Thinkific Q2 2025 slides: revenue up 12%, commerce growth accelerates

Introduction & Market Context

Thinkific Labs Inc (TSX:THNC) released its Q2 F2025 earnings presentation on August 6, 2025, highlighting continued revenue growth and strategic shifts toward upmarket customers. The company, which provides a platform for businesses to monetize expertise through online courses and communities, reported a 12% year-over-year increase in revenue, matching its Q1 2025 growth rate.

The company’s stock closed at $2.17 on the presentation date, significantly below its 52-week high of $4.40, reflecting ongoing investor concerns despite the company’s transition to profitability. Thinkific’s presentation emphasized its strategic pivot toward larger customers and expansion of commerce capabilities as key growth drivers.

Quarterly Performance Highlights

Thinkific reported Q2 F2025 revenue of $18 million, representing a 12% year-over-year increase. The company’s Annual Recurring Revenue (ARR) reached $61 million, up 6% compared to the same period last year. Notably, the company maintained positive Adjusted EBITDA of $1 million (6% margin), continuing its profitability trend.

As shown in the following financial highlights:

Revenue growth was driven by two key segments: subscription revenue increased 6% year-over-year to $14.9 million, while commerce revenue saw substantial growth of 48% year-over-year, reaching $3.2 million. When viewed from a customer-centric perspective, self-service customers generated $13.4 million in revenue (up 8% YoY), while Plus customers contributed $4.7 million (up 25% YoY).

The company’s Adjusted EBITDA performance demonstrates its successful transition from losses to profitability over the past few years:

Thinkific’s commerce platform continues to be a significant growth driver, with Gross Payments Volume (GPV) reaching $65 million, up 48% year-over-year. The company processed approximately $721 million in total customer sales, with $454 million processed on-platform (GMV) and $242 million specifically through Thinkific Commerce.

The following visualization illustrates the company’s commerce ecosystem:

Strategic Initiatives

Thinkific’s presentation highlighted several strategic initiatives aimed at accelerating growth. CEO Greg Smith emphasized the company’s new direction, which focuses on moving upmarket and aligning the platform to support ideal customers with higher lifetime value.

The company’s Thinkific Plus offering, targeted at larger enterprises, continues to gain traction with 25% year-over-year growth in Q2. The average new deal size increased by 22% year-over-year, and 56% of new deals are now multi-year contracts, indicating stronger customer commitment.

Commerce capabilities remain a key competitive advantage for Thinkific. The presentation highlighted several commerce features that drive customer success, including order bumps (20% larger average transaction size), gifting (6.2% larger transaction size), and smart retries (up to 30% more revenue).

A significant strategic development announced in the presentation is Thinkific’s partnership with Spotify (NYSE:SPOT). This collaboration will allow Thinkific course creators to reach Spotify’s massive user base, potentially expanding their audience and revenue opportunities.

Forward-Looking Statements

Looking ahead, Thinkific provided Q3 2025 revenue guidance of $18.1-$18.4 million, representing continued growth. The company expects to maintain positive Adjusted EBITDA, consistent with its focus on profitable growth.

Thinkific identified four key growth drivers for the future: moving upmarket to focus on higher-value customers, expanding commerce capabilities, growing the Thinkific Plus segment, and developing agentic learning features powered by AI.

The company’s strategic shift appears to be yielding results, with commerce revenue growing at a 68% CAGR from Q2 2022 to Q2 2025. This acceleration in commerce adoption represents a significant opportunity for Thinkific, as it currently captures revenue from only a portion of the transactions on its platform.

Thinkific’s Q2 2025 presentation demonstrates the company’s continued execution of its strategic transformation, with encouraging signs in commerce growth and enterprise customer adoption. While revenue growth remains steady at 12% year-over-year, the accelerating growth in high-margin segments like commerce and Thinkific Plus suggests potential for improved financial performance in future quarters. Investors will be watching closely to see if these strategic initiatives translate into accelerated overall growth and expanded profitability.

Full presentation:

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