Thinkific Labs (THNC) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue reached $17.8 million, up 12% year-over-year, slightly exceeding guidance, driven by strong self-serve subscription revenue, record new bookings in Thinkific Plus and Commerce, and a strategic shift toward ideal customer profiles and product innovation.

• Net income was $0.4 million, reversing a net loss of $1.1 million in Q1 2024, with adjusted EBITDA improving to $0.9 million (5% margin).

• Recognition for customer success and corporate culture, including G2's 2025 Best Software Awards and Waterstone Human Capital's 2024 list.

• Conversion of all multiple voting shares to common shares to improve governance and share liquidity.

• Operational highlights included HubSpot integration, platform enhancements, and preparation for major product launches and marketing campaigns in summer 2025.

Financial highlights

• Q1 revenue was $17.8 million, up 12% year-over-year, exceeding guidance; ARR reached $60.1 million, up 6% year-over-year and $1.8 million sequentially.

• Subscription revenue was $14.6 million, up 6% year-over-year; Commerce revenue was $3.3 million, up 52% year-over-year.

• Thinkific Plus revenue rose 27% year-over-year to $4.5 million; Self Serve revenue up 7% to $13.3 million.

• GPV grew 46% year-over-year to $65 million; GMV was $117 million, down 5% year-over-year.

• Adjusted EBITDA was $922,000 (5% margin), up from $240,000 (1.5%) a year ago; cash flow from operations was $3.2 million; cash and equivalents at $51.4 million.

Outlook and guidance

• Q2 2025 revenue expected between $17.7 million and $18 million, representing 9%-11% year-over-year growth, with continued strength in Plus and Commerce but ongoing GMV headwinds and macroeconomic uncertainty.

• Adjusted EBITDA margin expected to remain consistent with prior quarters as growth-focused investments continue.

• Commitment to maintaining adjusted EBITDA margins at current levels while investing for growth.