We came across a bullish thesis on Thryv Holdings, Inc. (THRY) on Substack by Idea Hive. In this article, we will summarize the bulls’ thesis on THRY. Thryv Holdings, Inc. (THRY)’s share was trading at $19.71 as of Feb 11th. THRY’s trailing P/E was 15.31 according to Yahoo Finance.
A marketing manager in a boardroom making decisions about the company’s social media management platform.
Thryv Holdings (THRY) presents a compelling investment opportunity with a classic GoodCo/BadCo setup, where its declining Yellow Pages business has overshadowed the rapid growth and profitability of its SaaS segment. As the transition to a primarily software-driven company nears completion, THRY is poised for a market re-rating that could unlock substantial upside. The legacy Marketing Services segment, contributing 62% of revenues, is in secular decline as businesses move away from print and digital directories. However, this segment has served as an effective customer acquisition channel for THRY’s SaaS business, allowing the company to transition its existing small business clients onto a modern business management platform. Meanwhile, the SaaS segment, representing 38% of revenues, has been growing at over 20% annually, offering SMBs solutions for appointment scheduling, customer relationship management, invoicing, and marketing automation. With a sticky subscription-based model, THRY’s SaaS business provides high recurring revenue and robust margins, making it a significantly higher-quality segment than its legacy business.
The ongoing transformation is expected to culminate this year, with SaaS becoming the dominant revenue driver. By 2028, THRY is projected to be a pure-play SaaS company, marking a complete shift away from the declining Yellow Pages business. Despite this clear trajectory, the market continues to undervalue the company, failing to fully appreciate the potential of its SaaS operations. THRY’s current enterprise value stands at approximately $1.04 billion, and if we attribute zero value to the legacy business, the SaaS segment alone is trading at 12.9x 2025E EBITDA and 2.2x 2025E revenue—multiples that remain undemanding for a high-growth software business. The company has guided for SaaS revenue of $471 million in 2025, supported by organic growth and contributions from the Keap acquisition, while EBITDA is expected to reach $81 million with expanding margins.
Management’s commitment to reinvesting cash flows from the legacy business into SaaS growth further strengthens the investment thesis. The market’s failure to recognize this transformation presents an attractive opportunity, as THRY’s eventual reclassification as a pure SaaS company could drive a substantial rerating. At a conservative valuation of 4x 2025E revenue, the stock could trade at $38+, more than double its current price of $17.67. This asymmetric risk/reward profile makes THRY a compelling long-term investment. With a rapidly improving revenue mix, strong operational momentum, and a market inefficiency that has yet to be corrected, THRY offers investors the chance to capitalize on a mispriced high-growth software company on the verge of a transformation.
Thryv Holdings, Inc. (THRY) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 18 hedge fund portfolios held THRY at the end of the third quarter which was 18 in the previous quarter. While we acknowledge the risk and potential of THRY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than THRY but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article was originally published at Insider Monkey.