Thryv Holdings, Inc.

Q2 SaaS reported revenue was $114.5 million, SaaS adjusted gross margin was 66.6%, and SaaS adjusted EBITDA was $13.6 million, equal to a 12% margin. Q2 Marketing Services revenue was $36.2 million and Marketing Services adjusted EBITDA was $7.3 million, equal to a 20% margin. SaaS ARPU increased 12% year over year to $394, SaaS subscribers ended at 95,000, and seasoned NRR was 90%. Marketing Services billings were $48.7 million, down 36% year over year. Net debt was $241 million and leverage was 2.1x. The company announced a restructuring charge of approximately $25 million, with roughly half in 2026 and half in the first half of 2027, and expects about $60 million in run-rate savings. For guidance, Q3 SaaS revenue is expected to be $111 million to $112 million and SaaS adjusted EBITDA $8.5 million to $9.5 million. Full-year SaaS revenue guidance was revised to $453 million to $457 million and full-year SaaS adjusted EBITDA to $42 million to $44 million. Full-year Marketing Services revenue guidance was raised at the low end to $161 million to $163 million, with full-year Marketing Services adjusted EBITDA guided to $31 million to $33 million.

Joe Walsh framed the quarter as validation of Thryv’s long-running shift to a pure-play SaaS company, emphasizing that the business is now officially classified as software in GICS and that the company is narrowing its focus to Marketing Center, add-ons, and the Thryv Growth Platform. He said the new AI-native platform is a rebuild, not a bolt-on, and that the company is intentionally concentrating on local-service businesses and ecosystem partnerships rather than trying to be broad-based across every product. His tone was confident but candid that the company has been pivoting and that the AI environment has moved quickly.

Paul Rouse led with the hard numbers: SaaS revenue of $114.5 million, SaaS adjusted gross margin of 66.6%, SaaS adjusted EBITDA of $13.6 million, Marketing Services revenue of $36.2 million, and Marketing Services adjusted EBITDA of $7.3 million. He said gross margin pressure came from more add-ons carrying traffic expense, but argued that this supports upmarket expansion and higher spend per client. He also pointed to net debt of $241 million and leverage of 2.1x, said cash flow remains strong enough to service debt, and detailed the restructuring: a roughly $25 million charge for severance, benefits, and contract exits, in exchange for about $60 million in run-rate savings. He explained that the lowered SaaS guidance reflects deliberate first-half resource allocation and the decision to build the product before scaling the sales force.

Analysts focused on whether Thryv’s strategy is stabilizing, why guidance has continued to change, and how the company will handle debt service after lowering SaaS EBITDA guidance. Management answered that the new platform is now generally available, the sales force and marketing are being ramped behind it, and some noncore businesses will remain runoff businesses while the company concentrates on the Growth Platform. On debt, Paul Rouse said cash flow is still strong and the company sees no issue servicing debt for the rest of 2026 and into next year. Questions also centered on partnerships, restructuring, and free trials; management said Wix and Ooma are ecosystem-led distribution plays, roughly half the restructuring charge is workforce and half is vendor spend, and free trials now support conversions and partnership-led acquisition.