Thryv Holdings Inc (NASDAQ:THRY) reported strong expansion in its software-as-a-service business for 2025, highlighting continued progress in its transition toward a subscription-based, AI-focused operating model.
The company generated SaaS revenue of $461.0 million for the full year, marking a 34.2% increase compared with 2024, according to its latest earnings release. In the fourth quarter alone, SaaS revenue rose 14.1% year over year to $119.0 million.
SaaS operations now account for more than 62% of total company revenue, reflecting a growing shift away from Thryv’s legacy marketing services activities, which represented a larger share of the business mix a year earlier.
Marketing Services revenue continued to decline as part of that strategic repositioning, falling 32.6% to $324.0 million for the year and dropping 11.7% to $72.6 million in the fourth quarter. Total consolidated revenue for 2025 came in at $785.0 million, down 4.7% from $824.2 million in 2024.
Despite lower overall sales, profitability improved significantly. Thryv reported net income of $0.3 million for 2025, compared with a net loss of $74.2 million the previous year. Fourth-quarter results showed a net loss of $9.7 million, versus net income of $7.9 million in the same period of 2024.
Margins within the SaaS segment strengthened, with adjusted EBITDA margin expanding to 16.0% for the full year — a 400-basis-point improvement year over year. Average monthly revenue per SaaS user increased 15% in the fourth quarter to $373.
Marketing Center, a key component of the SaaS offering, delivered particularly strong momentum, with revenue climbing more than 50% in the fourth quarter and more than doubling across the full year. The company ended the quarter with approximately 100,000 SaaS customers.
Operating cash flow totaled $63.5 million in 2025, while free cash flow reached $31.1 million after $32.4 million in capital expenditures.
Chief Executive Officer Joe Walsh said the company is evolving toward what it calls the “Thryv Platform,” an AI-enabled solution aimed at helping small businesses manage marketing, sales, and growth operations more efficiently.