8-K: Thryv's 2025 SaaS Revenue Soars 34%, Shifts to AI Platform

Thryv Holdings, Inc. reported a 34% year-over-year increase in full-year 2025 SaaS revenue, signaling a strategic pivot to an AI-enabled 'Market, Sell, Grow' platform for SMBs.

Summary

• Full-year 2025 SaaS revenue grew 34.2% year-over-year to $461.0 million.
• Fourth quarter 2025 SaaS revenue increased 14.1% year-over-year to $119.0 million.
• SaaS revenue now constitutes over 62% of total revenue for the full year 2025, indicating a successful business model transition.
• Consolidated total revenue for full-year 2025 decreased 4.7% year-over-year to $785.0 million, while Q4 2025 consolidated total revenue increased 2.7% to $191.6 million.
• Full-year 2025 consolidated net income was $0.3 million, a significant improvement from a net loss of $74.2 million in 2024.
• Fourth quarter 2025 consolidated net loss was $9.7 million, compared to net income of $7.9 million in Q4 2024.
• SaaS monthly Average Revenue per Unit (ARPU) increased 15% year-over-year to $373 in the fourth quarter of 2025.
• Marketing Center revenue increased over 100% year-over-year for 2025 and 56% year-over-year in Q4 2025.
• The company is shifting its strategic focus to a unified AI-enabled Thryv Platform designed to help small businesses market, sell, and grow.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as a positive report, driven by strong SaaS growth and a successful strategic pivot to an AI-enabled platform, despite declines in legacy Marketing Services and a Q4 net loss.

Positives

• Strong SaaS revenue growth: 34.2% for full-year 2025 ($461.0 million) and 14.1% for Q4 2025 ($119.0 million).
• SaaS revenue now represents over 62% of total revenue, demonstrating a successful transition to a software-centric business model.
• Significant improvement in full-year consolidated net income, moving from a $74.2 million loss in 2024 to a $0.3 million profit in 2025.
• SaaS Adjusted EBITDA margin expanded 400 basis points year-over-year for full-year 2025 to 16.0%.
• SaaS monthly ARPU increased 15% year-over-year to $373 in Q4 2025.
• Marketing Center revenue showed exceptional growth, increasing over 100% year-over-year for 2025 and 56% in Q4 2025.
• Operating cash flow was $63.5 million and Free cash flow was $31.1 million for full-year 2025.

Negatives

• Marketing Services revenue decreased significantly: 32.6% for full-year 2025 ($324.0 million) and 11.7% for Q4 2025 ($72.6 million).
• Consolidated total revenue decreased 4.7% year-over-year for full-year 2025 to $785.0 million.
• Consolidated net loss of $9.7 million in Q4 2025, compared to net income of $7.9 million in Q4 2024.
• Consolidated Adjusted EBITDA decreased 6.5% year-over-year for full-year 2025 to $151.8 million.
• Seasoned Net Revenue Retention was 94% as of December 31, 2025, indicating some churn or reduced spend among long-term clients.

Risks

• Significant competition for Marketing Services solutions and SaaS offerings, including from companies that use components of SaaS offerings provided by third parties.
• Ability to maintain profitability.
• Ability to manage growth effectively.
• Ability to transition Marketing Services clients to the Thryv platform, maintain transitioned clients, and sell additional or upgraded products.
• Ability to sell the platform into new markets or further penetrate existing markets.
• Ability to maintain strategic relationships with third-party service providers.
• Internet search engines and portals potentially terminating or materially altering their agreements.
• Ability to keep pace with rapid technological changes and evolving industry standards.
• SMB clients potentially opting not to renew their agreements or renewing at lower spend.
• Potential system interruptions or failures, including cybersecurity breaches, identity theft, data loss, unauthorized access to data or other disruptions.
• Potential failure to identify suitable acquisition candidates and consummate such acquisitions.
• Ability to complete acquisitions and successfully integrate them, including the October 2024 acquisition of Keap, and any failure of an acquired business to achieve its plans and objectives.
• Potential loss of one or more key employees or inability to attract and retain highly skilled employees.
• Ability to maintain the compatibility of the Thryv platform with third-party applications.
• Ability to successfully expand operations and current offerings into new markets, including internationally, or further penetrate existing markets.
• Potential failure to provide new or enhanced functionality and features.
• Potential failure to comply with applicable privacy, security, and data laws, regulations, and standards.
• Potential changes in regulations governing privacy concerns and laws or other domestic or foreign data protection regulations.
• Potential failure to meet service level commitments under client contracts.
• Potential failure to offer high-quality or technical support services.
• Thryv platform and add-ons potentially failing to perform properly.
• Risks associated with the use of artificial intelligence in the business, and challenges with properly managing its use, could result in reputational harm, competitive harm, and legal liability.
• Potential impact of future labor negotiations.
• Ability to protect intellectual property rights, proprietary technology, information, processes, and know-how.
• Rising inflation and ability to control costs, including operating expenses.
• General macro-economic conditions, including a recession or an economic slowdown in the U.S. or internationally.
• Adverse tax laws, regulations or audit outcomes or potential changes to existing tax laws or regulations.
• Costs, liabilities and reputational harm resulting from regulatory investigations, including the subpoena from the Division of Enforcement of the Securities and Exchange Commission (the SEC).
• Volatility and weakness in bank and capital markets.
• Costs, obligations and liabilities incurred as a result of and in connection with being a public company.

Future Outlook

The company is shifting its strategic focus to a unified growth offering enabled by AI, the Thryv Platform, designed to help small businesses market, sell, and grow. This represents a transition from legacy print and marketing services into a leading SMB software company.

Management Comments

• "We delivered solid full-year 2025 results, with SaaS revenue growth of 34% year-over-year and SaaS Adjusted EBITDA margin of 16.0%." Joe Walsh, Thryv Chairman and CEO.
• "During the year, we have successfully transitioned from legacy print and marketing services into a leading SMB software company, with SaaS revenue now contributing over 62% of total revenue." Joe Walsh, Thryv Chairman and CEO.
• "Looking ahead, we are shifting to a unified growth offering enabled by AI—the Thryv Platform—designed to help small businesses market, sell, and grow." Joe Walsh, Thryv Chairman and CEO.

Industry Context

StockSavvy.ai notes that Thryv's strategic pivot towards an AI-enabled SaaS platform aligns with broader industry trends emphasizing digital transformation and AI integration for small and medium-sized businesses. While the decline in Marketing Services revenue reflects a challenging legacy business, the robust growth in SaaS revenue and specific products like Marketing Center indicates successful adaptation to evolving market demands and competitive pressures from other SMB software providers.

Legal Proceedings

• Costs, liabilities and reputational harm resulting from regulatory investigations, including a subpoena from the Division of Enforcement of the Securities and Exchange Commission (the SEC).

Related Party Transactions

• Interest expense, related party of $11.328 million for the full year 2025 and $2.600 million for Q4 2025.
• Term Loan, net, related party of $85.448 million at December 31, 2025.

Stakeholder Impact

• Shareholders: Potential for increased value due to strong SaaS growth and strategic shift, but also risks from legacy business decline and regulatory investigations.
• Employees: Potential for shifts in roles and skills as the company transitions to an AI-enabled software focus.
• Customers (SMBs): Benefit from enhanced AI-enabled platform for marketing, sales, and growth, but Marketing Services clients may experience transition.
• Creditors: Debt obligations are noted, with related party term loans.

Next Steps

• Host a conference call on February 26, 2026, at 8:30 a.m. (Eastern Time) to discuss Q4 2025 results and outlook.
• Continue the strategic shift to a unified AI-enabled Thryv Platform.

Key Dates

Recommendation

The strong performance in the SaaS segment, including 34% full-year revenue growth and expanding EBITDA margins, indicates a successful business transformation. The strategic shift to an AI-enabled platform positions the company for future growth in the SMB software market. While the decline in legacy Marketing Services revenue is a drag on consolidated figures, the core business is showing robust health and strategic alignment. The turnaround to net income profitability for the full year is a significant positive. The SEC subpoena is a concern, but the overall trajectory of the core business warrants a 'buy' recommendation for investors focused on growth in the SMB tech sector.

Keywords

Thryv, SaaS, SMB software, AI-enabled platform, Financial Results, Earnings, Q4 2025, Full Year 2025, Adjusted EBITDA, ARPU, Net Revenue Retention, Keap acquisition, Small Business Technology, Marketing Services