THRY

This article first appeared on GuruFocus. SaaS Revenue: $114.5 million in Q2, within guidance. SaaS Adjusted Gross Margin: 66.6%. SaaS Adjusted EBITDA: $13.6 million, with a margin of 12%. SaaS ARPU: $394, up 12% year-over-year. SaaS Subscribers: 95,000 at the end of Q2. Seasoned Net Revenue Retention (NRR): 90%. Multi-Product Adoption: Clients with two or more SaaS products represented 29% of the base, up from 28% a year ago. Marketing Services Revenue: $36.2 million in Q2, above guidance. Marketing Services Adjusted EBITDA: $7.3 million, with a margin of 20%. Marketing Services Billings: $48.7 million, down 36% year-over-year. Net Debt: $241 million, with a leverage ratio of 2.1 times. Restructuring Charge: Approximately $25 million, with half expected in 2026 and half in the first half of 2027. Run Rate Savings: Approximately $60 million expected from restructuring. Full-Year Marketing Services Revenue Guidance: Raised low end to $161 million to $163 million. Full-Year Marketing Services Adjusted EBITDA Guidance: Revised to $31 million to $33 million. Q3 SaaS Revenue Guidance: $111 million to $112 million. Q3 SaaS Adjusted EBITDA Guidance: $8.5 million to $9.5 million. Full-Year SaaS Revenue Guidance: Revised to $453 million to $457 million. Full-Year SaaS Adjusted EBITDA Guidance: Revised to $42 million to $44 million. Warning! GuruFocus has detected 4 Warning Signs with THRY. Is THRY fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. SaaS revenue reached $114.5 million in Q2, within guidance, and SaaS now represents 76% of total revenue, validating the company's transformation to a pure-play SaaS business. The Market, Sell, Grow (MSG) initiative grew 21% year-over-year, marking over a dozen consecutive quarters of double-digit growth, with SaaS ARPU up 12% to $394. The launch of the new AI-native Thryv Growth Platform on August 3, 2026, is a major strategic milestone, with early results showing clients experiencing 40% more revenue and AI-scored leads closing 1.5 times faster. Strategic partnerships with Wix and Ooma, along with new integrations with Breesy and Jobber, expand distribution channels and provide warm introductions to a large base of SMB customers without traditional acquisition costs. The company announced a restructuring program expected to generate approximately $60 million in run-rate savings, with a one-time charge of about $25 million, improving future operational efficiency. The company's reclassification as a software company under GICS underscores its successful strategic pivot and market recognition of its business model. Full-year SaaS revenue guidance was revised down to $453 million to $457 million, and SaaS adjusted EBITDA guidance was lowered to $42 million to $44 million, reflecting deliberate underinvestment in sales headcount and marketing during the first half. Marketing Services billings declined 36% year-over-year to $48.7 million, highlighting the ongoing and significant contraction of the legacy directory business. SaaS adjusted gross margin was 66.6%, with the mix of add-on revenue carrying traffic expense at lower margins, pressuring overall profitability. The company's seasoned net revenue retention (NRR) was 90%, reflecting natural attrition of smaller, lower-spend clients within the existing base. The restructuring program will incur a charge of approximately $25 million, with half expected in 2026 and the remainder in the first half of 2027, adding near-term financial strain. The company's strategic pivot and guidance adjustments have created a pattern of frequent changes, raising concerns about stability in product and go-to-market strategy. Q: When do we get to a spot of stability in both product and go-to-market strategy, given the pattern of tweaks and changes?A: Joe Walsh (CEO) acknowledged the pivoting but stated the new AI-native Thryv Growth Platform, which went GA on August 3, represents the sharpened focus on local business growth. He expects the growth seen in Marketing Center and its add-ons to become the main story over the next few quarters, with the directory business and other software initiatives being run off as the company focuses on the new platform. Q: How do we think about your ability to service debt and make payments for the rest of the year, given the lowered EBITDA guidance?A: Paul Rouse (CFO) confirmed that cash flow remains strong and there is no issue servicing debt for the remainder of the year and into next. The company is focusing on lowering its revolver rather than the term loan, and the restructuring cuts will further support cash flow. Q: How should investors expect more partnerships like Wix and Ooma to come, and what is the strategy behind them?A: Joe Walsh (CEO) explained the partnerships are part of an "ecosystem-led growth" model, plugging into complimentary services to expand reach. By narrowing focus on the Growth Platform and its add-ons, Thryv can be highly complimentary with other tools like CRMs or VoIP. He expects to continue announcing more partnerships to drive faster growth and better margins. Q: How much of the restructuring is related to workforce reduction versus vendor efficiency?A: Cameron Lessard (SVP of Corporate Development & Strategy) detailed that of the approximately $25 million restructuring charge, half is attributed to vendor spend and half to workforce reductions. The charges are expected to be split evenly between fiscal 2026 and the first half of 2027. Q: How do you think about the renewal cycle for customers brought in via product-led growth, and how will feature shifts impact cross-sell and up-sell?A: Grant Freeman (President) stated that the native AI features in the new platform do a better job at proving value, generating AI-suggested actions that lead to up-sell and cross-sell opportunities. This is expected to continue driving ARPU growth and a more stable software base, as seen with the increasing percentage of revenue from quality clients. Q: Has AI changed the competitive environment, or is the shift in platform depth and breadth more company-specific?A: Joe Walsh (CEO) noted that generic CRM is becoming commoditized, which is why Thryv is moving away from that as a primary focus. Instead, the company is leveraging its strong Market, Sell, Grow initiative, which has seen 12 consecutive quarters of double-digit growth, to move upmarket with larger, stickier clients and higher ARPU. Q: How is the go-to-market strategy for the Thryv Growth Platform different for existing customers versus greenfield opportunities?A: Grant Freeman (President) highlighted new vectors: partnerships like Wix and Ooma provide access to new "zoos" of pre-qualified owners. The direct sales force will use precision targeting, leveraging deep integrations (e.g., Jobber) to walk into accounts with a clear value proposition. The launch also unlocks a free trial, enabling a new inbound motion and easier distribution through partner ecosystems. Q: How is the free trial strategy different on the Thryv Growth Platform, and what are your expectations for tapping into greenfield opportunities?A: Grant Freeman (President) explained that unlike Marketing Center, the new platform offers a full free trial. This allows salespeople to leave prospects with a working platform instead of nothing, returning days later to show delivered value, which aids conversion. It also enables serving up free trials at the point of purchase within partner ecosystems like Wix, reducing reliance on direct sales interactions and unlocking new distribution channels. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q2 SaaS Revenue Grows to 76% of Total Revenue Q2 SaaS Monthly ARPU Increases 12% Year-Over-Year to $394 Company Announces Strategic Restructuring Plan to Improve Operating Efficiencies DALLAS, August 04, 2026--(BUSINESS WIRE)--Thryv Holdings, Inc. (NASDAQ:THRY) ("Thryv" or the "Company"), the provider of Thryv®, an AI-native growth platform for local service businesses, reported results for the second quarter of 2026. "Our second quarter marked another step forward in the transformation of our business, with SaaS now representing 76% of our revenue and ARPU growing 12% year-over-year," said Joe Walsh, Thryv Chairman and CEO. "Our SaaS profile now reflects our deliberate focus on the newly launched Thryv Growth Platform, the first platform purpose-built for the small business owner with AI running underneath to turn every lead into measurable revenue. We are also announcing a restructuring plan that realigns our cost structure to focus on a SaaS operating model and extend the agentic AI capabilities embedded in Thryv's customer-facing platform. Looking ahead, we remain focused on reaccelerating the growth of our SaaS business. We are announcing today that we have partnered with Ooma and plan to establish ​a strategic partnership with Wix, with a shared focus on helping small businesses succeed." The Company expects to incur total restructuring and related charges of approximately $20 million to $25 million, approximately 10% of which has already been incurred, with approximately 40% expected to be recognized in the second half of 2026 and the remaining 50% to be recognized in 2027. Cost savings are anticipated to begin in 2027, building to approximately $55 million to $60 million in gross annualized cost savings upon completion. "We remain focused on optimizing the Thryv Growth Platform, a unified, AI-native growth offering, concentrating investments to scale the business and expand profitability. These initiatives are expected to be accretive to Adjusted EBITDA margins in the future, while strengthening the Company's free cash flow generation," stated Paul Rouse, Chief Financial Officer. Second Quarter Financial 2026 Highlights: SaaS revenue was $114.5 million, a decrease of 0.5% year-over-year, of which Market, Sell, Grow initiatives grew 21%1 year-over-year, offset by headwinds in legacy CRM products Marketing Services revenue was $36.2 million Consolidated total revenue was $150.7 million Consolidated net loss was $16.7 million, or $(0.38) per diluted share; compared to net income of $13.9 million, or $0.31 per diluted share, for the second quarter of 2025 Consolidated Adjusted EBITDA was $20.8 million, representing an Adjusted EBITDA margin of 13.8% SaaS Adjusted EBITDA was $13.6 million, representing an Adjusted EBITDA margin of 11.8% Marketing Services Adjusted EBITDA was $7.3 million, representing an Adjusted EBITDA margin of 20.0% Consolidated Gross Profit was $94.6 million Consolidated Adjusted Gross Profit2 was $99.2 million SaaS Gross Profit was $72.7 million, representing a Gross Margin of 63.5% SaaS Adjusted Gross Profit1 was $76.2 million, representing an Adjusted Gross Margin of 66.6% Recent Business Highlights and Metrics Quality customers3 (defined as those contributing more than $400 in monthly recurring revenue) accounted for 72% of SaaS revenue3 in the second quarter of 2026 SaaS clients were 95 thousand at the end of the second quarter of 2026 Seasoned Net Revenue Retention4 was 90% for the second quarter of 2026 SaaS monthly Average Revenue per Unit ("ARPU")5 was $394 for the second quarter of 2026, an increase of 11.9% year-over-year Outlook Based on information available as of August 4, 2026, Thryv is issuing guidance6 for the third quarter of 2026 and updating full year 2026 as indicated below: Earnings Conference Call Information Thryv will host a conference call on Tuesday, August 4, 2026 at 8:30 a.m. (Eastern Time) to discuss the Company's second quarter 2026 results. To listen to this conference call, please use this link. After registering, a confirmation email will be sent, including access details. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. A live webcast will also be available on the Investor Relations section of the Company's website at investor.thryv.com. Segment Information The following tables summarize the operating results of the Company's reportable segments: 1 Excludes Keap. Market, Sell, Grow initiatives include Marketing Center and additional marketing value-added services.2 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense.3 Excludes customers and revenue attributed to the Keap acquisition.4 Seasoned NRR is calculated by dividing the revenue of all clients that have had one or more SaaS offerings for at least two years as of the last month of the year or quarter, as applicable, by the same clients' revenue one year ago. For each reporting quarter, the weighted-average monthly NRR from all the months in the quarter are reported. Seasoned NRR excludes clients acquired in the Keap acquisition.5 Defined as total client billings for a particular month divided by the number of clients that have one or more revenue-generating solutions in that same month. This is a weighted-average calculation and inclusive of the impact from the Keap acquisition.6 These statements are forward-looking and actual results may materially differ. Refer to the "Forward-Looking Statements" section below for information on the factors that could cause our actual results to materially differ from these forward-looking statements.7 SaaS Adjusted EBITDA and Marketing Services Adjusted EBITDA are forward-looking non-GAAP financial measurers. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable effort.8 Consolidated Adjusted EBITDA is equal to SaaS Adjusted EBITDA and Marketing Services Adjusted EBITDA. See Non-GAAP Measures below for a reconciliation of Consolidated Adjusted EBITDA to Net income (loss). Non-GAAP Measures Our results included in this press release include Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Gross Profit, which are not presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We have included Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit because management believes they provide useful information to investors in gaining an overall understanding of our current financial performance and provide consistency and comparability with past financial performance. Specifically, we believe Adjusted EBITDA provides useful information to management and investors by excluding certain non-operating items that we believe are not indicative of our core operating results. In addition, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Gross Profit are used by management for budgeting and forecasting as well as measuring the Company’s performance. We believe Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Gross Profit provide investors with the financial measures that closely align with our internal processes. We define Adjusted EBITDA ("Adjusted EBITDA") as Net income (loss) plus Interest expense, Income tax expense (benefit), Depreciation and amortization expense, Restructuring and integration expenses, Stock-based compensation expense, and non-operating expenses, such as Net periodic pension cost and certain unusual and non-recurring charges that might have been incurred. Adjusted EBITDA should not be considered as an alternative to Net income (loss) as a performance measure. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We define Adjusted Gross Profit ("Adjusted Gross Profit") as Gross profit adjusted to exclude the impact of Depreciation and amortization expense and Stock-based compensation expense. Non-GAAP financial information has limitations as an analytical tool and is presented for supplemental informational purposes only. Such information should not be considered a substitute for financial information presented in accordance with U.S. GAAP and may be different from similarly-titled non-GAAP measures used by other companies. The following is a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, Net (loss) income: The following tables set forth reconciliations of Adjusted Gross Profit and Adjusted Gross Margin, to their most directly comparable GAAP measures, Gross Profit and Gross Margin: The following table sets forth a reconciliation of Free Cash Flow to its most directly comparable GAAP measure, Net cash provided by operating activities: Supplemental Financial Information The following supplemental financial information provides Revenue, Net Income (Loss), Net Income (Loss) Margin, Adjusted EBITDA and Adjusted EBITDA Margin by our (i) SaaS business and (ii) Marketing Services business. Total SaaS Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are also non-GAAP financial measures. These non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We believe that these non-GAAP financial measures provide useful information about our global SaaS and Marketing Services financial performance, enhance the overall understanding of our global SaaS and Marketing Services past financial performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods. Forward-Looking Statements Certain statements contained herein are not historical facts, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Statements that include the words "may", "will", "could", "should", "would", "believe", "anticipate", "forecast", "estimate", "expect", "preliminary", "intend", "plan", "target", "project", "outlook", "future", "forward", "guidance" and similar statements of a future or forward-looking nature identify forward-looking statements. These statements are not guarantees of future performance. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: significant competition for our Marketing Services solutions and SaaS offerings, which include companies that use components of our SaaS offerings provided by third parties; our ability to maintain profitability; our ability to manage our growth effectively; our ability to transition our Marketing Services clients to our Thryv platform, maintain transitioned clients on that platform and sell them additional or upgraded products, sell our platform into new markets or further penetrate existing markets; our ability to maintain our strategic relationships with third-party service providers; internet search engines and portals potentially terminating or materially altering their agreements with us; our ability to keep pace with rapid technological changes and evolving industry standards; our SMBs clients potentially opting not to renew their agreements with us or renewing at lower spend; potential system interruptions or failures, including cybersecurity breaches, identity theft, data loss, unauthorized access to data or other disruptions that could compromise our information; our potential failure to identify suitable acquisition candidates and consummate such acquisitions; our ability to complete acquisitions and the successful integration of such acquisitions, and any failure of an acquired business to achieve its plans and objectives or realize any expected benefit from any such acquisition; the potential loss of one or more key employees or our inability to attract and to retain highly skilled employees; our ability to maintain the compatibility of our Thryv platform with third-party applications; our ability to successfully expand our operations and current offerings into new markets, including internationally, or further penetrate existing markets; our potential failure to provide new or enhanced functionality and features; our 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; our potential failure to meet service level commitments under our client contracts; our potential failure to offer high-quality or technical support services; our Thryv platform and add-ons potentially failing to perform properly; our use of artificial intelligence in our business, and challenges with properly managing its use, could result in reputational harm, competitive harm, and legal liability; the potential impact of future labor negotiations; our ability to protect our intellectual property rights, proprietary technology, information, processes, and know-how; rising inflation and our 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 or regulations 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; and costs, obligations and liabilities incurred as a result of and in connection with being a public company as well as the risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K filed with the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. For these reasons, we caution you against relying on forward-looking statements. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Thryv Thryv (NASDAQ:THRY) is an AI-native growth platform that helps small businesses (SMBs) get discovered online, identify their best customer leads, and grow revenue faster with ROI insights. Platform features include AI-powered websites, AI Lead Insights, and integrations with the CRMs service businesses are already using. Thryv makes growth‑focused software accessible to the plumber, salon owner, contractor, lawyer, accountant and more. Approximately 100,000 businesses globally use Thryv software to get found, win customers, and invest smarter. For more information, visit www.thryv.com. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804874153/en/ Contacts Media Contact: Julie MurphyThryv, [email protected] Investor Contact: Cameron LessardThryv, [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. The company has officially transitioned to a software-first entity, with SaaS now representing 76% of total revenue and a formal GICS reclassification as a software company. Management is narrowing its strategic focus to the 'Market, Sell, Grow' (MSG) engine, which grew 21% year-over-year, while winding down non-core legacy products. Performance is increasingly driven by upmarket migration, evidenced by a 12% increase in ARPU to $394 and 72% of clients now spending over $400 monthly. The launch of the Thryv Growth Platform on August 3 represents a complete technical rebuild, moving from a legacy 'bolt-on' AI approach to an AI-native architecture. Operational efficiency is being prioritized through a restructuring program expected to deliver $60 million in run-rate savings by consolidating teams and systems. Strategic positioning has shifted from an 'all-in-one' provider to a hybrid model that integrates with existing small business tools like Jobber and HubSpot. Marketing Services decline is being managed as a deliberate migration of legacy digital clients into the higher-value SaaS ecosystem. Management is intentionally absorbing lower 2026 guidance to prioritize product development and sales team ramping for a full-strength 2027 market push. The rollout strategy focuses on net new clients through direct channels first, with migration of the existing subscriber base deferred until 2027 to protect retention. Future growth is predicated on an 'ecosystem-led' model, utilizing partnerships with Wix and Ooma to access new customer pools without traditional acquisition costs. The introduction of a free-trial motion is expected to shorten sales cycles and improve conversion rates by allowing owners to see AI-scored lead value before purchase. Guidance assumes a continued shift in gross margin mix as higher-traffic add-on products attract larger clients but carry higher associated expenses. A $25 million restructuring charge is expected through H1 2027, split between workforce reductions and vendor efficiency gains. Management acknowledged that the rapid evolution of AI commoditized their legacy CRM offerings, necessitating the pivot to the new Growth Platform. The company maintains a leverage ratio of 2.1x and asserts that cash flow remains sufficient to service debt despite the lowered EBITDA guidance. Seasoned Net Revenue Retention (NRR) of 90% reflects ongoing attrition of smaller, lower-spend clients as the company focuses on higher-quality accounts. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management expects the current pivot to be the definitive long-term direction, focusing exclusively on the growth of local businesses rather than broad management tools. The new AI-native platform is intended to replace the aging Marketing Center, which management admitted became outdated quickly due to AI advancements. CFO Paul Rouse confirmed cash flow remains strong enough to meet all debt obligations and interest payments. The company is prioritizing paying down its revolver over the term loan and expects restructuring savings to support future liquidity. CEO Joe Walsh noted that simple, generic CRMs are becoming commoditized in the AI era. The strategy is to move 'upmarket' where deeper data loops and closed-loop marketing attribution provide a competitive moat that point solutions cannot replicate. The new platform allows for a 'full unlock' free trial, which was not possible with the previous Marketing Center architecture. This motion is designed to reduce friction in partner ecosystems like Wix, allowing for automated lead-ins and self-service conversions.

Interested in Thryv Holdings, Inc.? Here are five stocks we like better. Thryv launched its AI-native Thryv Growth Platform on Aug. 3, targeting established local service businesses with lead scoring, marketing optimization and optional done-for-you services. Early customer results indicated 40% higher revenue and 1.5-times faster closing for AI-scored leads. Second-quarter SaaS revenue was $114.5 million, with 95,000 subscribers, 12% year-over-year growth in average revenue per user and a 66.6% adjusted gross margin. Marketing Services revenue reached $36.2 million, though billings fell 36% as legacy customers migrated to SaaS. Thryv announced a restructuring expected to produce approximately $60 million in annualized savings from about $25 million in charges. The company also revised its SaaS outlook, citing delayed sales investment and higher traffic costs, while planning to increase sales and marketing spending in the second half. Thryv (NASDAQ:THRY) reported second-quarter results that met its SaaS guidance and outlined a strategy centered on its newly launched AI-native Thryv Growth Platform, partnerships intended to expand distribution, and a restructuring expected to generate approximately $60 million in run-rate savings. Chairman and Chief Executive Officer Joe Walsh said the company is narrowing its focus around Marketing Center, related add-ons and the new growth platform as it continues its transition toward a pure-play software-as-a-service business. SaaS represented 76% of total revenue during the quarter, Walsh said. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “We chose to build the thing worth selling before we scaled the team to sell it,” Chief Financial Officer Paul Rouse said, describing the company’s decision to prioritize product development before increasing sales and marketing investment. Thryv said its Thryv Growth Platform became generally available on Aug. 3. The company described the product as AI-native and said it was built with 70% new code. The platform is aimed at established local service businesses, including businesses such as plumbers, lawyers, dentists and chiropractors. → Financials Hit Record Highs as the AI Trade Unravels—Can They Keep Leading? President Grant Freeman said the platform combines software tools with optional done-for-you marketing services. Its AI capabilities are designed to score leads, help clients identify higher-value opportunities and direct marketing spending toward more productive sources. Freeman said early client results showed 40% more revenue and that AI-scored leads closed 1.5 times faster. He also said the company will initially sell the platform to new customers through its direct sales channel before beginning migrations of its existing customer base in 2027. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Walsh said the company has spent several years developing the platform and believes its focus on helping local businesses grow will provide a more defined market position. He said Thryv intends for growth from Marketing Center, its add-ons and the growth platform to become the company’s principal growth narrative over the next several quarters, while its directory business and certain other software initiatives continue as run-off operations. During the quarter, Thryv entered strategic partnerships with Wix and Ooma and introduced integrations with Breesy AI and Jobber. Senior Vice President of Corporate Development and Strategy Cameron Lessard said the Wix agreement is a multi-pillar relationship that combines Thryv’s marketing platform with Wix’s website, commerce and payments capabilities. Thryv said the relationship could provide its clients with access to Wix’s online and point-of-sale payments, business checking and growth-capital offerings, while positioning Thryv’s platform in front of Wix customers. The Ooma partnership will feature Thryv within the Ooma Office customer portal, according to Lessard. The companies plan joint webinars, sales incentives and cross-promotions during the quarter. Lessard said the partnership is designed to provide Thryv with introductions to Ooma’s business customers, while Thryv plans to recommend Ooma’s communications products to its own clients. Thryv’s Breesy AI integration is now live and is intended for franchise-based home-service organizations. The Jobber integration, available through the Jobber marketplace, automatically scores, summarizes and syncs leads generated by the Thryv Growth Platform into Jobber in near real time, Thryv said. Management said the partnerships and integrations support an ecosystem-led growth strategy, enabling Thryv to reach new prospective customers and work alongside software systems that clients already use. The newly launched platform also includes a free-trial capability, which management said could support partner distribution, inbound demand generation and sales conversions. Thryv reported second-quarter SaaS revenue of $114.5 million, within its prior guidance range. SaaS adjusted gross margin was 66.6%, while SaaS adjusted EBITDA was $13.6 million, representing a 12% adjusted EBITDA margin. SaaS average revenue per user rose 12% year over year to $394. The company ended the quarter with 95,000 SaaS subscribers. Seasoned net revenue retention was 90%. Clients using two or more SaaS products represented 29% of the customer base, compared with 28% a year earlier. Rouse said SaaS gross margin was affected by increased adoption of add-on products, which carry traffic expenses and lower gross margins than platform software. However, he said the add-ons are helping Thryv move upmarket, attract larger clients and increase spending per customer. Walsh said 72% of clients spent at least $400 with Thryv during the quarter, up two percentage points from the prior quarter. Marketing Services revenue was $36.2 million, above guidance, and adjusted EBITDA was $7.3 million, for a 20% margin. Marketing Services billings totaled $48.7 million, down 36% year over year. Rouse said the decline reflects Thryv’s planned migration of legacy digital marketing-services customers to its SaaS platform. Thryv announced a restructuring program as it simplifies operations around the growth platform and winds down non-core products. The company expects approximately $25 million of restructuring charges, primarily tied to severance, employee benefits, contract exits and early-termination costs. Lessard said roughly half of the restructuring charges relate to vendor spending and half relate to workforce reductions. Thryv expects about half of the charges to be incurred in 2026, with the remainder expected in the first half of 2027. The company expects approximately $60 million in run-rate savings from the program. The company ended the second quarter with net debt of $241 million and a leverage ratio of 2.1 times. Responding to an analyst question, Rouse said Thryv continued to generate strong cash flow and did not foresee issues servicing its debt, noting that the company had been focused on reducing its revolver balance rather than its term loan. For the full year, Thryv raised the low end of its Marketing Services revenue outlook to a range of $161 million to $163 million. It revised Marketing Services adjusted EBITDA guidance to $31 million to $33 million. For SaaS, Thryv expects third-quarter revenue of $111 million to $112 million and adjusted EBITDA of $8.5 million to $9.5 million. Full-year SaaS revenue guidance was revised to $453 million to $457 million, while SaaS adjusted EBITDA guidance was revised to $42 million to $44 million. Rouse said the lower SaaS outlook reflects measured investment in sales headcount during the first half while the company completed development of the Thryv Growth Platform, as well as elevated traffic expense related to expansion within its existing customer base. The company plans to redirect investment toward sales and marketing during the second half as it scales distribution of the new platform. Thryv Holdings, Inc (NASDAQ:THRY) is a software and technology solutions provider focused on helping small- and medium-sized businesses manage customer relationships, marketing and communications, appointments and payments through a unified platform. Headquartered in Dallas, Texas, the company delivers cloud-based software designed to simplify administrative tasks and enable business owners to engage with customers across multiple channels. At the core of Thryv's offerings is its flagship Thryv software platform, which combines customer relationship management (CRM) tools, automated marketing and social media management, online scheduling, invoicing and payment processing. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Thryv Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

The company has successfully flipped its business model from a marketing services firm to a 70% SaaS revenue company, driven by small businesses seeking lead conversion tools. Marketing Center grew approximately 30% year-over-year, serving as the centerpiece of the 'Market, Sell, Grow' strategy to attract higher-quality leads for clients. Management is deliberately targeting larger small businesses (midsized clients with ~$1M+ revenue) who exhibit higher retention, deeper engagement, and greater lifetime value. SaaS ARPU increased 13% year-over-year to $378, reflecting the successful shift toward higher-caliber clients with more complex operational needs. Quality customers now represent 70% of SaaS revenue, up from 62% a year ago, validating the strategic focus on high-value relationships over raw subscriber volume. Early adoption of AI-powered capabilities, including lead scoring and image generation, is exceeding expectations and making the platform stickier within client workflows. Management expects to return to overall top-line growth by 2027 as the SaaS business increasingly offsets the managed decline of legacy services. The company aims to double annualized client spend from $4,000 to $8,000 over the next 4 to 5 years through upmarket expansion and multi-product adoption. A new unified platform is being developed from the ground up with integrated AI agents to replace current standalone offerings and simplify the user experience. Marketing Services is on a managed exit path by 2028, with residual cash flows expected to last through 2030 to ensure liquidity during the software transformation. Full-year SaaS revenue guidance was raised at the low end to a range of $463 million to $471 million, reflecting confidence in the current growth trajectory. SaaS adjusted gross margin of 67% was diluted by a strategic decision to upgrade low-margin digital agency customers to the SaaS platform at no price change. Seasoned NRR of 93% reflects natural attrition among subscale, lower-spend clients as the company transitions away from its legacy subscriber base. Marketing Services EBITDA will experience timing variations in Q2 due to a lighter print publication schedule, though this does not impact billings or free cash flow. Net debt stood at $258 million at quarter-end, representing a leverage ratio of 1.7x as the company maintains a disciplined capital structure. Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is currently focusing on enhancing product value and retention rather than immediate discrete pricing for AI features. Significant monetization opportunities are expected down the road, but the near-term goal is building a 'data moat' through embedded AI workflows. Gross subscriber numbers are 'noisy' because the company is intentionally shedding subscale legacy customers while adding larger, high-value clients. Management expects overall customer counts to remain relatively flat for the year as larger new sales replace multiple smaller churning accounts. The company is moving away from selling Keap as a standalone product, instead embedding its automation power into the 'Market, Sell, Grow' platform. The upcoming platform rewrite will feature 'agentic assistants' that nurture leads and manage customer connections in the background without requiring constant user logins. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here.

Image source: The Motley Fool. Thursday, Apr. 30, 2026 at 8:30 a.m. ET Chief Executive Officer — Joe Walsh Chief Financial Officer — Paul Rouse Chief Strategy Officer — Cameron Lessard Joe Walsh: Thank you, Cameron, and good morning, everyone. I will highlight our first quarter results and key trends and hand it over to Paul Rouse to walk you through the numbers, and then Cameron will take you through some of our forward guidance. We had a strong quarter. SaaS revenue of $117 million came in ahead of expectations, and Marketing Services outperformed as well, resulting in total company adjusted EBITDA that beat our guidance. Quality customers now represent 70% of revenue and annualized client spend has eclipsed $4,500. We are now a 70% SaaS revenue company. A few years ago, we were a marketing services business with software on the side. Today, that equation has fully flipped, and it happened because small businesses are telling us through their buying behavior that they need what we offer. The clearest signal of that is Marketing Center, which grew around 30% year-over-year in Q1. Small businesses want to get found online, drive high-quality leads and convert those leads into lasting customer relationships. That's exactly what Marketing Center does, and the growth reflects that fit. It is the centerpiece of our Market, Sell, Grow strategy, and its continued momentum validates that strategy is working. We're also seeing strong results in our upmarket motion, attracting and winning larger small businesses than we've historically served. These are clients with more complexity, more needs and more to spend, and that's showing up directly in our numbers. ARPU grew to $378 a month, up 13% year-over-year with annualized client spend eclipsing $4,500, a direct result of serving higher-caliber clients. And because larger businesses engage more deeply and expand their spend over time and stay longer, the lifetime value of these clients is fundamentally better. You'll remember, we've talked about moving from 4,000 to 8,000 over the next kind of 4 or 5 years. We feel strongly that, that upmarket move is gaining traction at this point. Quality customer count grew 6% year-over-year and now represents 70% of SaaS revenue, up from 62% a year ago. That trajectory tells you the mix shift is working, and it's a dynamic we're leaning into deliberately. I also want to touch on AI because the early results are genuinely encouraging. On prior earnings calls, we shared that we were rolling out a suite of AI-powered capabilities across the platform, and it's validating to come back this quarter and report that the engagement numbers are really strong. AI image generation, AI lead scoring and our AI guided dashboard are all seeing strong early adoption since rollout. AI review responses, our AI website builder and AI caption round out the suite and are performing well, too. These are not features that we are still testing. They're live now. They're being used by clients who are engaging with them. That matters because AI embedded in the daily workflow is what makes Thryv stickier and more valuable over time. We said we were building it, it's built and it's working. In sum, the business is on solid footing. Our core product is growing. Our client base is consistently upgrading toward higher-value relationships and our AI rollout is exceeding early expectations. That's the story of Q1. Now, I'd like to hand it over to Paul Rouse and Cameron to walk you through the numbers and update you on our guidance. Paul Rouse: Thanks, Joe. Let's dive into the numbers. SaaS reported revenue was $116.7 million in the first quarter, representing an increase of 5% year-over-year and exceeding guidance. SaaS adjusted gross margin was 67% and SaaS adjusted EBITDA was $10.8 million in the first quarter, resulting in an adjusted EBITDA margin of 9%. Adjusted gross margin in the first quarter was diluted by the strategic upgrade of our low-margin large digital agency customers from our marketing services base of customers on to SaaS with no change in pricing. Historically, we lacked an upgrade path for these clients with Business Center, but market so grow now provides the motion. With key marketing automations representing a significant upsell opportunity that will drive improved economics over time. This gross margin compression was the primary factor of adjusted EBITDA coming in below guidance for the quarter. We view it as a deliberate near-term investment in a previously underleveraged segment of our customer base. In the first quarter, SaaS ARPU reached $378, an increase of 13% year-over-year. We ended the quarter with 96,000 SaaS subscribers. Seasoned NRR of 93% represents the natural attrition of smaller, lower spend clients, within our base. Importantly, churn among our high-value clients has been trending favorably, underscoring the effectiveness of our client experience initiatives and our confidence in long-term health of the business. Multiproduct adoption continues to accelerate in the first quarter. Clients with 2 or more SaaS products grew to 26,000 or 30% of our base compared to 24,000 or 25% a year ago. Moving over to Marketing Services. First quarter revenue was $50.9 million and above guidance. First quarter Marketing Services adjusted EBITDA was $13.2 million, resulting in an adjusted EBITDA margin of 26%. As anticipated, this performance reflects the natural cadence of our print publication schedule, which is weighed towards the second half of the year from a revenue recognition standpoint. Importantly, this time dynamic has no impact on billings or free cash flow generation as our book-over-book decline patterns have remained consistent and predictable over time. First quarter marketing services billings totaled $54.5 million, down 33% year-over-year, reflecting the intentional shift in our strategy, as we continue to initiate upgrades of legacy digital marketing services products for clients to our SaaS platform. The decline will persist, but at a managed pace. We remain on track to exit marketing services by 2028 with cash flows lasting through 2030, ensuring strong liquidity as we fully transform to a pure-play software business. We ended the first quarter with net debt of $258 million, bringing our leverage ratio to 1.7x. Now, I'll turn the call over to Cameron to walk through the guidance. Cameron Lessard: Thanks, Paul. Let's dive into guidance. For the second quarter, we expect SaaS revenue in the range of $114 million to $115 million. For the full year, we are raising the low end of our SaaS revenue to a range of $463 million to $471 million. For the second quarter, we expect SaaS adjusted EBITDA in a range of $12 million to $13 million. For the full year, we are maintaining SaaS adjusted EBITDA guidance to a range of $70 million to $75 million. For the full year, we are raising our marketing services revenue to be in the range of $157 million to $163 million. For the full year, we are maintaining Marketing Services adjusted EBITDA guidance to a range of $30 million to $35 million. One thing worth keeping in mind as you model the year, Q2 carries a lighter print publication schedule relative to other quarters, which will create some timing variation in EBITDA due to the cadence of revenue recognition. This has no impact on billings or free cash flow and as print volume ramps in the back half of the year, Marketing Services EBITDA will reflect that accordingly. The quarterly phasing is outlined in the investor presentation and the full year range is unchanged. Before we close, I just want to step back for a second. This transformation is working. SaaS is now 70% of our revenue, something that felt like a distant goal not long ago. And as we look towards 2027, we expect to return to overall top line growth. For those of you who have been watching the story and waiting for the other side, we're nearly there. The business is at a genuine inflection point. We're no longer managing around decline. We're leaning into growth, advancing our AI initiatives and building something we're really proud of. We appreciate your continued support and your belief in what we're building. We look forward to updating you next quarter. Thank you. Operator, let's move to questions. Operator: [Operator Instructions] Your first question comes from the line of Scott Berg with Needham & Company. Scott Berg: Joe, I guess first question is, you're talking about your move upmarket that you seem on the SaaS side, at least that you seem to be continually more positive on. Any anecdotal evidence on how many more modules those customers are taking or how much larger the ARPU of your larger kind of customer segment is? I think that would be helpful if you have any details there. Joe Walsh: Sure. Thanks, Scott, for the question. We are moving upmarket. Our overarching plan here is to move our ARPU from $4,000 to $8,000 and we're making steady progress, 13% ARPU growth in the most recent period. As with everything with us, our metrics don't move in a perfect straight line because there's a lot of noise as we continue to transition the old business away. But we're having a lot of success moving upmarket and we're doing it in a few ways. Firstly, and maybe most importantly, we put very sophisticated sales automation in place over the last few years, and we're targeting all of our sales efforts at larger businesses. We literally have a list of who we want you to go and talk to. And what that means is that rather than selling the solopreneur who maybe has $300,000 or $400,000 of annual revenue, we're selling a midsized business that has $1 million of revenue and 12 employees or something. And it makes a big difference for us in terms of retention, their willingness and ability to pay and their ability to buy more from us over time. So, that is actually the big story here is if you look at quality customers, and I know that there's noise in our gross number of customers. And that's because we're transitioning legacy customers and legacy systems as we wind down this gigantic marketing services business, it's bringing over some subscale customers. And sometimes we're able to get those customers moving and engage with software and buying more and heading in the right direction. And sometimes they churn out. And so those -- that process is a little bit noisy, which is why gross numbers haven't been a perfect measure. But if you look at quality customers, it's steadily growing. And ARPU is pretty steadily growing. Again, it bounces around a little bit, but the overall direction is up. So, as far as your question about modules, we're increasingly having more and more success with people buying multiple products from us and becoming stickier. You see that number moving up. And these bigger businesses, a lot of times are coming in bigger to begin with. So, if you look at our new sales velocity, they tend to be bigger. So, you got your finger on the story. It's us moving away from solopreneurs, moving to bigger businesses and all the noise that, that creates, Scott. Scott Berg: Understood. And then Joe, you talked about the engagement story and some of your AI functionalities improving. I think we're all looking for evidence amongst different enterprise software vendors and how customers are leveraging these technologies through these vendors out there today. As you have more experience or your customers have more experience with this functionality, how should we think about the monetization efforts of these going forward? Are you able to monetize any of this functionality separately? Or do you think this is really something that you embed into the core product and we realize some of those financial benefits through just the core pricing maybe improvements over time? Joe Walsh: It's a terrific question. So, that first -- excuse me, the way you finished is, I think, the way we start. And that's that we are massively enhancing the product by putting AI features, by clustering agents around what we're doing so that we can deliver better results, we can dial in people's campaigns. And there's definitely a data moat that builds over time because you get smarter and smarter with their data, with their campaigns and there's a switching cost if someone were to ever leave that. So, I think it helps -- really helps our retention, helps us deliver a better experience with the customer, things -- some things that were harder to do or that they needed to spend time on the software to do can just happen without them even logging in as you move along here. So, I think all of these make the software more attractive, easier to use, will improve retention and improve our ability to get price without having discrete pricing. Now having said that, when I look at our road map of what we're building and what we're doing, I do think that there will be significant monetization opportunities down the road, but we are not going for that at the moment. We're just going for making the product easier to use and more powerful, so that we have stronger retention. Operator: Your next question comes from the line of Arjun Bhatia with William Blair. Alinda Li: This is Alinda Li on for Arjun. Joe, what are the early customer feedbacks from customers on the new AI products? And how are you seeing that in early conversations with prospective customers as well? Joe Walsh: So, I mentioned some of them on the call, things like image generation and review response. Those have been in for a while, and it's just steadily building. People are discovering that when they go to do their social posts, it's just easier to use these tools and so on. So, that's been a steady melt up now for a while and going very well. I think some of the stuff that we're coming out with now is really exciting. We're taking a lot of the key functionality, melding everything together. And we're able now to take a lead, give you a transcript of the lead, grade the lead 1 through 5 based initially on a set of assumptions we make based on the words in the lead, but over time on your own data, dial that in for you. And those people that are using these tools are experiencing quite a bit stronger conversion of leads. No leads are falling through the cracks. So, we've got particularly some of our partners have been taking the lead on that as we've been initially rolling this stuff out in beta and now it's out now, kind of teaching us what's possible with it. So, we're pretty excited about this. We think it's going to be -- make our software easier to use. The dream scenario is that this software helps you efficiently grow a local business without having to log in all the time that gets working in the background for you. And that's the big deal. It's always hard to get the roof or off the roof to get the chiropractor to let go with the patient and go in there and mess with the software. And so, when the tools do it for them, it makes a big, big difference. So that's really -- it's moving it closer to them and making it easier for them to get value. Alinda Li: That's helpful. And last quarter, you talked about the initiative of Market, Sell and Grow. And can you just give us a little bit more update of how that initiative and strategy has been going? I know there's a lot of integration in terms of the Keap automation inside of the Market, Sell and Grow initiative. Can you just give a little bit more color from last quarter? Joe Walsh: Yes. We also, in the last quarter, mentioned the new platform that we're developing. So, at the moment, we have Keap and Marketing Center. We have a method that we're able to deliver the value of both. It's sort of -- I hesitate to say bundle, but it's sort of almost like a bundle where we're using them together. And that's sort of that Market, Sell, Grow footprint of things that we're doing. But the new platform just puts it all together. It's not a bundle, it's not separate. Everything is together and unified. And it's all AI from -- written from the ground up. We basically have rewritten the whole thing. It's been a lot of work to do, but it's incredible. And it's in the hands of some customers right now, and we're dialing, dialing in everything. So -- but Market, Sell, Grow really is -- it's our -- markets are super fast-growing main thrust, which is Marketing Center, which is about efficient growth for local kind of bigger small businesses. And then with Keap, you have what are essentially automations or agentic assistants that help them through the process of responding to leads, if they're busy and they don't follow up right away, it continues to nurture them. And then after a sale is made, it continues to keep that customer warm and stay in touch and create a connection so that the next time they have a need, you get them back. And these are the kinds of things that really genuinely help the small business. These are the tools that they're looking for and that's what Market, Sell, Grow is all about. Operator: Your next question comes from the line of Matt Swanson with RBC. Matthew Swanson: Yes. fantastic. Maybe following up on the question that was just asked, Marketing Center being up 30% is awesome and it clearly shows the success you guys are having with this new go-to-market. Last quarter, I think, Joe, you had mentioned there was some potential for cannibalization just kind of as you shift the focus. Can you just give kind of an update on that, I guess? And just how that 30% growth in Marketing Center will kind of increasingly be reflected in your overall growth rates as maybe some of these other headwinds get offset? Joe Walsh: Yes. I mean I think over time, that is the company is, we're replacing the current Marketing Center platform with a new one very soon. And the new one has Keap fully integrated and is written from the ground up with Agentic tools everywhere and an NCP layer on it. So, I mean, it's very, very cool. But yes, our sales organization and our customer base see the power and results of Marketing Center, and that's the center of gravity for the company. Everything is moving in that direction. And so, the sales reps are not as much running around out there trying to sell stand-alone Keap or stand-alone business center. Everything is driving towards this Market, Sell, Grow platform. Everything is driving toward Marketing Center, particularly the new one. So, your read on it is right. And everything is driving up market. So, if you think about our business, if I were to look at it from the outside, I would look at the quality customer progress and the way that's moving up, and I would look at Marketing Center as really the company and look at those, and I'd put my projections in my ruler on the progress there. We're not going to be building Keap out in the future as a separate thing. We're bringing the powerful unbelievably good functionality it has inside of the main try offering. And similarly, we really are not adding a lot of new business centers. The sales rep when presented with the choice of selling a business center or Marketing Center, all the rapid development, a lot of the heat and light are on Marketing Center. So, that's really what they're selling. So, I think you got to -- I'm reading in the way you asked the question that you haven't figured out. Matthew Swanson: All right. That's good to hear. Another -- the quality SaaS client bar chart in the deck, I think it's also telling a pretty compelling story. Could you just give us some context from like a product standpoint of what that $400 threshold looks like, if that makes sense? Just kind of like what is the customer spending $400? What does that mean from a product standpoint? Joe Walsh: Yes. We've got a bunch of extensions or add-ons that are beginning to sell really well. You will know we control a pretty big part of the kind of marketing universe and there's a -- for small businesses, there's a battle for them out there. When they look at getting customers, there are 2 giant trolls standing between them and their customer, Google and Facebook. And those leads are super expensive. I mean they're very, very efficient at monetizing those leads. And so, when you talk with particularly service type businesses, they're like, is there some way I can get leads around Google or around Facebook, like not have to go to them. And so, think about all the directories we control around the world in Australia and New Zealand and the U.S., we control these big directory sites. And then we've built a network of other directory type sites, whether it's Nextdoor and Yelp and Citi Search and all these other site and we have that all network together. So, we have a pretty significant amount of non-Google traffic that we are able to source. And we've packaged these really cool kind of growth packages together that we're able to sell to customers. And in an age of AI answer engines, they're having renewed buoyancy because the AI answer engine doesn't look it up in Google and then give it to you. It goes out and searches the stuff itself directly. And so when you look at a yp.com fence contractor in Tupelo, Mississippi, that's been on our site for 17 years, they look at that as solid authoritative content that answers the query that you put in, and it delivers that answer. And so, it's pretty cool. So, anyway, back to your question, we've got add-ons where we're drawing from who we've been in the past and pulling all that together. And that's working great because not only are we helping you measure your marketing, but we're helping you do some of it, too. Operator: Your next question comes from the line of Jason Kreyer with Craig-Hallum Capital Group. Jason Kreyer: Joe, can you just maybe step back and talk about the sales motion and the difference between the upmarket clients and those at the low end? And then how do you position the sales team to be in the right place to capitalize on the upsell opportunity? Joe Walsh: Yes. Great question. So, look, we -- job one for us is to wind down the old Directory business. So, every morning we get up, that's the first thing we got to do because we've got this big business, and it's got some legacy technology and legacy processes and systems, and we're winding that business down. And in so doing, we're variabilizing and collapsing that legacy cost structure down. And we're good at this. We're doing it every day. But to do it, a lot of times, we've got customers that are sitting out there on legacy platforms or legacy tools that we need to move off of those in order to shut them down and turn them off. And the upgrade over to our modern stack is phenomenal for them. But there's communication involved. There's a lot we have to do. So, that eats up some of our time. And it does bring over some subscale customers. There are some customers over there that are just solopreneurs or very small businesses that may not be our perfect ICP. That's why you see noise in the gross client number because we brought over some unnatural SaaS customers. And some of them we were able to talk to them and get them moving and they buy more stuff and they say, "Hey, this stuff is really cool, and they become a good source. Others are like, no, it really is not for me. I was just trying to buy listings in a phone book or something. So, that takes some of our time. When we go outside and start prospecting, we, both through our marketing and through our excellent sales force, we're deploying them against a targeted list of our ideal clients. And so, to think about it this way, the HVAC company that has 4 or 5 trucks on the road would be our target versus the guy who works -- his wife runs the office and he does it and his brother-in-law helps him in the summer. That had -- the total company has got like $400,000 of revenue. That's not our target. We're not really going and looking for that guy. We're putting our sales energy against selling the bigger ones that maybe have $1 million of revenue, or $1.2 million or $1.3 million of revenue because they tend to be much stickier and they tend to have a willingness to pay and an ability to buy more stuff over time. And I would say, Jason, if I'm really honest, in this journey. If you could go back and maybe change things or whatever, when we first started our software business, we pretty much would sell anybody who would talk to us. And that gave us a lot of experience because when we studied our customer base, we found that the very, very smallest ones were churnier and the bigger ones were steadier. And that's just a better way to build our business. And now we've spent a lot of time developing Marketing Center for those larger guys, for those bigger businesses. And we brought in Sean Wechter from Boomi, and we've become really good at integrating with other software tools. And so, if you're on ServiceTitan or you're on, I don't know, some other big CRM tool and you need your marketing cared for, we are interconnecting and working well with those tools. So, that was maybe more than you wanted, but gives you some sense of where we're spending our time and how we're focusing. Jason Kreyer: Yes. No, that's good. I do have a follow-up. Maybe this is for Paul, but just trying to get a sense of the trajectory on both the customer count and the dollar retention figures. Just if you have any insights into, are we stabilizing now when those things can start to peak up in the next few quarters? Joe Walsh: I'll tell you what, I'm going to share this answer with Cameron. Cameron is my data expert. So, I'm going to get him involved here. Look, we sort of guided you guys directionally that we would probably be about flattish to maybe down slightly for the year as some of the conversions that we made over the last year or so stick and some didn't. And now the sales that we're making, each sale that we're replacing them with are much larger. So, in some cases, 2 leave and then 1 new coming in is as big as the 2 that left. So, there's a little bit of just qualitation going on, if you will. But let me let Cameron assist with the answer a little bit. Cam? Cameron Lessard: That's right, Joe. So, Jason, what you're seeing in the overall customer count is that effect. You're adding larger customers and losing the subscale customers. So, I think we expect that to stay flat starting from the beginning of the year to the end of the year. On the seasoned NRR metric, that will probably stay around the same range as well. You are losing some subscale customers, and that will weigh on that. But I think if you step back and look at what we've done over the past 12 months, our overall churn has trended in the right direction on the overall customer base, and that will be reflected in the season base overtime. And our quality customers, roughly 70% of the revenue, they have excellent retention as of right now. So, that will start to trend NRR in the right direction as you move out. And so, we want to make sure that we keep those quality customers having the best client experience and making sure that retention stays strong. So overall, I think you won't see a lot of big changes in those metrics throughout the year. So, I would just forecast relative flatness. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Thryv, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Thryv wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $496,797!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,282,815!* Now, it’s worth noting Stock Advisor’s total average return is 979% — a market-crushing outperformance compared to 200% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of April 30, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Thryv. The Motley Fool has a disclosure policy. Thryv (THRY) Q1 2026 Earnings Transcript was originally published by The Motley Fool

SaaS now 70% of revenue: Q1 SaaS revenue was $116.7M (+5% YoY), ARPU rose 13% to $378 with 96,000 subscribers, and multi‑product adoption plus Marketing Center growth (~30% YoY) are driving an up‑market shift toward higher‑value customers. Intentional near‑term margin trade‑off: Management is migrating low‑margin marketing services clients into SaaS (no price increase), which compressed SaaS adjusted EBITDA to $10.8M (9% margin) but is viewed as a strategic investment to improve long‑term profitability and retention. Guidance and balance sheet: Thryv raised the low end of full‑year SaaS revenue to $463–$471M and increased marketing services revenue outlook while keeping SaaS adj. EBITDA guidance intact; net debt was $258M (1.7x leverage) and the company plans to exit marketing services by 2028. Interested in Thryv Holdings, Inc.? Here are five stocks we like better. Thryv (NASDAQ:THRY) reported first-quarter 2026 results that management characterized as a “strong quarter,” led by SaaS revenue that came in ahead of expectations and marketing services that also outperformed guidance. Chairman and CEO Joe Walsh said the company is now “a 70% SaaS revenue company,” highlighting continued mix shift toward higher-value customers and product adoption across its Market, Sell, and Grow strategy. Walsh said SaaS revenue totaled $117 million in the quarter, while marketing services also exceeded expectations, helping total company adjusted EBITDA beat guidance. CFO Paul Rouse reported SaaS revenue of $116.7 million, up 5% year over year, with a 67% SaaS adjusted gross margin. → Corning Beats Q1 Estimates but Drops 9% on Guidance Miss SaaS adjusted EBITDA was $10.8 million, producing a 9% margin. Rouse noted the quarter’s SaaS profitability was pressured by a strategic move to upgrade “low-margin large digital agency customers” from the marketing services base to SaaS “with no change in pricing.” He said Thryv previously lacked an upgrade path for these customers under Business Center, but Market, Sell, and Grow provides a new motion, with Keap marketing automations viewed as a significant upsell opportunity over time. Rouse said gross margin compression from this initiative was “the primary factor of Adjusted EBITDA coming in below guidance for the quarter,” describing it as a deliberate near-term investment. In marketing services, revenue was $50.9 million, above guidance, with adjusted EBITDA of $13.2 million and a 26% margin. Rouse said results reflected the cadence of the print publication schedule, which is weighted to the second half of the year for revenue recognition, adding that the timing dynamic does not impact billings or free cash flow. → Is Oracle Undervalued as Cloud Growth Accelerates? Walsh emphasized a continued shift toward higher-value customers, stating that “quality customers now represent 70% of revenue,” and that annualized client spend has eclipsed $4,500. He also said quality customer count grew 6% year over year and now represents 70% of SaaS revenue, up from 62% a year ago. Rouse reported SaaS ARPU reached $378 per month, up 13% year over year, and Thryv ended the quarter with 96,000 SaaS subscribers. Seasoned net revenue retention (NRR) was 93%, which Rouse attributed to “the natural attrition of smaller, lower-spend clients.” He added that churn among high-value clients has been “trending favorably,” which he said supports management’s confidence in the long-term health of the business. → The $880M Bet to Survive Real Estate's Reset Multi-product adoption also increased. Rouse said customers with two or more SaaS products rose to 26,000, or 30% of the base, compared with 24,000, or 25%, a year earlier. Walsh repeatedly pointed to Marketing Center as a core growth driver, saying it grew “around 30% year-over-year in Q1” and describing it as the “centerpiece” of Thryv’s Market, Sell, and Grow strategy. He said the product is resonating with small businesses seeking to be found online, generate leads, and convert those leads into relationships. On the call, Walsh also discussed Thryv’s “up-market motion,” which he said is attracting larger small businesses with more complex needs and greater spending capacity. In response to a question from Needham analyst Scott Berg, Walsh said the company is targeting larger businesses through sales automation and a defined prospect list, contrasting a “solopreneur” with a business doing $300,000 to $400,000 in annual revenue versus a “mid-sized business that has $1 million of revenue and 12 employees.” Walsh said the shift supports better retention and more expansion over time. Walsh added that the company’s overall customer metrics can be “noisy” as it transitions customers from legacy marketing services systems into SaaS, bringing over some smaller customers who may not fit its ideal customer profile. Some of these customers adopt more software products, he said, while others churn because they were accustomed to legacy offerings like listings products. In a separate exchange with RBC’s Matthew Swanson, Walsh said Marketing Center is becoming the “center of gravity for the company,” with the sales organization increasingly focused on it rather than selling standalone Keap or Business Center. Walsh said Thryv is working to replace the current Marketing Center platform “very soon” with a new version that has Keap “fully integrated,” is written “from the ground up,” and includes “agentic tools everywhere.” Walsh also described add-ons and “growth packages” that leverage Thryv’s directory network and non-Google traffic sources, including properties the company controls and partnerships with other directory-type sites. He framed this as a way to help customers measure marketing while also helping execute it. Walsh said early engagement with Thryv’s AI capabilities has been “genuinely encouraging,” noting strong adoption of AI image generation, AI lead scoring, and an AI-guided dashboard. He also mentioned AI review responses, an AI website builder, and AI caption tools, emphasizing they are live and in use by customers. Asked by Berg about monetization, Walsh said Thryv’s near-term focus is embedding AI to enhance the core experience—improving retention and supporting pricing over time rather than charging discretely for AI features. “I do think that there will be significant monetization opportunities down the road,” Walsh said, “but we are not going for that at the moment.” In response to William Blair’s Linda Leon, Walsh described lead-scoring capabilities that can provide transcripts and grade leads, with the system expected to improve over time using customer-specific data. He said users are seeing stronger lead conversion and fewer leads “falling through the cracks,” and reiterated a goal of making the software deliver value in the background without requiring constant customer logins. Management issued the following outlook: Second-quarter SaaS revenue: $114 million to $115 million Full-year SaaS revenue: $463 million to $471 million (low end raised) Second-quarter SaaS adjusted EBITDA: $12 million to $13 million Full-year SaaS adjusted EBITDA: $70 million to $75 million (maintained) Full-year marketing services revenue: $157 million to $163 million (raised) Full-year marketing services adjusted EBITDA: $30 million to $35 million (maintained) Management noted that the second quarter has a lighter print publication schedule, which can create timing variation in marketing services EBITDA due to revenue recognition cadence, though it does not impact billings or free cash flow. Rouse also said first-quarter marketing services billings were $54.5 million, down 33% year over year, reflecting an intentional strategy to upgrade legacy digital marketing services clients to SaaS. He said the company remains on track to exit marketing services by 2028, with cash flows lasting through 2030. Thryv ended the quarter with net debt of $258 million and a leverage ratio of 1.7x, Rouse said. In the Q&A, management signaled expectations for relative stability in certain operating metrics as the customer mix continues to shift. Responding to Craig-Hallum’s Jason Kreyer, Walsh and SVP Cameron Lessard said overall customer count is expected to remain roughly flat from the beginning to the end of the year as Thryv adds larger customers while losing “sub-scale” customers. Lessard also said seasoned NRR is likely to stay in a similar range near term, with improved retention among quality customers expected to benefit NRR over time. Looking ahead, management framed the company as nearing an inflection point in its transformation. “As we look toward 2027, we expect to return to overall top-line growth,” Lessard said, pointing to SaaS now representing 70% of revenue and continued momentum in the Market, Sell, and Grow strategy. Thryv Holdings, Inc (NASDAQ:THRY) is a software and technology solutions provider focused on helping small- and medium-sized businesses manage customer relationships, marketing and communications, appointments and payments through a unified platform. Headquartered in Dallas, Texas, the company delivers cloud-based software designed to simplify administrative tasks and enable business owners to engage with customers across multiple channels. At the core of Thryv's offerings is its flagship Thryv software platform, which combines customer relationship management (CRM) tools, automated marketing and social media management, online scheduling, invoicing and payment processing. The article "Thryv Q1 Earnings Call Highlights" was originally published by MarketBeat.

Thryv Holdings, Inc. (THRY) came out with quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to a loss of $0.22 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +5.88%. A quarter ago, it was expected that this company would post earnings of $0.4 per share when it actually produced a loss of $0.12, delivering a surprise of -130%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Thryv, which belongs to the Zacks Internet - Software industry, posted revenues of $167.68 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 3.96%. This compares to year-ago revenues of $181.37 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Thryv shares have lost about 39.5% since the beginning of the year versus the S&P 500's gain of 4.2%. While Thryv has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Thryv was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.09 on $145.05 million in revenues for the coming quarter and $0.85 on $616.45 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Bentley Systems, Incorporated (BSY), another stock in the same industry, has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7. This company is expected to post quarterly earnings of $0.38 per share in its upcoming report, which represents a year-over-year change of +8.6%. The consensus EPS estimate for the quarter has been revised 2.1% higher over the last 30 days to the current level. Bentley Systems, Incorporated's revenues are expected to be $414.29 million, up 11.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thryv Holdings, Inc. (THRY) : Free Stock Analysis Report Bentley Systems, Incorporated (BSY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q1 SaaS Revenue Grows to 70% of Total Revenue Q1 Marketing Center Revenue Growth of 29% Year-Over-Year Q1 SaaS Monthly ARPU Increases 13% Year-Over-Year to $378 AI Delivering for Clients — Rapid Adoption Across New Platform Features DALLAS, April 30, 2026--(BUSINESS WIRE)--Thryv Holdings, Inc. (NASDAQ:THRY) ("Thryv" or the "Company"), the provider of Thryv®, the leading small business marketing and sales software platform, reported results for the first quarter of 2026. First Quarter Financial 2026 Highlights: SaaS revenue was $116.7 million, a 5.0% increase year-over-year Marketing Services revenue was $50.9 million, a 27.5% decrease year-over-year Consolidated total revenue was $167.7 million, a decrease of 7.5% year-over-year Consolidated net income increased to $4.5 million, or $0.10 per diluted share; compared to net loss of $9.6 million, or $(0.22) per diluted share, for the first quarter of 2025 Consolidated Adjusted EBITDA was $24.1 million, representing an Adjusted EBITDA margin of 14.4% SaaS Adjusted EBITDA was $10.8 million, representing an Adjusted EBITDA margin of 9.3% Marketing Services Adjusted EBITDA was $13.2 million, representing an Adjusted EBITDA margin of 26.0% Consolidated Gross Profit was $109.3 million Consolidated Adjusted Gross Profit1 was $112.9 million SaaS Gross Profit was $75.6 million, representing a Gross Margin of 64.8% SaaS Adjusted Gross Profit1 was $78.2 million, representing an Adjusted Gross Margin of 67.0% Recent Business Highlights and Metrics Quality customers2 (defined as those contributing more than $400 in monthly recurring revenue) accounted for 70% of SaaS revenue2 in the first quarter of 2026 SaaS clients were 96 thousand at the end of the first quarter of 2026 Seasoned Net Revenue Retention3 was 93% for the first quarter of 2026 SaaS monthly Average Revenue per Unit ("ARPU")4 was $378 for the first quarter of 2026, an increase of 12.8% year-over-year Marketing Center revenue increased 29% year-over-year in the first quarter of 2026 "We delivered a strong start to 2026, with SaaS revenue exceeding our guidance and now representing 70% of total revenue," said Joe Walsh, Thryv Chairman and CEO. "Our upmarket motion is clearly working, as ARPU grew 13% year-over-year and Quality Customers now represent 70% of our SaaS revenue. We are expanding beyond our legacy client base, and are attracting larger small businesses with Marketing Center, engaging them at a higher level, and encouraging them to spend more - driving ARPU upward." Outlook Based on information available as of April 30, 2026, Thryv is issuing guidance5 for the second quarter of 2026 and full year 2026 as indicated below: Earnings Conference Call Information Thryv will host a conference call on Thursday, April 30, 2026 at 8:30 a.m. (Eastern Time) to discuss the Company's first quarter 2026 results. To listen to this conference call, please use this link. After registering, a confirmation email will be sent, including access details. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. A live webcast will also be available on the Investor Relations section of the Company's website at investor.thryv.com. Segment Information The following tables summarize the operating results of the Company's reportable segments: Non-GAAP Measures Our results included in this press release include Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Gross Profit, which are not presented in accordance with U.S. generally accepted accounting principles ("GAAP"). We have included Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit because management believes they provide useful information to investors in gaining an overall understanding of our current financial performance and provide consistency and comparability with past financial performance. Specifically, we believe Adjusted EBITDA provides useful information to management and investors by excluding certain non-operating items that we believe are not indicative of our core operating results. In addition, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Gross Profit are used by management for budgeting and forecasting as well as measuring the Company’s performance. We believe Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Gross Profit provide investors with the financial measures that closely align with our internal processes. We define Adjusted EBITDA ("Adjusted EBITDA") as Net income (loss) plus Interest expense, Income tax expense (benefit), Depreciation and amortization expense, Restructuring and integration expenses, Stock-based compensation expense, and non-operating expenses, such as Net periodic pension cost and certain unusual and non-recurring charges that might have been incurred. Adjusted EBITDA should not be considered as an alternative to Net income (loss) as a performance measure. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We define Adjusted Gross Profit ("Adjusted Gross Profit") as Gross profit adjusted to exclude the impact of Depreciation and amortization expense and Stock-based compensation expense. Non-GAAP financial information has limitations as an analytical tool and is presented for supplemental informational purposes only. Such information should not be considered a substitute for financial information presented in accordance with U.S. GAAP and may be different from similarly-titled non-GAAP measures used by other companies. The following is a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, Net income (loss): The following tables set forth reconciliations of Adjusted Gross Profit and Adjusted Gross Margin, to their most directly comparable GAAP measures, Gross Profit and Gross Margin: The following table sets forth a reconciliation of Free Cash Flow to its most directly comparable GAAP measure, Net cash provided by (used in) operating activities: Supplemental Financial Information The following supplemental financial information provides Revenue, Net Income (Loss), Net Income (Loss) Margin, Adjusted EBITDA and Adjusted EBITDA Margin by our (i) SaaS business and (ii) Marketing Services business. Total SaaS Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are also non-GAAP financial measures. These non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We believe that these non-GAAP financial measures provide useful information about our global SaaS and Marketing Services financial performance, enhance the overall understanding of our global SaaS and Marketing Services past financial performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods. Forward-Looking Statements Certain statements contained herein are not historical facts, constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Statements that include the words "may", "will", "could", "should", "would", "believe", "anticipate", "forecast", "estimate", "expect", "preliminary", "intend", "plan", "target", "project", "outlook", "future", "forward", "guidance" and similar statements of a future or forward-looking nature identify forward-looking statements. These statements are not guarantees of future performance. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: significant competition for our Marketing Services solutions and SaaS offerings, which include companies that use components of our SaaS offerings provided by third parties; our ability to maintain profitability; our ability to manage our growth effectively; our ability to transition our Marketing Services clients to our Thryv platform, maintain transitioned clients on that platform and sell them additional or upgraded products, sell our platform into new markets or further penetrate existing markets; our ability to maintain our strategic relationships with third-party service providers; internet search engines and portals potentially terminating or materially altering their agreements with us; our ability to keep pace with rapid technological changes and evolving industry standards; our SMBs clients potentially opting not to renew their agreements with us or renewing at lower spend; potential system interruptions or failures, including cybersecurity breaches, identity theft, data loss, unauthorized access to data or other disruptions that could compromise our information; our potential failure to identify suitable acquisition candidates and consummate such acquisitions; our ability to complete acquisitions and the successful integration of such acquisitions, and any failure of an acquired business to achieve its plans and objectives or realize any expected benefit from any such acquisition; the potential loss of one or more key employees or our inability to attract and to retain highly skilled employees; our ability to maintain the compatibility of our Thryv platform with third-party applications; our ability to successfully expand our operations and current offerings into new markets, including internationally, or further penetrate existing markets; our potential failure to provide new or enhanced functionality and features; our 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; our potential failure to meet service level commitments under our client contracts; our potential failure to offer high-quality or technical support services; our Thryv platform and add-ons potentially failing to perform properly; our use of artificial intelligence in our business, and challenges with properly managing its use, could result in reputational harm, competitive harm, and legal liability; the potential impact of future labor negotiations; our ability to protect our intellectual property rights, proprietary technology, information, processes, and know-how; rising inflation and our 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 or regulations 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; and costs, obligations and liabilities incurred as a result of and in connection with being a public company as well as the risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K filed with the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. For these reasons, we caution you against relying on forward-looking statements. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Thryv Thryv (NASDAQ: THRY) is an AI-enabled global marketing platform that helps small businesses (SMBs) get found online faster, win more customers, and drive repeat business. Thryv software offers SMBs AI-driven lead insights, automated customer follow‑up and payment processing, an AI-enabled CRM and a suite of additional solutions. Thryv is making growth‑focused AI tools accessible to the plumber, salon owner, contractor, lawyer, accountant and more. Over 200K+ businesses globally use Thryv to market, sell, and grow. For more information, visit www.thryv.com. _____________________________ 1 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense. 2 Excludes customers and revenue attributed to the Keap acquisition. 3 Seasoned NRR is calculated by dividing the revenue of all clients that have had one or more SaaS offerings for at least two years as of the last month of the year or quarter, as applicable, by the same clients' revenue one year ago. For each reporting quarter, the weighted-average monthly NRR from all the months in the quarter are reported. Seasoned NRR excludes clients acquired in the Keap acquisition. 4 Defined as total client billings for a particular month divided by the number of clients that have one or more revenue-generating solutions in that same month. This is a weighted-average calculation and inclusive of the impact from the Keap acquisition. 5 These statements are forward-looking and actual results may materially differ. Refer to the "Forward-Looking Statements" section below for information on the factors that could cause our actual results to materially differ from these forward-looking statements. 6 SaaS Adjusted EBITDA and Marketing Services Adjusted EBITDA are forward-looking non-GAAP financial measurers. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable effort. 7 Consolidated Adjusted EBITDA is equal to SaaS Adjusted EBITDA and Marketing Services Adjusted EBITDA. See Non-GAAP Measures below for a reconciliation of Consolidated Adjusted EBITDA to Net income (loss). View source version on businesswire.com: https://www.businesswire.com/news/home/20260430262573/en/ Contacts Media Contract: Julie Murphy Thryv, Inc. 617.967.5426 [email protected] Investor Contact: Cameron Lessard Thryv, Inc. [email protected]