Thryv Holdings Inc (THRY) is positioned well as a small and medium business software company, with a strong SaaS business that is experiencing significant growth. The company reported a 25% organic year-over-year revenue growth and a 20% adjusted EBITDA margin, indicating a robust business model. The transition from a declining marketing services business to a focus on software is expected to unlock further value, especially as the next generation of business owners increasingly adopts software solutions. The stock trades at an attractive valuation, approximately 9x FY’26 EBITDA from the SaaS business, which does not account for the cash expected from the legacy business runoff. This presents a compelling investment opportunity as the market underestimates the potential of Thryv's software offerings.

Thryv Holdings Inc (THRY) is positioned well as a small and medium business software company. The thesis is that while the legacy Marketing Services business is declining, the software business is thriving, evidenced by a 25% organic YoY revenue growth and a 20% adjusted EBITDA margin. The company is rapidly paying down debt and has raised guidance, indicating strong future prospects. Despite concerns about the health of the consumer, THRY trades at a low valuation, approximately 9x FY’26 EBITDA from the SaaS business, which does not account for the cash expected from the legacy business runoff. This presents a significant opportunity as the market underestimates the shift of small businesses towards software solutions.

Thryv Holdings Inc, our small and medium business software company, has seen its stock decline approximately 40% from its February high. This drop followed the company becoming 'rule of 40' with over 100% net revenue retention, and a slight cut in FY’25 guidance due to tariff uncertainty. The market seems to assume that small and medium businesses will struggle in a recession, but small business optimism remains above its long-term average, suggesting Thryv can continue executing its strategy. The recent addition of HubSpot’s former VP of Product to Thryv’s board indicates confidence in the business. Thryv trades at less than 2x 2025 SaaS revenue, which does not reflect the cash generated by its legacy business.