Thinkific Labs (THNC) investor relations material

Executive summary

• Q4 and FY2025 results were at the high end of guidance, with revenue up 6% in Q4 to $18.7M and 9% for the year to $73.2M, reflecting progress in the upmarket strategy and improved go-to-market execution.

• Strategic repositioning focused on larger, higher-value customers, with investments in AI and product innovation, including the launch of Thinker AI Teaching Assistant, to drive growth.

• Leadership changes included the departure of the CFO, new board appointments, and conversion to single voting shares to support the next phase of growth.

• Net income reached $0.3M in Q4 and $1.3M for 2025, reversing prior year losses.

• Industry recognition included multiple awards and inclusion in TIME's World's Top EdTech Companies.

Financial highlights

• Q4 revenue was $18.7M, up 6% YoY; FY2025 revenue was $73.2M, up 9% YoY; ARR reached $61M, up 5% YoY.

• Q4 Adjusted EBITDA was $1M (6% margin); FY2025 Adjusted EBITDA was $4M, up from $3M in 2024.

• Commerce revenue was $3.5M in Q4 (up 13% YoY) and $13.4M for FY2025 (up 32% YoY); GPV for Q4 was $117M (up 2% YoY), and $460M for the year (flat YoY).

• Gross margin was 72–72.5% in Q4, down from 75% in Q4 2024, reflecting a shift toward commerce revenue.

• Cash and short-term investments at year-end were $50.7M–$51M, with cash from operations of $5.6M for the year.

Outlook and guidance

• Q1 2026 revenue expected between $18.6M–$18.9M; Adjusted EBITDA loss of 2–5% due to one-time R&D investments, with profitability expected to return later in the year.

• Commerce revenue penetration expected to plateau in the mid-60% range, with future growth driven by larger customers and new product adoption.