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    THRY
    Earnings call· Jun 2026(Q2 FY26)

    Thryv Holdings Q2 FY26 earnings call THRY

    Aug 4, 2026 Source

    Executive summary

    Thryv Holdings, Inc. Q2 FY26 — AI-Native Platform Launch & Strategic Partnerships Drive SaaS Transformation

    Thryv Holdings delivered Q2 FY26 results marked by a significant strategic pivot, launching its AI-native Thrive Growth Platform on August 3rd. This move, coupled with new partnerships and integrations, sharpens the company's focus on local service businesses and ecosystem-led growth. While full-year SaaS guidance was revised downward due to deliberate investment sequencing, management expects the new platform and increased sales/marketing spend to drive future growth and improved margins, supported by a restructuring program yielding $60 million in run-rate savings.

    Highlights

    5

    • SaaS revenue now constitutes 76% of total revenue, validating the company's transformation to a pure-play SaaS model.

    • SaaS ARPU grew 12% year over year to $394, with 72% of clients spending $400 or more, up 2 points from the prior quarter.

    • The AI-native Thrive Growth Platform was launched on August 3rd, replacing the older Marketing Center product to sharpen focus on local service businesses.

    • Strategic partnerships with Wix and UMA, alongside integrations with Breezy AI and Jobber, expand distribution and provide warm introductions to new customer bases.

    • A restructuring program is expected to generate approximately $60 million in run-rate savings, simplifying the business around the new growth platform.

    Concerns

    4

    • Full-year SaaS revenue guidance was revised downward to a range of $453 million to $457 million.

    • Full-year SaaS adjusted EBITDA guidance was revised downward to a range of $42 million to $44 million.

    • Seasoned Net Revenue Retention (NRR) of 90% reflects the natural attrition of smaller, lower-spend clients within the base.

    • Marketing Services billings declined 36% year over year to $48.7 million, reflecting the deliberate migration of legacy clients to the SaaS platform.

    Guidance & targets

    6
    CategoryTargetConfidence
    Marketing Services Revenue
    $161 million to $163 million
    medium materiality
    High
    Marketing Services Adjusted EBITDA
    $31 million to $33 million
    medium materiality
    High
    SaaS Revenue
    $111 million to $112 million
    high materiality
    High
    SaaS Adjusted EBITDA
    $8.5 million to $9.5 million
    high materiality
    High
    SaaS Revenue
    $453 million to $457 million
    high materiality
    High
    SaaS Adjusted EBITDA
    $42 million to $44 million
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    SaaS
    SaaS revenue was within guidance. Adjusted gross margin was impacted by higher traffic expense due to more clients purchasing add-ons, which attract larger clients and drive higher spend. Multi-product adoption increased year-over-year from 28%.
    Adjusted EBITDA: $13.6 millionAdjusted EBITDA margin: 12%ARPU: $394ARPU growth YoY: 12%Subscribers: 95,000Seasoned NRR: 90%Multi-product adoption (2+ SaaS products): 29% of base
    		$114.5 million——Adjusted gross margin: 66.6%
    Marketing Services
    Marketing services revenue was above guidance. This performance reflects the natural second-half weighting of the print publication schedule from a revenue recognition standpoint. The decline in billings is consistent with the deliberate strategy to migrate legacy digital marketing services clients to the SaaS platform.
    Adjusted EBITDA margin: 20%Billings: $48.7 millionBillings growth YoY: -36%
    		$36.2 million——Adjusted EBITDA: $7.3 million

    Operational metrics

    6
    SaaS Revenue as % of Total Revenue
    76%
    Q2 FY26

    Validates the company's transformation to a pure-play SaaS company.

    Clients spending $400+ per month
    72%up 2 points from prior quarter
    Q2 FY26

    Indicates successful move upmarket and higher client spend.

    AI-scored leads close faster
    1.5 times faster
    Early results

    Early results from the Thrive Growth Platform.

    Client revenue increase from Thrive Growth Platform
    40% more revenue
    Early results

    Early results from the Thrive Growth Platform.

    Net Debt
    $241 million
    Q2 FY26

    Ended the second quarter with this amount.

    Leverage Ratio
    2.5x
    Q2 FY26

    Ratio of net debt to adjusted EBITDA.

    Industry KPIs

    8
    MetricValueDetails
    Revenue growth$114.5 millionUSD
    Arr net new arr$394USD
    Bookings billings$48.7 millionUSD
    Customer account count95,000subscribers
    Multi product platform attach29%%
    Operating FCF margin rule of 4012%%
    Ai product adoption monetization40% more revenue%
    Net revenue net dollar retention90%%

    Product announcements

    1
    ProductTypeDetails
    Thrive Growth Platformlaunch

    Deals & partnerships

    4
    WixStrategic partnership bringing together two recognized SMB platforms.

    A broad, multi-pillar agreement, not a single integration. Wix provides global website and unified commerce solutions, while Thrive focuses on marketing, leads, and customer relationships. New pillars of this relationship are expected to be announced in the future.

    UMAStrategic partnership with a leading business communications provider.

    UMA is a highly respected name in business communications with over a million users. Thrive will also recommend Ooma to its clients as a communication solution.

    Breezy AIIntegration with an AI operating layer built for franchise-based home service organizations.

    This integration is live today. It allows franchise leaders to see which marketing sources produce the best jobs and where ad spend is effective.

    JobberIntegration with a leading field service management platform for home service businesses.

    Thrive is now live on the Jobber marketplace. The integration includes AI-driven intent and lead summaries with built-in score filtering.

    Capital programs

    1
    Restructuring Programunderwayapproximately $25 million
    Period spend: approximately $12.5 million
    Start: Q2 FY26

    Benefit: approximately $60 million in run rate savings

    Charges primarily for severance and related employee benefits, along with contract exit and early termination costs. Roughly half of these charges will be incurred in FY26, with the remaining half in the first half of 2027. The program aims to simplify the business around a single growth platform and consolidate teams, systems, and vendor spend.

    Risks & headwinds

    5
    Lowered full-year SaaS revenue guidanceFY26

    Revised to $453 million to $457 million

    Mitigation: Deliberate resource allocation decisions in H1 FY26 prioritized product development (Thrive Growth Platform) over sales headcount and marketing. Investment is now being redirected towards sales and marketing in H2 FY26 to ramp up for 2027.

    Lowered full-year SaaS adjusted EBITDA guidanceFY26

    Revised to $42 million to $44 million

    Mitigation: Same as above; also notes elevated traffic expense from add-ons and lighter sales headcount pressured EBITDA. The company views this as disciplined sequencing of investment.

    Natural attrition of smaller, lower-spend clientsQ2 FY26

    Seasoned NRR of 90%

    Mitigation: The company is focusing on moving upmarket to attract larger clients with stronger retention characteristics and higher spend, leveraging the new Thrive Growth Platform to deepen client relationships.

    Decline in Marketing Services billingsQ2 FY26

    Down 36% YoY to $48.7 million

    Mitigation: This decline is a deliberate outcome of the strategy to systematically migrate legacy digital marketing services clients to the SaaS platform. The pace of decline is controlled and anticipated.

    CRM commoditization due to AICurrent environment

    CRM has been commoditized a little bit

    Mitigation: The company is shifting its primary focus away from generic CRM offerings, concentrating instead on its 'market sell grow' initiative and the AI-native Thrive Growth Platform to differentiate and move upmarket.

    What to watch in Q3 FY26

    5

    SaaS Revenue Growth

    Q3 FY26 / Q4 FY26
    CurrentQ3 FY26 guidance: $111M-$112M
    TargetEvidence of ramp-up from increased sales/marketing investment

    Why it matters

    Verifies the effectiveness of the redirected investment into sales and marketing following the Thrive Growth Platform launch and the company's ability to execute its revised strategy.

    With the platform now in market, we are redirecting investment towards sales and marketing and ramping through the back half. We enter 2027 at full strength and expanded product set. a sales organization size to monetize it.

    Q&A highlights

    6

    When can investors expect a consistent product and go-to-market strategy, given the recent significant changes and transformations?

    Joe Walsh explained that the newly launched AI-native platform, which went generally available yesterday, is the culmination of years of development. The company is now sharpening its focus on local business growth, its original core. The new platform, combined with ramping sales and marketing, is expected to become the main growth driver, with other business lines becoming run-off.

    “The new platform is now out. We're ramping the sales organization and our marketing into this new platform. And we expect over the next few quarters, for that growth that we've been seeing within marketing center and its add-ons to become the main story in the company.”

    asked by Scott Berg · answered by Joe Walsh

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation and AI-Native Platform Launch

    Thryv has successfully advanced its transformation into a pure-play SaaS company, with SaaS revenue now accounting for 76% of total revenue. A pivotal moment occurred on August 3rd with the general availability launch of the AI-native Thrive Growth Platform. This new platform, built from the ground up for the AI era, replaces the older Marketing Center product and is central to the company's sharpened focus on local service businesses.

    02

    Ecosystem-Led Growth and Strategic Partnerships

    The company is actively pursuing an ecosystem-led growth model, leveraging strategic partnerships and integrations to expand its market reach efficiently. Key partnerships include Wix, a global website and unified commerce solution, and UMA, a respected business communications provider. These collaborations offer warm introductions to large SMB customer bases. Integrations with Breezy AI for franchise home services and Jobber for field service management ensure seamless lead flow into existing customer workflows.

    03

    Focus on Upmarket Clients and ARPU Expansion

    Thryv is demonstrating success in moving upmarket, attracting larger clients and increasing spend per client. SaaS ARPU grew 12% year over year to $394, and 72% of clients now spend $400 or more, a 2-point increase from the prior quarter. This strategy aims to cultivate stronger retention characteristics and more enduring client relationships, contributing to higher quality revenue.

    04

    Restructuring Program and Cost Savings

    A restructuring program has been initiated, entailing approximately $25 million in charges. These charges are split evenly between severance/employee benefits and vendor spend, with half expected in FY26 and the remainder in H1 FY27. The program is projected to yield approximately $60 million in run-rate savings, streamlining the business around the single growth platform and consolidating teams, systems, and vendor expenditures.

    05

    Guidance Revision and Investment Sequencing

    Full-year SaaS revenue and adjusted EBITDA guidance were revised downward, a consequence of deliberate resource allocation decisions made in the first half of the year. Investment was strategically prioritized towards product development, specifically the Thrive Growth Platform, over sales headcount and marketing. With the platform now in market, the company is redirecting investment to sales and marketing to accelerate growth in the second half of the year, positioning for full strength in 2027.

    06

    Free Trial and Enhanced Distribution Strategy

    A significant enhancement with the new Thrive Growth Platform is the introduction of a free trial capability. This feature is expected to facilitate distribution through strategic partnerships like Wix and UMA, as well as bolster inbound lead generation. It allows potential customers to experience the platform's value firsthand, thereby improving conversion rates and reducing traditional customer acquisition costs.

    AI-generated summary of the company’s earnings call. Not investment advice.