Thinkific Labs (THNC) AI Stock Analysis

• Market Cap: C$153.95M
• Dividend Yield: N/A
• Average Volume (3M): 67.63K
• Price to Earnings (P/E): 165.0
• Beta (1Y): 0.78
• Revenue Growth: 16.12%
• EPS Growth: N/A
• Country: CA
• Employees: 275
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.01
• Shares Outstanding: 68,119,675
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: C$2.50 ▲(18.48% Upside)

Thinkific Labs' strong revenue growth and improved cash flow management are significant positives, but these are offset by high operational costs and consistent net losses. The stock's technical indicators show bullish momentum, yet the high P/E ratio suggests overvaluation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

The consistent revenue growth indicates a robust market position and successful product adoption, supporting long-term business expansion.

Cash Flow Improvement

Positive cash flow reflects enhanced operational efficiency and cost control, providing financial flexibility for future investments.

Strong Gross Margins

High gross margins indicate effective pricing strategies and cost management, supporting profitability as the company scales.

Negative Factors

Consistent Net Losses

Ongoing net losses highlight challenges in achieving profitability, which could hinder long-term financial sustainability.

High Operational Costs

High operational costs can erode profit margins, necessitating cost management improvements to enhance financial performance.

Declining Assets and Equity

Decreasing assets and equity may indicate challenges in asset management and capital retention, affecting long-term growth potential.

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

Thinkific Labs displays strong revenue growth and improving cash flow metrics, which are positive indicators for future potential. However, consistent net losses and high operational costs weigh on profitability. A stable balance sheet with low leverage provides financial stability, but declining assets and equity suggest room for improvement 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	70.71M	66.94M	59.05M	51.48M	38.12M	21.07M
Gross Profit	52.68M	50.31M	44.56M	39.11M	29.21M	16.62M
EBITDA	-461.00K	-1.06M	-9.26M	-29.75M	-23.63M	-988.96K
Net Income	675.00K	-237.00K	-9.78M	-41.90M	-28.44M	-1.11M
Balance Sheet
Total Assets	63.33M	61.37M	97.79M	102.97M	132.40M	12.94M
Cash, Cash Equivalents and Short-Term Investments	52.47M	49.49M	86.61M	93.85M	126.05M	9.07M
Total Debt	1.66M	1.77M	1.03M	1.96M	875.26K	1.36M
Total Liabilities	20.14M	19.77M	15.85M	15.12M	10.79M	7.63M
Stockholders Equity	43.19M	41.59M	81.94M	87.85M	121.61M	5.31M
Cash Flow
Free Cash Flow	9.03M	6.75M	-5.44M	-27.11M	-18.91M	2.34M
Operating Cash Flow	9.19M	6.99M	-5.43M	-25.85M	-18.26M	2.63M
Investing Cash Flow	-152.00K	-166.00K	53.37K	-1.26M	-655.16K	-289.80K
Financing Cash Flow	-4.71M	-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
KXS	71 Outperform	C$4.72B	136.84	8.24%	―	15.11%	75.40%
DSG	67 Neutral	C$10.17B	49.17	10.54%	―	15.63%	18.47%
OTEX	67 Neutral	$12.22B	18.18	12.32%	2.76%	-5.01%	13.21%
DCBO	65 Neutral	$945.28M	31.11	49.99%	―	16.25%	31.71%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LSPD	61 Neutral	C$2.15B	-2.48	-37.01%	―	17.23%	-435.45%
THNC	59 Neutral	C$153.95M	164.96	1.61%	―	16.12%	―

Thinkific Labs Corporate Events

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.

Thinkific Reports Strong Q2 2025 Results and Strategic Upmarket Shift

Thinkific Labs Inc. reported a 12% year-over-year increase in revenue to $18.1 million for the second quarter of 2025, driven by strong adoption of its commerce platform and strategic upmarket shift. The company launched enhancements to its commerce capabilities and communities platform, aiming to address complex needs and improve customer experience. Thinkific’s financial performance and strategic changes, including a simplified capital structure and new board leadership, position it for long-term growth and enhanced shareholder value.

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.