Thinkific Announces Third Quarter 2025 Financial Results

Executive Summary

• Thinkific Labs Inc. reported Q3 2025 revenue of $18.6 M, an 8% year‑over‑year increase and above the upper end of its guidance ($18.1–$18.4 M).
• Adjusted EBITDA reached $1.1 M (6% of revenue), up $0.1 M from the prior year, marking a return to positive adjusted earnings.
• The company launched early‑access for its AI Teaching Assistant and announced enhancements to its Commerce platform, signaling continued product investment and an up‑market strategic shift.

Key Details

• Revenue: $18.6 M (↑8% YoY); Commerce revenue $3.4 M (↑23%); Subscription revenue $15.1 M (↑5%).
• Key Metrics:
• ARPU grew 5% to $173.
• GPV processed through Thinkific Commerce rose 34% to $70 M; penetration rate increased to 61% (up from 47%).
• GMV reached $115 M (+3%).
• ARR climbed 5% to $60.9 M.
• Margins & Profitability: Gross margin 73% (down from 76% YoY). Net income $0.2 M (down $0.4 M). Adjusted EBITDA $1.1 M (+$0.1 M, +14%).
• Cash Position: Cash and cash equivalents $51.7 M as of Sep‑30‑2025; operating cash flow $0.6 M for the quarter.
• Operational Highlights:
• AI Teaching Assistant entered early access for select customers; full launch expected Q1 2026.
• New Commerce capabilities added (flexible billing, coupon management, payment notifications).
• Continued enhancements to Communities platform (private spaces, direct messaging, video upload).
• Outlook: For Q4 2025, revenue projected at $18.4–$18.7 M with continued positive Adjusted EBITDA.

Notable Quotes

“Q3 saw progress as we continue to transform Thinkific… Upside in Q3 was driven by Thinkific Commerce – a key growth vector…” – Greg Smith, CEO & Founder
“We delivered Q3 revenue that exceeded the high end of our guided range with Adjusted EBITDA of $1.1 M,” – Corinne Hua, CFO

All figures are presented in thousands of U.S. dollars unless otherwise noted.