Thryv (THRY) Q1 2026 earnings summary

Executive summary

• SaaS revenue grew 5% year-over-year to $116.7 million, now representing 70% of total revenue and surpassing Marketing Services as the main revenue driver.

• Consolidated 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, with profitability aided by cost reductions and segment mix.

• SaaS clients reached 96,000, with quality customers accounting for 70% of SaaS revenue and ARPU up 13% year-over-year to $378.

• AI-powered features and unified growth platform are driving client adoption, 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), up from $20.9 million (11.5%) year-over-year.

• SaaS Adjusted Gross Margin was 67.0%; Marketing Services Adjusted Gross Margin was 68.2%.

• 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.

• Print revenue declined 10.9% to $33.6 million; Digital revenue dropped 46.6% to $17.4 million.

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 billings or free cash flow.

• Expectation to return to overall top-line growth by 2027.