Thryv Holdings Faces Mounting Skepticism from Institutional Investors

A recent downgrade by Wall Street Zen from "Buy" to "Hold" underscores a growing trend of caution among analysts toward Thryv Holdings. This move represents the latest in a series of adjustments that began in late October, raising questions about whether the company's SaaS segment growth can counterbalance broader concerns.

The company's latest quarterly report presented conflicting signals. On a positive note, Thryv posted a consolidated net profit of $5.7 million, a significant reversal from the $96.1 million loss recorded in the same period last year. However, this result also marks a sequential decline of 59% from the $13.93 million net profit earned in the preceding quarter.

Key performance indicators from the software business reveal both strength and challenge:
* Revenue from SaaS operations reached $115.9 million, a 33% year-over-year increase.
* The number of SaaS subscribers grew 7% to 103,000.
* Average Revenue Per User (ARPU) rose 19% to $365.
* Organic SaaS growth, which excludes contributions from acquisitions, was reported at 14%.

This progress occurs against a backdrop of ongoing volatility as Thryv continues to wind down its legacy Marketing Services division, where revenue fell 8% to $85.7 million.

Analyst Sentiment Shifts Neutral

Wall Street Zen's rating change aligns with a more neutral stance emerging from institutional investors. A cluster of revisions on October 31st set the tone: The Royal Bank of Canada reduced its price target from $16.00 to $13.00, while Craig Hallum downgraded the stock from "Buy" to "Hold" and set a $10.00 target.

Should investors sell immediately? Or is it worth buying Thryv Holdings?

Market experts have cited a deceleration in organic SaaS growth and integration challenges related to the acquisition of Keap as primary reasons for their tempered outlook. These assessments reflect lowered expectations for the pace of Thryv's transition to a software-centric business model.

Balance Sheet and Market Positioning

Thryv's financial structure remains tight but orderly. Critical balance sheet metrics include a Debt-to-Equity ratio of 1.23 and a Current Ratio of 1.15. The company carries a net debt of $265 million, resulting in a leverage ratio of 1.9x. A crucial figure for future debt reduction is the Adjusted Gross Margin for its software segment, which stands at 73%.

From a technical perspective, the equity is trading below its key moving averages (50-day: $8.34; 200-day: $11.99) and remains near its 52-week low from late October. With a beta of 0.88 and a market capitalization of approximately $266.27 million, the stock shows a lack of bullish momentum. This view is further supported by a significant short interest position of 5.19 million shares, representing about 11.91% of the free float.

Looking Ahead

The next major opportunity for investors to assess Thryv's integration efforts and organic growth trajectory will be the financial report scheduled for February 26, 2026. Until the company can demonstrate sustained organic SaaS growth and stable software margins, analyst ratings and the stock's technical posture are likely to remain constrained.