Thryv Holdings, Inc.

Previous wording

Our expertise in delivering solutions for our client base is rooted in our deep history of serving SMBs. In 2025, SMB demand for integrated technology solutions continues to grow as SMBs adapt their business and service model to facilitate remote working and virtual interactions.

Current wording

Our expertise in delivering solutions for our client base is rooted in our deep history of serving SMBs. In 2026, SMB demand for integrated technology solutions continues to grow as SMBs adapt their business and service models to facilitate remote working and virtual interactions.

Previous wording

We serve approximately 250,000 SMB clients globally through two business segments: SaaS and Marketing Services.

Current wording

We serve approximately 220,000 SMB clients globally through two business segments: SaaS and Marketing Services.

Previous wording

•Keap® is Thryv's sales and marketing automation engine that helps SMBs to efficiently grow by automating repetitive tasks, campaigns, and processes, including customer relationship management, using automation tools and AI.

Current wording

Core Platform Offerings. The core offerings of our Thryv Platform include Thryv Marketing Center and Keap®. Thryv Marketing Center contains everything an SMB owner needs to effectively market and grow their business, including easy to understand, artificial intelligence (“AI”) driven analytics and lead attribution that help them understand which marketing efforts are delivering results. Keap® is our customer relationship management (“CRM”) and automation engine that helps SMBs efficiently grow by automating repetitive tasks, campaigns, and processes, using automation tools and AI.

Previous wording

•Thryv Add-Ons include AI-assisted website development, search engine optimization tools, Google Business Profile optimization, Hub by Thryv SM, Thryv Leads®, growth packages, and social media services. These optional platform subscription-based add-ons provide a seamless user experience for our end-users and drive higher engagement within the Thryv Platform while also producing incremental revenue growth.

Current wording

Extensions. The Thryv Platform supports extensions and integrations that allow customers to tailor the platform to their specific business needs. Our extension offerings include Thryv Leads®, growth packages, SEO tools, and website creation and management tools. These optional platform add-ons provide a seamless user experience for our end-users and drive higher engagement within the Thryv Platform while also producing incremental revenue growth.

Previous wording

•ThryvPay® and KeapPay are our own branded payment solutions that allow users to get paid via credit card and ACH and are tailored to service-focused businesses that want to provide consumers safe, contactless, and fast online payment options.

Current wording

Payment Solutions. ThryvPay® and KeapPay are our own branded payment solutions that allow users to get paid via credit card and ACH and are tailored to service-based businesses that want to provide consumers with safe, contactless, and fast online payment options.

Previous wording

Marketing Services. Our Marketing Services segment provides both print and digital solutions and generated$85.7 million and$92.8 million of consolidated revenues for the three months ended September 30, 2025 and 2024, respectively, and $251.4 million and $398.4 million of consolidated revenue for the nine months ended September 30, 2025 and 2024, respectively. Our Marketing Services offerings include our owned and operated Print Yellow Pages (“Print”), which carry the “The Real Yellow Pages” tagline, our proprietary Internet Yellow Pages, known by the Yellowpages.com,

Current wording

Our Marketing Services segment provides both print and digital solutions and generated $50.9 million and $70.2 million of consolidated revenues for the three months ended March 31, 2026 and 2025, respectively.

Previous wording

Superpages.com, and Dexknows.com URLs, search engine marketing solutions and other digital media solutions, which include online display and social advertising, and online presence (collectively referred to as“Digital”). During the third quarter of 2024, we made a strategic decision to terminate our Marketing Services solutions by the end of 2028.

Current wording

During the year ended December 31, 2024, we made a strategic decision to terminate our Marketing Services solutions by the end of 2028.

Previous wording

During the fourth quarter of 2023, we made a strategic decision to accelerate the transition of clients with Digital marketing services solutions to our Thryv Platform by converting certain Marketing Services products to the Thryv Platform through upgrades initiated for clients by Thryv outside of the sales process at no additional base cost to these clients at the time of upgrade.

Current wording

During the fourth quarter of 2023, we made a strategic decision to accelerate the transition of clients with Digital marketing services solutions to our Thryv Platform by converting certain Marketing Services products for customers to the Thryv Platform by initiating upgrades for clients outside of the sales process at no additional base cost to these clients at the time of upgrade. The cost of bringing these clients into SaaS products is generally lower than the cost of acquiring a new SaaS customer or selling a SaaS product to an existing Marketing Services customer because the Company does not pay commissions to sales personnel for upgrades that Thryv initiates for customers outside of the sales process.

Previous wording

During the twelve months ended September 30, 2025, we converted approximately 16,000 clients with Digital marketing services products to our Thryv Platform who were not already SaaS clients at the time of conversion. As of September 30, 2025, approximately 13,000 of these clients remained as SaaS clients. The conversion of these Marketing Services clients increased SaaS revenue by $4.6 million and$12.6 million during the three and nine months ended September 30, 2025, respectively.

Current wording

During the twelve months ended March 31, 2026, we converted approximately 8,000 clients with Digital marketing services products to our Thryv Platform who were not already SaaS clients at the time of conversion. As of March 31, 2026, approximately 6,000 of these clients remained as SaaS clients. The conversion of these Marketing Services clients increased SaaS revenue by $3.3 million during the three months ended March 31, 2026.

Previous wording

Additionally, during the twelve months ended September 30, 2025, we converted Digital marketing services products to our Thryv Platform for approximately 9,000 clients who already had at least one SaaS product in our Thryv Platform at the time of conversion. The conversion of these Marketing Services clients increased SaaS revenue by $3.8 million and $9.3 million during the three and nine months ended September 30, 2025, respectively.

Current wording

Additionally, during the twelve months ended March 31, 2026, we converted Digital marketing services products to our Thryv Platform for approximately 10,000 clients who already had at least one SaaS product in our Thryv Platform at the time of conversion. The conversion of these Marketing Services clients increased SaaS revenue by $2.8 million during the three months ended March 31, 2026.

Previous wording

The conversion of Marketing Services products for clients who were not already SaaS clients at the time of conversion decreases the number of clients in the Marketing Services segment and increases the number of clients in the SaaS segment. The conversion of products for Marketing Services clients (whether or not those clients had SaaS solutions prior to the conversion) decreases the revenue of the Marketing Services segment and increases the revenue of the SaaS segment. While we believe the conversions initiated for clients by Thryv provides valuable upgrades from Digital marketing services to our Thryv Platform and that converted clients will be more likely to subscribe for additional features of the Thryv Platform in the future, Thryv's conversion of products for these clients outside of the traditional sales process could result in these clients cancelling their services with us (known as “churn”) at a materially higher rate than the other clients in our SaaS segment. During 2024 and the nine months ended September 30, 2025, the churn of clients converted by Thryv from our Digital marketing services solutions to our Thryv Platform was in line with the churn from the other clients in our SaaS segment.

Current wording

The conversion of Marketing Services products for clients who were not already SaaS clients at the time of conversion decreases the number of clients in the Marketing Services segment and increases the number of clients in the SaaS segment. The conversion of products for Marketing Services clients (whether or not those clients had SaaS solutions prior to the conversion) decreases the revenue of the Marketing Services segment and increases the revenue of the SaaS segment. While we believe the conversions initiated for clients by Thryv provide valuable upgrades from Digital marketing services to our Thryv Platform and that converted clients are likely to subscribe to additional features of the Thryv Platform in the future, Thryv's conversion of products for these clients outside of the traditional sales process could result in these clients cancelling their services with us (known as “churn”) at a materially higher rate than the other clients in our SaaS segment. During the three months ended March 31, 2026, the churn of clients converted by Thryv from our Digital marketing services solutions to our Thryv Platform was in line with the churn from the other clients in our SaaS segment.

Previous wording

Our revenue growth is driven by our ability to attract, convert, retain and expand the spend of SMB clients. To do so, we must deliver solutions that address the challenges currently faced by SMBs at a value-based price point that SMBs can afford.

Current wording

Our revenue growth is driven by our ability to attract, retain and expand the spend of SMB clients. To do so, we must deliver solutions that address the challenges currently faced by SMBs at a value-based price point that SMBs can afford.

Previous wording

Our strategy is to expand the use of our SaaS solutions by introducing our SaaS solutions to new SMB clients, as well as converting our current Marketing Services clients to our Thryv Platform and offering our SaaS client base additional SaaS solutions. This strategy includes capitalizing on the increased needs of SMBs for solutions that facilitate a remote working environment and virtual interactions. This strategy will require substantial sales and marketing capital as well as capital to support conversions. This strategy poses a risk if our Marketing Services clients do not fully embrace the transition to SaaS offerings by purchasing additional SaaS offerings or if they have higher churn rates.

Current wording

Our strategy is to expand the use of our SaaS solutions by introducing our SaaS solutions to new SMB clients, as well as our current Marketing Services clients and our existing SaaS client base, offering them additional SaaS solutions. This strategy includes capitalizing on the increased needs of SMBs for solutions that facilitate a remote working environment and virtual interactions. This strategy will require substantial sales and marketing capital. This strategy poses a risk if our Marketing Services clients do not fully embrace the transition to SaaS offerings by purchasing additional SaaS offerings or if they have higher churn rates.

Previous wording

We intend to continue to develop and grow a profitable SaaS segment to better help SMBs manage their businesses, while maintaining strong profitability within our Marketing Services segment, which we expect to continue to serve as an efficient customer acquisition channel for our SaaS platform until its termination in 2028. As a result, SaaS has been able to achieve profitable growth. We will continue to improve our SaaS solutions by analyzing user behavior, expanding features, improving usability, enhancing our onboarding services and customer support and making version updates available to SMBs. We believe these initiatives will ultimately drive revenue growth; however, such improvements will also increase our operating expenses.

Current wording

We intend to continue to develop and grow a profitable SaaS segment to better help SMBs manage their businesses, while maintaining strong profitability within our Marketing Services segment. As a result, SaaS has been able to achieve profitable growth. We will continue to improve our SaaS solutions by analyzing user behavior, expanding features, improving usability, enhancing our onboarding services and customer support and making version updates available to SMBs. We believe these initiatives will ultimately drive revenue growth; however, such improvements will also increase our operating expenses.

Previous wording

We recognize revenue for print services at a point in time upon delivery of the published PYP directories containing customer advertisements to the intended market. Our PYP directories typically have 12-month publication cycles in Australia, 18-month publication cycles in New Zealand, and 18 to 24-month publication cycles in the U.S. As a result, we typically record revenue for each publication only once every 12 to 24 months, depending on the publication cycle of the directory. The amount of revenue we recognize each quarter from our PYP directories is therefore directly related to the number of PYP directories we deliver to the intended market each quarter, which can vary based on the timing of the publication cycles.

Current wording

We recognize revenue for print services at a point in time upon delivery of the published PYP directories containing customer advertisements to the intended market. Our PYP directories typically have 12-month publication cycles in Australia, 18-month publication cycles in New Zealand, and 18 to 24-month publication cycles in the U.S., with the majority on a 24-month publication cycle. As a result, we typically record revenue for each publication only once every 12 to 24 months, depending on the publication cycle of the directory. The amount of revenue we recognize each quarter from our PYP directories is therefore directly related to the number of PYP directories we deliver to the intended market each quarter, which can vary based on the timing of the publication cycles.

Previous wording

Marketing Services clients decreased by 63 thousand, or 25%, as of September 30, 2025 as compared to September 30, 2024. This decrease was primarily related to the secular decline in the print media industry, significant competition in the digital media space, and from our strategic decision to accelerate the conversion of clients from Digital marketing services solutions to SaaS offerings.

Current wording

Marketing Services clients decreased by 58 thousand, or 26%, as of March 31, 2026 as compared to March 31, 2025. This decrease was related to the secular decline in the print media industry and significant competition in the digital media space, from focusing on offering our SaaS solutions to our current Marketing Services clients, including by initiating conversions of our Digital marketing services products to SaaS products for clients.

Previous wording

Total clients decreased by 46 thousand, or 16%, as of September 30, 2025 as compared to September 30, 2024. The primary driver of this decrease was the secular decline in the print media business combined with increasing competition in the digital media and SaaS space, partially offset by an increase in SaaS clients resulting from the Keap Acquisition.

Current wording

Total clients decreased by 61 thousand, or 22%, as of March 31, 2026 as compared to March 31, 2025. The primary driver of this decrease was the secular decline in the print media business combined with increasing competition in the digital media and SaaS space and the more recent focus on growing SaaS client spend and reduced emphasis on client acquisition.

Previous wording

Monthly ARPU for Marketing Services decreased by $20, or 16%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, anddecreased by $27, or 20%, for thenine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease in ARPU for these periods was related to reduced spend by clients on our print media offerings due to the secular decline of the industry, caused by the continuing shift of advertising spend to larger digital media audiences, and our strategic decision to accelerate the conversion of clients from Digital marketing services solutions to SaaS offerings.

Current wording

Monthly ARPU for Marketing Services decreased by $10, or 9%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease in ARPU for these periods was related to reduced spend by clients on our print media offerings due to the secular decline of the industry, by the continuing shift of advertising spend to larger digital media audiences, and our strategic decision to accelerate the conversion of clients from Digital marketing services solutions to SaaS offerings.

Previous wording

Monthly ARPU for SaaS increased by $58, or 19%, during the three months ended September 30, 2025 compared to the three months ended September 30, 2024, andincreased by$17, or 5%, for thenine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase in ARPU for the three and nine months ended September 30, 2025 was driven by the sale of additional SaaS offerings to existing SaaS clients, the growth of the average spend of new SaaS clients, price increases implemented in the third quarter of 2024 and the second quarter of 2025, and the Keap acquisition during the fourth quarter of 2024 which added clients with a higher average ARPU. This was partially offset by the conversion of clients from lower ARPU Digital marketing services solutions to our SaaS offerings at no additional cost to the client at the time of upgrade.

Current wording

Monthly ARPU for SaaS increased by $43, or 13%, during the three months ended March 31, 2026 compared to the three months ended March 31, 2025, driven by the sale of additional SaaS offerings to existing SaaS clients, the growth of the average spend of new SaaS clients, and price increases implemented in the second quarter of 2025. This was partially offset by the conversion of clients from lower ARPU Digital marketing services solutions to our SaaS offerings at no additional cost to the client at the time of upgrade.

Previous wording

We believe that Seasoned Net Revenue Retention (“Seasoned NRR”) is an indicator of our ability to retain and expand revenue for established clients that have had one or more SaaS offerings for at least a year. Seasoned NRR is calculated by dividing the revenue of all SaaS clients during the last month of the year or quarter, as applicable, by the same clients' revenue one year ago. Seasoned NRR excludes clients acquired over the previous 12 months, which includes clients acquired in the Keap Acquisition. Revenue added to the SaaS segment as a result of the conversion of a Marketing Services product to a SaaS product is included in the calculation of Seasoned NRR for any client who, at the time Thryv converted a Marketing Services product to a SaaS product for that client, already had at least one SaaS product for at least one year. The revenue associated with the products upgraded by Thryv to SaaS for these clients increases SaaS revenue and Seasoned NRR at the time of conversion.

Current wording

We believe that Seasoned Net Revenue Retention (“Seasoned NRR”) is an indicator of our ability to retain and expand revenue for established clients. Seasoned NRR is calculated by dividing the revenue of all clients that have had one or more SaaS offerings for at least two years by the same clients' revenue one year ago. For each reporting quarter, the weighted-average monthly NRR from all the months in the quarter are reported. The Seasoned NRR calculation excludes clients acquired in the acquisition of Keap.

Previous wording

Seasoned NRR decreased by 700 basis points from 101% as of September 30, 2024 to 94% as of September 30, 2025. The decrease in Seasoned NRR resulted primarily from a decrease in revenue associated with cancellations by clients of SaaS products held for at least one year outpacing the combination of Thryv up-selling clients who had a SaaS product for at least one year, Thryv's conversion of marketing services products for clients who, at the time of conversion, already had at least one SaaS product at least one year, and the amount of revenue that became seasoned for purposes of Thryv's seasoned NRR calculation during thethree months ended September 30, 2025.

Current wording

Seasoned NRR decreased from 99% for thethree months ended March 31, 2025 to 93% for thethree months ended March 31, 2026. The decrease in Seasoned NRR resulted primarily from a decrease in revenue associated with downgrades and cancellations by clients of SaaS products held for at least two years outpacing the combination of Thryv up-selling clients who had a SaaS product for at least two years and Thryv's conversion of marketing services products for clients who, at the time of conversion, already had at least one SaaS product for at least two years.

Previous wording

General and administrative expense primarily consists of salaries, benefits and stock-based compensation incurred by corporate management and administrative functions such as information technology, finance and accounting, legal, internal audit, human resources, billing and receivables, and management personnel. In addition, General and administrative expense includes bad debt expense, non-recurring charges, and other corporate expenses such as professional fees, operating taxes, and insurance. General and administrative expense also includes allocated overhead costs which include depreciation of fixed assets and amortization associated with capitalized software and intangible assets.

Current wording

General and administrative expense primarily consists of salaries, benefits and stock-based compensation incurred by corporate management and administrative functions such as information technology, finance and accounting, legal, internal audit, human resources, billing and receivables, and management personnel. In addition, General and administrative expense includes bad debt expense, non-recurring charges, and other corporate expenses such as professional fees, operating taxes, and insurance. General and administrative expense also includes allocated overhead costs which includes depreciation of fixed assets, and amortization associated with capitalized software and intangible assets.

Previous wording

Other income (expense) consists of interest expense, net periodic pension cost, and other expense, which primarily includes foreign currency-related income and expense.

Current wording

Other income (expense) consists of interest expense, net periodic pension (cost) benefit, and other income, which includes foreign currency-related income and expense.

Previous wording

The following table sets forth certain consolidated financial data for each of the periods indicated:

Current wording

The following table presents certain consolidated financial data for each of the periods indicated:

Previous wording

Revenue increased by $21.7 million, or 12.1%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was driven by an increase in SaaS revenue of $28.8 million partially offset by a decrease in Marketing Services revenue of $7.1 million.

Current wording

Revenue decreased by $13.7 million, or 7.5%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was driven by a decrease in Marketing Services revenue of $19.3 million, partially offset by an increase in SaaS revenue of $5.6 million.

Previous wording

SaaS revenue increased by $102.9 million, or 43.0%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The increase was primarily attributable to the acquisition of Keap, new sales, client expansion, price increases, and the Company’s strategic decision during the fourth quarter of 2023 to accelerate the conversion of clients from its Digital marketing services solutions to its SaaS offerings. Of the$102.9 million SaaS revenue increase, (i)Keap contributed $53.4 million, (ii) the conversion of Digital marketing services products for clients to SaaS products during the first nine months of 2025 contributed $12.0 million, and (iii) new sales, client expansion, and product price increases during the first nine months of 2025 contributed $26.7 million. Finally, SaaS revenue increased $10.8 million due to net revenue changes associated with products sold or converted prior to January 1, 2025, including net expanded revenue from converted products.

Current wording

SaaS revenue increased by $5.6 million, or 5.0%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily attributable to new sales, client expansion, and the Company’s conversion of clients from its Digital marketing services solutions to its SaaS offerings. Of the $5.6 million SaaS revenue increase, the conversion of Digital marketing services products for clients to SaaS products during the first three months of 2026 contributed $0.3 million and new sales and client expansion during the first three months of 2026 contributed $3.2 million. Finally, SaaS revenue increased $2.1 million due to net revenue changes associated with products sold or converted prior to January 1, 2026.

Previous wording

Print revenue increased by $18.4 million, or 41.8%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This increase in Print revenue was primarily driven by the impact of publication timing differences of our U.S. directories, as a result of our Print agreements having greater than 12-month terms, partially offset by the continued secular decline in U.S. and international industry demand for Print services.

Current wording

Print revenue decreased by $4.1 million, or 10.9%, to $33.6 million for the three months ended March 31, 2026 compared to $37.7 million for the three months ended March 31, 2025. The decrease in Print revenue was primarily driven by the continued secular decline in U.S. and international industry demand for Print services, partially offset by the impact of publication timing differences of our U.S. directories, as a result of our Print agreements having greater than 12-month terms.

Previous wording

Print revenue is recognized upon delivery of the published directories. Individual published directories have different publication cycles, with a typical lifecycle of 24 months for U.S. directories in 2025. During the fourth quarter of 2024, we began to transition from 18-month publication cycles to 24-month publication cycles for U.S. directories. As a result of recognizing revenue upon delivery, we typically record revenue for each published U.S. directory only once every 24 months, which does not make comparing revenue year-over-year fully representative of actual demand trends due to timing of publication cycles. Due to publication timing differences, the Company recognized revenue for fewer published directories during the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024.

Current wording

Print revenue is recognized upon delivery of the published directories. Individual published directories have different publication cycles, with a typical lifecycle of 24 months for U.S. directories in 2026. As a result of recognizing revenue upon delivery, we typically record revenue for each published U.S. directory only once every 24 months, which does not make comparing revenue year-over-year fully representative of actual demand trends due to timing of publication cycles. Due to publication timing differences, the Company recognized revenue for fewer published directories during the three months ended March 31, 2026 compared to the three months ended March 31, 2025.

Previous wording

On a publication-by-publication basis, the increase in average publication cycles from 18 months to 24 months results in an average revenue increase of 23% per published directory compared to the last time the directory was published. However, when adjusting the published directory’s revenue on a monthly basis, that is the published directory’s revenue divided by the number of months of the published lifecycle, the average revenue per published directory decreased by 32% compared to the last time the directory was published. The net impact on revenue per published directory was a 9% decline for the directories published during thethree months ended September 30, 2025. This net decline per directory was the result of the secular decline in industry demand for Print services.

Current wording

During the fourth quarter of 2024, we began to transition our U.S. directories from 18-month publication cycles to 24-month publication cycles. On a publication-by-publication basis, the increase in average publication cycles from 18 months to 24 months results in an average revenue increase of 22% per directory published during the three months ended March 31, 2026 compared to the last time the directory was published. However, when adjusting the published directory’s revenue on a monthly basis, that is the published directory’s revenue divided by the number of months of the published lifecycle, the average revenue per published directory decreased by 35% compared to the last time the directory was published. The net impact on revenue per published directory was a 13% decline for the directories published during the three months ended March 31, 2026. This net decline per directory was the result of the secular decline in industry demand for Print services.

Previous wording

Digital marketing services revenue decreased by $102.9 million, or 55.1%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease was driven in large part by the Company’s strategic decision during the fourth quarter of 2023 to accelerate the conversion of Digital marketing services products for its clients to SaaS offerings. For thenine months ended September 30, 2025, Thryv's conversion of Digital marketing services products for clients to SaaS offerings prior to January 1, 2025 reduced Marketing Services revenue by $9.8 million, and Thryv's conversion of Digital marketing services products for clients to SaaS products since January 1, 2025 reduced Marketing Services revenue by an additional $12.0 million. Digital revenue has further decreased due to a continued trending decline in the Company's Marketing Services client base and significant competition in the consumer search and display space, particularly from large, well-capitalized businesses such as Google, Yelp, and Facebook. For the nine months ended September 30, 2025, the continued trending decline and significant competition resulted in a $81.1 million decrease in digital revenue.

Current wording

Digital revenue decreased by $15.2 million, or 46.6%, to $17.4 million for the three months ended March 31, 2026 compared to $32.5 million for the three months ended March 31, 2025. The decrease was driven in large part by the Company’s strategic decision during the fourth quarter of 2023 to accelerate the conversion of Digital marketing services products for clients to SaaS offerings. For the three months ended March 31, 2026, Thryv's conversion of Digital marketing services products for clients to SaaS offerings prior to January 1, 2026 reduced Marketing Services revenue by $5.8 million, and Thryv's conversion of Digital marketing services products to SaaS products since January 1, 2026 reduced Marketing Services revenues by an additional $0.3 million. Digital revenue has further decreased due to a continued trending decline in the Company’s Marketing Services client base and significant competition in the consumer search and display space, particularly from large, well-capitalized businesses such as Google, Yelp and Facebook. For the three months ended March 31, 2026, the continued trending decline and significant competition resulted in a $9.1 million decrease in Digital revenue.

Previous wording

Cost of services decreased by $2.8 million, or 4.1%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. This decrease was primarily driven by strategic cost saving initiatives. Specifically, we reduced employee-related expenses by $1.6 million and contract services expense by $0.8 million. Additionally, depreciation and amortization expense decreased by $1.0 million due to the accelerated amortization method used by the Company. These decreases were partially offset by increases in printing, distribution, digital and fulfillment costs of $0.7 million.

Current wording

Cost of services decreased by $3.7 million, or 5.9%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. This decrease was primarily driven by a corresponding decline in revenue and strategic cost saving initiatives. Specifically, we reduced contract services expense by $3.9 million, employee-related expenses by $1.6 million, and printing and distribution costs by $0.8 million. Additionally, depreciation and amortization expense decreased by $0.6 million due to the accelerated amortization method used by the Company. These decreases were partially offset by an increase in traffic expenses of $2.9 million.

Previous wording

Gross profit decreased by $11.8 million, or 2.9%, for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024. The decrease in Gross profit was primarily due to a decrease in Marketing Services revenue, partially offset by an increase in SaaS revenue and a decrease in Cost of services as a result of a decline in total revenue and strategic cost saving initiatives.

Current wording

Gross profit decreased by $10.0 million, or 8.4%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease in Gross profit was primarily due to a decrease in Marketing Services revenue, partially offset by an increase in SaaS revenue and a decrease in Cost of services as a result of a decline in total revenue and strategic cost saving initiatives.

Previous wording

Our gross margin increased to 67.7% for the three months ended September 30, 2025 compared to 62.3% for the three months ended September 30, 2024. Gross margin from our SaaS segment increased to 71.1% for the three months ended September 30, 2025, compared to 69.6% for the three months ended September 30, 2024 as a result of an increase in revenue and strategic cost savings initiatives. Gross margin from our Marketing Services segment increased to 63.1% for the three months ended September 30, 2025, compared to 55.4% for the three months ended September 30, 2024 as a result of strategic cost savings initiatives.

Current wording

Our gross margin decreased to 65.2% for the three months ended March 31, 2026 compared to 65.8% for the three months ended March 31, 2025. Gross margin from our SaaS segment decreased to 64.8% for the three months ended March 31, 2026, compared to 70.9% for the three months ended March 31, 2025. Gross margin from our Marketing Services segment increased to 66.0% for the three months ended March 31, 2026, compared to 57.7% for the three months ended March 31, 2025. The decrease in SaaS gross margin and the increase in Marketing Services gross margin was primarily due to the conversion of Digital marketing services solutions to our Thryv Platform throughout 2025 and 2026 that carry lower margins than our existing SaaS products and were converted by Thryv at no additional base cost at the time of conversion.

Previous wording

Sales and marketing expense increased by $1.9 million, or 2.9%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase was primarily due to an increase in employee-related expenses of $4.1 million, an increase in marketing and advertising expenses of $1.7 million, and an increase in contract services expense of $1.8 million. These increases were partially offset by a decrease in sales commissions of $5.1 million, a decrease in depreciation and amortization expense of $1.0 million due to the accelerated amortization method used by the Company, and a decrease in stock-based compensation of $0.3 million.

Current wording

Sales and marketing expense decreased by $11.9 million, or 19.9%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a decrease in sales commissions of $4.3 million, a decrease in employee-related expenses of $3.2 million, a decrease in marketing and advertising expenses of $1.5 million, a decrease in stock-based compensation expense of $1.2 million, and a decrease in depreciation and amortization expense of $0.9 million due to the accelerated amortization method used by the Company.

Previous wording

General and administrative expense decreased by $3.0 million, or 5.8%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The decrease was primarily attributable to a decrease in transaction costs of $1.5 million, a decrease in employee-related expenses of $1.3 million, and a decrease in depreciation and amortization expense of $0.9 million due to the accelerated amortization method used by the Company. These decreases were partially offset by an increase in contract services expense of $1.1 million.

Current wording

General and administrative expense decreased by $6.5 million, or 12.3%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily attributable to a decrease in employee-related expenses of $2.2 million, a decrease in stock-based compensation expense of $1.9 million, a decrease in software expense of $1.1 million, and a decrease in depreciation and amortization expense of $0.5 million due to the accelerated amortization method used by the Company. These decreases were partially offset by an increase in restructuring and integration expenses of $1.4 million, primarily driven by an increase in post-acquisition and integration expenses of $1.0 million.

Previous wording

Interest expense decreased by $2.9 million, or 25.4%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024, driven primarily by lower outstanding debt balances.

Current wording

Interest expense decreased by $2.5 million, or 27.2%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025, driven primarily by lower outstanding debt balances.

Previous wording

Net periodic pension cost decreased by $0.9 million for the three months ended September 30, 2025. This decrease was primarily due to an increase in expected return on plan assets of$0.7 million.

Current wording

Net periodic pension cost decreased by $0.4 million for the three months ended March 31, 2026. This decrease was primarily due to decrease in interest cost of$1.0 million, partially offseta decrease in expected return on plan assets of$0.6 million.

Previous wording

Other income increased by $0.5 million for the three months ended September 30, 2025. This increase was primarily due to an increase in foreign-currency related gain.

Current wording

Other income increased by $1.0 million for the three months ended March 31, 2026 due to an increase in foreign-currency related gain.

Previous wording

The Company's effective tax rate (“ETR”) was 50.7% and 5.3% for the three months ended September 30, 2025 and 2024, respectively. The Company's ETR differs from the U.S. Federal statutory rate of 21% primarily due to permanent differences, including state taxes, non-deductible executive compensation, non-U.S. taxing jurisdictions, tax credits, minimum taxes, change in valuation allowance due to expiring net operating losses, and the discrete impact of interest accrual on uncertain tax positions.

Current wording

The Company's effective tax rate (“ETR”) was 410.8% and 23.0% for the three months ended March 31, 2026 and 2025, respectively. The Company's ETR differs from the U.S. Federal statutory rate of 21% primarily due to permanent differences, including state taxes, non-deductible executive compensation, non-U.S. taxing jurisdictions, tax credits, minimum taxes, changes in valuation allowance due to expiring net operating losses, and the discrete impact of interest accrual on uncertain tax positions.

Previous wording

Adjusted EBITDA increased by $21.2 million, or 108.1%, for the three months ended September 30, 2025 compared to the three months ended September 30, 2024. The increase in Adjusted EBITDA was primarily driven by the increase in sales of our higher margin SaaS solutions. See “Non-GAAP Financial Measures” for a definition of Adjusted EBITDA and a reconciliation to Net income (loss), the most directly comparable measure presented in accordance with GAAP.

Current wording

Adjusted EBITDA increased by $3.2 million, or 15.1%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase in Adjusted EBITDA was primarily attributable to our Marketing Services segment as a result of cost savings initiatives. See “Non-GAAP Financial Measures” for a definition of Adjusted EBITDA and a reconciliation to Net income (loss), the most directly comparable measure presented in accordance with GAAP.