Thinkific Announces Third Quarter 2026 Financial Results

Delivers positive Adjusted EBITDA of $1.8 million, 10% of Revenue

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

VANCOUVER, BC, Nov. 3, 2026 /CNW/ -- Thinkific Labs Inc. ("Thinkific" or the "Company") (TSX: THNC), a premier learning commerce platform designed to scale external training programs, today announced its financial results for the quarter ended September 30, 2026.

"In the third quarter, we continued to build momentum in our move upmarket," said Greg Smith, Founder and CEO of Thinkific.  "Having reorganized the Company in September, we now possess the capacity to invest in and grow Thinkific Plus, while maintaining excellent support for our valued Self-Serve customers. With a leaner and more agile organization, I am confident in our ability to re-accelerate growth and create a financially strong Thinkific that is a durable partner for our customers and expanding go-to-market ecosystem. I am deeply grateful to our team for their remarkable passion, resilience, and execution during this transition. Together, we are building the future of AI-powered learning and delivering exceptional value to help our customers scale and succeed, as Thinkific will alongside them."

Third Quarter Financial Highlights
(All comparisons are relative to the third quarter of 2025)

• Total revenue for the third quarter of 2026 increased 2% to $19.0 million, above the guided range of $18.6 - $18.9 million, driven by strong Plus performance that helped ARPU⁽²⁾ grow by 8% to $187 per month.
  
  • Thinkific Plus Subscription and Commerce revenue grew 18% to $5.7 million. Self-Serve Subscription and Commerce revenue decreased 3% to $13.3 million.
  • Subscription revenue, in total, increased 3% to $15.5 million, with ARR⁽²⁾ up 4% to $63.1 million.
  • Commerce revenue, in total, increased 1% to $3.5 million, with GPV⁽²⁾ processed through Thinkific Commerce growing 5% to $73.5 million. Thinkific Commerce penetration rate, measured as GPV⁽²⁾ as a percent of GMV⁽²⁾, increased to 69%, up from 61%.

• Gross margin remained flat at 73% in the third quarter of 2026.

• Net loss was $3.8 million, a decrease of $4.0 million from net income of $0.2 million. The decrease to a net loss position reflects the restructuring costs of $4.7 million ($4.1 million, net of stock-based compensation reversals) incurred in the quarter.

• Adjusted EBITDA⁽¹⁾ was $1.8 million, or 10% of revenue, an improvement of $0.8 million.

• Cash, cash equivalents and short-term investments were $50.3 million as of September 30, 2026.

Third Quarter Operational Highlights

• On September 23, Thinkific announced a reorganization to accelerate growth in Thinkific Plus and sharpen operational focus. The move is expected to generate approximately $19 million in gross annualized cost savings and support a target free cash flow margin⁽¹⁾ of 25% in F2027.

• On September 10, Thinkific announced a product integration and commercial partnership with Articulate, which brings to market Articulate's first native third-party LMS integration. Eligible customers licensed for both platforms can publish content created in Articulate 360 AI directly to Thinkific Plus with one click.

• On September 24, Thinkific achieved WCAG 2.1 certification, a widely recognized accessibility standard, supported by regular automated scanning and testing by people with disabilities. This positions Thinkific to expand sales to public-sector customers facing new federal accessibility deadlines.

• Product Innovation. Thinkific continued to accelerate improvements to Our Platform in the third quarter of 2026.  
  • Customers can now sell Thinker, our AI Teaching Assistant, as a premium add-on. Thinker can be bundled into any membership or bundle with per-learner access.
  • Features that help Plus customers scale operations:
    • Custom Roles lets customers create admins with exactly the access they need. Together with shared team licensing, multi-product bulk enrollment, and manage learner progress, it moves admin work that used to route through Thinkific Support into customers' own hands. The release enabled us to expand six Plus customers with heavy role users.
    • Group Experiences, a new paid Plus add-on, lets customers deliver white-labeled learning environments, each with its own branding and content, customized for each audience they serve.
  • Learner Hub. The AI Widget Generator lets non-technical admins build custom experiences by describing them in plain language, now with live course and learner data. Native Learning Paths let customers sequence courses toward a specific learning objective or certification.
  • Asset Library. Our Video Library is now an Asset Library, a top request from Plus customers. It gives them one place to upload, search, and reuse any media, not just video.
  • Added Phased Subscription Pricing to Thinkific Plus Commerce, supporting "pay upfront, then membership" models for high-ticket and certification programs. All Thinkific Payments customers also gained improved checkout fraud detection and subscription management tools built for scale.

Outlook

For the fourth quarter of 2026, the Company expects revenue of $18.9 - $19.2 million, while improving Adjusted EBITDA⁽¹⁾ to a range of 20% to 25% 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 November 3, 2026 to discuss Thinkific's third quarter of 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 86777#. The replay will expire at midnight ET on November 10, 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 September 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.

"Free cash flow" is calculated as net cash provided by (used in) operating activities, less purchases of property and equipment and capitalized internal-use software development costs. "Free cash flow margin" is free cash flow expressed as a percentage of revenue. Management believes that free cash flow and free cash flow margin are useful measures of the Company's ability to generate cash after accounting for capital expenditures required to maintain and grow the business. These measures provide investors with additional insight into the Company's ability to fund future growth, pursue strategic transactions, and return capital to shareholders. Free cash flow and free cash flow margin do not have standardized meanings under IFRS, are not measures of financial performance or liquidity presented in accordance with IFRS, and are subject to important limitations. The Company's definitions of free cash flow and free cash flow margin may differ from similarly titled measures used by other companies.

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.

THINKIFIC LABS INC.
Condensed Interim Consolidated Statements of Financial Position (unaudited)
Amounts expressed in thousands of U.S. dollars
	As at September 30	As at December 31
	2026	2025
Assets
Current assets
Cash and cash equivalents	$                27,461	$                  7,837
Short-term investments	22,839	42,857
Trade and other receivables	4,105	5,209
Prepaid expenses and other assets	3,154	3,030
Contract acquisition assets	845	705
Total current assets	58,404	59,638
Property and equipment	389	530
Lease right-of-use assets	1,139	1,396
Contract acquisition assets	1,330	1,034
Intangible assets	158	181
Total assets	$                61,420	$                62,779
Liabilities and shareholders' equity
Current liabilities
Accounts payable and accrued liabilities	$                10,109	$                  7,357
Lease liabilities	338	342
Deferred revenue	11,946	10,697
Derivative liability	263	--
Total current liabilities	22,656	18,396
Lease liabilities	840	1,126
Total liabilities	23,496	19,522
Shareholders' equity
Share capital	109,059	109,352
Contributed surplus	8,356	7,825
Accumulated other comprehensive loss	(301)	26
Accumulated deficit	(79,190)	(73,946)
Total shareholders' equity	37,924	43,257
Total liabilities and shareholders' equity	$                61,420	$              62,779

THINKIFIC LABS INC.
Condensed Interim Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income (unaudited)
Amounts expressed in thousands of U.S. dollars, except share and per share amounts
	Three months ended September 30		Nine months ended September 30
	2026	2025	2026	2025
Revenue	$            19,002	$            18,574	$            56,295	$            54,516
Cost of revenue	5,121	5,027	15,497	14,519
Gross profit	13,881	13,547	40,798	39,997
Operating expenses
Sales and marketing	4,388	5,135	13,643	15,594
Research and development	6,270	5,542	19,529	15,786
General and administrative	3,015	3,099	10,122	9,881
Restructuring, net of stock-based compensation reversals	4,109	--	4,109	--
Total operating expenses	17,782	13,776	47,403	41,261
Operating loss	(3,901)	(229)	(6,605)	(1,264)
Other income
Finance income	117	541	1,461	1,854
Foreign exchange (loss) gain	(14)	(142)	(100)	353
Total other income	103	399	1,361	2,207
Net (loss) income	(3,798)	170	(5,244)	943
Other comprehensive (loss) income
Unrealized gain (loss) on derivatives	185	(308)	(327)	431
Total comprehensive (loss) income	$            (3,613)	$              (138)	$            (5,571)	$             1,374
Weighted average number of common shares outstanding - basic	67,336,816	68,048,607	67,518,017	68,110,132
Weighted average number of common shares outstanding - diluted	67,336,816	68,698,731	67,518,017	68,941,424
(Loss) earnings per share
Basic and diluted	$              (0.06)	$               0.00	$              (0.08)	$               0.01

THINKIFIC LABS INC.
Condensed Interim Consolidated Statements of Cash Flows (unaudited)
Amounts expressed in thousands of U.S. dollars
	Nine months ended September 30
	2026	2025
Operating activities
Net (loss) income	$        (5,244)	$           943
Items not affecting cash and cash equivalents:
Depreciation and amortization	1,051	1,010
Loss on disposal of property and equipment	44	--
Stock-based compensation	3,031	2,981
Unrealized foreign exchange gain	(369)	(394)
Finance income	(1,461)	(1,854)
Interest received	1,434	2,246
Changes in non-cash working capital:
Trade and other receivables	1,106	268
Prepaid expenses and other assets	(187)	83
Contract acquisition assets	(1,050)	(685)
Accounts payable and accrued liabilities	2,187	292
Deferred revenue	1,249	1,192
Cash from operating activities	$          1,791	$         6,082
Investing activities
Proceeds on maturity of short-term investments	20,000	--
Investment in property and equipment and intangible assets	(60)	(159)
Cash from (used in) investing activities	$        19,940	$          (159)
Financing activities
Operating lease payments	(276)	(325)
Exercise of stock options	7	46
Tax remittances on stock-based compensation	(416)	(986)
Shares repurchased for cancellation and other equity-related costs	(1,393)	(2,609)
Directors compensation and DSU settlements	(346)	--
Cash used in financing activities	$        (2,424)	$        (3,874)
Effect of exchange rate fluctuations on cash and cash equivalents held	317	201
Increase in cash and cash equivalents	19,624	2,250
Cash and cash equivalents, beginning of period	7,837	49,492
Cash and cash equivalents, end of period	$       27,461	$       51,742

THINKIFIC LABS INC.
Reconciliation from IFRS to Non-IFRS Measures (unaudited)
Amounts expressed in thousands of U.S. dollars
	Three months ended September 30		Nine months ended September 30
(in thousands of U.S. dollars)	2026	2025	2026	2025
Net (loss) income	$            (3,798)	$               170	$        (5,244)	$           943
Stock-based compensation	1,250	962	3,031	2,981
Depreciation and amortization	364	323	1,051	1,010
Foreign exchange loss (gain)	14	142	100	(353)
Finance income	(117)	(541)	(1,461)	(1,854)
Restructuring costs	4,109	--	4,109	--
Non-recurring equity transaction costs	--	--	--	302
Adjusted EBITDA	$              1,822	$              1,056	$         1,586	$         3,029

SOURCE Thinkific Labs Inc.

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