Thryv Holdings, Inc. (THRY): Business Model Canvas [Dec-2025 Updated]

You're trying to figure out if Thryv Holdings, Inc.'s pivot to a pure-play SaaS model is actually working, and honestly, that's the right question to ask when a company is actively migrating its base. As an analyst who's seen these transitions before, the key is in the numbers: for FY 2025, they are guiding toward $\text{460M}-\text{\$463M}$ in recurring SaaS revenue, which is being built on a base of over $\text{103,000}$ subscribers and a strong $\text{103\%}$ Net Revenue Retention in Q2 2025, excluding Keap. The defintely tricky part is balancing that growth against the legacy Marketing Services revenue, guided to $\text{\$323M}-\text{\$325M}$, while servicing $\text{\$265 million}$ in net debt as of Q3 2025. Dive into the full Business Model Canvas below to see exactly how their Key Activities and Cost Structure support this all-in-one software value proposition for SMBs.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Key Partnerships

The Key Partnerships block for Thryv Holdings, Inc. centers on strategic integrations and channel expansion to drive the Software as a Service (SaaS) pivot, especially following the Keap acquisition in late 2024.

Keap partner ecosystem for expanded reach and product integration

The integration of Keap established a significant combined SaaS base, diversifying the go-to-market motion beyond Thryv's existing direct channels. Keap's established Partner Channel is complementary and additive to Thryv's structure. The company held Partnerkon 2025 in April to align partners from both Thryv and Keap.

The combined entity started with a base of over 100,000+ SaaS subscriptions on day one following the acquisition. By the end of the third quarter of 2025, Thryv ended with 103,000 total SaaS subscribers, which included 13,000 from Keap.

The SaaS monthly Average Revenue per Unit (ARPU) for Keap specifically reached $437 in Q3 2025.

Third-party application developers for platform integration

Maintaining compatibility with third-party applications is noted as a key factor for Thryv Holdings, Inc.'s continued success. The platform is designed to connect to tools that small businesses (SMBs) might already use, which enhances the value proposition of the all-in-one platform.

Thryv Holdings, Inc. specifically has integrated connections to tools such as:

• ServiceTitan
• Jobber

The acquisition of Keap was expected to immediately boost integration capabilities, as Keap possessed a more vast Application Programming Interface (API) than Thryv previously had.

Strategic alliances for international market expansion (e.g., Australia/New Zealand)

Thryv Holdings, Inc. serves SMB clients globally, with significant operations established through strategic acquisitions in Australia and New Zealand, alongside its North American base. The acquisition of Yellow Holdings Limited in New Zealand and the presence of Thryv Australia solidify this international footprint.

As of December 31, 2024, the client base in these key international areas was:

• Thryv Australia Pty Ltd: Approximately 80,000 SMBs served.
• Yellow Holdings Limited (New Zealand): Approximately 15,000 SMBs served.

The company's global serviceable addressable market was estimated to encompass approximately 10 million businesses as of Q2 2025.

AI technology providers for platform feature enhancement

Thryv Holdings, Inc. is actively rolling out Artificial Intelligence (AI) features throughout its software to make operations easier for small business people. The platform's automations are described as AI-supported, helping owners save time and compete.

Key features leveraging AI partnerships or internal development include:

• AI Content Generator for creating and scheduling marketing campaigns.
• AI-powered replies to customer reviews for reputation management.
• Automated follow-up sequences for lead capture and conversion.

The company announced the appointment of a new Chief Technology Officer in late 2025, stating this executive is focused on increasing the integration of AI, signaling a continued partnership focus in this technology area.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Key Activities

You're managing a business in the middle of a massive digital transformation, so the Key Activities for Thryv Holdings, Inc. are centered on accelerating the shift from legacy print to a high-growth Software as a Service (SaaS) model. This means heavy investment in the platform while systematically retiring the older revenue streams. It's a balancing act, but the numbers show where the strategic energy is going.

Software development and AI feature integration.

This is where Thryv Holdings, Inc. is directing significant operational focus. The company is actively rolling out Artificial Intelligence (AI) features throughout the platform to simplify operations for small business people. The appointment of Sean Wechter as Chief Technology Officer in 2025 signals a deep commitment to this area, with management stating he is 'all AI all the time' to up-level software integration. The development focus is yielding fast-moving products; for instance, the Marketing Center is cited as their 'fastest-selling product.' The commitment to the platform is reflected in the gross margin performance of the software segment.

Migration of legacy Marketing Services clients to the SaaS platform.

A core activity is moving existing customers from the declining Marketing Services business onto the sticky SaaS platform. This migration is essential for future revenue stability. By the end of Q1 2025, Thryv Holdings, Inc. reported 111 thousand SaaS clients, with 96 thousand of those excluding the Keap acquisition, showing a 37% year-over-year increase in the core base from migration and new sales. This effort is part of a larger strategic goal to have the SaaS segment fully overshadow the legacy business, which represented 61.3% of total revenue in Q1 2025.

• Total SaaS Subscribers (End of Q3 2025): 103,000 (including 13,000 from Keap).
• SaaS Subscribers Year-over-Year Increase (Q3 2025): 7%.
• Clients using two or more SaaS products (Q3 2025): 17,000, which is 20% of the base.

Direct sales and upselling of multiple SaaS products to existing clients.

The company is heavily focused on increasing the spend per customer, which is a key activity for driving profitability in the SaaS segment. This is measured by the Net Revenue Retention (NRR) rate, which hit a record 103% in Q1 2025 and remained at 103% in Q2 2025. This means existing customers are spending more than the revenue lost from any churn. The overall Monthly Average Revenue Per Unit (ARPU) for SaaS expanded to $365 by Q3 2025, a 19% increase year-over-year, directly showing the success of cross-selling and upselling efforts.

Maintaining and winding down the legacy print/digital Marketing Services business.

This activity involves managing the decline of the older business segment while extracting maximum cash flow to fund the SaaS investment and pay down debt. The decline is planned and persistent. In Q3 2025, Marketing Services revenue was $85.7 million, an 8% decrease year-over-year. The company has a firm target to completely sunset this business by 2028. Despite the revenue contraction, the legacy segment remains a cash generator, with projected unlevered free cash flow between $250 million and $300 million expected between 2025 and 2030, which is critical for the balance sheet de-leveraging.

Finance: draft 13-week cash view by Friday.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Key Resources

You're looking at the core assets Thryv Holdings, Inc. uses to run its business right now, late in 2025. It's all about the software platform and the recurring revenue it generates. The company's history, stretching back over 125 years from its Yellow Pages roots, shows a constant evolution, but the focus on local commerce remains central, now executed through the all-in-one software platform (SaaS).

The proprietary Thryv SaaS platform and intellectual property are central. This includes the continuous investment in the platform to help small businesses compete in a digital-first world. The platform is being enhanced with AI-driven tools, such as Caption AI for social posts and AI Review Response for automating feedback replies. Furthermore, Thryv launched the Thryv Reporting Center™, which offers out-of-the-box reports on sales, appointments, and marketing activity. They also slated the Thryv Workforce Center™ for launch in H2 of 2025, designed to streamline employee management and payroll. They are also focusing on vertical-specific solutions, like Thryv for HVAC.

The sales force is key for client migration and acquisition, supporting the strategy to increase customer spend. This effort is showing up in the metrics around customer depth. For instance, the number of clients adopting two or more SaaS products grew to 17,000, representing 20% of the total base as of the end of Q3 2025. Also, Thryv centers per client reached 50% at the end of Q3 2025, a big jump from 12% in the prior year, which shows success in the land-and-expand strategy.

The integrated payment solution, ThryvPay, is a significant resource facilitating transactions directly within the platform. This service has seen consistent volume growth. The company is focused on deepening relationships to expand the Average Revenue per Unit (ARPU) across the base.

Here are the key operational and financial metrics supporting these resources as of Q3 2025:

The platform's stickiness is also reflected in retention figures. Seasoned Net Revenue Retention was 94% as of September 30, 2025. The company is also making progress on its financial stability, ending Q3 2025 with net debt down $9 million to $265 million, resulting in a leverage ratio of 1.9x.

You can see the focus on the software business in the margins, too. SaaS Adjusted Gross Margin reached 73.0% in Q3 2025, up from 71.1% in Q3 2024. The SaaS Adjusted EBITDA margin for the quarter was 16.9%.

• Proprietary Thryv SaaS platform and intellectual property.
• Large, tenured sales force for client migration and acquisition.
• Global SaaS client base of over 103,000 subscribers as of Q3 2025.
• Integrated payment solution, ThryvPay, facilitating transactions of $89 million in Q3 2025.

Finance: draft 13-week cash view by Friday.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Value Propositions

You're looking at the core value Thryv Holdings, Inc. (THRY) delivers to its small and medium-sized business (SMB) customers right now, late in 2025. The entire proposition centers on moving the business owner from juggling multiple tools to using one integrated platform. This shift is what drives their strong Software as a Service (SaaS) metrics.

All-in-one software for SMBs to manage marketing, sales, and operations.

This is the central promise: a single hub for everything needed to manage customers and grow. You see this commitment reflected in the financial results, where the software segment is clearly the growth engine. For instance, in the third quarter of 2025, Thryv Holdings, Inc. reported SaaS revenue of $115.9 million, marking a 33% year-over-year increase. This software now makes up about 58% of the company's total revenue. The platform is clearly becoming more central to operations, as evidenced by the fact that 20% of users adopted multiple SaaS products in Q3 2025. The company is actively working to increase the value captured from each client, aiming to move a customer's annual spend from a baseline of $4,000 up to $8,000 through deeper product adoption.

The core metrics show the success of this consolidation:

• SaaS clients reached 103 thousand as of the end of Q3 2025, up 7% year-over-year.
• SaaS monthly Average Revenue per Unit (ARPU) hit $365 in Q3 2025, a 19% expansion YOY.
• SaaS Adjusted Gross Margin stood at 73% in Q3 2025.

The value proposition is starkly contrasted by the legacy business, which is being strategically phased out. Here's a quick look at the segment performance in Q3 2025:

AI-supported automations to save small business owners time.

The integration of Artificial Intelligence is a major value driver, directly addressing the small business owner's most constrained resource: time. Thryv Holdings, Inc. itself surveyed the market in May 2025, finding that AI adoption among SMBs had surged to 55%, a 41% increase from the prior year. This isn't just theoretical; the reported time savings are concrete. Of the SMBs using AI, 58% report saving more than 20 hours per month. Also, 66% of these users quantify the benefit as saving between $500 and $2,000 monthly, which they can reinvest into growth. Management views AI integration as a 'big tailwind' for the platform's future growth.

The primary use cases for AI, according to that May 2025 survey, include:

• Data analysis at 62%.
• Content generation at 55%.
• Customer engagement tools like chatbots at 46%.

Integrated payment processing via ThryvPay for simplified cash flow.

ThryvPay offers simplified cash flow management by integrating payments directly into the customer experience platform. This reduces friction for the business owner and the customer. In the third quarter of 2025, the total payment volume processed through ThryvPay reached $89 million, which represents a 9% increase compared to the previous year. This service supports competitive flat-rate fees, contactless processing, and the ability to pass convenience fees to customers, helping to offset transaction costs.

Legacy Marketing Services (print/digital) for non-migrated clients.

For the existing client base not yet fully migrated to the SaaS model, Thryv Holdings, Inc. still provides legacy Marketing Services, which include print and digital offerings. While this segment provides a high-margin contribution to near-term profitability, its revenue is declining as the company executes its pivot. Marketing Services revenue was $85.7 million in Q3 2025, showing an 8% year-over-year decrease. The Marketing Services segment posted an Adjusted EBITDA margin of 25% in Q3 2025. The company has set a clear strategic goal to transition away from this segment, targeting an exit by 2028.

Finance: draft 13-week cash view by Friday.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Customer Relationships

You're looking at how Thryv Holdings, Inc. manages its relationship with its Small and Medium-sized Business (SMB) customers as the company pushes hard to become a pure Software as a Service (SaaS) player. The relationship strategy clearly splits between migrating legacy customers and nurturing the growing SaaS base.

The success of keeping and growing revenue from existing SaaS users is strong. Thryv Holdings, Inc. achieved a seasoned Net Revenue Retention (NRR) of 103% in Q2 2025, excluding Keap. This metric shows that revenue from the existing base is not only holding steady but growing through upsells and cross-sells, even after accounting for any churn or downgrades. To be fair, this metric softened slightly in the following quarter, with the seasoned NRR reported at 94% as of September 30, 2025.

The focus on driving multi-product adoption is a key part of this relationship strategy, as clients using more modules show better stickiness. Here's a quick look at how key customer metrics evolved between the second and third quarters of 2025:

For high-touch client migration, the company relies on its sales force to transition customers from the legacy Marketing Services division, which is slated to wind down by 2028. With 'well over 100,000 small businesses now on our marketing and sales platform' as of Q2 2025, managing this transition requires dedicated attention to ensure smooth adoption of the SaaS platform.

For the broader SaaS platform users, the relationship leans heavily on automation and self-service capabilities. Thryv Holdings, Inc. is actively deploying AI to reduce repetitive work for business owners, which acts as a form of automated support. This includes tools like Caption AI for social posts, AI Review Response for feedback management, and AI Content & Automation Assistants.

The success in driving product adoption suggests a strong consultative element, which can be seen as partner-driven or internal implementation services, even if the exact partner network size isn't public. The number of clients using two or more Thryv SaaS products grew to 17,000 by the end of Q2 2025, up from 13,000 the prior year. This expansion within the existing base is supported by an increase in SaaS Monthly ARPU, which rose from $352 in Q2 2025 to $365 in Q3 2025, a 19% year-over-year expansion.

• SaaS revenue grew 48% year-over-year to $115.0 million in Q2 2025.
• SaaS revenue excluding Keap grew 25% year-over-year to $97.3 million in Q2 2025.
• ThryvPay total payment volume reached $90 million in Q2 2025.
• The company reduced net debt by $26 million during the first half of 2025.

Finance: draft 13-week cash view by Friday.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Channels

You're looking at how Thryv Holdings, Inc. gets its software and services into the hands of small businesses as of late 2025. The channel strategy is clearly bifurcated, pushing hard on the high-margin Software as a Service (SaaS) side while managing the planned decline of the legacy Marketing Services.

Direct sales force for high-value client acquisition and upselling.

The direct sales force, often referred to as Business Advisors, remains central to acquiring new, high-value SaaS clients and driving upsells within the existing base. This channel targets clients ready for deeper platform adoption. The focus here is clearly on increasing the Average Revenue Per Unit (ARPU) from these direct acquisitions. For instance, clients sourced through the US direct channel are spending about $6,000 annually on average. This is significantly higher than the overall current average annualized spend of about $4,200. The strategy is to move more customers toward that $6,000 mark, which represents a revenue jump of nearly 50% per customer with minimal incremental cost. The company is actively incentivizing this through a redesigned compensation plan focused on increasing monthly recurring revenue.

Thryv and Keap partner ecosystem for indirect sales.

The partner ecosystem, significantly bolstered by the Keap acquisition in late 2024, serves as a crucial indirect distribution motion. Keap brought an established Partner Channel that complements Thryv's direct efforts. This ecosystem is important enough that Thryv Holdings held its first joint conference, Partnerkon 2025, in Scottsdale, Arizona, in April 2025, bringing together partners from both Thryv and Keap. Keap contributed $16.8 million to SaaS revenue in the third quarter of 2025. The company has better expectations for the partner channel going into 2026 based on recent partner updates.

Online self-service portal for SaaS sign-up and management.

The online platform is the engine for the growing SaaS business, evidenced by the total subscriber count and ARPU expansion. By the end of the third quarter of 2025, Thryv Holdings served 103,000 total SaaS subscribers, with 13,000 of those coming from Keap. Excluding Keap, the core Thryv SaaS business had 90,000 subscribers. The monthly ARPU for SaaS reached $365 in Q3 2025, a 19% year-over-year increase. A key indicator of channel success here is multi-product adoption; as of September 2025, 17,000 customers (or 20% of total Thryv clients) were using two or more paid products.

Legacy print directories and digital listings (Marketing Services).

This segment represents the legacy channel that Thryv Holdings is actively managing down as it pivots to a pure-play software business. Marketing Services revenue for the third quarter of 2025 was $85.7 million. The full-year 2025 revenue guidance for this segment is set in the range of $323 million to $325 million. Management has a clear strategic goal to exit the Marketing Services division entirely by the end of 2028. Despite the planned decline, this segment generated an adjusted EBITDA margin of 29% in Q3 2025.

Here's a quick look at the key financial metrics tied to these channels as of late 2025:

The company is clearly prioritizing channels that drive recurring, high-margin software revenue. The success of the direct sales team is measured by how quickly they can move a client from the average $4,200 annual spend to the $6,000 tier. Also, the push for multi-product adoption, with 17,000 customers now using two or more products, shows a focus on deepening relationships through the existing customer base, which is a key function of the direct sales and account management teams.

The transition away from print is deliberate, with a target exit date of 2028. Still, the Marketing Services segment provides substantial adjusted EBITDA of $27.8 million in Q3 2025, with a margin of 29%. This cash flow helps fund the SaaS growth initiatives, including the partner channel expansion.

Finance: finalize the 2026 channel budget allocation plan by next Wednesday.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Customer Segments

You're looking at Thryv Holdings, Inc. (THRY) as a company deeply committed to serving the small and medium-sized business (SMB) market, specifically those that are service-driven. The entire strategy hinges on converting a massive, established base into a sticky, high-value software subscription model. It's a complex migration, but the numbers from late 2025 show clear progress.

The primary customer focus remains on small and medium-sized businesses (SMBs) globally. Thryv Holdings, Inc. is targeting businesses generally defined as having between 2-99 employees. The total serviceable addressable market (SAM) for this group is estimated to be around 10 million businesses worldwide, representing an annual spend potential of $40 billion. As of the end of the third quarter of 2025, the company reported having 103,000 SaaS clients globally, which includes 13,000 subscribers added via the Keap acquisition. This base is the foundation for all software revenue.

The focus on service-driven industries like home services is a key differentiator, as these businesses need the operational tools Thryv provides to manage scheduling, payments, and marketing in the field. The platform is being enhanced with vertical-specific automations, such as the offering for HVAC. This focus helps drive up the value extracted from each customer.

The company is actively managing the transition of its Legacy Marketing Services clients to SaaS. This is a deliberate, managed decline of the older business to fuel the growth of the new. Marketing Services revenue for the third quarter of 2025 was $85.7 million, showing the planned contraction from prior periods, such as the $95.5 million reported in the second quarter of 2025. Management has guided for full-year 2025 Marketing Services revenue to be in the range of $323 million to $325 million, indicating a significant year-over-year reduction as these customers are moved to the software platform or churn off legacy contracts.

While the specific financial threshold for mid-market businesses with annual software spend over $8,000 isn't explicitly broken out in the latest reports, the strategy to move upmarket is evident through the rising Average Revenue Per Unit (ARPU). The company is clearly focused on driving higher-value, multiproduct clients. Here's a look at the key metrics defining the SaaS customer base as of late 2025:

The push for higher ARPU shows you where the value is being captured. For instance, the Q3 2025 ARPU of $365 is a substantial increase from the $335 reported in Q1 2025. This upward trend suggests that the segment you mentioned-those spending more-is growing its share of the total SaaS revenue.

The customer base is segmented by their relationship maturity with Thryv Holdings, Inc.:

• New/Acquired SaaS Customers: Those added through the Keap acquisition (contributing $16.8 million to Q3 SaaS revenue) or new direct sales.
• Upgraded Legacy Clients: Customers successfully transitioned from the Marketing Services segment to the SaaS platform.
• High-Value/Multi-Product Users: Clients adopting more than one software module, evidenced by the 17,000 clients using two or more products in Q2 2025.

Finance: draft 13-week cash view by Friday.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Cost Structure

You're looking at the cost side of Thryv Holdings, Inc. (THRY) as of late 2025, and honestly, it's a story of two businesses: the legacy print operation funding the future software growth. This dual structure creates distinct cost pressures you need to watch.

The High cost of services for the legacy Marketing Services segment is a key factor, even as the company actively transitions away from it, targeting an exit by 2028. This segment's revenue in Q3 2025 was $85.7 million, an 8% decrease year-over-year. While the Marketing Services segment maintained a decent adjusted EBITDA margin of 24.8% in Q3 2025, the cost to maintain those legacy print contracts and associated operations is a drag on overall company efficiency compared to the pure SaaS model.

The second major cost driver is the Significant investment in SaaS product development and AI integration. Thryv is pouring capital into its software platform to drive that impressive growth-Q3 SaaS revenue hit $115.9 million, up 33% year-over-year. While specific R&D or development expense line items aren't explicitly broken out in the summary data, the financial flexibility is being supported by the print business, which is expected to generate over $250 million in unlevered Free Cash Flow between 2025 and 2030. One analyst estimate for 2026 suggested annual investments around $33 million, showing the ongoing capital need for the software pivot.

The costs associated with growth in the SaaS segment manifest in Sales and marketing expenses for new client acquisition and upselling. You can see the result of this spending in the rising customer value: SaaS Monthly ARPU (Average Revenue per Unit) expanded 19% year-over-year to $365 in Q3 2025. This metric is your proxy for successful upselling efforts, meaning the cost to acquire and expand those customers is yielding higher returns, which is defintely a positive sign for the cost-to-serve model.

Finally, you can't ignore the balance sheet costs. Debt servicing costs are substantial. Restructuring and interest expenses together ran over $13 million per quarter recently. As of the end of Q3 2025, Thryv Holdings, Inc.'s net debt was $265 million, representing a leverage ratio of 1.9x. This debt load directly translates into those quarterly interest payments you have to factor into your cash flow analysis.

Here's a quick look at how the two main segments stacked up in Q3 2025, which helps frame where the costs are being allocated and where the margins sit:

The cost structure is clearly weighted toward future growth, meaning near-term profitability is being managed through the high-margin, but declining, legacy business. You should track the following cost-related items closely:

• The pace of the Marketing Services revenue decline, which was 8% in Q3 2025.
• The full-year 2025 guidance for SaaS Adjusted EBITDA, set between $73 million and $75 million.
• The quarterly interest expense, which contributes to the over $13 million in combined restructuring and interest costs per quarter.
• The planned exit from Marketing Services by 2028 to eliminate those legacy costs entirely.

Thryv Holdings, Inc. (THRY) - Canvas Business Model: Revenue Streams

You're looking at how Thryv Holdings, Inc. brings in the cash, which is clearly pivoting hard toward software. The biggest piece is the recurring revenue from the software-as-a-service (SaaS) subscriptions, which they guided to be between $460M and $463M for the full fiscal year 2025. That's the engine now. This SaaS stream is supported by a strong monthly Average Revenue per Unit (ARPU) for SaaS customers, which hit $365 overall in the third quarter of 2025. That ARPU growth, up 19% year-over-year in Q3 2025, shows the strategy of increasing customer spend is definitely working.

Still, the legacy Marketing Services revenue is declining, as expected by design, guided to land between $323M and $325M for FY 2025. This segment is being managed down as clients transition to the software platform. Also contributing is the transactional revenue from ThryvPay, their payment processing service. In the second quarter of 2025 alone, the total payment volume processed through ThryvPay reached $90 million.

Here's a quick look at the key forward-looking guidance and recent performance metrics that define the revenue streams for Thryv Holdings, Inc. as of late 2025:

The company's focus is clearly on maximizing the value from its existing software base, which is evident in the ARPU expansion. They are also seeing growth in multi-product adoption, with 20% of total Thryv clients using two or more paid products as of September 2025. This deepens the recurring revenue quality.

• SaaS revenue represented 58% of total revenue in Q3 2025.
• Total SaaS clients reached 103 thousand at the end of Q3 2025.
• Seasoned Net Revenue Retention was 94% as of September 30, 2025.

Finance: draft 13-week cash view by Friday.