Investment Thesis
Thryv faces severe financial distress with an unsustainable debt structure: interest coverage of only 0.3x and negative free cash flow of -$5.5M indicate the company cannot service its $258.6M debt load from operations. Declining revenue (-4.7% YoY) combined with razor-thin operating margins (2.4%) leave insufficient cash generation to support the capital structure.
Strengths
- Strong gross margin of 65.2% indicates core business unit economics are solid
- Substantial asset base of $693.7M provides potential liquidation value
- High gross profit of $109.3M demonstrates underlying service demand despite revenue decline
Risks
- Interest coverage of 0.3x is critically low; operating income cannot cover debt service obligations
- Negative free cash flow of -$5.5M indicates unsustainable cash burn and covenant violation risk
- Debt-to-equity of 1.15x with only $8.0M cash creates severe refinancing and default risk
- Revenue decline of 4.7% YoY with high fixed debt obligations leaves no operational margin for error
Key Metrics to Watch
- Operating cash flow trend and return to positive territory
- Interest coverage ratio and debt covenant compliance status
- Debt refinancing runway and maturity schedule
- Revenue stabilization - current decline is incompatible with leverage level
Financial Metrics
Revenue
167.7M
Net Income
4.5M
EPS (Diluted)
$0.10
Free Cash Flow
-5.5M
Total Assets
693.7M
Cash
8.0M
Profitability Ratios
Gross Margin
65.2%
Operating Margin
2.4%
Net Margin
2.7%
ROE
2.0%
ROA
0.7%
FCF Margin
-3.3%
Balance Sheet & Liquidity
Current Ratio
1.23x
Quick Ratio
1.23x
Debt/Equity
1.15x
Debt/Assets
0.0%
Interest Coverage
0.30x
Long-term Debt
258.6M
Disclaimer: This analysis is generated by AI based on publicly available SEC EDGAR filings.
It does not include stock price data and should not be considered financial advice.
All fundamental data is sourced from SEC public domain filings.
Always conduct your own research before making investment decisions.
Data Source: SEC EDGAR |
Analysis Date: 2026-05-06T19:02:33.138108 |
Data as of: 2026-03-31 |
Powered by Claude AI