What Thryv (THRY) Said on Its Q3 Earnings Call

Key Points

• Thryv’s new Growth Platform is gaining traction: The company had sold about 1,500 platforms since launch, with sales running at 190% of plan. Growth-product revenue rose 16% year over year, while SaaS subscribers reached 98,000.
• The planned $142 million sale of the print directories business is expected to close in Q4, with net proceeds intended to reduce debt and other liabilities. Thryv also recorded a $94.8 million noncash goodwill impairment charge and ended the quarter with $236 million in net debt.
• Thryv lowered its full-year 2026 SaaS outlook to $453 million–$454 million in revenue and $16.5 million–$17.5 million in adjusted EBITDA. Its Q4 forecast calls for a SaaS adjusted EBITDA loss, reflecting restructuring, shared costs and changes in how product and engineering work is accounted for.

Thryv NASDAQ: THRY reported third-quarter software revenue of $112 million and said sales of its new Growth Platform were running ahead of plan, even as a planned sale of its print directories business and restructuring costs cloud its fourth-quarter outlook.

Chairman and CEO Joe Walsh said the company had sold approximately 1,500 Growth Platforms since the product launched in August. Sales were running at about 190% of the company’s plan, he said.

Thryv is narrowing its focus to marketing products that help local service businesses attract customers. Walsh said the shift away from other offerings, including customer relationship management products, would create a near-term revenue headwind.

Growth Products Expand as Subscriber Revenue Rises

Walsh said revenue from Thryv’s growth products increased 16% year over year in the third quarter. Cameron Lessard, senior vice president of corporate development and strategy, said those products represented more than 60% of total software-as-a-service revenue. That figure includes the older Marketing Center product as well as the new Growth Platform, Walsh said.

In a company study conducted in 2026, Thryv customers saw a 54% increase in online visibility, 54% more reviews and 40% more leads, Walsh said.

Thryv ended the quarter with 98,000 SaaS subscribers. Average revenue per user was $373, up 2% from a year earlier, while seasoned net revenue retention was 89%. CFO Paul Rouse attributed the retention figure to attrition among smaller, lower-spending clients. Quality clients accounted for 72% of revenue, up 3 percentage points year over year, he said.

Walsh said Thryv is also relying more on partnerships, including an arrangement under which Wix will handle its payments business. The company appointed Robin Brenner to lead its partnership efforts.

Print Sale Reshapes Reporting and Costs

Thryv expects to close the sale of its print directories business to Carolwood L.P. for $142 million in the fourth quarter. Walsh said the agreement has no earn-out or retained stake, although Thryv will provide transitional support. The company will retain search properties including yp.com, DexKnows and Superpages.

Walsh said Thryv had collected approximately $150 million in unlevered free cash flow from print through September, against a December 2024 forecast of $250 million to $300 million for 2025 through 2030. The sale price would bring the combined amount to roughly $292 million, he said. Net sale proceeds after transaction costs and closing adjustments are intended to improve the balance sheet and repay debt and other liabilities.

The print business is now presented as discontinued operations. On a continuing-operations basis, third-quarter SaaS adjusted EBITDA was $9.5 million, with an adjusted gross margin of 69.3%. Rouse said SaaS absorbed an additional $5.7 million in shared sales, marketing and administrative costs during the quarter as a result of the reporting change.

Rouse said that, on a comparable continuing-operations basis, third-quarter SaaS adjusted EBITDA exceeded the equivalent guidance range by more than $5 million. The company also recorded a $94.8 million noncash goodwill impairment charge, generated $4.7 million in free cash flow and ended the quarter with $236 million in net debt.

Fourth-Quarter Outlook Reflects Restructuring

Thryv forecast fourth-quarter SaaS revenue of $110 million to $111 million and a SaaS adjusted EBITDA loss of $4.5 million to $5.5 million. For comparison, continuing-operations SaaS revenue was $118.9 million and adjusted EBITDA was $6.6 million in the fourth quarter of 2025.

For full-year 2026, the company revised its SaaS outlook to revenue of $453 million to $454 million and adjusted EBITDA of $16.5 million to $17.5 million. The comparable 2025 figures were $461 million and $23.3 million, respectively.

Lessard said the outlook reflects shared costs Thryv is working to remove and a change in how some product and engineering work is accounted for as the company cuts staff. Work that previously qualified as capitalized software is expected to shift toward maintenance and wind-down and be expensed in the quarter, he said.

Marketing Services generated $6.9 million in third-quarter revenue and an adjusted EBITDA loss of $5.3 million. Thryv expects fourth-quarter revenue from the segment of $2 million to $3 million and an adjusted EBITDA loss of $11 million to $12 million. The company plans for remaining digital customers to move to its software platform or leave, and expects Marketing Services to cease being a reporting segment in the second half of 2027.

About Thryv (NASDAQ:THRY)

Thryv Holdings, Inc NASDAQ: THRY provides software and digital marketing services for small and medium-sized businesses. Its Thryv platform is designed to help businesses manage customer relationships, appointments, communications, estimates, invoices, payments and online reviews through a centralized business-management system.

The company also offers tools for digital marketing and customer acquisition, including website and social media management, online presence services, lead generation, automated communications and reputation management.

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