Craig-Hallum downgrades Thryv stock rating to Hold on SaaS growth concerns

Investing.com - Craig-Hallum downgraded Thryv Holdings, Inc. (NASDAQ:THRY) from Buy to Hold on Friday, while lowering its price target to $10.00. The stock currently trades at $7.64, having plunged 34.43% in the past week alone, according to InvestingPro data.

The downgrade follows Thryv’s third-quarter 2025 results, which revealed more than 10 percentage points of deceleration in both total SaaS and Organic SaaS revenue growth. The firm noted that Organic SaaS growth slowed dramatically from 25% to 14% in just one quarter. Despite these challenges, InvestingPro data shows analysts expect the company to be profitable this year, with net income projected to grow.

Craig-Hallum attributed the slower growth profile to several factors, including slower progress in integrating Keap, reduced contribution from the channel strategy, and disruption in the company’s Business Center solution.

The research firm expects these headwinds to require a multi-quarter strategic pivot, likely coinciding with the launch of a greenfield customer solution. Analysts project the current trend will culminate in high single-digit growth rates into fiscal year 2026.

Craig-Hallum indicated that Thryv could potentially reaccelerate revenue growth by mid-2026 with broader Marketing Center capabilities, greenfield customer expansion, and reduced downward pressure from Marketing Services.

In other recent news, Thryv Holdings Inc. reported a significant 33% year-over-year increase in its Software as a Service (SaaS) revenue, reaching $115.9 million for the third quarter of 2025. Despite this strong performance in the SaaS segment, Thryv’s third-quarter results were not without challenges, as adjusted EBITDA fell below the company’s guided mid-point. Needham has responded to these results by lowering its price target for Thryv from $20.00 to $14.00, though it maintained a Buy rating. The firm cited concerns over "general poor company execution" and overly optimistic expectations for the Keap business as factors contributing to the underperformance. These developments reflect ongoing concerns despite the company’s robust SaaS growth and strategic innovations. Investors and analysts alike are keeping a close watch on Thryv’s ability to navigate these challenges in the coming quarters.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.