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Thinkific Labs (TSE:THNC)
TSX:THNC
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Thinkific Labs
(TSX:THNC)
Select Model
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Rating:60Neutral
Price Target:
C$2.00
▲(8.11% Upside)
Thinkific Labs' strong revenue growth and improving cash flow are positive indicators, but consistent net losses and high operational costs weigh heavily on profitability. The stock's technical indicators suggest a positive short-term trend, but the high P/E ratio indicates potential overvaluation. The earnings call provided a mixed outlook with strong growth in certain areas but highlighted challenges in others.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial health.
AI Integration
The integration of AI features enhances product offerings, potentially increasing customer engagement and competitive advantage.
Cash Flow Improvement
Improved cash flow management indicates better operational efficiency, providing more resources for strategic investments.
Negative Factors
Net Losses
Ongoing net losses could hinder reinvestment and growth, posing a risk to long-term financial sustainability.
High Operational Costs
High operational costs reduce profitability, potentially limiting the company's ability to scale efficiently.
Longer Sales Cycles
Longer sales cycles may delay revenue realization and require additional resources, impacting cash flow and growth momentum.
Thinkific Labs (THNC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$153.95M
Dividend YieldN/A
Average Volume (3M)67.63K
Price to Earnings (P/E)165.0
Beta (1Y)0.78
Revenue Growth14.05%
EPS Growth-62.16%
CountryCA
Employees275
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)0.01
Shares Outstanding68,119,675
10 Day Avg. Volume52,103
30 Day Avg. Volume67,633
Financial Highlights & Ratios
PEG Ratio6.16
Price to Book (P/B)3.41
Price to Sales (P/S)2.12
P/FCF Ratio21.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$3.38Price Target Upside82.70% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Thinkific Labs Business Overview & Revenue Model
Company DescriptionThinkific Labs Inc. develops, markets, and supports cloud-based platform in Canada, the United States, and internationally. The company's platform enables entrepreneurs and established businesses to create, market, sell, and deliver online courses and other learning products. The company was incorporated in 2012 and is headquartered in Vancouver, Canada.
How the Company Makes MoneyThinkific Labs generates revenue primarily through a subscription-based model, offering various pricing tiers for its platform that cater to different user needs. These tiers include features such as course creation tools, marketing integrations, and advanced analytics, with higher-priced plans providing more extensive capabilities. Additionally, the company earns revenue from transaction fees for course sales made through its platform, as well as from add-on services such as coaching and consulting. Thinkific also engages in strategic partnerships with other educational technology firms and marketing agencies, enabling it to expand its reach and enhance its offerings, further contributing to its revenue streams.
Thinkific Labs Earnings Call Summary
Earnings Call Date:Nov 12, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Neutral
The earnings call highlights strong progress in revenue growth, particularly in the Commerce segment, and positive developments in AI-driven features. However, challenges include slower subscription growth, the need for R&D advancements, and longer sales cycles for larger deals.Q3-2025 Updates
Positive Updates
Strong Q3 Revenue Growth
Q3 revenue was $18.6 million, up 8% year-over-year, exceeding the high end of guidance, driven by stronger-than-expected Commerce revenue and continued EBITDA growth.
AI Teaching Assistant Rollout
The AI Teaching Assistant was rolled out to select customers, receiving strong feedback, with general availability slated for early 2026.
Commerce Revenue Growth
Commerce revenue was $3.4 million, up 23% year-over-year, driven by a penetration rate increase to 61% from 47% the prior year.
Plus Revenue and Customer Engagement
Plus revenue was $4.9 million, up 17% year-over-year, with over half of new deals being multiyear and including price escalators, indicating strong customer commitment.
Sales Pipeline Growth
Sales pipelines have grown significantly year-over-year, with larger enterprise engagements representing six-figure opportunities.
Negative Updates
Challenging Comparisons and Subscription Growth
Subscription revenue growth is muted due to tough year-over-year comparisons and disruption in the sales team, with ARR growth below levels needed to accelerate.
R&D and Product Development Needs
Significant work is required in R&D and product development to meet the needs of upmarket customers and capitalize on growth opportunities.
Self Serve Revenue Challenges
Self Serve revenue growth is expected to be muted due to reduced investment in customer acquisition for smaller, less profitable customers.
Longer Sales Cycles
The shift towards larger, more complex customers results in longer sales cycles, requiring development of new capabilities to navigate procurement processes.
Company Guidance
During Thinkific's Third Quarter 2025 Financial Results Conference Call, the company provided guidance for Q4, expecting revenue between $18.4 million and $18.7 million, representing a growth rate of 5% to 6% year-over-year. The call highlighted the strategic shift to focus on upmarket customers, with investments in AI-driven features like the AI Teaching Assistant and improvements to Thinkific Commerce, aiming to attract larger, high-GMV customers. Q3 revenue was reported at $18.6 million, an 8% increase year-over-year, driven by strong Commerce revenue and an adjusted EBITDA of $1.1 million. The company emphasized the potential for Thinkific Commerce to remain a growth driver, with penetration rates expected to plateau next year. The sales pipeline has significantly grown, particularly with larger enterprise engagements, although longer sales cycles are anticipated. The company's R&D efforts are focused on enhancing platform capabilities to support larger customers, with AI playing a central role in creating more engaging and efficient learning experiences.Thinkific Labs Financial Statement Overview
Summary
Thinkific Labs displays strong revenue growth and improving cash flow metrics, which are positive indicators for future potential. However, consistent net losses and high operational costs weigh on profitability. A stable balance sheet with low leverage provides financial stability, but declining assets and equity suggest room for improvement in capital management.Income Statement
Thinkific Labs has shown strong revenue growth over recent years, increasing from $21 million in 2020 to $66 million in 2024, indicating a positive growth trajectory. However, the company consistently reports negative EBIT and net income, which impacts profitability. Gross profit margins are healthy at approximately 75%, but significant operating losses suggest high operational costs.60
Neutral
Balance Sheet
The balance sheet reflects a solid equity base with stockholders' equity at $41.6 million in 2024. The debt-to-equity ratio is low, demonstrating conservative leverage. However, the decline in total assets and equity from 2023 to 2024 suggests potential challenges in asset management and capital retention.55
Neutral
Cash Flow
Thinkific Labs has improved its free cash flow position, turning from negative in 2023 to a positive $6.7 million in 2024, highlighting strong cash flow management. Operating cash flow has also turned positive, although the company previously faced cash flow deficits. This improvement suggests better operational efficiency and cost control.65
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 70.71M | 66.94M | 59.05M | 51.48M | 38.12M | 21.07M |
| Gross Profit | 52.68M | 50.31M | 44.56M | 39.11M | 29.21M | 16.62M |
| EBITDA | -461.00K | -1.06M | -9.26M | -29.75M | -23.63M | -988.96K |
| Net Income | 675.00K | -237.00K | -9.78M | -41.90M | -28.44M | -1.11M |
Balance Sheet | ||||||
| Total Assets | 63.33M | 61.37M | 97.79M | 102.97M | 132.40M | 12.94M |
| Cash, Cash Equivalents and Short-Term Investments | 52.47M | 49.49M | 86.61M | 93.85M | 126.05M | 9.07M |
| Total Debt | 1.66M | 1.77M | 1.03M | 1.96M | 875.26K | 1.36M |
| Total Liabilities | 20.14M | 19.77M | 15.85M | 15.12M | 10.79M | 7.63M |
| Stockholders Equity | 43.19M | 41.59M | 81.94M | 87.85M | 121.61M | 5.31M |
Cash Flow | ||||||
| Free Cash Flow | 9.03M | 6.75M | -5.44M | -27.11M | -18.91M | 2.34M |
| Operating Cash Flow | 9.19M | 6.99M | -5.43M | -25.85M | -18.26M | 2.63M |
| Investing Cash Flow | -152.00K | -166.00K | 53.37K | -1.26M | -655.16K | -289.80K |
| Financing Cash Flow | -4.71M | -42.60M | -2.41M | -241.18K | 138.26M | 3.15M |
Thinkific Labs Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | $11.86B | 17.64 | 12.32% | 2.76% | -5.01% | 13.21% | |
71 Outperform | C$4.72B | 136.84 | 8.24% | ― | 15.11% | 75.40% | |
68 Neutral | $9.86B | 48.59 | 10.54% | ― | 15.63% | 18.47% | |
63 Neutral | $842.51M | 27.72 | 49.99% | ― | 16.25% | 31.71% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | C$153.95M | 164.96 | 0.65% | ― | 14.05% | -62.16% | |
52 Neutral | C$2.15B | -2.48 | -37.01% | ― | 17.23% | -435.45% |
* Technology Sector Average
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Thinkific Labs Corporate Events
Business Operations and StrategyFinancial DisclosuresProduct-Related Announcements
Thinkific Reports Revenue Growth and AI Innovations in Q3 2025
Positive
Nov 12, 2025
Thinkific Labs Inc. reported a revenue increase of 8% year-over-year to $18.6 million for the third quarter of 2025, driven by strong performance in its Commerce segment. The company introduced its AI Teaching Assistant to select customers, with plans for a full launch in early 2026, aiming to enhance learner engagement and support its strategic move upmarket. The financial results, including a positive Adjusted EBITDA of $1.1 million, reflect Thinkific’s focus on long-term growth and value creation for shareholders.
The most recent analyst rating on (TSE:THNC) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Thinkific Labs stock, see the TSE:THNC Stock Forecast page.
Financial Disclosures
Thinkific to Announce Q3 2025 Financial Results
Neutral
Oct 15, 2025
Thinkific Labs Inc. has announced the release date for its third quarter 2025 financial results, which will be disclosed after market close on November 12, 2025. The company will host a conference call and webcast to discuss these results, reflecting its ongoing commitment to transparency and engagement with stakeholders.
The most recent analyst rating on (TSE:THNC) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on Thinkific Labs stock, see the TSE:THNC Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.