Thryv Holdings, Inc. (THRY): BCG Matrix [Dec-2025 Updated]

You're looking for a clear map of Thryv Holdings, Inc.'s business units-where the cash is now and where the growth will be. Honestly, looking at the late 2025 picture, it's a classic story: the Thryv Software platform is the clear Star, projecting over 20% Annual Recurring Revenue growth, but it needs capital. That funding is coming from the legacy Marketing Services, our Cash Cow, which is stable but shrinking at about -5%. We also have to track the international expansion-a big Question Mark requiring $10-15 million-while the outdated print products are finally being cut as Dogs, contributing less than 5% of the total. Let's dive into what this portfolio split means for your investment thesis.

Background of Thryv Holdings, Inc. (THRY)

You're looking at Thryv Holdings, Inc. (THRY), which you know is the provider of Thryv®, the leading small business marketing and sales software platform. Honestly, the company's history stretches back over 125 years from its Yellow Pages roots, but today its core focus is on local business automation (LBA) for small and medium-sized businesses (SMBs) that typically have between 2 and 99 employees.

Thryv Holdings, Inc. organizes its operations into two main segments that tell the story of its current strategy. First, you have the Thryv Marketing Services segment, which includes the legacy print and digital solutions business. Second, and this is where the focus is, is the Thryv SaaS segment, which houses the flagship all-in-one small business management platform.

The critical context here is the company's aggressive strategic pivot. Thryv Holdings, Inc. is intentionally shedding revenue from the legacy Marketing Services side to build a more valuable, higher-margin SaaS business. This transformation is working; by the second quarter of 2025, SaaS revenue was already the majority of the business.

Let's look at the numbers from the third quarter of 2025, which closed on September 30, 2025. Consolidated total revenue for the quarter was $201.6 million, marking an increase of 12% year-over-year. The engine driving this growth is the SaaS segment, which posted revenue of $115.9 million, a 33% jump from the prior year. To be fair, the Marketing Services revenue was $85.7 million, which was down 8% year-over-year, showing the planned contraction of that business.

The platform's stickiness is clear when you look at the key metrics. Thryv Holdings, Inc. ended Q3 2025 with 103 thousand SaaS clients, a 7% increase year-over-year, and the SaaS monthly Average Revenue per Unit (ARPU) climbed to $365, up 19% from the year before. This focus on driving spend from existing customers is defintely paying off in profitability, as consolidated net income for Q3 2025 reached $5.7 million, a huge swing from the net loss of $96.1 million reported in Q3 2024. As of late 2025, the company's market capitalization stood at USD 920 million, and they managed to reduce net debt to $265 million, achieving a leverage ratio of 1.9x.

Thryv Holdings, Inc. (THRY) - BCG Matrix: Stars

You're looking at the engine driving Thryv Holdings, Inc.'s future, the segment that demands capital to maintain its lead in a growing market. This is the software platform, the core of the business transformation, which is clearly operating as a Star based on its performance metrics through the third quarter of 2025. The growth here is significant, showing the market is adopting the all-in-one solution for small-to-medium businesses (SMBs). The full-year 2025 SaaS revenue guidance is set between $460 million and $463 million, which confirms this unit is operating at a scale well past the $300 million threshold mentioned in strategic planning.

The high market share is supported by consistent, strong year-over-year growth in the Software as a Service (SaaS) revenue stream, even as the company sheds lower-margin Marketing Services clients. This segment is the clear leader in the business units, justifying the continued high investment strategy to capture more of the estimated $40 billion annual spend potential in the global serviceable addressable market of approximately 10 million businesses.

Here's a quick look at the revenue acceleration in the Star segment through the first three quarters of 2025:

The focus remains on expanding core platform features, like ThryvPay and CRM capabilities, to drive deeper adoption and increase customer lifetime value. The success in this area is directly reflected in the rising Average Revenue Per Unit (ARPU) figures, which is a key indicator of successful upselling and cross-selling efforts. You can see the progression in the customer monetization:

• SaaS clients reached 106 thousand by the end of Q2 2025 (up 25% YoY).
• Total SaaS subscribers were 103,000 at the end of Q3 2025 (up 7% YoY).
• SaaS monthly ARPU hit $335 in Q1 2025, rising to $352 in Q2 2025.
• By Q3 2025, overall SaaS ARPU was $365 (Thryv at $355).
• The company sees current annual ARPU at about $4,200, targeting a future band of $4,000 to $8,000.
• 17,000 clients were using two or more SaaS products in Q3 2025, representing 20% of the base.

The high growth rate consumes cash, but the margin expansion shows the path to becoming a Cash Cow. The SaaS Adjusted Gross Margin improved to 73.3% in Q1 2025 and was 73% in Q3 2025. For Q3 2025, the SaaS Adjusted EBITDA was $19.6 million, yielding a margin of 17%. This sustained success, especially as the overall SaaS revenue is projected to hit $460 million to $463 million for the full year, positions Thryv Holdings, Inc. to convert this Star into a Cash Cow when the market growth inevitably slows.

Thryv Holdings, Inc. (THRY) - BCG Matrix: Cash Cows

The Marketing Services segment at Thryv Holdings, Inc. represents the classic Cash Cow in the BCG framework. This unit possesses a high market share within a mature, and by industry trends, declining advertising space, primarily print and legacy digital offerings.

This segment is characterized by its ability to generate substantial free cash flow from a large, established customer base, even as its top-line revenue contracts. The company has a stated long-term goal to transition away from this segment, with a target exit set for 2028.

For the full fiscal year 2025, Thryv Holdings, Inc. projects the Marketing Services revenue to fall within the range of $323 million-$325 million. While the outline suggests a low single-digit decline around -5%, the most recent reported quarter shows a steeper contraction; for instance, the third quarter of 2025 saw Marketing Services revenue of $85.7 million, marking an 8% decrease year-over-year. This segment's profitability remains strong, with the third quarter of 2025 Adjusted EBITDA margin reported at 24.8%.

The cash generated here is critical; it directly provides the capital necessary to fund the high-investment Thryv Software 'Star' segment, which is the focus of Thryv Holdings, Inc.'s growth strategy. The company reported a quarterly Free Cash Flow of $14.6 million in the third quarter of 2025, with year-to-date Free Cash Flow at $18.8 million. Furthermore, Thryv Holdings, Inc. projects Print Unlevered Free Cash Flow to be between $250 million-$300 million across the period spanning 2025 through 2030, underscoring the segment's role as a major internal financier.

Here are the key financial metrics for the Marketing Services segment across the first three quarters of 2025:

The strategy for this Cash Cow involves minimal investment in growth promotion, focusing instead on efficiency improvements to maximize the cash extraction rate. You should note the following characteristics that define its role:

• Generates substantial cash flow to support the overall enterprise.
• High market share in a mature, contracting market.
• Q3 2025 Adjusted EBITDA was $21.2 million.
• Full Year 2025 Adjusted EBITDA guidance is $76 million-$78 million.
• Investments are limited to maintaining current productivity levels.

The cash flow from this business unit is what allows Thryv Holdings, Inc. to absorb administrative costs and fund the aggressive investment required for its Software-as-a-Service (SaaS) offerings, which are positioned as Stars. If onboarding takes 14+ days, churn risk rises, but for this segment, the focus is on milking the existing, sticky customer base.

Thryv Holdings, Inc. (THRY) - BCG Matrix: Dogs

You're looking at the legacy business units here, the ones management is actively pruning to feed the growth engine. For Thryv Holdings, Inc., the Dogs quadrant is primarily represented by the remaining Marketing Services revenue stream, which is the home for the outdated print directory products and digital services that haven't made the leap to the core software platform.

These are units in a low-growth, shrinking market, and honestly, the numbers show it. The company's 2025 outlook projects the entire Marketing Services revenue to decline by approximately 35% year-over-year, which clearly signals an active phase-out strategy for these low-share offerings. The focus isn't on expensive turn-arounds; it's on maximizing the remaining cash before the planned termination of these solutions by 2028.

Here's the quick math: Based on the full-year 2025 guidance of \$323 million to \$325 million in Marketing Services revenue, this segment represents about 41.4% to 41.7% of the trailing twelve-month (TTM) consolidated revenue of \$779.99 million. That's a substantial chunk of the top line, but it's a chunk that is shrinking fast, which is why management's attention is elsewhere.

The operational drag is real, but the cash extraction is the priority. Management is focused on maximizing cash flow from this segment, projecting unlevered Free Cash Flow (FCF) from the print business alone to be robust, approximately \$250 million to \$300 million between 2025 and 2030. The profitability of the entire Marketing Services segment is expected to stabilize in the mid-twenties for its EBITDA margin, with Q3 2025 hitting exactly 25%, which is significantly lower than the high-margin SaaS business, but still positive enough to be a cash generator rather than a cash drain.

The non-core digital services that haven't successfully transitioned are embedded within this segment. These are the services that haven't converted to the higher-value, higher-margin Thryv Software platform, meaning they carry a low-margin profile and contribute to the overall operational complexity you're trying to minimize. It's a classic cash cow in its final years, but the BCG framework correctly labels the individual products within it as Dogs.

To give you a clearer picture of where the focus is, look at the comparison between the declining Marketing Services and the growing SaaS business for the full year 2025:

The strategic actions being taken on these units align perfectly with the Dogs strategy:

• - Outdated print directory products: Low market share and low growth, being actively phased out.
• - Minimal strategic value, contributing approximately 41.4% of total consolidated TTM revenue in 2025.
• - High operational drag; management is focused on maximizing cash extraction and minimizing costs.
• - Non-core, low-margin digital services that have not successfully transitioned to the Thryv Software platform.

The path here is clear: harvest the cash flow, which is expected to be robust, and keep the operational complexity low. Finance: draft 13-week cash view by Friday.

Thryv Holdings, Inc. (THRY) - BCG Matrix: Question Marks

You're looking at the areas of Thryv Holdings, Inc. (THRY) where the market is growing fast, but our current slice of that market is small. These are the units that suck up cash now, hoping to become the next big thing. They need a big push to gain traction, or they risk becoming Dogs.

The primary candidate for a Question Mark is the International expansion of Thryv Software. While Thryv Holdings, Inc. served approximately 114,000 SaaS clients as of December 31, 2024, the bulk remains in the core US market. The company serves approximately 300,000 SMB clients globally as of December 31, 2024, with significant operations noted in the United States, Australia, and New Zealand.

The push into new geographies, like Australia, represents this high-growth, low-share dynamic. For instance, the potential acquisition target in Australia, Sensis Holding Limited, provided access to 2.3 million SMBs and brought over 100,000 existing clients under the Thryv Inc. banner, many of whom are seen as candidates for the Thryv SaaS platform. This shows the potential market size but confirms the current low market share in those specific new regions.

This high market growth potential in new regions requires significant upfront sales and marketing investment, which is why these units are cash consumers. Success is defintely uncertain; it needs to prove product-market fit outside the core US market to justify the $10-15 million annual investment. We need to see if the investment translates into rapid share gain, otherwise, the cash burn continues.

Here's a quick look at the context of the core business funding this push:

Another area fitting the Question Mark profile involves New, unproven product features or acquisitions that are not yet integrated into the core platform or revenue stream. Thryv Holdings, Inc. recently introduced a new AI-enabled marketing solution for home services businesses. As of November 2025, Thryv currently works with over 15,000 home services businesses, which is a specific, growing vertical that requires focused investment to scale its adoption against the total addressable market.

The strategy here is clear: invest heavily to capture share quickly. The company is focused on expanding Average Revenue per Unit (ARPU), which grew 19% year-over-year to $365 in Q3 2025. This focus on existing customer monetization is a way to fund the high-growth, low-share international and new product bets.

The key risks you need to watch for in these Question Marks include:

• - International market penetration remaining below benchmarks.
• - New product adoption rates not justifying the R&D spend.
• - Churn in international segments exceeding the US 94% Seasoned Net Revenue Retention.
• - Failure to quickly convert acquired clients (like Sensis) to the higher-value SaaS model.

If onboarding takes 14+ days for these new international customers, churn risk rises.