Thinkific Labs (THNC) AI Stock Analysis

• Market Cap: C$133.32M
• Dividend Yield: N/A
• Average Volume (3M): 67.63K
• Price to Earnings (P/E): 357.1
• Beta (1Y): 0.73
• 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: 68,018,070
• 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: 69.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: C$2.00 ▲(0.00% Upside)

The score is primarily supported by improving fundamentals—strong revenue growth, high gross margins, low leverage, and positive TTM operating/free cash flow. Offsetting this are a very expensive valuation (P/E 341) and only mixed technical momentum. Earnings call takeaways are moderately positive, but tempered by slower subscription/ARR growth and longer sales cycles during the upmarket shift.

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 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 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

Strong revenue expansion to $72.1M TTM and robust ~74–76% gross margins support a scalable model. Balance sheet risk is low with very low leverage (debt-to-equity ~0.04). Cash generation has improved with positive TTM operating cash flow ($7.3M) and free cash flow ($7.2M), but operating profitability is still not consistently positive (EBIT/EBITDA modestly negative) and cash flow has shown historical volatility.

Income Statement

Revenue has expanded strongly over time, reaching $72.1M in TTM (Trailing-Twelve-Months) with very high growth versus the prior period, while gross margins remain robust (~74–76%), reflecting a scalable software model. Profitability is improving meaningfully versus 2021–2023 (large losses narrowing to near breakeven), with TTM net income slightly positive. The key weakness is that operating profitability is still not consistently positive (TTM EBIT and EBITDA remain modestly negative), suggesting the business is close—but not yet fully transitioned—to durable operating earnings.

Balance Sheet

The balance sheet is conservatively levered with very low debt relative to equity (debt-to-equity ~0.04 in TTM), which reduces financial risk and supports flexibility. Equity remains sizable, but it has trended down from earlier years, consistent with prior losses. Returns on equity have improved to slightly positive in TTM after being negative in prior years, though the return level is still low—highlighting that profitability is not yet strong enough to consistently compound shareholder capital.

Cash Flow

Cash generation has strengthened materially: TTM operating cash flow ($7.3M) and free cash flow ($7.2M) are solidly positive, a major improvement from the negative cash burn seen in 2021–2023. Free cash flow is closely aligned with net income in TTM, indicating earnings quality is not being driven purely by non-cash items. The main concern is volatility—TTM free cash flow growth is down year over year, and the company’s history shows periods of meaningful cash outflows, which makes consistency the key watch item.

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	82 Outperform	C$9.30B	41.05	10.70%	―	14.55%	15.55%
OTEX	72 Outperform	C$9.35B	13.91	12.32%	3.27%	-5.01%	13.21%
ENGH	69 Neutral	C$1.02B	13.99	12.20%	5.69%	-0.72%	-9.27%
THNC	65 Neutral	C$133.32M	357.14	0.65%	―	14.05%	-62.16%
DCBO	63 Neutral	C$723.26M	25.04	49.99%	―	16.25%	31.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	53 Neutral	C$2.11B	-2.30	-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.

The most recent analyst rating on (TSE:THNC) stock is a Hold with a C$2.00 price target. To see the full list of analyst forecasts on Thinkific Labs stock, see the TSE:THNC Stock Forecast page.

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.

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.

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.

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.