positioned perfectly for the SMB market-more sophisticated than basic tools like Mailchimp, but more affordable and tailored than enterprise solutions like Salesforce. This full-stack approach, which includes their own payment processing solution, ThryvPay, creates a high Net Revenue Retention (NRR) environment, though the recent dip to 94% in Q3 2025 is a reminder that transitioning legacy clients is a continuous challenge.

The biggest near-term risk remains the legacy Marketing Services segment. While it provides significant cash flow-projected to deliver Adjusted EBITDA between $76 million and $78 million in 2025-its revenue is declining fast, and the market is still discounting the stock based on that headwind. The segment is expected to wind down by 2028, so the company must maintain its SaaS growth trajectory to offset this decline and prove the transformation is complete.

For a deeper dive into the valuation and strategic frameworks, you can check out the full post at Breaking Down Thryv Holdings, Inc. (THRY) Financial Health: Key Insights for Investors. Your next step should be to monitor the SaaS Net Revenue Retention (NRR) and Average Revenue Per Unit (ARPU) in the next quarter; those are the true indicators of whether their cross-selling strategy is hitting its stride.