Thinkific Labs (THNC) Q2 2025 earnings summary

Executive summary

• Q2 2025 marked the official launch of the upmarket strategy, focusing on larger, higher-value customers and integrating AI, commerce, and community features to drive growth and differentiation.

• AI is being embedded across the platform and operations, accelerating product development and enhancing customer value.

• Strategic partnerships, including a new collaboration with Spotify, expand distribution channels for course creators.

• Commerce features such as order bumps, gifting, and buy now/pay later drive higher transaction sizes and revenue growth.

• Recognition includes multiple 2025 awards for software, customer service, and EdTech leadership.

Financial highlights

• Q2 2025 revenue was $18.1 million, up 12% year-over-year, exceeding guidance; ARR was $60.5 million, up 6% year-over-year.

• Commerce revenue grew 48% year-over-year to $3.2 million; GPV processed grew 48% to $65 million; GMV was flat at $111 million.

• Subscription revenue reached $14.9 million, up 6% year-over-year.

• Adjusted EBITDA was $1 million (6% of revenue), up from $874,000 (5%) in Q2 2024.

• Cash and cash equivalents at $52.5 million as of June 30, 2025, with no debt.

Outlook and guidance

• Q3 2025 revenue expected between $18.1 million and $18.4 million, with continued positive Adjusted EBITDA.

• Near-term growth moderated by tougher year-over-year comparisons and sales force adjustments.

• Continued investment in upmarket strategy, product innovation, and margin expansion as scale is achieved.

• Most impactful new features expected to launch in H1 2026, with leading indicators in ARPU, ARR, and GPV.

• Actual results may differ materially due to various risk factors and uncertainties.