Thryv Faces Ratings Downgrade as Turnaround Efforts Meet Skepticism

Thryv Holdings US8860292064

Thryv Holdings appears tested at a critical juncture, with its shares skirting multimonth lows as analysts pull back on expectations. The company is aggressively pushing a software-as-a-service pivot to offset a decaying traditional marketing-services business, but investors are questioning whether double-digit SaaS growth will be enough to cushion the headwinds.

• Rating move: Wall Street Zen trims the stance on the stock from Buy to Hold.
• Trading near the floor: Shares sit at $3.62, narrowly above the 52-week trough of $3.51.
• Upcoming results: The company is slated to report Q4 2025 and full-year 2025 figures on February 26, before the market opens.
• Valuation read: A price-earnings ratio of 8.83 suggests a bargain, yet broader operational concerns persist.

The downgrade from Wall Street Zen mirrors growing market caution. The consensus has shifted toward a neutral stance: two Buy recommendations, four Holds, and one Sell.

Although the projected average stock price target sits at $13.00?well above the current level?the appetite for a near-term rebound appears diminished. With a market capitalization around $157.8 million, the equity has retraced significantly from its 52-week high near $21.

Transformation in Focus

Investors are keenly awaiting February 26, just before the open, when Thryv will disclose its fourth-quarter and full-year 2025 results. These numbers are pivotal for assessing the progress of the ongoing corporate restructuring.

Thryv is attempting to supplant its legacy marketing services with a modern SaaS platform. The story is twofold: in Q3 2025, SaaS revenues rose 33% to $115.9 million, while the old segment contracted by 8%. The forthcoming results must demonstrate that the digital upswing is strong enough to permanently offset the losses stemming from the traditional business.

Valuation and Insider Signals

From a fundamental standpoint, the stock looks attractively priced at a P/E of 8.83. However, investors and analysts are prioritizing the risks linked to the company?s transformation and the broader market volatility over the apparent valuation multiple.

There have also been notable insider moves. CEO Joe Walsh sold shares in early February, an action the company characterized as routine sales to satisfy tax obligations tied to vested stock packages.

The February 26 earnings release should provide clarity on operating stability. In particular, guidance for the new fiscal year will be closely watched to gauge how rapidly the SaaS expansion is advancing.