Thryv Holdings 2025 Q2 Earnings Misses Estimates as Net Income Surges 151%

Thryv Holdings (THRY) reported its fiscal 2025 Q2 earnings on July 30th, 2025. The company missed market expectations despite showing strong growth in its net income, which surged by 151.1%. Thryv raised its full-year guidance for Adjusted EBITDA, indicating confidence in its operational performance. SaaS revenue increased significantly, reflecting ongoing transformation efforts. The company anticipates SaaS revenue to continue growing in the third quarter. Overall, Thryv's results highlight a mixed performance, with net income exceeding forecasts while revenue fell short.

Revenue
Thryv Holdings saw a decrease in total revenue by 6.1%, with consolidated revenue reaching $210.47 million in Q2 2025, down from $224.08 million in Q2 2024. This decline was primarily attributed to a downturn in the Marketing Services segment, which experienced a 35% year-over-year drop to $95.5 million. Despite this, SaaS revenue demonstrated robust growth, surging by 48% year-over-year to $115.0 million.

Earnings/Net Income
Thryv Holdings' EPS experienced substantial growth, rising by 113.3% to $0.32 in Q2 2025 from $0.15 in Q2 2024. The company's profitability improved significantly, with net income reaching $13.93 million, marking a 151.1% increase from $5.55 million in Q2 2024. This performance indicates a strong positive trend in the company's earnings per share.

Price Action
The stock price of Thryv Holdings has edged up 2.83% during the latest trading day, has jumped 8.11% during the most recent full trading week, and has jumped 9.47% month-to-date.

Post-Earnings Price Action Review
Thryv Holdings has experienced poor performance over the past three years when following the strategy of buying shares after a revenue raise quarter-over-quarter and holding for 30 days post-financial report release. This approach resulted in a return of -27.49%, significantly underperforming the benchmark return of 83.15%. The strategy's excess return was -110.63%, and its compound annual growth rate (CAGR) was -6.48%, indicating substantial losses and a lack of growth. Despite the company's recent positive momentum, this historical strategy has proven to be ineffective, highlighting the challenges in predicting the stock's post-earnings behavior.

CEO Commentary
"We delivered a solid second quarter - exceeding our prior guidance and achieving strong top-line SaaS growth coupled with our highest SaaS Adjusted EBITDA margin to date," said Joe Walsh, Chairman and CEO of Thryv. He noted the successful navigation of the company’s SaaS transformation ahead of schedule, highlighting that the temporary increase in anticipated leverage due to revenue recognition timing in the Marketing Services business is now resolved. Walsh expressed optimism regarding free cash flow ramping in the latter half of the year, which is expected to reduce leverage and enhance financial flexibility.

Guidance
Thryv anticipates third quarter 2025 SaaS revenue in the range of $116.0 million to $117.0 million and full-year SaaS revenue between $460.0 million and $465.0 million. For SaaS Adjusted EBITDA, guidance is set at $18.5 million to $19.5 million for the third quarter and $70.5 million to $73.5 million for the full year. Marketing Services revenue is projected to be $84.0 million to $85.0 million in the third quarter, with a full-year estimate of $323.0 million to $325.0 million.

Additional News
Recently, Thryv Holdings announced a reduction in its term debt by $26 million, effectively lowering required amortization. This strategic move is aimed at strengthening the company's financial position and enhancing its balance sheet. Additionally, Thryv has seen a significant increase in its SaaS client base, growing by 25% year-over-year to reach 106,000 clients by the end of Q2 2025. This expansion underscores the growing demand for Thryv's solutions in the market, as the company continues to focus on its SaaS transformation and client engagement efforts.