Thinkific Labs (THNC) investor relations material

Executive summary

• Q2 2026 results reflect improved profitability and early success in shifting focus upmarket, with strong performance in the Plus segment, onboarding of marquee customers, and accelerated AI integration and product innovation, especially in analytics, reporting, and learner experience customization.

• Product innovation and operational efficiency, including AI-powered features, are driving improved customer retention, engagement, and profitability.

• R&D acceleration and completion of one-time investments have enabled a shift toward higher profitability.

• The company is committed to balancing growth in high-value segments with disciplined cost management and improved profitability.

Financial highlights

• Total Q2 revenue was $18.6 million, up 3% year-over-year, driven by Plus segment growth.

• Plus revenue reached $5.3 million, up 14% year-over-year; self-serve revenue declined 1% to $13.3 million.

• Commerce revenue was $3.4 million, up 4% year-over-year, with gross payments volume at $71.4 million, up 10% year-over-year.

• Gross margin was 73%, flat year-over-year and up 100 bps sequentially; adjusted EBITDA was $0.3 million (1% margin), exceeding guidance.

• Cash and cash equivalents stood at $51 million at quarter-end, up $1.6 million from Q1, with no debt.

Outlook and guidance

• Q3 2026 revenue expected between $18.6–18.9 million, with adjusted EBITDA margin guidance of 2%-5% and a focus on sustained profitability.

• Longer-term EBITDA targets are low to mid-single digits for the near term, aiming for double digits by 2027.

• Actual results may differ due to various risk factors and uncertainties.