Thinkific Announces Fourth Quarter and Full Year 2025 Financial Results

Executive Summary

• Thinkific Labs Inc. reported FY 2025 revenue of $73.2 M (up 9% YoY) and Q4 2025 revenue of $18.7 M (up 6% YoY), both at the high‑end of guidance.
• Net income turned positive for the year ($1.3 M) after a loss in 2024, and Adjusted EBITDA improved to $4.1 M.
• The company announced an AI Teaching Assistant “Thinker” launch, a secondary share offering of ~C$15 M, conversion to single‑voting shares, and a new Board Chairman appointment.

Key Details

• Q4 2025 Financial Highlights
• Revenue: $18.7 M (+6% YoY) – high end of $18.4‑$18.7 M guidance.
• Commerce revenue: $3.5 M (+13%); GPV processed grew 23% to $73.5 M; penetration rate 63% (up from 52%).
• Subscription revenue: $15.2 M (+5%); ARR $61.0 M.
• Gross margin: 72% (down 3 pts).
• Net income: $0.3 M (vs. loss of $0.7 M prior year).
• Adjusted EBITDA: $1.0 M (6% of revenue), up $0.1 M (+16%).

• Cash & equivalents: $50.7 M; operating cash used $0.5 M vs. $1.3 M generated a year earlier.

• FY 2025 Financial Highlights

• Total revenue: $73.2 M (+9% YoY).
• Commerce revenue: $13.4 M (+32%); GPV processed $273.5 M (+36%); penetration rate 59% (up from 44%).
• Subscription revenue: $59.8 M (+5%).
• Gross margin: 73% (down 2 pts).
• Net income: $1.3 M (vs. loss of $0.2 M in 2024).
• Adjusted EBITDA: $4.1 M (6% of revenue), up $1.1 M (+38%).

• Operating cash flow: $5.6 M (down from $7.0 M).

• Operational & Product Updates

• Launch of “Thinker” AI Teaching Assistant (Feb 24 2026) – general availability.
• Continuous platform enhancements: AI content generation, advanced analytics, modernized community UI, mobile app upgrades, weekly digest emails, rich‑text/multi‑image posts.

• Commerce feature additions: bulk license management, checkout tracking, B2B invoicing, subscription retention tools, coupon support, notification improvements.

• Corporate Actions

• Conversion of multiple‑voting shares to single‑voting shares – simplification of capital structure.
• Appointment of Russ Mann as Board Chairman following annual shareholders’ meeting.
• Completion of a secondary offering of approximately C$15 M of Rhino Group’s shares (including over‑allotment).

• Renewal of normal course issuer bid authorizing repurchase/cancellation of up to 5% (3,395,023) of outstanding common shares.

• Outlook

• Q1 2026 revenue guidance: $18.6‑$18.9 M.

• Expected Adjusted EBITDA loss of 2%–5% of revenue due to one‑time R&D investments; improvement anticipated later in the year.

• Conference Call

• Date/Time: March 5 2026, 5:00 PM ET (2:00 PM PT).
• Dial‑in numbers and passcode provided; webcast available on investor relations website.

Notable Quotes

“We ended 2025 encouraged with the progress we are making in executing our upmarket strategy… We are strengthening engineering excellence by deeply integrating AI…” – Greg Smith, CEO & Founder
“To better serve an up‑market customer, we are making one‑time, targeted investments in R&D… expected to improve developer productivity and accelerate product roadmap delivery in 2026.” – Corinne Hua, CFO