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Thinkific Labs
(TSX:THNC)
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Rating:60Neutral
Price Target:
C$1.50
▲(23.97% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by improving—but still inconsistent—financial performance: a meaningful multi-year turnaround with strong gross margins and minimal leverage, offset by slowing revenue growth and a return to modest TTM losses and softer free cash flow. Earnings-call signals reinforce this mixed setup, with clear product/Plus momentum but cautious guidance and near-term margin/EBITDA pressure from AI-driven investment. Technically, momentum is mildly positive short-term but remains weak versus longer-term moving averages, while valuation is constrained by a negative P/E and no dividend yield input.
Positive Factors
High gross margins
Sustained gross margins near 71–76% indicate durable unit economics for Thinkific's SaaS and commerce mix. High gross profit provides structural cushion to absorb R&D and go‑to‑market spending, enabling the company to invest in product (AI, upmarket) while retaining a path to scalable operating profitability over multiple quarters.
Negative Factors
Revenue growth deceleration
Top‑line growth has materially slowed to low single digits TTM, reducing operational leverage and prolonging the timeline to sustained profitability. Persistent revenue deceleration makes it harder to absorb elevated R&D and sales investments and increases the sensitivity of margins to churn, seasonal commerce swings and execution risk.
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Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 71–76% indicate durable unit economics for Thinkific's SaaS and commerce mix. High gross profit provides structural cushion to absorb R&D and go‑to‑market spending, enabling the company to invest in product (AI, upmarket) while retaining a path to scalable operating profitability over multiple quarters.
Read all positive factors
Thinkific Labs (THNC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$87.63M
Dividend YieldN/A
Average Volume (3M)67.63K
Price to Earnings (P/E)―
Beta (1Y)0.72
Revenue Growth4.37%
EPS Growth-237.23%
CountryCA
Employees314
SectorTechnology
Sector Strength88
IndustrySoftware - Application
Share Statistics
EPS (TTM)-0.02
Shares Outstanding67,408,714
10 Day Avg. Volume52,103
30 Day Avg. Volume67,633
Financial Highlights & Ratios
PEG Ratio-0.11
Price to Book (P/B)2.23
Price to Sales (P/S)1.29
P/FCF Ratio17.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.50Price Target Upside23.97% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)-0.05
Revenue Forecast (FY)C$74.63M
Thinkific Labs Business Overview & Revenue Model
Company Description
Thinkific Labs Inc. offers and maintains a web-based platform, catering to clients across Canada, the United States, and global markets. This digital solution empowers individual entrepreneurs and established businesses to construct, promote, sell...
How the Company Makes Money
null...
Thinkific Labs Earnings Call Summary
Earnings Call Date:May 04, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 09, 2026
Earnings Call Sentiment Neutral
The call balanced tangible operational and product progress—most notably AI product launch (Thinker), Plus segment momentum, GPV/commerce gains and roadmap initiatives—with clear near-term tradeoffs: higher R&D/OpEx, a small adjusted EBITDA loss, gross margin pressure from mix, and cautious Q2 guidance. Management emphasized a strategic pivot (upmarket + AI) that should create longer-term upside, but acknowledged transitional execution risk and near-term volatility.Positive Updates
Solid Top-Line Performance
Q1 revenue of $18.7M, up 5% year-over-year; total ARR of $61.3M, up 2% YoY and up $0.3M sequentially; ARPU $175, up 4% YoY and flat sequentially.
Negative Updates
Adjusted EBITDA Loss and Near-Term Profit Pressure
Adjusted EBITDA loss of approximately $0.5M in Q1; company expects Q2 adjusted EBITDA in the range of -2% to -5% of revenue, reflecting continued near-term profitability pressure due to investments and one-time items.
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Q1-2026 Updates
Positive
Negative
Solid Top-Line Performance
Q1 revenue of $18.7M, up 5% year-over-year; total ARR of $61.3M, up 2% YoY and up $0.3M sequentially; ARPU $175, up 4% YoY and flat sequentially.
Read all positive updates
Company Guidance
Thinkific guided Q2 FY26 revenue of $18.2–$18.5 million (≈1% year‑over‑year growth at the midpoint) with adjusted EBITDA expected to be a loss of roughly 2%–5% of revenue, noting the range assumes continued stable gains in Plus subscriptions offset by a seasonal slowdown in commerce and includes one‑time company‑wide and CPTO transition costs; for context, Q1 results were revenue $18.7M (+5% Y/Y), Plus $5.1M (+12% Y/Y), commerce revenue >$3.5M, gross margin 72% (‑2 pts Y/Y), ARPU $175 (+4% Y/Y), ARR $61.3M (+2% Y/Y, +$0.3M sequential), GPV $75.7M (+16% Y/Y), GMV $117.5M (+1% Y/Y), take rate 4.3% (from 4.5%), total OpEx $15.3M, R&D $7.1M, adjusted EBITDA ≈‑$0.5M, and cash $49.4M (down from $50.7M); management highlighted AI and R&D investments as the primary near‑term drivers of margin pressure and emphasized stable Plus momentum.Thinkific Labs Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
78
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 74.04M | 74.47M | 66.94M | 59.05M | 51.48M | 38.12M |
| Gross Profit | 52.63M | 53.10M | 50.31M | 44.56M | 39.11M | 29.21M |
| EBITDA | -1.61M | 14.24K | -1.06M | -9.26M | -29.75M | -23.63M |
| Net Income | -897.84K | 1.31M | -237.00K | -9.78M | -41.90M | -28.44M |
Balance Sheet | ||||||
| Total Assets | 61.87M | 62.66M | 61.37M | 97.79M | 102.97M | 132.40M |
| Cash, Cash Equivalents and Short-Term Investments | 50.89M | 50.60M | 49.49M | 86.61M | 93.85M | 126.05M |
| Total Debt | 1.27M | 1.47M | 1.77M | 1.03M | 1.96M | 875.26K |
| Total Liabilities | 20.47M | 19.49M | 19.77M | 15.85M | 15.12M | 10.79M |
| Stockholders Equity | 41.41M | 43.18M | 41.59M | 81.94M | 87.85M | 121.61M |
Cash Flow | ||||||
| Free Cash Flow | 1.47M | 5.42M | 6.75M | -5.44M | -27.11M | -18.91M |
| Operating Cash Flow | 1.62M | 5.69M | 6.99M | -5.43M | -25.85M | -18.26M |
| Investing Cash Flow | -43.27M | -43.39M | -166.00K | 53.37K | -1.26M | -655.16K |
| Financing Cash Flow | -3.80M | -4.83M | -42.60M | -2.41M | -241.18K | 138.26M |
Thinkific Labs Technical Analysis
Neutral
1.21
Price Trends
1.90
Positive
1.97
Positive
Market Momentum
0.02
Positive
49.86
Neutral
33.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:THNC, the sentiment is Neutral. The current price of 1.21 is below the 20-day moving average (MA) of 2.00, below the 50-day MA of 1.90, and equal to the 200-day MA of ―, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 49.86 is Neutral, neither overbought nor oversold. The STOCH value of 33.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:THNC.
Thinkific Labs Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$952.59M | 12.93 | 11.97% | 7.51% | -4.08% | -7.65% | |
73 Outperform | C$9.22B | 37.52 | 11.26% | ― | 11.62% | 19.63% | |
71 Outperform | C$813.46M | 19.29 | 113.64% | ― | 11.23% | 65.79% | |
70 Outperform | C$8.39B | 5.43 | 28.29% | 4.81% | 0.54% | 54.92% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | C$1.98B | -15.24 | -6.60% | ― | 10.59% | 84.91% | |
60 Neutral | C$87.63M | -69.86 | -0.47% | ― | 4.37% | -237.23% |
* Technology Sector Average
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Thinkific Labs Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
Thinkific Tops Q2 Revenue Guidance as Plus Segment Grows, Targets Higher Profitability
Positive
Aug 5, 2026
Thinkific reported second quarter 2026 revenue of $18.6 million, up 3% year over year and slightly above guidance, powered by 14% growth in its Plus subscription and commerce segment, while self-serve revenues slipped 1%. Subscription revenue rose...
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.