Thinkific Labs Stock Earnings Reports

Thinkific reported Q1 FY2026 revenue of $18.7M, up 5% YoY, with ARR of $61.3M (+2% YoY). Growth was led by the Plus segment (12% growth, $5.1M), while self-serve growth slowed (2%) reflecting a deliberate strategic shift and reduced lower-tier customer acquisition spend. Commerce revenue exceeded $3.5M for the first time; GPV rose 16% YoY to $75.7M. Gross margin was 72% (down 2 pts YoY) driven by revenue mix. R&D spend rose materially (to $7.1M) due to increased AI investments and R&D hiring, contributing to an adjusted EBITDA loss of about $0.5M. Cash was $49.4M at quarter end. Management is executing two major transitions: moving upmarket to larger, higher-ARPU customers and becoming an AI-centric product organization. Thinker, the company’s new agentic AI product, launched in Q1 and is being positioned as outcome- and usage-based; adoption is early and pricing models are being refined. Q2 guidance: revenue $18.2M–$18.5M (≈1% YoY growth at midpoint) and adjusted EBITDA of -2% to -5% of revenue, with seasonal commerce volatility and some one-time costs (company gathering, CPTO transition) weighing on near-term results. Management emphasizes that current investments in AI and R&D are intended to accelerate product velocity, close gaps for larger customers, increase ARPU, and drive longer-term revenue and efficiency gains.