Thryv Grows SaaS Revenue in First Quarter 2026, Exceeds Total Company Revenue and EBITDA Guidance

Thryv Grows SaaS Revenue in First Quarter 2026, Exceeds Total Company Revenue and EBITDA Guidance April 30, 2026 Q1 SaaS Revenue Grows to 70% of Total Revenue Q1 Marketing Center Revenue Growth of 29% Year-Over-Year Q1 SaaS Monthly ARPU Increases 13% Year-Over-Year to $378 AI Delivering for Clients — Rapid Adoption Across New Platform Features Thryv Holdings, Inc. (NASDAQ:THRY) (“Thryv” or the “Company”), the provider of Thryv®, the leading small business marketing and sales software platform, reported results for the first quarter of 2026. First Quarter Financial 2026 Highlights: SaaS revenue was $116.7 million, a 5.0% increase year-over-yearMarketing Services revenue was $50.9 million, a 27.5% decrease year-over-yearConsolidated total revenue was $167.7 million, a decrease of 7.5% year-over-yearConsolidated net income increased to $4.5 million, or $0.10 per diluted share; compared to net loss of $9.6 million, or $(0.22) per diluted share, for the first quarter of 2025Consolidated Adjusted EBITDA was $24.1 million, representing an Adjusted EBITDA margin of 14.4%SaaS Adjusted EBITDA was $10.8 million, representing an Adjusted EBITDA margin of 9.3%Marketing Services Adjusted EBITDA was $13.2 million, representing an Adjusted EBITDA margin of 26.0%Consolidated Gross Profit was $109.3 millionConsolidated Adjusted Gross Profit 1 was $112.9 millionSaaS Gross Profit was $75.6 million, representing a Gross Margin of 64.8%SaaS Adjusted Gross Profit 1 was $78.2 million, representing an Adjusted Gross Margin of 67.0% Recent Business Highlights and Metrics Quality customers 2(defined as those contributing more than $400 in monthly recurring revenue) accounted for 70% of SaaS revenue 2 in the first quarter of 2026SaaS clients were 96 thousand at the end of the first quarter of 2026Seasoned Net Revenue Retention 3 was 93% for the first quarter of 2026SaaS monthly Average Revenue per Unit (“ARPU”) 4 was $378 for the first quarter of 2026, an increase of 12.8% year-over-yearMarketing Center revenue increased 29% year-over-year in the first quarter of 2026 "We delivered a strong start to 2026, with SaaS revenue exceeding our guidance and now representing 70% of total revenue," said Joe Walsh, Thryv Chairman and CEO. "Our upmarket motion is clearly working, as ARPU grew 13% year-over-year and Quality Customers now represent 70% of our SaaS revenue. We are expanding beyond our legacy client base, and are attracting larger small businesses with Marketing Center, engaging them at a higher level, and encouraging them to spend more - driving ARPU upward." Outlook Based on information available as of April 30, 2026, Thryv is issuing guidance5 for the second quarter of 2026 and full year 2026 as indicated below: 2nd Quarter Full Year (in millions) 2026 2026 SaaS Revenue $114 - $115 $463 - $471 SaaS Adjusted EBITDA6 $12 - $13 $70 - $75 2nd Quarter 3rd Quarter 4th Quarter Full Year (in millions) 2026 2026 2026 2026 Marketing Services Revenue $31 - $33 $33 - $35 $42 - $44 $157 - $163 Marketing Services Adjusted EBITDA6 $3 - $4 $30 - $35 Earnings Conference Call Information Thryv will host a conference call on Thursday, April 30, 2026 at 8:30 a.m. (Eastern Time) to discuss the Company's first quarter 2026 results. To listen to this conference call, please use this link. After registering, a confirmation email will be sent, including access details. We recommend registering a day in advance or at a minimum thirty minutes prior to the start of the call. A live webcast will also be available on the Investor Relations section of the Company's website at investor.thryv.com. Thryv Holdings, Inc. and Subsidiaries Consolidated Statements of Operations and Comprehensive Income (loss) Three Months Ended March 31, (in thousands, except share and per share data) 2026 2025 Revenue $ 167,684 $ 181,371 Cost of services 58,428 62,083 Gross profit 109,256 119,288 Operating expenses: Sales and marketing 47,948 59,842 Research and development 11,431 10,209 General and administrative 45,819 52,271 Total operating expenses 105,198 122,322 Operating income (loss) 4,058 (3,034 ) Other income (expense): Interest expense (4,141 ) (6,067 ) Interest expense, related party (2,466 ) (3,006 ) Net periodic pension cost (345 ) (768 ) Other income 1,433 392 Loss before income tax benefit (1,461 ) (12,483 ) Income tax benefit 6,003 2,865 Net income (loss) $ 4,542 $ (9,618 ) Other comprehensive loss: Foreign currency translation adjustment, net of tax (395 ) (187 ) Comprehensive income (loss) $ 4,147 $ (9,805 ) Net income (loss) per common share: Basic $ 0.10 $ (0.22 ) Diluted $ 0.10 $ (0.22 ) Weighted-average shares used in computing basic and diluted net income (loss) per common share: Basic 44,207,794 43,412,366 Diluted 45,246,486 43,412,366 Thryv Holdings, Inc. and Subsidiaries Consolidated Balance Sheets (in thousands, except share data) March 31, 2026 December 31, 2025 Assets Current assets Cash and cash equivalents $ 7,952 $ 10,752 Accounts receivable, net of allowance of $14,381 in 2026 and $13,830 in 2025 147,083 136,394 Contract assets, net of allowance of $2 in 2026 and $2 in 2025 433 411 Taxes receivable 22,710 8,134 Prepaid expenses 14,459 10,939 Deferred costs 7,472 11,548 Other current assets 643 679 Total current assets 200,752 178,857 Fixed assets and capitalized software, net 50,101 50,885 Goodwill 253,809 253,809 Intangible assets, net 24,471 25,929 Deferred tax assets 120,238 133,221 Other assets 44,367 45,886 Total assets $ 693,738 $ 688,587 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 10,853 $ 9,764 Accrued liabilities 84,225 91,246 Current portion of unrecognized tax benefits 1,803 28,303 Contract liabilities 36,790 28,875 Current portion of Term Loan 15,750 10,500 Current portion of Term Loan, related party 10,500 7,000 Other current liabilities 3,340 3,905 Total current liabilities 163,261 179,593 Term Loan, net 120,716 125,419 Term Loan, net, related party 82,063 85,448 ABL Facility 29,534 25,120 Pension obligations, net 44,016 44,171 Other liabilities 28,738 10,697 Total long-term liabilities 305,067 290,855 Commitments and contingencies Stockholders' equity Common stock - $0.01 par value, 250,000,000 shares authorized; 72,888,889 shares issued and 44,344,879 shares outstanding at March 31, 2026; and 72,002,129 shares issued and 43,815,268 shares outstanding at December 31, 2025 729 720 Additional paid-in capital 1,307,891 1,303,144 Treasury stock - 28,544,010 shares at March 31, 2026 and 28,186,861 shares at December 31, 2025 (499,735 ) (498,103 ) Accumulated other comprehensive loss (15,906 ) (15,511 ) Accumulated deficit (567,569 ) (572,111 ) Total stockholders' equity 225,410 218,139 Total liabilities and stockholders' equity $ 693,738 $ 688,587 Thryv Holdings, Inc. and Subsidiaries Consolidated Statements of Cash Flows Three Months Ended March 31, (in thousands) 2026 2025 Cash Flows from Operating Activities Net income (loss) $ 4,542 $ (9,618 ) Adjustments to reconcile net income (loss) to net cash provided by operating activities: Depreciation and amortization 9,166 11,516 Amortization of deferred commissions 1,349 3,499 Amortization of debt issuance costs 741 830 Deferred income taxes 13,026 (2,986 ) Provision for credit losses and service credits 3,630 3,782 Stock-based compensation expense 4,750 7,737 Net periodic pension cost 345 768 Gain on foreign currency exchange rates (1,433 ) (392 ) Other 2 37 Changes in working capital items, excluding acquisitions: Accounts receivable (4,820 ) 16,840 Prepaid expenses and other assets (23,160 ) (20,525 ) Accounts payable and accrued liabilities (31,631 ) (22,338 ) Contract liabilities 7,737 2,407 Other liabilities 17,229 (2,038 ) Net cash provided by (used in) operating activities 1,473 (10,481 ) Cash Flows from Investing Activities Additions to fixed assets and capitalized software (6,926 ) (7,085 ) Acquisition of a business, net of cash acquired — (143 ) Net cash used in investing activities (6,926 ) (7,228 ) Cash Flows from Financing Activities Proceeds from ABL Facility 90,777 109,647 Payments of ABL Facility (86,363 ) (95,748 ) Principal payments on finance lease obligations (216 ) — Other (1,621 ) (1,620 ) Net cash provided by financing activities 2,577 12,279 Effect of exchange rate changes on cash, cash equivalents and restricted cash 80 124 Decrease in cash, cash equivalents and restricted cash (2,796 ) (5,306 ) Cash, cash equivalents and restricted cash, beginning of period 10,869 17,760 Cash, cash equivalents and restricted cash, end of period $ 8,073 $ 12,454 Supplemental Information Cash paid for interest $ 6,858 $ 8,256 Cash (received) paid for income taxes, net $ (5,587 ) $ 1,178 Segment Information The following tables summarize the operating results of the Company's reportable segments: Three Months Ended March 31, Change (dollars in thousands) 2026 2025 Amount % Revenue SaaS $ 116,738 $ 111,129 $ 5,609 5.0 % Marketing Services 50,946 70,242 (19,296 ) (27.5 )% Total Revenue $ 167,684 $ 181,371 $ (13,687 ) (7.5 )% Adjusted EBITDA SaaS $ 10,816 $ 10,815 $ 1 — % Marketing Services 13,248 10,086 3,162 31.4 % Consolidated Adjusted EBITDA7 $ 24,064 $ 20,901 $ 3,163 15.1 % Non-GAAP Measures Our results included in this press release include Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Gross Profit, which are not presented in accordance with U.S. generally accepted accounting principles (“GAAP”). We have included Adjusted EBITDA, Adjusted EBITDA Margin, Adjusted Gross Profit because management believes they provide useful information to investors in gaining an overall understanding of our current financial performance and provide consistency and comparability with past financial performance. Specifically, we believe Adjusted EBITDA provides useful information to management and investors by excluding certain non-operating items that we believe are not indicative of our core operating results. In addition, Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Gross Profit are used by management for budgeting and forecasting as well as measuring the Company’s performance. We believe Adjusted EBITDA, Adjusted EBITDA Margin, and Adjusted Gross Profit provide investors with the financial measures that closely align with our internal processes. We define Adjusted EBITDA (“Adjusted EBITDA”) as Net income (loss) plus Interest expense, Income tax expense (benefit), Depreciation and amortization expense, Restructuring and integration expenses, Stock-based compensation expense, and non-operating expenses, such as Net periodic pension cost and certain unusual and non-recurring charges that might have been incurred. Adjusted EBITDA should not be considered as an alternative to Net income (loss) as a performance measure. We define Adjusted EBITDA Margin as Adjusted EBITDA divided by revenue. We define Adjusted Gross Profit (“Adjusted Gross Profit”) as Gross profit adjusted to exclude the impact of Depreciation and amortization expense and Stock-based compensation expense. Non-GAAP financial information has limitations as an analytical tool and is presented for supplemental informational purposes only. Such information should not be considered a substitute for financial information presented in accordance with U.S. GAAP and may be different from similarly-titled non-GAAP measures used by other companies. The following is a reconciliation of Adjusted EBITDA to its most directly comparable GAAP measure, Net income (loss): Three Months Ended March 31, (in thousands) 2026 2025 Reconciliation of Adjusted EBITDA Net income (loss) $ 4,542 $ (9,618 ) Interest expense 6,607 9,073 Depreciation and amortization expense 9,166 11,516 Stock-based compensation expense 4,750 7,737 Restructuring and integration expenses(1) 6,090 4,682 Income tax benefit (6,003 ) (2,865 ) Net periodic pension cost(2) 345 768 Other(3) (1,433 ) (392 ) Adjusted EBITDA $ 24,064 $ 20,901 (1) For the three months ended March 31, 2026 and 2025, expenses relate to periodic efforts to enhance efficiencies and reduce costs, and include severance benefits, and costs associated with abandoned facilities and system consolidation. For more information on our restructuring and integration expenses, please see our Q1 2026 Quarterly Report on Form 10-Q. (2) Net periodic pension cost is primarily from our non-contributory defined benefit pension plans that are currently frozen and incur no additional service costs. (3) Other primarily includes foreign exchange-related (income) expense. The following tables set forth reconciliations of Adjusted Gross Profit and Adjusted Gross Margin, to their most directly comparable GAAP measures, Gross Profit and Gross Margin: Three Months Ended March 31, 2026 (in thousands) SaaS Marketing Services Total Reconciliation of Adjusted Gross Profit Gross Profit $ 75,632 $ 33,624 $ 109,256 Plus: Depreciation and amortization expense 2,497 1,087 3,584 Stock-based compensation expense 47 21 68 Adjusted Gross Profit $ 78,176 $ 34,732 $ 112,908 Gross Margin 64.8 % 66.0 % 65.2 % Adjusted Gross Margin 67.0 % 68.2 % 67.3 % Three Months Ended March 31, 2025 (in thousands) SaaS Marketing Services Total Reconciliation of Adjusted Gross Profit Gross Profit $ 78,770 $ 40,518 $ 119,288 Plus: Depreciation and amortization expense 2,598 1,627 4,225 Stock-based compensation expense 84 70 154 Adjusted Gross Profit $ 81,452 $ 42,215 $ 123,667 Gross Margin 70.9 % 57.7 % 65.8 % Adjusted Gross Margin 73.3 % 60.1 % 68.2 % The following table sets forth a reconciliation of Free Cash Flow to its most directly comparable GAAP measure, Net cash provided by (used in) operating activities: Three Months Ended March 31, (in thousands) 2026 2025 Reconciliation of Free Cash Flow Net cash provided by (used in) operating activities $ 1,473 $ (10,481 ) Additions to fixed assets and capitalized software (6,926 ) (7,085 ) Free Cash Flow $ (5,453 ) $ (17,566 ) Supplemental Financial Information The following supplemental financial information provides Revenue, Net Income (Loss), Net Income (Loss) Margin, Adjusted EBITDA and Adjusted EBITDA Margin by our (i) SaaS business and (ii) Marketing Services business. Total SaaS Adjusted EBITDA and Adjusted EBITDA margin are non-GAAP financial measures. Total Marketing Services Adjusted EBITDA and Adjusted EBITDA margin are also non-GAAP financial measures. These non-GAAP financial measures are presented for supplemental informational purposes only and are not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP. We believe that these non-GAAP financial measures provide useful information about our global SaaS and Marketing Services financial performance, enhance the overall understanding of our global SaaS and Marketing Services past financial performance and allow for greater transparency with respect to important metrics used by our management for financial and operational decision-making. We believe that these measures provide additional tools for investors to use in comparing our core financial performance over multiple periods. Three Months Ended March 31, 2026 (dollars in thousands) SaaS Marketing Services Total Revenue $ 116,738 $ 50,946 $ 167,684 Net Income 4,542 Net Income Margin 2.7 % Adjusted EBITDA 10,816 13,248 24,064 Adjusted EBITDA Margin 9.3 % 26.0 % 14.4 % Three Months Ended March 31, 2025 (dollars in thousands) SaaS Marketing Services Total Revenue $ 111,129 $ 70,242 $ 181,371 Net Loss (9,618 ) Net Loss Margin (5.3 )% Adjusted EBITDA 10,815 10,086 20,901 Adjusted EBITDA Margin 9.7 % 14.4 % 11.5 % Forward-Looking Statements Certain statements contained herein are not historical facts, constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and involve a number of risks and uncertainties. Statements that include the words “may”, “will”, “could”, “should”, “would”, “believe”, “anticipate”, “forecast”, “estimate”, “expect”, “preliminary”, “intend”, “plan”, “target”, “project”, “outlook”, “future”, “forward”, “guidance” and similar statements of a future or forward-looking nature identify forward-looking statements. These statements are not guarantees of future performance. These forward-looking statements are based on our current expectations and beliefs concerning future developments and their potential effect on us. While management believes that these forward-looking statements are reasonable as and when made, there can be no assurance that future developments affecting us will be those that we anticipate. Accordingly, there are or will be important factors that could cause our actual results to differ materially from those indicated in these statements. We believe that these factors include, but are not limited to, the risks related to the following: significant competition for our Marketing Services solutions and SaaS offerings, which include companies that use components of our SaaS offerings provided by third parties; our ability to maintain profitability; our ability to manage our growth effectively; our ability to transition our Marketing Services clients to our Thryv platform, maintain transitioned clients on that platform and sell them additional or upgraded products, sell our platform into new markets or further penetrate existing markets; our ability to maintain our strategic relationships with third-party service providers; internet search engines and portals potentially terminating or materially altering their agreements with us; our ability to keep pace with rapid technological changes and evolving industry standards; our SMBs clients potentially opting not to renew their agreements with us or renewing at lower spend; potential system interruptions or failures, including cybersecurity breaches, identity theft, data loss, unauthorized access to data or other disruptions that could compromise our information; our potential failure to identify suitable acquisition candidates and consummate such acquisitions; our ability to complete acquisitions and the successful integration of such acquisitions, and any failure of an acquired business to achieve its plans and objectives or realize any expected benefit from any such acquisition; the potential loss of one or more key employees or our inability to attract and to retain highly skilled employees; our ability to maintain the compatibility of our Thryv platform with third-party applications; our ability to successfully expand our operations and current offerings into new markets, including internationally, or further penetrate existing markets; our potential failure to provide new or enhanced functionality and features; our potential failure to comply with applicable privacy, security and data laws, regulations and standards; potential changes in regulations governing privacy concerns and laws or other domestic or foreign data protection regulations; our potential failure to meet service level commitments under our client contracts; our potential failure to offer high-quality or technical support services; our Thryv platform and add-ons potentially failing to perform properly; our use of artificial intelligence in our business, and challenges with properly managing its use, could result in reputational harm, competitive harm, and legal liability; the potential impact of future labor negotiations; our ability to protect our intellectual property rights, proprietary technology, information, processes, and know-how; rising inflation and our ability to control costs, including operating expenses; general macro-economic conditions, including a recession or an economic slowdown in the U.S. or internationally; adverse tax laws or regulations or potential changes to existing tax laws or regulations; costs, liabilities and reputational harm resulting from regulatory investigations, including the subpoena from the Division of Enforcement of the Securities and Exchange Commission (the “SEC”); volatility and weakness in bank and capital markets; and costs, obligations and liabilities incurred as a result of and in connection with being a public company as well as the risks and uncertainties set forth in the Company's most recent Annual Report on Form 10-K filed with the SEC. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by such cautionary statements. If one or more events related to these or other risks or uncertainties materialize, or if our underlying assumptions prove to be incorrect, actual results may differ materially from what we anticipate. For these reasons, we caution you against relying on forward-looking statements. All forward-looking statements included in this press release are expressly qualified in their entirety by the foregoing cautionary statements. These forward-looking statements speak only as of the date hereof and, other than as required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. About Thryv Thryv (NASDAQ: THRY) is an AI-enabled global marketing platform that helps small businesses (SMBs) get found online faster, win more customers, and drive repeat business. Thryv software offers SMBs AI-driven lead insights, automated customer follow‑up and payment processing, an AI-enabled CRM and a suite of additional solutions. Thryv is making growth‑focused AI tools accessible to the plumber, salon owner, contractor, lawyer, accountant and more. Over 200K+ businesses globally use Thryv to market, sell, and grow. For more information, visit www.thryv.com. _____________________________ 1 Defined as Gross profit adjusted to exclude the impact of depreciation and amortization expense and stock-based compensation expense. 2 Excludes customers and revenue attributed to the Keap acquisition. 3 Seasoned NRR is calculated by dividing the revenue of all clients that have had one or more SaaS offerings for at least two years as of the last month of the year or quarter, as applicable, by the same clients' revenue one year ago. For each reporting quarter, the weighted-average monthly NRR from all the months in the quarter are reported. Seasoned NRR excludes clients acquired in the Keap acquisition. 4 Defined as total client billings for a particular month divided by the number of clients that have one or more revenue-generating solutions in that same month. This is a weighted-average calculation and inclusive of the impact from the Keap acquisition. 5 These statements are forward-looking and actual results may materially differ. Refer to the “Forward-Looking Statements” section below for information on the factors that could cause our actual results to materially differ from these forward-looking statements. 6 SaaS Adjusted EBITDA and Marketing Services Adjusted EBITDA are forward-looking non-GAAP financial measurers. We calculate forward-looking non-GAAP financial measures based on internal forecasts that omit certain amounts that would be included in GAAP financial measures. We have not provided quantitative reconciliations of these forward-looking non-GAAP financial measures because the excluded items are not available on a prospective basis without unreasonable effort. 7 Consolidated Adjusted EBITDA is equal to SaaS Adjusted EBITDA and Marketing Services Adjusted EBITDA. See Non-GAAP Measures below for a reconciliation of Consolidated Adjusted EBITDA to Net income (loss). Source: Thryv