Thryv Holdings Reports $167.7 Million Revenue, Net Income Recovery in Q1 2026

Thryv Holdings, Inc. reported a revenue of $167.7 million for the three months ended March 31, 2026, a decrease of 7.5% compared to $181.4 million in the same period of 2025. The decline was primarily driven by a significant drop in the Marketing Services segment, which saw revenues fall by 27.5% to $50.9 million, while the SaaS segment experienced a modest increase of 5.0%, reaching $116.7 million. The company achieved a net income of $4.5 million, a notable recovery from a net loss of $9.6 million in the prior year, reflecting improved operational efficiency and reduced operating expenses.

Operating expenses decreased to $105.2 million from $122.3 million, largely due to strategic cost-saving initiatives, including a reduction in sales and marketing expenses, which fell by 19.9% to $47.9 million. The company also reported a gross profit of $109.3 million, down from $119.3 million, resulting in a gross margin of 65.2%, slightly lower than the previous year's 65.8%. The decrease in gross profit was attributed to the decline in Marketing Services revenue, although this was partially offset by the growth in SaaS revenue.

Thryv's operational metrics indicate a shift in client engagement, with approximately 220,000 small and medium-sized business (SMB) clients served globally. The company has been transitioning clients from its legacy Marketing Services to its Thryv Platform, converting around 8,000 clients during the past year. This strategic move is expected to enhance client retention and increase future revenue streams, although it has also contributed to a decrease in Marketing Services client counts, which fell by 26% year-over-year.

The company continues to focus on expanding its SaaS offerings and enhancing its platform capabilities. Thryv's strategic acquisitions, including Keap in 2024, are aimed at bolstering its market position in customer relationship management and marketing automation for SMBs. The company anticipates that these initiatives will drive future growth, although it acknowledges the challenges posed by competition and market conditions.

Looking ahead, Thryv Holdings remains cautiously optimistic about its growth trajectory, emphasizing the importance of client retention and expansion of service offerings. The company expects to leverage its SaaS platform to meet the evolving needs of SMBs, particularly in light of the ongoing shift towards digital solutions. However, management has also noted potential risks, including economic fluctuations and competitive pressures, which could impact future performance.