Thryv Holdings (THRY) Q2 FY26 earnings call: guidance and Q&A

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

Given the lowered SaaS EBITDA guidance and no debt paydown year-to-date, how will the company service its debt payments for the rest of the year and into next?

Paul Rouse reassured that cash flow remains strong, and the company anticipates no issues servicing its debt payments. The focus is on reducing the revolver, and with the planned restructuring cuts, they are confident in their ability to meet debt obligations through the remainder of the year and into next.

“Yes, yes, this cash flow is still strong. So we don't see any problem. you know, making our debt payments. We were focusing really on lowering the, um, a revolver as opposed to the term loan. And from a cash flow point of view, particularly when we have these cuts in place, we don't see any issue servicing our debt for remainder of this year into next.”

asked by Scott Berg · answered by Paul Rouse

Following the partnerships with Wix and UMA, should investors expect more similar strategic partnerships in the future?

Joe Walsh confirmed that the company intends to pursue more partnerships, describing them as creating 'more zoos to hunt in.' He emphasized that this ecosystem-led growth model, enabled by the new growth platform, allows for complementary integrations with other tools, driving faster growth with strong margins.

“I think you're going to see we're going to continue to do more partnerships and and be very much running an ecosystem plug-in type strategy fitting nice we believe that will propel uh faster and more growth and uh you know great margins as well.”

asked by Arjun Bhatia · answered by Joe Walsh

What is the breakdown of the $25 million restructuring charge between workforce reductions and vendor efficiency?

Cameron Lessard clarified that approximately half ($12.5 million) of the $25 million restructuring charge is allocated to vendor spend, and the other half ($12.5 million) is for workforce reductions. He added that roughly half of these charges will be incurred in fiscal year 2026, with the remaining half in the first half of 2027.

“So roughly the 25 million that we quoted in the prepared remarks, half of it is going is vendor spend and the half of it is workforce reductions. And think of it as, know, half taking place in fiscal 26 and then the remaining half in the kind of first half of 27.”

asked by Arjun Bhatia · answered by Cameron Lessard

Has AI influenced the competitive environment, or is the company's strategic shift primarily self-directed?

Joe Walsh noted that AI has contributed to the commoditization of basic CRM functionalities. He stated that the company's strategic shift is partly self-directed, moving away from commoditized areas and focusing on its strengths in 'market sell grow' and moving upmarket, where it sees opportunities for stronger retention and stickier client relationships.

“I think our original kind of OG software product, Business Center, was an all in one management tool for small businesses. at the heart of that is really a straightforward CRM. And in the current environment, I think CRM has been commoditized a little bit and, you know, we don't really want to make our primary focus on something that is more kind of in the crosshairs of how the market changing.”

asked by Matthew Swanson · answered by Joe Walsh

How does the go-to-market strategy for the Thrive Growth Platform differ when targeting existing customers versus greenfield opportunities?

Grant Freeman explained that new partnerships (Wix, UMA) create 'new zoos' for hunting warm prospects. The direct sales force will continue targeting upmarket businesses, now with precision through deep integrations (e.g., Jobber). The new platform's free trial feature will also unlock inbound motion and distribution via partnerships, easing new client acquisition. Migration of the existing base is planned for 2027.

“Number one, we just spoke about the partnerships that we're forging. So that will be a relatively new go-to-market strategy for us, which is hunting in a new zoo, a zoo where people are already investing in their business, and that have an ICP profile that's more akin, very aligned with what we're going after.”

asked by Jason Krayer · answered by Grant Freeman