Thryv’s 33% SaaS Revenue Growth Highlights Shifting Momentum in Q3 2025
SaaS Segment Delivers Double-Digit Revenue Gains and Margin Expansion
Thryv Holdings, Inc. is charting a new course in 2025, propelled by a 33% year-over-year surge in SaaS revenue during the third quarter. This leap brought SaaS sales to $115.90 million, an increase powered by both organic momentum and the Keap acquisition. Excluding Keap, SaaS revenue still notched a solid 14% increase, reflecting strong underlying demand for the company’s small business sales and marketing platform.
The quarter’s standout metrics didn’t stop at the top line. SaaS monthly ARPU climbed 19% to $365, suggesting successful up-selling and deeper engagement with the customer base. Notably, SaaS gross profit margins held firm at 71.1%, with adjusted SaaS margins even stronger at 73%. Both numbers reflect a scalable platform increasingly capable of supporting revenue growth without sacrificing profitability.
| Key SaaS Metrics (Q3 2025) | Value | Y/Y Change |
|---|---|---|
| SaaS Revenue | $115.90M | +33% |
| SaaS Revenue (Ex. Keap) | $99.13M | +14% |
| SaaS Monthly ARPU | $365 | +19% |
| SaaS Gross Profit Margin | 71.1% | +1.5ppt |
| SaaS Clients | 103,000 | +7% |
| Seasoned Net Revenue Retention | 94% | Stable |
Marketing Services Segment Continues to Decline, Underscoring SaaS Shift
In contrast, Thryv’s Marketing Services business posted an 8% decline in revenue for Q3, dropping to $85.65 million. This ongoing slide, paired with robust SaaS expansion, signals a broader transformation: the company is relying less on traditional services and more on the stickiness of its SaaS offerings to drive future performance. Segment EBITDA margins for Marketing Services, however, rose to 24.8%, reflecting ongoing efforts to streamline operations.
Profitability Rebounds: Thryv Returns to the Black After Prior-Year Loss
The overall financial turnaround was pronounced. Thryv delivered consolidated net income of $5.65 million ($0.13 per diluted share), reversing a net loss of $96.07 million a year ago. Adjusted EBITDA more than doubled to $40.83 million, pushing the consolidated margin to 20.3% from just 10.9% in Q3 2024.
| Profitability Highlights (Q3 2025) | 2025 | 2024 |
|---|---|---|
| Consolidated Net Income | $5.65M | $(96.07)M |
| Consolidated Adjusted EBITDA | $40.83M | $19.62M |
| Adjusted EBITDA Margin | 20.3% | 10.9% |
Cash Generation and Balance Sheet Deleveraging Support Strategic Flexibility
Thryv’s focus on operational discipline also yielded strong free cash flow, with Q3 operating cash flow at $22.25 million and free cash flow at $14.61 million. The company’s ongoing debt paydown helped improve the balance sheet, positioning it for further investment and resilience. As of September 30, Thryv reported $11.55 million in cash, a total of $701.80 million in assets, and $221.08 million in shareholders’ equity.
Guidance Points to Further SaaS Growth in Q4 and Beyond
Looking ahead, Thryv projects Q4 SaaS revenue of $118.00–$121.00 million and a full-year 2025 total of $460.00–$463.00 million. Management also forecasts steady SaaS Adjusted EBITDA, as the business pivots decisively away from declining Marketing Services revenues.
| Forward Guidance (in millions) | Q4 2025 | Full Year 2025 |
|---|---|---|
| SaaS Revenue | $118–$121 | $460–$463 |
| SaaS Adjusted EBITDA | $19.2–$21.2 | $73–$75 |
| Marketing Services Revenue | $71.6–$73.6 | $323–$325 |
| Marketing Services Adjusted EBITDA | $16.8–$18.8 | $76–$78 |
Key Takeaways: A Strong Pivot to SaaS with Profitability in Sight
Thryv’s Q3 2025 marks a decisive step in its ongoing business model transition. With SaaS revenue accelerating, robust retention, and improved profit margins, the company appears increasingly positioned for long-term, recurring revenue growth. The continued decline in Marketing Services—though a headwind—may further amplify Thryv’s SaaS focus and investor interest.
Investors may want to follow upcoming quarters closely. As Thryv deepens its AI integrations and continues deleveraging, sustained SaaS expansion could shape the next chapter of this small business platform provider.
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