04:46 PM EST, 11/12/2025 (MT Newswires) -- Thinkific Labs ( THNCF ) said its third-quarter profit fell 71% as the online learning platform increased investments in its higher-end commerce business.

The company said it earned US$0.17 million, or nil per share, in the quarter, up from US$0.58 million, or US$0.01, a year earlier

Revenue rose 8% year over year to US$18.6 million, exceeding the company's guidance range of US$18.1 million to US$18.4 million. It also exceeded the US$18.2 million consensus estimate compiled by FactSet.

Thinkific ( THNCF ) said the growth was driven by strong performance in its commerce segment, which boosted average revenue per user by 5% to US$173. The Vancouver-based company provides a cloud platform for creating, marketing, and selling online courses and digital learning products.

Its adjusted EBITDA stood at $1.1 million or 6% of revenue, an improvement of $0.1 million, or 14%.

For the fourth quarter of 2025, the company expects revenue of $18.4 to $18.7 million while maintaining positive Adjusted EBITDA.

"We're seeing evidence that our move upmarket is working, and we are investing in the products and capabilities that will drive revenue growth. Upside in Q3 was driven by Thinkific Commerce - a key growth vector that we continue to unlock by evolving the platform to deliver customer success at scale," chief executive Greg Smith said.

The company said it started rolling out an AI Teaching Assistant to a select group of customers. The feedback has been strong and "we are expanding access ahead of a full launch in Q1 of 2026", said Smith.

Thinkfic shares closed up $0.08 to $2.14 on the Toronto Stock Exchange.