Thryv (THRY) Q1 2026 earnings summary

Executive summary

• SaaS revenue grew 5.0% year-over-year to $116.7 million, now representing 70% of total revenue and surpassing Marketing Services as the main revenue driver.

• Consolidated total revenue for Q1 2026 was $167.7 million, down 7.5% year-over-year, driven by a 27.5% decline in Marketing Services revenue.

• Net income improved to $4.5 million from a net loss of $9.6 million in the prior year quarter, with profitability aided by cost reductions and segment mix.

• The platform now serves 96,000 SaaS clients, with quality customers accounting for 70% of SaaS revenue and ARPU rising 13% year-over-year to $378.

• AI-powered features and a unified growth platform are driving customer acquisition, retention, and operational efficiency.

Financial highlights

• SaaS Adjusted EBITDA was $10.8 million (9.3% margin); Marketing Services Adjusted EBITDA was $13.2 million (26.0% margin); consolidated Adjusted EBITDA was $24.1 million (14.4% margin).

• SaaS Gross Profit was $75.6 million (64.8% margin); Adjusted Gross Profit was $78.2 million (67.0% margin).

• Marketing Services revenue was $50.9 million, with billings of $54.5 million, and gross margin increased to 66.0%.

• Free cash flow for Q1 2026 was negative $5.5 million, an improvement from negative $17.6 million in Q1 2025.

• Net debt at quarter-end was $258 million, with a leverage ratio of 1.7x.

Outlook and guidance

• Q2 2026 SaaS revenue guidance: $114–$115 million; SaaS Adjusted EBITDA: $12–$13 million.

• Full year 2026 SaaS revenue guidance: $463–$471 million; SaaS Adjusted EBITDA: $70–$75 million.

• Full year 2026 Marketing Services revenue guidance: $157–$163 million; Adjusted EBITDA: $30–$35 million.

• Q2 will see lighter print publication, affecting EBITDA timing but not cash flow; top-line growth expected to return by 2027.

• The company plans to exit Marketing Services by 2028, with cash flows through 2030.