Thinkific Labs (THNC) AI Stock Analysis

• Market Cap: C$165.90M
• Dividend Yield: N/A
• Average Volume (3M): 11.65K
• Price to Earnings (P/E): 100.5
• Beta (1Y): 0.79
• Revenue Growth: 16.58%
• EPS Growth: N/A
• Country: CA
• Employees: 275
• Sector: Technology
• Sector Strength: 82
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 67,992,455
• 10 Day Avg. Volume: 11,520
• 30 Day Avg. Volume: 11,647
• PEG Ratio: 18.63
• Price to Book (P/B): 4.36
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.67
• 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: 38.52% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 49 Neutral
• Price Target: C$2.50 ▲(2.46%Upside)

Thinkific Labs' overall score is impacted by high operational costs and valuation concerns, despite strong revenue growth and cash flow improvements. The technical analysis indicates neutral to bearish trends, and the stock's high P/E ratio suggests overvaluation. Positive corporate events are acknowledged but not scored separately due to overlap with financial performance.

Positive Factors

Payments Expansion

Commerce penetration expanded to 52% of GMV, up from 47% in Q3/24.

Strategic Focus

Thinkific Labs is shifting its focus upmarket towards larger, more-established customers, which may ultimately drive better revenue growth and profitability.

Valuation

There is limited downside to the share price given Thinkific Labs' depressed EV/sales valuation and its ability to generate positive free cash flow.

Negative Factors

Guidance

Q1/25 guidance was below consensus, reflecting a potential short-term impact due to the company's strategic transition.

Subscription Revenue

A more constructive view requires seeing stronger growth in Thinkific Labs' subscription revenue.

Thinkific Labs Business Overview & Revenue Model

Company Description

Thinkific Labs (THNC) is a leading technology company that provides a powerful platform for creating, marketing, and selling online courses. Serving a diverse range of entrepreneurs, educators, and businesses, Thinkific's core offerings enable users to build customized learning experiences with ease and efficiency. Operating in the e-learning and educational technology sector, the company empowers individuals and organizations to transform their expertise into scalable online courses, memberships, and communities.

How the Company Makes Money

Thinkific Labs generates revenue primarily through a subscription-based model, offering various pricing tiers to cater to different user needs and scales. The company provides a free basic plan with limited features, while its premium plans offer advanced functionalities such as custom domains, advanced course pricing options, and enhanced analytics. Additionally, Thinkific earns money through transaction fees on sales made via its platform. Significant partnerships with payment processors and digital marketing tools also contribute to its earnings, enhancing the platform's capabilities and user reach. The company's focus on continuous product innovation and customer support further bolsters its revenue streams by attracting and retaining a broad client base.

Thinkific Labs Financial Statement Overview

Summary

Thinkific Labs displays strong revenue growth and improving cash flow metrics, indicating positive future potential. However, persistent net losses and high operational costs affect profitability. The balance sheet is stable with low leverage, but declining assets and equity suggest challenges 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.

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
45.09M	66.94M	59.05M	51.48M	38.12M	21.07M
	Gross Profit
33.86M	50.31M	44.56M	39.11M	29.21M	16.62M
	EBIT
-36.65M	-2.44M	-13.54M	-30.94M	-24.31M	-1.47M
	EBITDA
-35.80M	-1.06M	-9.26M	-30.44M	-23.63M	-1.19M
	Net Income Common Stockholders
-45.65M	-237.00K	-9.78M	-41.90M	-28.44M	-1.11M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
87.31M	49.49M	86.61M	93.85M	126.05M	9.07M
	Total Assets
97.04M	61.37M	97.79M	102.97M	132.40M	12.94M
	Total Debt
875.00K	1.77M	1.03M	1.96M	875.26K	1.36M
	Net Debt
-86.44M	-47.72M	-85.58M	-91.89M	-125.18M	-7.70M
	Total Liabilities
18.20M	19.77M	15.85M	15.12M	10.79M	7.63M
	Stockholders Equity
78.84M	41.59M	81.94M	87.85M	121.61M	5.31M
Cash Flow		Free Cash Flow
-31.95M	6.75M	-5.44M	-27.11M	-18.91M	2.34M
	Operating Cash Flow
-30.32M	6.99M	-5.43M	-25.85M	-18.26M	2.63M
	Investing Cash Flow
-1.63M	-166.00K	53.37K	-1.26M	-655.16K	-289.80K
	Financing Cash Flow
-299.39K	-42.60M	-2.41M	-241.18K	138.26M	3.15M

Thinkific Labs Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.44
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:THNC, the sentiment is Negative. The current price of 2.44 is below the 20-day moving average (MA) of 2.53, below the 50-day MA of 2.85, and below the 200-day MA of 2.99, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 50.57 is Neutral, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:THNC.

Thinkific Labs Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTEX	74 Outperform	$10.21B	11.60	15.87%	3.67%	-8.74%	307.82%
KXS	73 Outperform	C$5.55B	399.07	2.32%	―	15.14%	-31.45%
DCBO	71 Outperform	$1.11B	35.46	41.12%	―	20.52%	246.69%
DSG	71 Outperform	$11.75B	59.30	10.66%	―	17.42%	22.81%
LSPD	63 Neutral	C$2.28B	―	-33.64%	―	23.95%	39.68%
Sector *	62 Neutral	$11.90B	10.64	-7.50%	2.90%	7.41%	-8.19%
THNC	49 Neutral	C$165.90M	100.45	2.02%	―	16.58%	―

Thinkific Labs Corporate Events

Thinkific Announces C$13 Million Secondary Offering and Leadership Transition

Thinkific Labs Inc. announced a secondary offering of approximately C$13 million of shares held by the Rhino Group, with no proceeds going to Thinkific itself. This transaction is designed to provide liquidity to Rhino Group’s investors, while maintaining their significant stake in Thinkific. The offering involves a lock-up agreement for Rhino Group and key Thinkific stakeholders, ensuring stability in shareholding. Additionally, Russ Mann is set to become the board chair, indicating a strategic leadership transition as Thinkific continues its growth trajectory.

The most recent analyst rating on (TSE:THNC) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Thinkific Labs stock, see the TSE:THNC Stock Forecast page.

Thinkific Receives 2025 Top Rated Award from TrustRadius

Thinkific has been honored with the 2025 Top Rated Award from TrustRadius, highlighting its commitment to customer satisfaction through a robust learning commerce platform. This accolade is based on genuine customer reviews and reflects Thinkific’s dedication to empowering learning businesses with user-friendly solutions and excellent customer support. The recognition follows other significant achievements, including placements in G2’s 2025 Best Software Awards and TIME’s top global edtech companies list, reinforcing Thinkific’s strong industry positioning.

The most recent analyst rating on (TSE:THNC) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Thinkific Labs stock, see the TSE:THNC Stock Forecast page.

Thinkific to Engage with Investors at CIBC Conference

Thinkific Labs Inc. announced its participation in the CIBC Technology & Innovation Conference on May 22, 2025, where Founder and CEO Greg Smith will engage in a fireside chat and host meetings with investors. This participation highlights Thinkific’s active engagement with the investment community, potentially enhancing its industry positioning and stakeholder relations.

The most recent analyst rating on (TSE:THNC) stock is a Buy with a C$5.00 price target. To see the full list of analyst forecasts on Thinkific Labs stock, see the TSE:THNC Stock Forecast page.

Thinkific Reports Strong Q1 2025 Financial Results with 12% Revenue Growth

Thinkific Labs Inc. reported a strong start to 2025 with a 12% year-over-year increase in revenue, reaching $17.8 million in the first quarter. The company saw significant growth in its commerce and subscription revenues, attributed to improvements in customer onboarding and a focused strategy. Thinkific’s financial performance was bolstered by a net income of $0.4 million, a notable improvement from the previous year’s loss, and a consistent gross margin of 74%. The company also maintained a robust cash flow from operations, highlighting the resilience of its financial model. Operationally, Thinkific was recognized for its customer service and education software products, and it launched an integration with HubSpot, enhancing its enterprise-grade solutions.

Thinkific Completes Share Conversion to Streamline Equity Structure

Thinkific Labs Inc. has completed a capital reorganization that converts all Multiple Voting Shares into Single Voting Common Shares, which will trade on the Toronto Stock Exchange under the same symbol. This move is expected to streamline the company’s share structure and potentially enhance market perception, impacting stakeholders positively by simplifying the equity framework.

Thinkific Simplifies Share Structure to Enhance Shareholder Value

Thinkific Labs Inc. has announced the conversion of its Multiple Voting Shares into Single Voting Common Shares, effectively eliminating its dual-class share structure. This strategic move aims to align voting rights with economic interests, reflecting the company’s commitment to shareholder equality and governance best practices. The change is expected to enhance shareholder value by increasing public float and liquidity, demonstrating Thinkific’s confidence in its growth trajectory and dedication to maximizing long-term value for shareholders.

Thinkific to Announce Q1 2025 Financial Results

Thinkific Labs Inc. announced it will release its first quarter 2025 financial results on May 6, 2025, after market close. The company will host a conference call and webcast to discuss the financial and operational results, reflecting its ongoing commitment to transparency and engagement with stakeholders.