Q2 2026 Thryv Holdings Inc Earnings Call Transcript
Key Points
- SaaS revenue reached $114.5 million in Q2, within guidance, and SaaS now represents 76% of total revenue, validating the company's transformation to a pure-play SaaS business.
- The Market, Sell, Grow (MSG) initiative grew 21% year-over-year, marking over a dozen consecutive quarters of double-digit growth, with SaaS ARPU up 12% to $394.
- The launch of the new AI-native Thryv Growth Platform on August 3, 2026, is a major strategic milestone, with early results showing clients experiencing 40% more revenue and AI-scored leads closing 1.5 times faster.
- Strategic partnerships with Wix and Ooma, along with new integrations with Breesy and Jobber, expand distribution channels and provide warm introductions to a large base of SMB customers without traditional acquisition costs.
- The company announced a restructuring program expected to generate approximately $60 million in run-rate savings, with a one-time charge of about $25 million, improving future operational efficiency.
- The company's reclassification as a software company under GICS underscores its successful strategic pivot and market recognition of its business model.
- Full-year SaaS revenue guidance was revised down to $453 million to $457 million, and SaaS adjusted EBITDA guidance was lowered to $42 million to $44 million, reflecting deliberate underinvestment in sales headcount and marketing during the first half.
- Marketing Services billings declined 36% year-over-year to $48.7 million, highlighting the ongoing and significant contraction of the legacy directory business.
- SaaS adjusted gross margin was 66.6%, with the mix of add-on revenue carrying traffic expense at lower margins, pressuring overall profitability.
- The company's seasoned net revenue retention (NRR) was 90%, reflecting natural attrition of smaller, lower-spend clients within the existing base.
- The restructuring program will incur a charge of approximately $25 million, with half expected in 2026 and the remainder in the first half of 2027, adding near-term financial strain.
- The company's strategic pivot and guidance adjustments have created a pattern of frequent changes, raising concerns about stability in product and go-to-market strategy.
Ladies and gentlemen, thank you for joining us and welcome to the Thryv second-quarter 2026 earnings call. (Operator Instructions)
I will now hand the conference over to Cameron Lessard, Senior Vice President of Corporate Development and Strategy. Cameron, please go ahead.
Good morning and thank you for joining us for Thryv Holding's second-quarter 2026 earnings conference call. With me today are Joe Walsh, Chairman and Chief Executive Officer, Grant Freeman, President; and Paul Rouse, Chief Financial Officer.
Before we begin, I'd like to remind you that today's call may contain forward-looking statements, including statements about our business outlook and strategy, future financial results, growth prospects, and other matters that are not historical facts. These statements are subject to risks and uncertainties, and our actual results may differ materially. Please refer to our most recent filings with the SEC for a discussion of factors that
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