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Thinkific Labs
(TSX:THNC)
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Rating:59Neutral
Price Target:
C$1.50
▲(15.38% Upside)
Action:Reiterated
Date:09/10/26
The score is driven primarily by improving (but still inconsistent) financial performance—strong margins and a low-debt balance sheet support resilience, while slowing revenue growth, a return to a TTM net loss, and weaker recent free cash flow reduce confidence. Technical indicators are mixed with mild weakness and oversold signals, and valuation is pressured by negative earnings with no dividend support.
Positive Factors
Recurring SaaS business model
Subscription-based SaaS revenue can provide recurring customer relationships and greater predictability than one-time transactions. Thinkific’s platform combines course creation, learner management, commerce, and customer workflows, supporting continued utility and potential retention over the medium term.
Negative Factors
Materially slowing revenue growth
The sharp deceleration from earlier growth rates signals that customer expansion or platform monetization is losing momentum. Slower growth can limit operating leverage, make fixed costs harder to absorb, and reduce the pace at which Thinkific can strengthen its position in education technology.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring SaaS business model
Subscription-based SaaS revenue can provide recurring customer relationships and greater predictability than one-time transactions. Thinkific’s platform combines course creation, learner management, commerce, and customer workflows, supporting continued utility and potential retention over the medium term.
Read all positive factors
Thinkific Labs (THNC) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$86.96M
Dividend YieldN/A
Average Volume (3M)28.02K
Price to Earnings (P/E)―
Beta (1Y)0.64
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. Volume25,575
30 Day Avg. Volume28,018
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 Upside15.38% 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
Thinkific primarily makes money through subscription-based software-as-a-service (SaaS) plans paid by customers who use its platform to host and sell online learning products. Revenue is generated from recurring fees for different plan tiers that ...
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.
Read all updates
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
Negative
1.30
Price Trends
1.28
Negative
1.30
Negative
1.53
Negative
Market Momentum
>-0.01
Positive
43.87
Neutral
22.71
Neutral
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 1.3 is below the 20-day moving average (MA) of 1.39, above the 50-day MA of 1.28, and below the 200-day MA of 1.53, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 43.87 is Neutral, neither overbought nor oversold. The STOCH value of 22.71 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | C$9.01B | 36.35 | 11.71% | ― | 12.43% | 25.58% | |
76 Outperform | C$892.60M | 13.57 | 11.70% | 7.02% | -4.73% | -5.61% | |
70 Outperform | C$7.75B | 5.30 | 28.29% | 4.58% | 0.54% | 54.92% | |
69 Neutral | C$841.10M | 21.27 | 113.64% | ― | 11.23% | 65.79% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | C$1.84B | -14.44 | -6.60% | ― | 10.59% | 84.91% | |
59 Neutral | C$86.96M | -68.14 | -2.12% | ― | 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.