8-K: Thryv Reports Q4 & FY25 Results, Pivots to AI Growth Platform

Thryv Holdings, Inc. announced its fourth quarter and full year 2025 financial results, highlighting strong SaaS growth and a strategic shift towards an AI-enabled unified growth platform.

Summary

• Consolidated revenue for Q4 2025 increased by 2.7% year-over-year to $191.6 million, while full year 2025 consolidated revenue was $785.0 million.
• Net loss for Q4 2025 was $9.7 million, a decrease from a net income of $7.9 million in Q4 2024, but full year 2025 net income improved significantly to $0.3 million from a $74.2 million loss in FY 2024.
• Adjusted EBITDA for Q4 2025 rose to $38.9 million from $29.4 million in Q4 2024, with the margin expanding to 20.3% from 15.7%.
• SaaS revenue grew by 14.1% year-over-year in Q4 2025 to $119.0 million, and by 34.2% for the full year 2025 to $461.0 million.
• Marketing Services revenue declined by 11.7% in Q4 2025 to $72.6 million and by 32.6% for the full year 2025 to $324.0 million.
• The Keap acquisition, completed on October 31, 2024, contributed to SaaS subscriber additions, accounting for 15,000 subscribers in Q4 2024.
• The company is strategically shifting to an AI-enabled Unified Growth Platform, with its 'Market, Sell and Grow' (MSG) platform representing over two-thirds of billings in Q4 2025.
• Quality Customer Count, defined as clients with greater than $400 monthly recurring revenue, increased by 18% year-over-year in Q4 2025, excluding Keap acquisition customers.
• Total Company Billings decreased by 9% year-over-year in Q4 2025 to $178.2 million, primarily due to a 34% decline in Marketing Services Billings.
• Free cash flow for FY 2025 was $31.1 million, down from $56.2 million in FY 2024.

Sentiment

Score: 6

Explanation: StockSavvy.ai views this as a moderately positive filing. While the strategic shift to AI-enabled SaaS is promising with strong segment growth, the projected decline in overall revenue and EBITDA for FY2026 due to the shrinking legacy business presents near-term challenges.

Positives

• SaaS revenue demonstrated strong growth, increasing by 14.1% year-over-year in Q4 2025 to $119.0 million and by 34.2% for the full year 2025 to $461.0 million.
• Consolidated Adjusted EBITDA improved significantly in Q4 2025, rising to $38.9 million from $29.4 million in Q4 2024, with the margin expanding to 20.3%.
• SaaS Adjusted EBITDA margin increased to 16.8% in Q4 2025 from 16.6% in Q4 2024, indicating improved profitability within the core growth segment.
• Marketing Services Adjusted EBITDA margin saw a substantial increase to 25.9% in Q4 2025 from 14.7% in Q4 2024, despite revenue decline.
• The company achieved a positive net income of $0.3 million for the full year 2025, a significant turnaround from a net loss of $74.2 million in FY 2024.
• Quality Customer Count (clients spending >$400/month) grew by 18% year-over-year in Q4 2025, indicating success in attracting and retaining high-value clients.
• Adjusted Gross Margin improved to 70.4% for SaaS and 68.6% for Marketing Services in Q4 2025, contributing to overall profitability.

Negatives

• Consolidated net income turned into a loss of $9.7 million in Q4 2025, compared to a net income of $7.9 million in Q4 2024.
• Marketing Services revenue experienced a significant decline of 11.7% year-over-year in Q4 2025 to $72.6 million and 32.6% for the full year 2025 to $324.0 million.
• Total Company Billings decreased by 9% year-over-year in Q4 2025 to $178.2 million, driven by a 34% decline in Marketing Services Billings.
• Free cash flow for the full year 2025 decreased to $31.1 million from $56.2 million in FY 2024.
• The Q1 2026 and FY 2026 outlook projects a decrease in total company revenue and Adjusted EBITDA compared to FY 2025, reflecting the ongoing decline in Marketing Services.

Risks

• The significant and ongoing decline in Marketing Services revenue and billings poses a challenge to overall company growth and profitability, requiring successful transition of customers to SaaS.
• The strategic shift to an AI-enabled unified growth platform requires effective execution and adoption by customers to offset the decline in legacy services.
• The projected decrease in total company revenue and Adjusted EBITDA for FY 2026 indicates potential near-term financial headwinds as the company transitions its business model.

Future Outlook

For Q1 2026, the company projects total revenue between $161.0 million and $163.0 million, with Adjusted EBITDA between $22.0 million and $24.0 million. For the full fiscal year 2026, total revenue is expected to be between $611.0 million and $631.0 million, and Adjusted EBITDA is projected to be between $100.0 million and $110.0 million. This outlook reflects continued SaaS revenue growth (FY26 SaaS Revenue $461.0M to $471.0M) but a significant decline in Marketing Services revenue (FY26 Marketing Services Revenue $150.0M to $160.0M).

Management Comments

• The company is undergoing a strategic shift towards an AI-enabled unified growth platform, with the 'Market, Sell and Grow' (MSG) platform becoming the dominant growth engine.
• The existing SaaS portfolio, including Business Center, Workforce Center, and payments, is expected to continue generating stable recurring revenue.
• The company emphasizes the compelling underlying trend of subscriber expansion, particularly among its highest-value clients spending more than $400/month.

Industry Context

StockSavvy.ai notes that Thryv's strategic pivot towards an AI-enabled unified growth platform aligns with broader industry trends emphasizing digital transformation, AI integration, and the increasing demand for comprehensive SaaS solutions for small and medium-sized businesses. While the decline in traditional Marketing Services reflects a shift away from legacy print and directory services, the strong growth in SaaS revenue and high-value customer acquisition indicates a successful transition towards more modern, scalable digital offerings, positioning the company to compete in the evolving SMB software market.

Comparison to Industry Standards

• The filing does not provide specific comparable companies, projects, or results to benchmark Thryv's performance against industry standards.

Stakeholder Impact

• Shareholders may experience short-term volatility due to the projected decline in overall revenue and EBITDA for FY 2026, but could benefit from the long-term growth potential of the SaaS and AI-enabled platform strategy.
• Customers of Marketing Services may be encouraged or transitioned to the new AI-enabled SaaS platform, potentially impacting their service experience and offerings.
• Employees involved in the Marketing Services segment may face restructuring or reallocation as the company shifts its strategic focus.

Next Steps

• Continue the strategic shift to the AI-enabled Unified Growth Platform, focusing on the 'Market, Sell and Grow' (MSG) platform.
• Further integrate the Keap acquisition to drive SaaS subscriber expansion and revenue growth.
• Manage the ongoing decline of the Marketing Services segment while transitioning customers to SaaS offerings.

Key Dates

Recommendation

A seasoned investor would likely recommend a 'hold' given the mixed results and outlook. While the strong growth in the SaaS segment and the strategic pivot towards an AI-enabled platform are positive long-term indicators, the significant decline in the legacy Marketing Services business and the projected decrease in overall revenue and Adjusted EBITDA for FY 2026 introduce near-term uncertainty. Investors would likely want to observe the successful execution of the strategic transition and its impact on consolidated financial performance before making a more aggressive move.

Keywords

SaaS, AI-enabled platform, Marketing Services, Adjusted EBITDA, Revenue growth, Keap acquisition, Small business software, Digital marketing, Financial results, Investor presentation