Canada's Thinkific Q3 revenue beats estimates; sees wider adjusted EBITDA margin

Overview

• Canada learning commerce platform's Q3 revenue rose 2% yr/yr, beating analyst expectations

• Company posted $3.8 mln net loss, reflecting $4.1 mln in restructuring costs

• Thinkific Plus segment revenue grew 18%, offsetting decline in Self-Serve segment

Outlook

• Thinkific expects Q4 2026 revenue of $18.9 mln to $19.2 mln

• Company expects Q4 adjusted EBITDA margin of 20%-25%

Result Drivers

• PLUS SEGMENT GROWTH - Thinkific said strong performance in its Plus segment drove revenue growth, with Plus Subscription and Commerce revenue up 18% yr/yr

• SELF-SERVE DECLINE - Self-Serve Subscription and Commerce revenue fell 3% yr/yr, partially offsetting overall growth

• RESTRUCTURING COSTS - Company swung to a $3.8 mln net loss after recording $4.1 mln in restructuring costs tied to its September reorganization

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy."

• Wall Street's median 12-month price target for Thinkific Labs Inc is C$2.46, about 17.8% above its November 2 closing price of C$2.09

Reuters Recommended Reads

• Nov 3 - Chegg Q3 revenue falls as legacy business declines

• Nov 2 - Upwork Q3 revenue beats analyst estimates; acquires WorkMotion to strengthen enterprise offering

• Nov 3 - Canada's Reklaim Q3 revenue jumps 187% year on year

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)