Thinkific Labs (THNC) investor relations material

Executive summary

• Q1 2026 revenue reached $18.7 million, a 5% year-over-year increase, driven by strong Plus segment performance and ARPU growth.

• Annual Recurring Revenue (ARR) was $61.3 million, up 2% year-over-year.

• Significant operational focus on AI-driven product innovation, including the launch of the Thinker AI product and new learner hub for Plus customers.

• CEO assumed direct oversight of R&D following the departure of the Chief Product and Technology Officer after quarter-end.

• Leadership transition underway, with Leigh Ramsden joining as CFO in June 2026.

Financial highlights

• Subscription revenue was $15.2 million (+4% YoY); Plus segment revenue grew 12% to $5.1 million; Commerce revenue up 8% to $3.5 million.

• GPV reached $75.7 million, up 16% year-over-year; GMV was $117.5 million, up 1% year-over-year.

• Gross margin was 72%, down 2 points year-over-year due to revenue mix shift.

• Adjusted EBITDA loss was approximately $500,000, a margin of negative 3%, mainly from one-time AI-related investments.

• Cash and cash equivalents stood at $49.4 million at quarter-end, with no debt.

Outlook and guidance

• Q2 2026 revenue guidance is $18.2–$18.5 million, with adjusted EBITDA margin expected between negative 2% and negative 5%.

• Continued stable gains in Plus subscriptions anticipated, offset by seasonal slowdown in Commerce.

• Management notes actual results may differ materially due to various risk factors.