THRY — Thryv Holdings, Inc.

THRY Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics:

• SaaS Revenue: $114.5 million, consistent with guidance.
• SaaS Adjusted Gross Margin: 66.6%.
• SaaS Adjusted EBITDA: $13.6 million, representing a 12% margin.
• ARPU (Average Revenue Per User): Increased by 12% year-over-year to $394.
• SaaS Subscribers: 95,000.
• Marketing Services Revenue: $36.2 million, above guidance, with adjusted EBITDA of $7.3 million (20% margin).
• Net Debt: $241 million, leverage ratio at 2.1x.
• Marketing Services Billings: Down 36% year-over-year to $48.7 million, reflecting a strategic migration to SaaS.

2. Strategic Updates and Business Highlights:

• Thryv is transitioning to a pure-play SaaS model, with SaaS now comprising 76% of total revenue.
• The company launched the Thryv Growth Platform, an AI-native product designed to enhance service for local businesses.
• New partnerships with Wix and Ooma aim to expand market reach and integrate services, enhancing customer acquisition.
• The company is focusing on its Market, Sell, Grow (MSG) initiative, which grew 21% year-over-year.
• A restructuring program was announced to streamline operations, with a $25 million charge expected, half related to workforce reductions.

3. Forward Guidance and Outlook:

• Marketing Services Revenue Guidance: Revised to $161 million to $163 million for the full year.
• SaaS Revenue Guidance: Revised to $453 million to $457 million for the full year.
• SaaS Adjusted EBITDA Guidance: Revised to $42 million to $44 million for the full year.
• Q3 SaaS revenue expected between $111 million and $112 million, with adjusted EBITDA between $8.5 million and $9.5 million.
• The company anticipates ramping up sales and marketing investments in the latter half of 2026 as the new platform gains traction.

4. Bad News, Challenges, or Points of Concern:

• Declining Marketing Services Revenue: A significant drop in Marketing Services billings (down 36% year-over-year) as the company shifts focus to SaaS.
• Natural Attrition: Seasoned Net Revenue Retention (NRR) at 90%, indicating loss of smaller clients.
• Restructuring Costs: A $25 million charge for restructuring may impact short-term financials.
• Debt Servicing Concerns: Questions raised about cash flow and ability to service debt, although management reassured that cash flow remains strong.

5. Notable Q&A Insights:

• Management acknowledged the ongoing adjustments in strategy and product offerings, emphasizing the need for stability as the new platform is rolled out.
• The new Thryv Growth Platform is expected to enhance customer engagement and retention, with a focus on AI-driven insights.
• The company plans to leverage free trials to boost customer acquisition and conversion rates, particularly through new partnerships.
• Management is optimistic about the potential for future partnerships and integrations to drive growth, indicating a shift towards an ecosystem-led growth model.

This summary encapsulates the key points from the earnings call, highlighting both the positive developments and the challenges faced by Thryv as it navigates its strategic transformation.