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Thryv Holdings, Inc. (THRY)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 delivered 33% YoY SaaS revenue growth to $115.9M and consolidated revenue of $201.6M (+12% YoY), with SaaS ARPU up 19% YoY to $365 and SaaS Adjusted EBITDA margin at 16.9% .
  • Versus S&P Global consensus, Thryv posted a small revenue beat ($201.6M vs $200.8M*) and a solid Primary EPS beat ($0.317* vs $0.254*), while EBITDA (S&P definition) missed ($29.0M* vs $41.5M*). Company Adjusted EBITDA of $40.8M exceeded internal expectations, highlighting definitional differences between S&P EBITDA and company Adjusted EBITDA .
  • FY25 guidance updated: SaaS Adjusted EBITDA raised to $73–$75M (from $70.5–$73.5M), SaaS revenue tightened to $460–$463M (from $460–$465M), and Marketing Services Adj. EBITDA lowered to $76–$78M (from $78.5–$80.5M). Q4 SaaS guidance introduced at $118–$121M revenue and $19.2–$21.2M Adj. EBITDA .
  • Strategic catalysts: verticalized go-to-market (HVAC first), accelerating AI features across Marketing Center and broader platform, and ongoing deleveraging (net debt to ~1.9x) positioning optionality (e.g., buyback authorization) per management commentary .

What Went Well and What Went Wrong

  • What Went Well

    • SaaS growth and profitability: SaaS revenue +33% YoY to $115.9M, SaaS Adj. EBITDA $19.6M (16.9% margin) exceeded guidance; consolidated Adj. EBITDA more than doubled YoY to $40.8M (20.3% margin) .
    • ARPU expansion and multi‑product adoption: ARPU reached $365 (+19% YoY); 103k SaaS clients (+7% YoY) with momentum in customers adopting multiple products; management focused on upsell to higher-value cohorts .
    • AI and verticalization traction: CEO highlighted broad AI deployment (social captioning, review response, AI website builder, call analysis) and early HVAC vertical success driving larger deals and better retention mix .

  • What Went Wrong

    • Seasoned NRR softness: Seasoned NRR fell to 94% as legacy Marketing Services migrations rolled into the metric and introduced lower-spend cohorts; management flagged temporary “noise” during transformation .
    • Sequential pressure in Marketing Services: Revenue declined to $85.7M from $95.5M in Q2 as print schedule normalized; billings -33% YoY as legacy run-off continues by design .
    • Execution slippage: Management acknowledged “execution wasn’t flawless” and SaaS came in near the low end of the range (minimal shortfall), emphasizing no macro blame and focus on internal execution improvements .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025 ActualQ3 2025 Consensus*Surprise
Total Revenue ($M)$179.9 $181.4 $210.5 $201.6 $200.8*+$0.7M
GAAP Diluted EPS ($)$(2.65) $(0.22) $0.31 $0.13 ——
Primary EPS (S&P) ($)———0.317*0.254*+$0.063
Adj. EBITDA - Consolidated ($M)$19.6 $20.9 $51.2 $40.8 ——
EBITDA (S&P) ($M)———28.989*41.526*−$12.5M

Values marked with * are from S&P Global.

Segment performance

SegmentQ2 2025 Revenue ($M)Q3 2025 Revenue ($M)Q2 2025 Adj. EBITDA ($M)Q3 2025 Adj. EBITDA ($M)
SaaS$115.0 $115.9 $23.4 $19.6
Marketing Services$95.5 $85.7 $27.8 $21.2
Total$210.5 $201.6 $51.2 $40.8

Margins and unit economics

MetricQ3 2024Q2 2025Q3 2025
SaaS Gross Margin %69.6% 72.1% 71.1%
SaaS Adj. EBITDA Margin %11.8% 20.3% 16.9%
Marketing Svcs Adj. EBITDA Margin %10.0% 29.2% 24.8%
Consolidated Adj. EBITDA Margin %10.9% 24.3% 20.3%

KPIs

KPIQ1 2025Q2 2025Q3 2025
SaaS Clients (000s)111 106 103
SaaS ARPU ($/mo)$335 $352 $365
Seasoned NRR103% 103% (ex-Keap) 94%
ThryvPay TPV ($M)$71 $90 $89

Cash flow and balance sheet (select)

  • Q3 operating cash flow $22.2M; Free Cash Flow $14.6M .
  • Net income $5.7M; Diluted EPS $0.13 .
  • Net debt down to ~$265M; leverage ratio ~1.9x (management) .
  • Cash and cash equivalents $11.6M at 9/30/25 .

Guidance Changes

MetricPeriodPrevious Guidance (Q2 PR, 7/30/25)Current Guidance (Q3 PR, 10/30/25)Change
SaaS Revenue ($M)FY 2025$460–$465 $460–$463 Tightened (lower top end)
SaaS Adj. EBITDA ($M)FY 2025$70.5–$73.5 $73–$75 Raised
Marketing Svcs Revenue ($M)FY 2025$323–$325 $323–$325 Maintained
Marketing Svcs Adj. EBITDA ($M)FY 2025$78.5–$80.5 $76–$78 Lowered
SaaS Revenue ($M)Q4 2025—$118–$121 New
SaaS Adj. EBITDA ($M)Q4 2025—$19.2–$21.2 New
Marketing Svcs Revenue ($M)Q4 2025$73.0–$74.0 $71.6–$73.6 Slightly Lower
Marketing Svcs Adj. EBITDA ($M)Q4 2025$18.5–$19.5 $16.8–$18.8 Lower

Earnings Call Themes & Trends

TopicQ1 2025 (Q‑2)Q2 2025 (Q‑1)Q3 2025 (Current)Trend
AI/TechnologyFocus on platform investment; record NRR 103%; product-led strategy “Past the pinch point”; ARPU ~$4.2k annualized; roadmap acceleration, integrations; Workforce Center launched AI features expanding (social captions, AI website builder, call analysis); new CTO “all AI” to speed roadmap and integrations Increasing scope and speed
Verticalization—HVAC vertical launched; upcharge; defend & upsell existing cohort Strong HVAC results; broader home services next; integrations with ServiceTitan/Jobber Broadening into more verticals
Deleveraging/Pinch Point—Pinch point behind; amortization paid ahead; leverage to decline Net debt down to ~$265M; leverage ~1.9x; optionality (e.g., buyback) Balance sheet strengthening
ARPU vs Subs—Year of ARPU expansion; flattish subs; 100k+ base to monetize ARPU +19% YoY; management prioritizes larger, stickier customers ARPU-led growth continuing
Partner Channel—Keap partner channel to re-accelerate in 2026; cost synergies >$10M achieved Partner morale improving post-Grow conference; 2026 re-accel expected Improving but 2026 story
Macro/Market—N/ANot macro-driven; focus on execution; SMB demand decent Neutral macro narrative
Answer Engines (AEO)——AEO seen as tailwind; leveraging OYP assets and hosted sites Emerging tailwind

Management Commentary

  • “We reported strong third quarter results - achieving 33% year-over-year SaaS growth while exceeding our SaaS Adjusted EBITDA guidance…ARPU expanding 19% year-over-year…continued to generate free cash flow, pay down debt and deleverage” — Joe Walsh, CEO .
  • “Seasoned NRR declined to 94%…reflecting noise introduced as we transition legacy digital marketing services clients…This is all part of a broader business transformation” — Paul Rouse, CFO .
  • “AI is being used throughout the product…social captioning…review response…AI website builder…call analysis…AI has been a big lift for us” — Joe Walsh .
  • “We ended the third quarter with net debt down $9 million to $265 million, bringing our leverage ratio to 1.9 times” — Paul Rouse .
  • “We have a hit on our hands” (Marketing Center) and HVAC vertical is an upcharge that flatters ARPU and defends share .

Q&A Highlights

  • Execution vs macro: Management attributed minor shortfall to execution, not macro; expects improved execution ahead .
  • Partner channel recovery: Keap partners had been underinvested pre-acquisition; sentiment improving after deliverables; re-acceleration expected in 2026 .
  • ARPU-led strategy: 2025 is a “flattish subs” year as sales focus on upsell and multi-product to larger SMBs; vertical offerings supporting $8k annual ARPU ambition over time .
  • Answer engines as tailwind: AEO benefiting Thryv’s directories and hosted sites; delivering measurable lead-gen improvements .
  • Capital allocation: With deleveraging progress and authorization in place, buybacks are “on the table,” while CFO reiterates focus on debt reduction .

Estimates Context

  • Revenue beat: $201.6M vs $200.8M* consensus; Primary EPS beat: $0.317* vs $0.254*; EBITDA (S&P) miss: $29.0M* vs $41.5M* . Company reported Adj. EBITDA $40.8M, reflecting add-backs (stock comp, restructuring, pension, FX, etc.) per reconciliation .
  • Forward estimates reset: Q4 guidance provided for SaaS (revenue $118–$121M; Adj. EBITDA $19.2–$21.2) and lowered for Marketing Services (revenue and margins), likely prompting estimate fine-tuning on mix and margin trajectory .

Values marked with * are from S&P Global.

Key Takeaways for Investors

  • Mix improving: Durable SaaS growth (+33% YoY) with expanding ARPU (+19% YoY) offsets managed runoff in Marketing Services; watch NRR normalization as legacy cohorts age out .
  • Profitability quality: Company Adj. EBITDA strength (20.3% margin) exceeded internal targets, while S&P EBITDA miss underscores definitional differences; focus on non-GAAP bridge and cash conversion (FCF $14.6M in Q3) .
  • Guidance constructive for SaaS: FY25 SaaS Adj. EBITDA raised; Q4 SaaS outlook supports continued ARPU-led growth and improving unit economics .
  • Vertical and AI narrative gaining momentum: HVAC traction and AI-enhanced Marketing Center can be catalysts for sustained ARPU expansion and stickier cohorts; watch additional vertical rollouts and integrations (ServiceTitan/Jobber) .
  • Deleveraging creates optionality: Leverage ~1.9x and amortization relief support potential capital returns (buybacks) while sustaining product investments .
  • Near-term watch items: Seasoned NRR recovery path, Q4 Marketing Services cadence (print schedule), and execution consistency after Q3 “smidge shy” commentary .
  • Medium-term thesis: Upsell into a 100k+ installed base, multi-product adoption, and verticalization should drive ARPU toward management’s $8k ambition, compounding SaaS revenue growth even with modest net adds .

Source Notes

  • We did not find a standalone 8‑K 2.02; this recap relies on the Q3 2025 earnings press release, financial statements and reconciliations, and the full Q3 2025 earnings call transcript – –.
  • Prior quarters used for trend analysis: Q2 2025 and Q1 2025 earnings press releases and Q2 2025 call excerpts – – –.
  • S&P Global consensus and actuals used for estimates comparisons where noted with asterisks. Values retrieved from S&P Global.