Thinkific Labs (THNC) AI Stock Analysis

• Market Cap: C$120.19M
• Dividend Yield: N/A
• Average Volume (3M): 67.63K
• Price to Earnings (P/E): 325.0
• Beta (1Y): 0.77
• Revenue Growth: 14.05%
• EPS Growth: -62.16%
• Country: CA
• Employees: 275
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 67,904,465
• 10 Day Avg. Volume: 52,103
• 30 Day Avg. Volume: 67,633
• PEG Ratio: 6.16
• Price to Book (P/B): 3.41
• Price to Sales (P/S): 2.12
• P/FCF Ratio: 21.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$3.38
• Price Target Upside: 85.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: C$2.00 ▲(9.89% Upside)

Thinkific Labs' overall score is driven by strong revenue growth and improving cash flow, but is weighed down by high valuation and bearish technical indicators. The strategic focus on AI and upmarket customers is promising, but challenges in subscription growth and longer sales cycles persist.

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 Business Overview & Revenue Model

Company Description

Thinkific Labs (THNC) is a technology company that operates in the e-learning sector, providing a platform for entrepreneurs and businesses to create, market, and sell online courses. Founded in 2012, Thinkific empowers creators with tools to build engaging learning experiences, including customizable course websites, multimedia content support, and student engagement features. The company serves various sectors, including education, professional development, and corporate training, making it a versatile solution for a wide range of users seeking to monetize their knowledge.

How the Company Makes Money

Thinkific 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 Financial Statement Overview

Summary

Thinkific Labs shows strong revenue growth and improving cash flow, but persistent net losses and high operational costs impact profitability. A stable balance sheet with low leverage provides financial stability, though declining assets and equity suggest room for improvement.

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.

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.

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.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	72.08M	66.94M	59.05M	51.48M	38.12M	21.07M
Gross Profit	53.17M	50.31M	44.56M	39.11M	29.21M	16.62M
EBITDA	-323.00K	-1.06M	-9.26M	-29.75M	-23.63M	-988.96K
Net Income	266.00K	-237.00K	-9.78M	-41.90M	-28.44M	-1.11M
Balance Sheet
Total Assets	62.44M	61.37M	97.79M	102.97M	132.40M	12.94M
Cash, Cash Equivalents and Short-Term Investments	51.74M	49.49M	86.61M	93.85M	126.05M	9.07M
Total Debt	1.54M	1.77M	1.03M	1.96M	875.26K	1.36M
Total Liabilities	19.66M	19.77M	15.85M	15.12M	10.79M	7.63M
Stockholders Equity	42.78M	41.59M	81.94M	87.85M	121.61M	5.31M
Cash Flow
Free Cash Flow	7.17M	6.75M	-5.44M	-27.11M	-18.91M	2.34M
Operating Cash Flow	7.33M	6.99M	-5.43M	-25.85M	-18.26M	2.63M
Investing Cash Flow	-169.00K	-166.00K	53.37K	-1.26M	-655.16K	-289.80K
Financing Cash Flow	-5.04M	-42.60M	-2.41M	-241.18K	138.26M	3.15M

Thinkific Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSG	79 Outperform	C$10.54B	49.30	10.70%	―	14.55%	15.55%
KXS	78 Outperform	C$4.90B	102.79	8.24%	―	15.11%	75.40%
OTEX	72 Outperform	C$11.59B	17.25	12.32%	3.24%	-5.01%	13.21%
DCBO	63 Neutral	C$860.03M	28.68	49.99%	―	16.25%	31.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
THNC	56 Neutral	C$120.19M	325.00	0.65%	―	14.05%	-62.16%
LSPD	53 Neutral	C$2.21B	-2.56	-37.01%	―	17.23%	-435.45%

Thinkific Labs Corporate Events

Thinkific Labs Renews Share Buyback Program to Enhance Shareholder Value

Thinkific Labs Inc. has announced the renewal of its Normal Course Issuer Bid (NCIB), allowing the company to repurchase up to 3,395,023 common shares, approximately 5% of its outstanding shares, over the next year. This strategic move is aimed at increasing shareholder value by capitalizing on current market conditions to acquire shares at attractive prices, thereby enhancing liquidity and potentially boosting per-share growth.

Thinkific Reports Revenue Growth and AI Innovations in Q3 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.

Thinkific to Announce Q3 2025 Financial Results

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.