Thryv Holdings, Inc. (THRY) charts a path toward an AI-powered Growth Platform, balancing SaaS gains with a costly restructure

Overview: a SaaS-first pivot with restructuring on the horizon

Thryv Holdings, Inc. reported its second-quarter 2026 results, underscoring a shift toward a software-as-a-service focus even as the company absorbs the cost of a major restructuring. The NASDAQ ticker THRY delivered SaaS revenue of $114.5 million, down 0.5% year over year, while SaaS now represents 76% of total revenue. Consolidated revenue came in at $150.7 million, with a net loss of $16.7 million, or $(0.38) per diluted share, versus $13.9 million of net income or $0.31 per diluted share in the prior-year quarter. On the brighter side, consolidated Adjusted EBITDA stood at $20.8 million, a 13.8% margin of revenue.

The press release also highlights Marketing Services revenue of $36.2 million, illustrating the ongoing mix-shift within Thryv’s portfolio as the company emphasizes its AI-enabled SaaS platform and related growth initiatives.

Second Quarter Financial Highlights

• SaaS revenue: $114.5 million (−0.5% YoY). Within SaaS, Market, Sell, Grow initiatives grew 21% YoY, helping offset headwinds from legacy CRM products.
• Marketing Services revenue: $36.2 million.
• Consolidated total revenue: $150.7 million.
• Consolidated net loss: $16.7 million, or $(0.38) per diluted share, versus net income of $13.9 million, or $0.31 per diluted share in Q2 2025.
• Consolidated Adjusted EBITDA: $20.8 million, with a 13.8% EBITDA margin.

Note: the press release includes a footnote that the results exclude Keap and that Market, Sell, Grow initiatives include Marketing Center and additional marketing value-added services.

Strategy and Restructuring: a three-pronged approach

Management signaled a strategic restructuring plan intended to realign costs toward a SaaS-centric operating model and to bolster AI capabilities embedded in Thryv’s customer-facing platform. The company expects total restructuring and related charges of approximately $20 million to $25 million, with about 10% already incurred. The timing for charge recognition skews toward the second half of 2026 (roughly 40%), with the remaining 50% to be recognized in 2027. Cost savings are anticipated to begin in 2027, building to roughly $55 million to $60 million in gross annualized savings upon completion.

Management Commentary

“Our second quarter marked another step forward in the transformation of our business, with SaaS now representing 76% of our revenue and ARPU growing 12% year-over-year,” said Joe Walsh, Thryv Chairman and CEO. “Our SaaS profile now reflects our deliberate focus on the newly launched Thryv Growth Platform, the first platform purpose-built for the small business owner with AI running underneath to turn every lead into measurable revenue. We are also announcing a restructuring plan that realigns our cost structure to focus on a SaaS operating model and extend the agentic AI capabilities embedded in Thryv's customer-facing platform. Looking ahead, we remain focused on reaccelerating the growth of our SaaS business. We are announcing today that we have partnered Ooma and plan to establish a strategic partnership with Wix, with a shared focus on helping small businesses succeed.”

“The Company remains focused on optimizing the Thryv Growth Platform, a unified, AI-native growth offering, concentrating investments to scale the business and expand profitability. These initiatives are expected to be accretive to Adjusted EBITDA margins in the future, while strengthening the Company's free cash flow generation,” stated Paul Rouse, Chief Financial Officer.

Partnerships and Growth Initiatives

The press release highlights strategic partnerships that could expand the addressable market for Thryv’s Growth Platform. The company has teamed with Ooma and disclosed plans for a strategic partnership with Wix, positioning Thryv to reach more small businesses and integrate its AI-driven tools with other service providers in the local-services ecosystem. These partnerships are framed as amplifying the platform’s reach and reinforcing the go-to-market motion around the Thryv Growth Platform.

Outlook for THRY and the Sector

There is no formal revenue forecast disclosed in the release, which leaves investors to interpret the near-term trajectory through the lens of the restructuring program and the AI-infused platform strategy. The shift to a SaaS-dominant mix—already at 76% of revenue—suggests a potential for more predictable, recurring revenue streams, albeit offset by restructuring-related charges. The negative EPS (a reported loss per share) alongside a positive Adjusted EBITDA margin reflects a common pattern in high-growth software plays that invest heavily in product development and go-to-market initiatives in the near term. Analysts’ EPS consensus and any subsequent earnings surprises will be key to assessing how quickly the company can translate platform investments into sustained profitability.

For sector peers, Thryv’s emphasis on AI-enabled customer acquisition and partnerships with Wix and Ooma could become a blueprint for competing in the small-business segment where a unified platform, embedded AI, and easier onboarding matter more than a stand-alone feature set. If the Thryv Growth Platform delivers on its promise, look for peers to tighten focus on recurring revenue growth, cost discipline, and strategic alliances to mimic a similar trajectory.

Bottom Line: a growth bet with restructuring risk baked in

Thryv’s Q2 2026 results present a company steering toward a more AI-powered, SaaS-centric future while acknowledging near-term costs. The combination of a 76% SaaS revenue mix, a sizeable restructuring charge plan, and ambitious cost-savings targets points to a longer path to margin expansion. For readers watching earnings per share (EPS) and the EPS consensus, the reported $(0.38) per share will be weighed against expectations while analysts pencil in the potential offset from higher-margin SaaS revenue and the anticipated benefits from Ooma and Wix partnerships. Investors will also be mindful of the company’s revenue trajectory absent a formal forecast, as the market gauges whether the Thryv Growth Platform can convert AI-driven leads into measurable revenue gains in the quarters ahead.

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