Thinkific Labs (THNC) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 2% YoY to $19.0M, above guidance; Adjusted EBITDA was $1.8M, or 10% of revenue.

• September reorganization reduced headcount from 296 to 200, refocusing resources on Plus and targeting ~$19M in gross annualized savings.

Financial highlights

• Revenue was $19.0M versus $18.6M-$18.9M guidance; ARR rose 4% YoY to $63.1M.

• Adjusted EBITDA was $1.8M, or 10% of revenue, up $0.8M YoY; gross profit was $13.9M and gross margin was 73%.

• Q3 net loss was $3.8M versus net income of $0.2M YoY, including $4.7M in gross restructuring costs, or $4.1M net of stock-based compensation reversals.

• Cash, cash equivalents and short-term investments totaled $50.3M at September 30; there was no debt.

Outlook and guidance

• Q4 revenue guidance is $18.9M-$19.2M, with Adjusted EBITDA targeted at 20%-25% of revenue.

• Outlook assumes continued Plus ARR growth and seasonally stronger acquisition, offset by a return to self-serve ARR contraction after the August pricing benefit.

• Self-serve subscription revenue is expected to decline at a low-single-digit rate over time, with possible near-term volatility in churn and acquisition.

• The 2027 target remains a 25% free cash flow margin, assuming modest revenue growth; further non-headcount expense reductions are planned.