Thryv Holdings, Inc. (THRY): PESTLE Analysis [Nov-2025 Updated]

You're navigating Thryv Holdings, Inc.'s critical pivot, and the external environment in 2025 is a mix of tailwinds and headwinds. Economically, the shift is clear: the company projects strong SaaS revenue between $460 million and $463 million, which is fighting the managed decline of their legacy services, so you need to watch that margin. Technologically, the game is AI; your core SMB customer base saw a 41% surge in AI adoption this year, forcing Thryv to integrate it aggressively, plus their remote-first culture has earned them a spot as a Newsweek Top 100 Global Most Loved Workplace for 2025. This PESTLE analysis cuts through the noise to show you exactly where the political, regulatory, and environmental risks meet these clear opportunities, so you can make a defintely informed decision.

Thryv Holdings, Inc. (THRY) - PESTLE Analysis: Political factors

The political landscape for Thryv Holdings, Inc. in 2025 presents a mixed bag: significant relief on potential labor liabilities but persistent risk from political gridlock directly impacting their small business customer base. Your biggest near-term win is the November 2025 Sixth Circuit ruling, which rejected the expansion of labor remedies, but the ongoing US government instability means your core customer's wallet is under pressure.

US government policy on small business (SMB) funding directly impacts their core customer base's spending power.

Thryv's entire business relies on the financial health of US small businesses; any policy that tightens their access to capital is a direct threat to your Average Revenue Per Unit (ARPU). For example, the federal government shutdown that began in October 2025 froze Small Business Administration (SBA) loan approvals, which immediately delays critical capital for your clients. This kind of political gridlock creates a real headwind for your 103 thousand SaaS clients globally, making them hesitant to commit to new software subscriptions or increase their monthly spend.

Honestly, when your customers are worried about getting a loan, they defintely aren't looking to upgrade their software package.

The political uncertainty is palpable: Thryv's own Small Business Index showed that 53 percent of SMBs were worried about the US presidential election and its impact on the economy and government regulations. This fear translates to delayed purchasing decisions and higher churn risk, even as Thryv's SaaS platform is designed to help them grow.

Risk of regulatory reclassification, as the company is still often viewed as a Media/Advertising entity, not a high-growth SaaS platform.

Thryv is in a critical transition phase, moving from its legacy Marketing Services (print directories) to a pure-play Software as a Service (SaaS) model. The market's perception-and thus the regulatory lens-is still catching up. Regulatory bodies might apply rules designed for traditional media or advertising to your business, which could stifle your high-growth SaaS segment with outdated compliance requirements or tax structures.

The numbers, however, show a clear shift. As of Q3 2025, the SaaS segment officially represented 58% of total consolidated revenue, with SaaS revenue growing 33% year-over-year to $115.9 million. This is the concrete data you need to argue for a true SaaS classification in any regulatory or legislative discussion. The company's 2025 outlook projects SaaS revenue to be the majority of consolidated revenue, which solidifies the argument for a technology-focused regulatory framework.

Increased scrutiny on labor practices, evidenced by the November 2025 Sixth Circuit ruling rejecting certain remedies in a National Labor Relations Board (NLRB) case.

The NLRB's 2022 decision in a case involving Thryv Holdings, Inc. (known as the Thryv remedy) sought to expand the financial damages employers must pay for unfair labor practices (ULPs) to include consequential damages-things like out-of-pocket medical expenses or credit-card debt. This was a major liability risk for all US employers.

The good news is that the political/judicial pushback is strong. On November 5, 2025, a split Sixth Circuit panel aligned with the Third and Fifth Circuits, rejecting the NLRB's expanded Thryv remedies as a violation of the Seventh Amendment right to a jury trial. This ruling significantly limits the scope of potential financial liability for employers facing ULP charges in those jurisdictions, restoring a more predictable framework that focuses on traditional remedies like back pay and reinstatement.

• NLRB Remedy Status (Nov 2025): Rejected by the Third, Fifth, and Sixth Circuits.
• Implication: Caps potential liability for consequential damages from ULPs.
• Next Step: Supreme Court is now more likely to resolve the circuit split.

Trade policies affect their global operations, including offices and employees in Australia and the Dominican Republic.

While Thryv's core offering is software, trade policy still impacts the cost of operating and the economic stability of its international markets. The Trump administration's April 2025 Executive Order imposing a 10% baseline tariff on all US trading partners, including Australia and the Dominican Republic, creates a general headwind. This can increase the cost of imported equipment or services, and more importantly, it can slow the overall economic growth in those regions, which again affects your SMB client spending.

The situation in the Dominican Republic is more nuanced due to the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). CAFTA-DR eliminates tariffs and promotes transparency, which is a major reason US companies are near-shoring operations there. This stability and trade facilitation are positive for Thryv's local operations and the economic health of its regional customer base, but the general 10% tariff still adds a layer of complexity to cross-border logistics and costs.

Thryv Holdings, Inc. (THRY) - PESTLE Analysis: Economic factors

You're looking at Thryv Holdings, Inc. (THRY) at a pivotal economic moment: the company's core financial health is rapidly shifting from a declining legacy business to a high-growth Software as a Service (SaaS) model, which is a strong signal for future profitability. The near-term economic picture is defined by this managed transition, plus a generally optimistic small business environment that directly fuels Thryv's primary customer base.

The biggest economic factor is the accelerating shift in the revenue mix. The high-margin SaaS segment is now the majority of the business, offsetting the planned decline of the legacy Marketing Services segment (print directories and older digital products). This is a classic 'good revenue replacing bad revenue' story, but it creates a temporary revenue headwind that investors must fully understand.

SaaS Revenue Growth Drives the Top Line

The SaaS revenue stream is the engine of the company and is showing strong, predictable growth. For the full year 2025, management has projected SaaS revenue guidance between $460 million and $463 million. This growth is driven by increasing adoption of the core platform and the success of cross-selling additional products like ThryvPay, their payment processing solution. Honestly, that kind of growth in a challenging macro environment is defintely a testament to the product-market fit with service-based small businesses.

Here's the quick math on the two segments' 2025 full-year guidance, showing the clear transition:

Customer Spending and Retention

A key indicator of Thryv's economic strength is its Net Revenue Retention (NRR) rate (a measure of how much revenue a company retains from its existing customers over a given period, including upsells and churn). High NRR means existing customers are spending more than the revenue lost from those who leave, which is a very efficient way to grow.

The company reported a seasoned NRR of 103% (excluding Keap) in Q2 2025. This figure is crucial because it shows that, even without the contribution from the acquired Keap customer base, the core Thryv customer is expanding their use of the platform and buying more services. What this estimate hides, to be fair, is that the overall seasoned NRR declined to 94% in Q3 2025 as the company integrated the Keap client base and managed the transition of legacy clients. Still, the underlying core business is driving higher Average Revenue Per User (ARPU).

• NRR of 103% (excluding Keap) in Q2 2025 shows customers are spending more over time.
• SaaS subscribers grew to 103,000 by the end of Q3 2025.
• SaaS Monthly ARPU (Average Revenue Per Unit) expanded 19% year-over-year to $365 in Q3 2025.

Small Business Confidence and Demand

Thryv's economic fate is tied directly to the financial confidence of the US small-to-medium business (SMB) sector. If SMBs feel good about their future, they invest in efficiency software like Thryv. The good news is that small business confidence is on the upswing for 2025.

For example, the November 2025 Bank of America Business Owner Report found that 74% of small and mid-sized business owners expect revenue increases in the next year. This optimism fuels demand for the kind of all-in-one efficiency software Thryv provides, helping small businesses manage everything from customer relationship management (CRM) to payments. The US Chamber of Commerce Q2 2025 Small Business Index also showed 65% of small businesses anticipated revenue increases. This macro trend creates a strong tailwind for Thryv's subscription-based model. So, the market is ready to buy what they're selling.

Thryv Holdings, Inc. (THRY) - PESTLE Analysis: Social factors

You need to understand that social trends are not just about corporate culture; they are about the DNA of your customer base and your workforce. For Thryv Holdings, Inc., the shift to a remote-first model and the rapid digital upskilling of Small and Midsize Businesses (SMBs) are the two biggest social factors driving the business in 2025.

The company's culture is a significant competitive advantage in the war for talent. Being named to Newsweek's Top 100 Global Most Loved Workplaces for 2025 is a huge win, placing Thryv at spot #66 globally. This recognition, which is based on direct employee input across five key areas like values alignment and respect, defintely helps lower recruitment costs and improves retention in a tight labor market.

Sociological

Thryv operates a 100% global, remote-first culture, which is a powerful magnet for talent. This strategy allows the company to tap into a highly diverse talent pool across the U.S., Australia, Canada, the Dominican Republic, and New Zealand, unconstrained by costly real estate or local labor market competition. However, this model requires a constant, high-touch investment in digital communication and collaboration tools to maintain the corporate culture, a challenge 30% of business leaders cite as a top concern with hybrid/remote models.

The core mission is fundamentally a positive social force, focusing on leveling the playing field for SMBs. This mission-driven purpose resonates with employees and customers alike. As of the end of Q1 2025, the company was actively helping approximately 280,000 SMB clients globally, with 111 thousand of those being high-value SaaS clients. This focus on the SaaS segment, which grew 59% year-over-year in Q1 2025, shows a successful pivot toward modernizing Main Street businesses.

The target customer-the SMB owner-is demonstrably more tech-savvy than ever, which directly increases the serviceable market opportunity for Thryv. This is best illustrated by the surge in Artificial Intelligence (AI) adoption among small businesses. According to a Thryv survey conducted in May 2025, AI usage among SMBs jumped to 55% in 2025, a 41% increase from 2024 usage levels. This shift means SMBs are now actively seeking the kind of operational efficiency and customer engagement tools that Thryv provides.

Here's the quick math on the customer-side social shift:

This digital-first mindset is a tailwind. Global IT spending by SMBs is projected to reach approximately $750,000 million by 2025, with a Compound Annual Growth Rate (CAGR) of around 12%, indicating a sustained upward trajectory in technology investment. This is an environment where Thryv's platform is perfectly positioned to capture market share.

The social factors create clear opportunities:

• Recruit top talent globally due to the remote-first model.
• Benefit from the 41% surge in SMB AI adoption.
• Retain employees better, supported by the 'Most Loved Workplace' status.
• Leverage the mission to attract purpose-driven workers.

The social environment is a strong positive for the company, aligning its remote culture with the market's digital acceleration.

Thryv Holdings, Inc. (THRY) - PESTLE Analysis: Technological factors

The technological landscape for Thryv Holdings, Inc. is defined by a single, powerful trend: the rapid, mandatory adoption of Artificial Intelligence (AI) by small-to-medium businesses (SMBs). This isn't a future-state discussion; it's a near-term reality that Thryv is capitalizing on right now.

AI adoption among Thryv's core SMB market has seen a dramatic surge, jumping by a massive 41% in 2025. This means that over half-specifically 55%-of small businesses are now actively using AI tools, up from 39% in 2024. This shift proves that AI is no longer just for big companies; it's essential for a small business to save time and reduce costs. The biggest planned increase in AI usage is defintely in marketing campaigns, with 57% of SMBs planning to use AI there. That's a clear opportunity for Thryv.

Aggressive AI Integration and Leadership

Thryv is aggressively integrating AI across its platform, a strategy solidified by the appointment of Sean Wechter as Chief Technology Officer (CTO) in September 2025. His mandate is a sharp focus on AI, infrastructure, and the tech stack, signaling that the company is fully committed to a product-led, AI-first future. This top-down strategic alignment is crucial for translating macro-trends into product features that SMBs can actually use.

The company's product team is focused on delivering AI that eliminates repetitive work and drives efficiency. Here's the quick math: 58% of current AI small business users report saving over 20 hours per month, which they can then reinvest into growth initiatives. That's the value proposition Thryv is chasing.

• AI Review Response: Automates brand-consistent replies to customer feedback.
• AI Content Generator: Creates and schedules professional marketing campaigns.
• Caption AI: Generates social media posts in seconds.
• AI Call Analysis: Reviews call transcripts, scores leads, and highlights follow-up actions.

Targeted AI Product Expansion (November 2025)

A concrete example of this strategy is the November 4, 2025, launch of the AI-Enabled Marketing Software for Home Services Businesses. This is a smart move, targeting a vertical where Thryv already works with over 15,000 businesses. The software is built on a proprietary three-step growth framework-Get Found Online, Capture and Convert New Customers, and Drive Repeat Business-and automates core marketing functions so owners can stay focused on the job.

Integration of Acquired Technology

The platform's technological success is also tied to the seamless integration of acquired assets, most notably the Keap platform, which was acquired in late 2024 for $80 million in cash. The goal here is multi-product adoption-getting customers to use more of the platform's features, which drives higher retention and revenue. The enhanced integration between Thryv Marketing Center and Keap, showcased at the Grow 2025 conference, streamlines lead management between the two systems.

The financial impact of this integration strategy is clear in the Q3 2025 results: SaaS revenue was $115.9 million, a 33% year-over-year increase. Critically, SaaS revenue excluding Keap was $99.1 million, a 14% increase. This shows that Keap is already contributing significantly to the overall SaaS growth, validating the strategic decision to integrate its marketing automation and CRM capabilities. The combined entity now serves over 100,000 businesses globally with its software platform.

Thryv Holdings, Inc. (THRY) - PESTLE Analysis: Legal factors

You're looking at Thryv Holdings, Inc. (THRY) and its legal landscape, and what you need to know is that the biggest legal risks are shifting from legacy print contracts to modern data compliance and labor law precedents. The company's strategic pivot to a Software-as-a-Service (SaaS) model means the regulatory focus is now squarely on data privacy, but legacy risks from the Marketing Services division still have a clear, finite timeline.

Data privacy and cybersecurity compliance are critical, as the platform handles sensitive customer and payment data for over 100 thousand subscribers.

Thryv's core business is now the Thryv SaaS platform, which means the legal risk profile is dominated by data privacy and cybersecurity. The platform manages sensitive customer and payment data for a massive user base, which grew to 111 thousand SaaS clients by the end of the first quarter of 2025, and 106 thousand in the second quarter of 2025. This includes payment processing, with ThryvPay total payment volume hitting $90 million in Q2 2025.

This level of data handling makes compliance with regulations like the California Consumer Privacy Act (CCPA) and the European Union's General Data Protection Regulation (GDPR) non-negotiable. Plus, the company's increasing use of Artificial Intelligence (AI) in its tools exposes it to the evolving global AI regulatory environment, such as the EU AI Act, which will defintely increase compliance costs and liability.

• SaaS client base: 106,000 as of Q2 2025.
• Q2 2025 ThryvPay volume: $90 million.
• Risk area: Regulatory changes in AI and data privacy.

Legal risk remains from the legacy Marketing Services business, particularly concerning the managed exit of the print directory business by 2028.

The legacy Marketing Services segment, which includes the print directory business, is a known liability, but it has a planned, managed exit. Thryv made the strategic decision to fully exit this business by the end of 2028. This timeline is important because the legal exposure-like potential lawsuits over contract disputes or environmental regulations-will taper off after the final directory publication in December 2028, though billing collection will extend for another 24 months.

As of late 2024, the Marketing Services segment still had approximately 233,000 clients, representing a significant pool of legacy contracts that must be managed legally through the transition. The legal risks here are less about a breach and more about local government action.

Here's the quick math on the legacy business wind-down:

Ongoing legal precedents from the NLRB regarding employee rights and remedies could impact future labor relations and compliance costs.

The National Labor Relations Board (NLRB) case, Thryv, Inc. (2022), remains a critical, ongoing legal precedent that directly impacts the company's labor relations and potential costs. That decision expanded the NLRB's remedies for unfair labor practices (ULPs) to include compensation for all "direct or foreseeable pecuniary harms," going beyond traditional back pay and reinstatement.

The legal landscape for this expanded remedy is still fractured in 2025, which creates compliance uncertainty for Thryv: The Ninth Circuit Court of Appeals upheld the Thryv remedies in January 2025, but the Fifth Circuit (October 2025) and the Sixth Circuit (November 2025) have both ruled that the NLRB lacks the statutory authority to order such broad monetary relief. This circuit split means that the cost of a ULP violation could vary dramatically depending on the jurisdiction, making labor compliance a higher-stakes, less predictable area of expenditure.

What this estimate hides is the potential for a Supreme Court review, which could either fully validate or completely overturn the expanded Thryv remedies, changing the cost of labor disputes overnight. Still, for now, the risk of having to pay for things like medical costs, credit card interest, and other foreseeable losses remains a real and measurable threat in certain jurisdictions.

Thryv Holdings, Inc. (THRY) - PESTLE Analysis: Environmental factors

The company's transition to a 100% Work From Home model significantly reduces its corporate real estate and energy consumption footprint.

Thryv Holdings, Inc.'s shift to a global, remote-first operational model has defintely minimized its direct environmental impact (Scope 1 and Scope 2 emissions). This move, adopted in 2022 and continued through the 2025 fiscal year, means the company no longer maintains a permanent fixed office arrangement nationally, instead hiring shared facilities as required.

The elimination of fixed offices has a direct, measurable impact on the company's carbon footprint by removing all Scope 2 emissions, which are those associated with purchased electricity and heat for offices. Here's the quick math: the Work From Home (WFH) policy has eliminated emissions from core office operations, including:

• Office electricity and base building energy use.
• Office paper and waste generation.
• Refrigerant use in office air conditioning.
• Staff commuting, which is a significant Scope 3 category.

The legacy print directories, while declining, are certified carbon neutral (for FY2023-24) through offsets and a focus on certified paper procurement.

While the business model is rapidly transitioning to Software-as-a-Service (SaaS), the legacy Marketing Services segment still includes print directories, which are a major environmental consideration. To mitigate this, the Yellow Pages and White Pages directories for FY2023-24 (July 1, 2023, to June 30, 2024) were certified as carbon neutral by the Australian Government's Climate Active program.

This neutrality is achieved through a strict paper procurement strategy and a commitment to year-on-year reduction. The company aims to procure paper with Forest Stewardship Council (FSC) certification first, followed by Programme for the Endorsement of Forest Certification (PEFC). Also, they prioritize paper with a meaningful percentage of recycled content before considering virgin fiber that is not certified.

The intentional reduction in print circulation and directory size is a clear action. In FY24, Thryv Australia reduced the amount of paper used in the manufacturing of printed directories by 15% compared to FY23, a tangible cut in resource consumption. This is a strong signal to investors that the company is managing the environmental tail risk of its legacy business.

Expansion of environmental, social, and governance (ESG) efforts includes measuring Scope 3 emissions (indirect value chain emissions) to better understand their total impact.

The company's environmental policy is committed to improving its supply chain's carbon footprint where possible. Measuring Scope 3 emissions-the indirect emissions from the value chain-is crucial, as these often represent the majority of a company's total greenhouse gas (GHG) footprint.

Thryv Australia's reporting already includes several key Scope 3 categories, calculated in line with the GHG Protocol, directly linked to the print business and the WFH model. This provides a partial view of the overall value chain impact. What this estimate hides is the full Scope 3 picture for the global SaaS business, but the current efforts focus on the most material environmental risk: the print directories.

The measured Scope 3 categories related to the print directories include:

• Emissions from paper and coverboard manufacturing (a purchased good).
• Emissions from directory distribution and logistics (upstream transportation).
• Emissions associated with the end-of-life treatment of sold products (directory disposal and recycling).
• Emissions associated with employee working from home (WFH) and commuting.

This comprehensive approach to the legacy business's value chain emissions, coupled with the 10% year-on-year total emissions reduction target through 2027, positions Thryv as a company actively managing its environmental transition risk, even as it pivots to a lower-impact software model.