Thryv Holdings Q2 2025: Unpacking Contradictions in SaaS Revenue, Customer Strategy, and Vertical Expansion

SaaS revenue expectations and cautious stance, Keep business challenges and strategic shifts, customer retention strategy, customer base growth strategy, and vertical strategy and product offering expansion are the key contradictions discussed in Thryv Holdings, Inc.'s latest 2025Q2 earnings call.



SaaS Growth and Profitability:
- Thryv Holdings reported SaaS reported revenue of $115 million in Q2 2025, representing an increase of 48% year-over-year.
- SaaS adjusted EBITDA increased to $23.4 million, resulting in a record adjusted EBITDA margin of 20%.
- The growth was driven by strong performance from Keep integration and a strategic focus on scaling a profitable software business.

Keep Integration and Revenue Contribution:
- Keep contributed $17.7 million to Thryv's SaaS revenue in Q2 2025.
- Despite challenges in Keep's demand generation side, the integration has provided valuable software solutions and ARPU expansion.
- Thryv leveraged Keep's successful partner channel and client base to enhance its overall SaaS performance.

Marketing Services and Transition Strategy:
- Marketing Services revenue reached $95.5 million for Q2 2025, with an adjusted EBITDA margin of 29%.
- Thryv continues to initiate upgrades of legacy digital marketing services products to its SaaS platform, aiming to exit the segment by 2028.
- The decline in marketing services bilings is managed, reflecting a strategy to focus resources on the SaaS business.

Financial Leverage and Debt Reduction:
- Net debt decreased by $24 million to $274 million by the end of Q2 2025, improving the leverage ratio to 2.2x.
- Thryv made additional amortization payments, reducing future obligations and enhancing financial flexibility.
- The reduction in leverage is attributed to strong print quarters and effective capital allocation.