SaaS Transformation and Embedded Tech Drive Q4 MarTech Growth

The final quarter of 2025 has solidified a major structural shift within the MarTech and AdTech landscapes, as established players aggressively pivot from legacy service-based models to high-margin, recurring software-as-a-service (SaaS) ecosystems. This transition is most evident in the performance of Thryv (THRY), which reported a 34.2% increase in full-year SaaS revenue to $461 million. Thryv’s strategy centers on migrating its traditional marketing services client base into its integrated SaaS platform, a move that has seen its Marketing Center product double in revenue over the last year. By intentionally sunsetting its marketing services segment—targeting a full exit by 2028—Thryv is positioning itself as a pure-play software provider for the SMB market, a move that has already yielded a 72.7% adjusted gross margin for its SaaS division.

Parallel to this SaaS evolution is the rise of 'embedded' technology as a primary growth engine. Butterfly Network (BFLY) exemplified this trend with the launch of Butterfly Embedded, which contributed $6.8 million in quarterly revenue, largely driven by a high-profile partnership with Midjourney. This model allows technology providers to integrate their core capabilities directly into third-party platforms, creating a capital-light expansion strategy that scales faster than traditional direct sales. Butterfly’s software and services revenue now accounts for 43% of its total mix, up from 34% a year ago, demonstrating that the future of specialized tech lies in its ability to be woven into broader digital ecosystems.

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This transition is most evident in the performance of Thryv (THRY), which reported a 34.2% increase in full-year SaaS revenue to $461 million.

Financial technology and marketplace providers are also seeing significant tailwinds from this platform-centric approach. Figure (FIGR) reported a staggering 131% year-over-year growth in consumer loan marketplace volume, with 54% of that volume now transacted through its 'Figure Connect' platform. This shift toward a capital-light marketplace model has allowed Figure to expand its partner network to 307 entities, nearly doubling its reach in just six months. Similarly, Payoneer (PAYO) reported that its B2B revenue grew by 28%, now accounting for 30% of its total revenue excluding interest. These figures suggest that the integration of payment and financing tools directly into marketing and business management platforms is becoming a standard requirement for customer retention and ARPU growth.