Thryv (THRY) Q3 2025 earnings summary

Executive summary

• SaaS revenue grew 33.1% year-over-year to $115.9 million in Q3 2025, now representing 61% of total revenue, with Keap contributing significantly to subscriber and ARPU growth.

• Consolidated revenue increased 12.1% year-over-year to $201.6 million, with net income of $5.7 million, reversing a prior year loss.

• Adjusted EBITDA more than doubled to $40.8 million (20.3% margin), driven by higher-margin SaaS sales.

• The company is transitioning from legacy Marketing Services to a SaaS-focused model, targeting exit by 2028 and maintaining cash flows through 2030.

• AI integration and vertical solutions, such as HVAC, are enhancing product innovation, ARPU, and customer retention.

Financial highlights

• SaaS adjusted gross margin improved 80 basis points year-over-year to 73% in Q3 2025; SaaS ARPU rose 19% to $365.

• Marketing Services revenue was $85.7 million (down 7.7% year-over-year), with adjusted EBITDA of $21.2 million (24.8% margin).

• Free cash flow for Q3 was $14.6 million; operating cash flow was $22 million.

• Total company billings declined 4% year-over-year, with SaaS billings up 32% and Marketing Services billings down 33%.

• Net debt decreased to $265 million, with a leverage ratio of 1.9x.

Outlook and guidance

• Q4 2025 SaaS revenue guidance: $118–$121 million; full-year SaaS revenue: $460–$463 million.

• Q4 SaaS Adjusted EBITDA guidance: $19.2–$21.2 million; full-year: $73–$75 million.

• Full-year Marketing Services revenue guidance: $323–$325 million; Adjusted EBITDA: $76–$78 million.

• FY 2025 consolidated revenue expected at $783–$788 million; adjusted EBITDA: $149–$153 million.

• Company projects unlevered free cash flow of $250–$300 million by 2030.