Thinkific Announces Second Quarter 2026 Financial Results

Delivers Cash Flow from Operations of $1.7 million and positive Adjusted EBITDA of $0.3 million

Thinkific reports in thousands of U.S. dollars and in accordance with IFRS

VANCOUVER, BC, Aug. 5, 2026 /CNW/ — Thinkific Labs Inc. (“Thinkific” or the “Company”) (TSX: THNC), a leading learning commerce platform, today announced its financial results for the quarter ended June 30, 2026.

“We are pleased to report Q2 results that demonstrate improving performance on our strategic focus to move upmarket, driven by sharper go-to-market execution and accelerated product and feature innovations,” said Greg Smith, CEO and Founder of Thinkific. “Our R&D team is seeing a dramatic acceleration, delivering more value to customers faster than ever before. They are also leveraging AI at the core of our platform, enabling powerful functionality for our customers in areas such as custom analytics and reporting, student interactions, and customizing the learner experience. We are seeing a direct impact emerging in growth drivers, with improvements in customer retention, as well as expansion and acquisition opportunities upmarket. Having completed some one-time investments, we are now prioritizing higher levels of profitability.”

Second Quarter Financial Highlights

(All comparisons are relative to the second quarter of 2025)  

Total revenue for the second quarter of 2026 increased 3% to $18.6 million, above the guided range of $18.2 – $18.5 million, driven by strong Plus performance that helped ARPU(2) grow by 5%, to $177 per month.Thinkific Plus Subscription and Commerce revenue grew 14% to $5.3 million. Self Serve Subscription and Commerce revenue decreased 1% to $13.3 million.Subscription revenue, in total, increased 3% to $15.2 million, with ARR(2) up 2% to $61.7 million.Commerce revenue, in total, increased 4% to $3.4 million, with GPV(2) processed through Thinkific Commerce growing 10% to $71.4 million. Thinkific Commerce penetration rate, measured as GPV(2) as a percent of GMV(2), increased to 67%, up from 58%.Gross margin remained flat at 73% in the second quarter of 2026.Net loss was $0.3 million, a decrease of $0.7 million from net income of $0.4 million.Adjusted EBITDA(1) was $0.3 million, or 1% of revenue, a decrease of $0.8 million.Cash, cash equivalents and short-term investments were $51.0 million as of June 30, 2026.

Second Quarter Operational Highlights

Effective June 1, 2026, Leigh Ramsden joined Thinkific as Chief Financial Officer.In the second quarter, Thinkific began making Thinkific Learner Hub available to all of its customers. The Thinkific Learner Hub unifies courses, memberships, communities, events, AI learner engagement, and resources into a single, personalized, and branded destination for students. It replaces legacy dashboards with a modern, widget-based, layout that keeps learners engaged through progress tracking, tailored recommendations, and a customizable, professional interface.Product Innovation. Thinkific released continuous improvements to Our Platform in the second quarter of 2026.  We added features that enable customers to scale operations with a centralized asset library, and more powerful user management tools like permission management, and custom roles that allow customers to act on their learner base at scale.We added mobile in-app purchases, multi-item checkout capability, improved checkout validation, and clearer free trial billing — features that reduce friction and make it easier for customers to sell and grow their business.

Outlook

For the third quarter of 2026, the Company expects revenue of $18.6 – $18.9 million, while improving Adjusted EBITDA(1) to a range of 2% to 5% of revenue.

Actual results may differ materially from Thinkific’s financial outlook as a result of, among other things, the factors described under “Forward-Looking Statements” below.

Quarterly Conference Call and Webcast Information

A conference call will be held at 5:00 PM ET (2:00 PM PT) on August 5, 2026 to discuss Thinkific’s second quarter 2026 financial and operational results. To participate in the call, please dial 1.888.510.2154 (US/Canada toll-free) or 1.437.900.0527 (International/Toronto). For those unable to participate, a replay will be available an hour after the event by dialing 1.888.660.6345 (US/Canada toll-free) or 1.289.819.1450 (International/Toronto). The passcode is 50367#. The replay will expire at midnight ET on August 12, 2026. The conference call will also be available via webcast on the Investor Relations section of Thinkific’s website at investors.thinkific.com/events-and-presentations.

Thinkific’s unaudited condensed interim consolidated financial statements and accompanying notes, and Management’s Discussion and Analysis for the quarter ended June 30, 2026, are available on the Company’s website at www.thinkific.com and on SEDAR+ at www.sedarplus.ca.

About Thinkific

Thinkific (TSX:THNC) is an award-winning learning commerce platform where courses and community come together to power business growth. Thinkific gives academies, experts, and businesses everything they need to create and sell online learning experiences, build communities, and grow their revenue — all from one platform. Tens of thousands of customers — including companies like GoDaddy, Nasdaq, ActiveCampaign, and Datadog — have generated billions in revenue using Thinkific, impacting more than 200 million people worldwide.

For more information, please visit www.thinkific.com.

Non-IFRS Measures

The information presented within this press release includes “Adjusted EBITDA” and certain industry metrics. “Adjusted EBITDA” is not a recognized measure under International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, does not have a standardized meaning prescribed by IFRS, and is therefore unlikely to be comparable to similar measures presented by other companies. Rather, this measure is provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, it should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. We also use certain industry metrics: “Annual Recurring Revenue”, “Average Revenue per User”, “Gross Merchandise Volume” and “Gross Payments Volume”. These industry metrics are unaudited and are not directly derived from our financial statements. The non-IFRS measure and industry metrics are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures and industry metrics in the evaluation of issuers. Our management also uses the non-IFRS measure and industry metrics in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation.

“Adjusted EBITDA” is defined as Net (loss) income excluding taxes, interest, depreciation and amortization (or EBITDA), as adjusted for stock-based compensation, foreign exchange loss (gain), finance income, restructuring costs, loss on disposal of property and equipment, and non-recurring equity transaction costs. Adjusted EBITDA does not have a standardized meaning under IFRS and is not a measure of operating income, operating performance or liquidity presented in accordance with IFRS, and is subject to important limitations.

Please refer to “Reconciliation to IFRS from Non-IFRS measures” in this press release for more information.

Key Performance Indicators

We monitor the following industry metrics to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions: “Annual Recurring Revenue” or “ARR”, “Average Revenue per User” or “ARPU”, “Gross Merchandise Volume” or “GMV”, and “Gross Payments Volume” or “GPV”. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.

“ARPU” is the average monthly Revenue per Paying Customer in the quarter. ARPU is calculated by taking the average Revenue for each month in the quarter and dividing this by the average number of Paying Customers for the same quarter.

“ARR” is the annual value of all current Paying Customer subscriptions at the end of the period, with the number of Paying Customers multiplied by 12 times the average monthly subscription plan fee in effect on the last day of that period.

“GMV” is the total dollar value of all transactions of course sales, membership subscriptions, or other products or services by our customers, facilitated through Our Platform during the period, net of refunds. GMV does not include transactions processed by application programming interfaces or certain apps where the Company does not record the transaction value.

“GPV” is the total dollar value of transactions processed using Thinkific Payments in the period, net of refunds and inclusive of sales taxes where applicable. GPV does not represent revenue earned by us. Penetration rate is the percentage of GMV processed through Thinkific Payments, it is calculated by dividing GPV by GMV for the respective period. We believe that growth in GPV is an indicator of success of our customers in monetizing their learning products and of our Thinkific Payments offering. It is also a positive growth driver of revenue, which is derived from payment processing fees. Revenue earned from Thinkific Payments is included in our commerce revenue.

Forward-Looking Statements

This press release contains forward-looking information within the meaning of applicable securities laws in Canada. Forward-looking information may relate to the Company’s future financial outlook and anticipated events or results, including its financial position, business strategy, growth strategies, budgets, operations, financial results, plans and objectives. In some cases, forward-looking information can be identified by terminology such as “plans”, “targets”, “expects”, “continue”, “opportunity”, “estimates”, “outlook”, “strategy”, “intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” “occur” or “be achieved”, and similar expressions, or the negative thereof. Statements containing forward-looking information are not historical facts but represent management’s expectations, estimates and projections regarding future events. Forward-looking statements in this press release include, but are not limited to, statements regarding our business strategy, financial results and expectations with respect to Adjusted EBITDA; our growth strategies, including the development and deployment of AI-powered features and tools; expectations regarding revenue and the revenue generation potential of Our Platform; objectives around growth and profitability; purchases of Common Shares under the NCIB; and our competitive position in our industry.

Forward-looking information is based on opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward-looking information, including the Company’s ability to execute on its growth strategies; the impact of changing conditions and increasing competition in the global e-learning market; the Company’s ability to keep pace with technological and marketplace changes, including the ethical, legal and regulatory implications of artificial intelligence; the impact of macroeconomic conditions, geopolitical developments and trade policy uncertainty; fluctuations in currency exchange rates and volatility in financial markets; changes in financial condition and demand of our target market; developments and changes in applicable laws and regulations; and such other factors discussed in the “Risk Factors” section of our 2025 Annual Information Form (“AIF”).

Forward-looking information is necessarily based upon estimates and assumptions that are inherently subject to significant business, economic and competitive uncertainties, many of which are beyond the Company’s control. Assumptions underlying the Company’s expectations include, among others: our ability to continue investing in infrastructure to support our growth; our ability to maintain and enhance the functionality, performance, reliability, security and scalability of Our Platform; our ability to maintain existing customer relationships and acquire new customers; our ability to maintain relationships with service providers, suppliers, partners and other third parties; the continued development and success of new products, features and services; our ability to retain key personnel; our ability to execute on our growth plans; currency exchange and interest rates; the impact of competition; and changes and trends in our industry or the global economy. The foregoing list of assumptions cannot be considered exhaustive.

If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates and assumptions referred to above are described in greater detail in “Summary of Factors Affecting our Performance” and in the “Risk Factors” section of the 2025 AIF, available on SEDAR+ at www.sedarplus.ca. Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us that could also cause actual results to differ materially. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date specified herein and is subject to change after such date. However, we disclaim any intention or obligation to update or revise any forward-looking information, except as required under applicable securities laws.

All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements. Readers are cautioned that any such forward-looking information should not be used for purposes other than for which it is disclosed.

SOURCE Thinkific Labs Inc.