Thryv's SaaS Revenue Growth Outpaces Marketing Services Decline…

Event summary

SaaS revenue grew by 5% year-over-year to $116.7 million in Q1 2026.
Marketing Services revenue dropped by 27.5% year-over-year to $50.9 million.
Consolidated total revenue decreased by 7.5% year-over-year to $167.7 million.
Net income turned positive at $4.5 million, compared to a net loss of $9.6 million in Q1 2025.
SaaS Adjusted EBITDA margin was 9.3%, while Marketing Services Adjusted EBITDA margin was 26%.

The big picture

Thryv's Q1 2026 results highlight a strategic shift towards SaaS revenue growth, offsetting declines in Marketing Services. The company's ability to attract larger small businesses with its Marketing Center and drive up ARPU will be critical in maintaining profitability. This transition aligns with broader industry trends where digital transformation and SaaS solutions are becoming increasingly dominant.

What we're watching

SaaS Expansion: How Thryv will sustain its SaaS revenue growth amid declining Marketing Services revenue.
Customer Quality: Whether the increase in 'Quality Customers' to 70% of SaaS revenue will drive long-term retention and ARPU growth.
Operational Efficiency: The pace at which Thryv can improve its Adjusted EBITDA margins, particularly in the SaaS segment.