Thryv Holdings, Inc. — Third Quarter 2026 Earnings Summary

Financial Performance:

• Consolidated total revenue was $118.9 million, a 13.5% decrease year-over-year from $137.4 million in Q3 2025.
• SaaS revenue was $112.0 million, a 3.3% decrease year-over-year; revenue from growth products (excluding CRM) grew 16% year-over-year.
• Marketing Services revenue was $6.9 million, a 67.9% decrease year-over-year.
• Consolidated net loss was $116.0 million ($2.61 per diluted share), compared to a net loss of $24.9 million ($0.57 per diluted share) in Q3 2025; the current period includes a non-cash goodwill impairment charge of $94.8 million.
• Consolidated Adjusted EBITDA was $4.2 million (3.5% margin), compared to a loss of $4.6 million (-3.3% margin) in Q3 2025.
• SaaS Adjusted EBITDA was $9.5 million (8.5% margin), an increase from $5.6 million (4.8% margin) in Q3 2025.
• Marketing Services Adjusted EBITDA was a loss of $5.3 million (-76.3% margin), improving from a loss of $10.1 million (-47.1% margin) in Q3 2025.
• Consolidated Gross Profit was $73.7 million; SaaS Gross Margin was 65.4%.
• Consolidated Adjusted Gross Profit was $78.4 million; SaaS Adjusted Gross Margin was 69.3%.
• Net cash used in operating activities from continuing operations was $37.9 million for the nine months ended September 30, 2026.
• Free Cash Flow was $15.97 million for the nine months ended September 30, 2026.

Guidance and Future Outlook:

• Q4 2026 SaaS Revenue guidance is $110.0 million to $111.0 million.
• Q4 2026 SaaS Adjusted EBITDA guidance is a loss of $4.5 million to $5.5 million.
• Full Year 2026 SaaS Revenue guidance is $453.0 million to $454.0 million.
• Full Year 2026 SaaS Adjusted EBITDA guidance is $16.5 million to $17.5 million.
• Q4 2026 Marketing Services Revenue guidance is $2.0 million to $3.0 million.
• Q4 2026 Marketing Services Adjusted EBITDA guidance is a loss of $11.0 million to $12.0 million.
• Full Year 2026 Marketing Services Revenue guidance is $35.0 million to $36.0 million.
• Full Year 2026 Marketing Services Adjusted EBITDA guidance is a loss of $21.0 million to $22.0 million.
• Management stated the company is focused on execution, optimizing cost structure, reducing outstanding debt, and strengthening the balance sheet.

Business Segments and Product Lines:

• Thryv successfully launched its AI-powered Thryv Growth Platform.
• Growth products, including the Thryv Growth Platform and additional marketing value-added services, drove revenue growth, offsetting headwinds in legacy CRM products.
• Quality customers (contributing more than $400 in monthly recurring revenue) accounted for 72% of SaaS revenue in Q3 2026.
• SaaS clients totaled 98,000 at the end of Q3 2026.
• Seasoned Net Revenue Retention was 89% for Q3 2026.
• SaaS monthly Average Revenue per Unit (ARPU) was $373, an increase of 2.2% year-over-year.
• The company is transitioning to a pure-play SaaS business model, with the Print Business classified as discontinued operations.

Market and Competitive Landscape:

• The company operates as a provider of an AI-powered growth platform for local service businesses.
• The Print Business (Yellow Pages and White Pages directories in the US, Australia, and New Zealand) is being divested to focus on the SaaS model.
• The company faces competition from companies using components of its SaaS offerings provided by third parties.

Risks and Challenges:

• Significant competition for Marketing Services solutions and SaaS offerings.
• Risk that the Print Transaction may not be completed on anticipated terms or timeline, or at all.
• Risks related to maintaining profitability, managing growth, and successfully executing restructuring initiatives.
• Potential system interruptions, cybersecurity breaches, and data loss.
• Risks associated with the use of artificial intelligence, including reputational harm and legal liability.
• High level of indebtedness and ability to service debt and comply with covenants.
• Potential loss of key employees or inability to attract and retain skilled employees.
• Regulatory investigations, including a subpoena from the SEC Division of Enforcement.

Management Commentary and Tone:

• Joe Walsh, CEO, stated the company delivered a "solid third quarter, driven by strong momentum and customer adoption of our new AI-powered Thryv Growth Platform."
• Management emphasized the strategic shift to operate as a pure-play SaaS company following the sale of the print directories business.
• The tone indicates a focus on cost optimization, debt reduction, and balance sheet strengthening.

Other Key Points:

• On September 12, 2026, Thryv entered into an Asset Purchase Agreement to sell its Print Business assets to Coldwater YP, LLC (an affiliate of Carolwood, L.P.) for a cash purchase price of $142.0 million, subject to adjustments.
• The Print Transaction is expected to close in the fourth quarter of 2026.
• The Print Business is presented as discontinued operations, and comparable prior periods have been recast.
• A $94.8 million non-cash goodwill impairment charge was recorded in Q3 2026.
• The company has 44,447,599 shares outstanding as of September 30, 2026.
• Cash and cash equivalents were $8.75 million as of September 30, 2026.
• Total debt includes Term Loans (net) of $111.1 million and related party Term Loans (net) of $75.5 million.
• The company incurred $17.8 million in restructuring and integration expenses for the nine months ended September 30, 2026.