Thryv Holdings THRY 2025Q2 Earnings Preview Upside Ahead on SaaS Transformation

Forward-Looking Analysis
Thryv Holdings is set to release its second-quarter 2025 earnings report on July 30th. Analysts anticipate positive developments driven by the company's ongoing shift to a Software-as-a-Service (SaaS) model, which aims to enhance margins and ensure predictable earnings. Despite a forecasted annual revenue decline of 4.3%, Thryv's earnings per share (EPS) and overall earnings are expected to grow significantly, with projections indicating an EPS growth rate of 138.7% per annum and earnings growth of 136.6%. This promising outlook is bolstered by the company's recent initiatives, such as the launch of a new HVAC marketing solution, which aims to drive growth. Analysts have noted a price target decrease to $22.20, emphasizing caution due to previous earnings misses. As Thryv transitions to SaaS, deeper client engagement is expected to reduce churn and stabilize long-term growth.

Historical Performance Review
In the first quarter of 2025, Thryv Holdings reported revenue of $181.37 million, a year-over-year decline of 22.3%. The company posted a net income of -$9.62 million and an EPS of -$0.22, missing the consensus estimate by $0.46. Despite the challenges, Thryv's gross profit reached $119.29 million, reflecting efforts to improve operational efficiency.

Additional News
Thryv Holdings has been active in strategic developments, including the launch of a new HVAC marketing solution aimed at helping contractors drive growth. The company has also welcomed Lou Orfanos to its board of directors, effective June 12, 2025. Thryv's shift to a SaaS model continues to unlock broader digital opportunities, aiming to improve margins and earnings predictability. Despite a 26% share price surge, analysts have expressed concerns about the valuation not quite adding up. The ongoing transformation is expected to enhance client engagement and reduce churn, contributing to stable long-term growth.

Summary & Outlook
Thryv Holdings is in a transformational phase, shifting towards a SaaS model that promises improved margins and predictable earnings. Despite recent earnings misses, the company is poised for significant EPS and earnings growth. The introduction of new solutions like the HVAC marketing platform and strategic board additions signal proactive steps towards growth. While revenue is forecasted to decline annually, deeper client engagement is expected to stabilize future prospects. The outlook remains cautiously bullish, contingent on successful SaaS implementation and effective risk management strategies amidst revenue challenges.