Mr. Greg Smith reports

THINKIFIC ANNOUNCES SECOND QUARTER 2026 FINANCIAL RESULTS

Thinkific Labs Inc. has released its financial results for the quarter ended June 30, 2026. Thinkific reports in of U.S. dollars and in accordance with IFRS (international financial reporting standards).

"We are pleased to report Q2 results that demonstrate improving performance on our strategic focus to move upmarket, driven by sharper go-to-market execution and accelerated product and feature innovations," said Greg Smith, chief executive officer and founder of Thinkific. "Our R&D team is seeing a dramatic acceleration, delivering more value to customers faster than ever before. They are also leveraging AI at the core of our platform, enabling powerful functionality for our customers in areas such as custom analytics and reporting, student interactions, and customizing the learner experience. We are seeing a direct impact emerging in growth drivers, with improvements in customer retention, as well as expansion and acquisition opportunities upmarket. Having completed some one-time investments, we are now prioritizing higher levels of profitability."

Second quarter financial highlights (all comparisons are with the second quarter of 2025):

• Total revenue for the second quarter of 2026 increased 3 per cent to $18.6-million, above the guided range of $18.2-million to $18.5-million, driven by strong Plus performance that helped ARPU (average revenue per user) grow by 5 per cent, to $177 per month.
• Thinkific Plus subscription and commerce revenue grew 14 per cent to $5.3-million. Self-serve subscription and commerce revenue decreased 1 per cent to $13.3-million.
• Subscription revenue, in total, increased 3 per cent to $15.2-million, with ARR (annual recurring revenue) up 2 per cent to $61.7-million.
• Commerce revenue, in total, increased 4 per cent to $3.4-million, with GPV (gross payment volume) processed through Thinkific commerce growing 10 per cent to $71.4-million. Thinkific commerce penetration rate, measured as GPV as a per cent of GMV (gross merchandise value), increased to 67 per cent, up from 58 per cent.
• Gross margin remained flat at 73 per cent in the second quarter of 2026.
• Net loss was $300,000, a decrease of $700,000 from net income of $400,000.
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization)) was $300,000, or 1 per cent of revenue, a decrease of $800,000.
• Cash, cash equivalents and short-term investments were $51.0-million as of June 30, 2026.

Second quarter operational highlights:

• Effective June 1, 2026, Leigh Ramsden joined Thinkific as chief financial officer.
• In the second quarter, Thinkific began making Thinkific Learner Hub available to all of its customers. The Thinkific Learner Hub unifies courses, memberships, communities, events, AI (artificial intelligence) learner engagement and resources into a single, personalized and branded destination for students. It replaces legacy dashboards with a modern, widget-based, layout that keeps learners engaged through progress tracking, tailored recommendations and a customizable, professional interface.
• Product innovation: Thinkific released continuous improvements to its platform in the second quarter of 2026:
  • The company added features that enable customers to scale operations with a centralized asset library and more powerful user management tools like permission management and custom roles that allow customers to act on their learner base at scale.
  • It added mobile in-app purchases, multiitem checkout capability, improved checkout validation and clearer free trial billing -- features that reduce friction and make it easier for customers to sell and grow their business.

Outlook

For the third quarter of 2026, the company expects revenue of $18.6-million to $18.9-million, while improving adjusted EBITDA to a range of 2 per cent to 5 per cent of revenue.

Quarterly conference call and webcast information

A conference call will be held at 5 p.m. ET (2 p.m. PT) on Aug. 5, 2026, to discuss Thinkific's second quarter 2026 financial and operational results. To participate in the call, please dial 1-888-510-2154 (United States/Canada toll-free) or 1-437-900-0527 (international/Toronto). For those unable to participate, a replay will be available an hour after the event by dialling 1-888-660-6345 (U.S./Canada toll-free) or 1-289-819-1450 (international/Toronto). The passcode is 50367 followed by the pound key. The replay will expire at 12 a.m. ET on Aug. 12, 2026. The conference call will also be available via webcast on the investor relations section of Thinkific's website.

Thinkific's unaudited condensed interim consolidated financial statements and accompanying notes, and management's discussion and analysis, for the quarter ended June 30, 2026, are available on the company's website and on SEDAR+.

About Thinkific Labs Inc.

Thinkific is an award-winning learning commerce platform where courses and community come together to power business growth. Thinkific gives academies, experts and businesses everything they need to create and sell on-line learning experiences, build communities and grow their revenue -- all from one platform. Tens of thousands of customers -- including companies like GoDaddy, Nasdaq, ActiveCampaign and Datadog -- have generated billions in revenue using Thinkific, impacting more than 200 million people worldwide.

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