Thryv stock rating downgraded to Market Perform by William Blair

Investing.com - William Blair downgraded Thryv Holdings, Inc. (NASDAQ:THRY) from Outperform to Market Perform, citing limited near-term visibility into growth dynamics. The stock has plummeted 41.4% in the past week and is currently trading near its 52-week low of $7.02. According to InvestingPro analysis, Thryv appears undervalued compared to its Fair Value.

The downgrade follows challenging growth dynamics in Thryv’s SaaS business that emerged last quarter, according to William Blair. The firm noted it spent additional time with the company analyzing the various factors affecting performance.

William Blair identified a transition period ahead for Thryv as the company builds its PLG/self-serve customer acquisition motion (Thryv 2.0), which will replace its migration opportunity as the legacy business winds down. Despite these challenges, InvestingPro data shows Thryv remains profitable with a low PEG ratio of 0.16, suggesting it’s trading at a reasonable valuation relative to its growth potential.

Due to this transition, William Blair reduced its 2026 SaaS growth estimates for Thryv to 7%, down from its previous projection of 13%, reflecting limited visibility into when growth might reaccelerate.

While William Blair doesn’t believe Thryv’s long-term story is broken, the firm sees several meaningful changes needed to rejuvenate growth, which may take time to implement, and indicated it would revisit its recommendation as Thryv progresses through this transition. Thryv maintains a healthy current ratio of 1.15, with liquid assets exceeding short-term obligations. For deeper insights into Thryv’s financial health and growth prospects, check out the comprehensive Pro Research Report available on InvestingPro, part of their coverage of over 1,400 US equities.

In other recent news, Thryv Holdings reported strong growth in its Software as a Service (SaaS) segment for the third quarter of 2025, with revenue increasing by 33% year-over-year to $115.9 million. Despite this positive performance, analysts have expressed concerns regarding the company’s growth trajectory. Craig-Hallum downgraded Thryv’s stock rating from Buy to Hold, citing a significant deceleration in SaaS growth, with organic SaaS growth slowing from 25% to 14% in just one quarter. Additionally, Needham maintained a Buy rating but lowered its price target from $20.00 to $14.00, highlighting that the company’s SaaS revenues missed guidance and adjusted EBITDA fell below expectations. Needham attributed these results to what it described as "general poor company execution" and overly optimistic expectations for the Keap business. These developments come amid a broader market reaction that has seen a decline in Thryv’s stock price, despite its robust SaaS performance.

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