Thinkific Labs Inc.

Good afternoon. My name is Ludi. I will be your conference operator today. I would like to welcome everyone to Take and Keep Week's first quarter fiscal 2026 financial results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on May 4, 2026. I would now like to turn the conference over to Johan Kim, Head of Investment Relations, East Coast.

Thank you, and good afternoon, everyone. Welcome to Thinkific's first quarter fiscal 2026 financial results earnings call. Joining me today are Greg Smith, CEO and co-founder of Thinkific, and Kevin Wilson, Interim CFO. After the prepared remarks, we will open up the call to questions. During the call today, we will discuss our business outlook and make forward-looking statements that are based on assumptions and therefore subject to risks and uncertainties that could cause actual results to differ materially from those projected. These comments are based on our predictions and expectations as of today. We undertake no obligation to update these statements except as required by law. You can read about these risks and uncertainties in our regulatory filings that were filed earlier today. Our commentary today will include adjusted financial measures, which are non-IFRS measures. They should be considered as a supplement to and not a substitute for IFRS measures. Reconciliations between the two can be found in our regulatory documents, which are available on our website. In addition, our commentary today will include key performance indicators that help us evaluate our business, measure our performance, identify key trends affecting our business, formulate business plans, and make similar strategic decisions. Such key performance indicators may be calculated in a manner different to similar key performance indicators used by other companies. I should also note we have a slide deck that supports our remarks. available to download on the webcast interface or on our website. And finally, all dollar amounts discussed today are in U.S. dollars, unless otherwise indicated. I will now turn the call over to Greg Smith, CEO and co-founder of Thinkific.

Thank you, Jihan. Good evening, and thank you for joining us. I'm pleased to report we delivered a solid first quarter while continuing to execute on the transformation across Thinkific. I want to take a moment to welcome Lee Ramsden, our new CFO to Thinkific. Lee will be joining us effective June 1st, 2026. He brings great experience to the team, and I'm very much looking forward to working with Lee on our leadership team. Kevin Wilson joining us on the call today has been serving as an exceptional interim CFO for us. I'm very grateful to Kevin and his team for the amazing work they've been doing. I also want to acknowledge that we're currently undergoing a couple of significant changes at Thinkific. The first is our shift up market, and as much as I remain confident in this choice and the eventual results it will bring, like most changes of this nature, the path to success is rarely a straight line. We're in the midst of that journey now. I continue to see an excellent opportunity for us to perform better, having chosen this path. The rapid evolution of AI and its effects on our industry and SaaS are no less than the single greatest change we've experienced since inception, and probably in the history of technological advancements. While AI is a massive rising tide, it won't lift all boats. Some will sink. I am positioning Thinkific to be one of those that rises, and potentially significantly so. We are all in on AI at Thinkific. Our entire team is now leveraging it in every role. From sales and support to go-to-market motions, I'm seeing teams adopt and evangelize the power of AI to help us grow faster and deliver more value for customers. Most importantly, in R&D, we're moving faster than ever. In this area, I have seen teams deliver in days what once took months to build. This opens a world of opportunities for value we can create for our customers and ultimately revenue growth opportunities. But we are still in the midst of this change as well, and we still have work to do here. My specific intents for the use of AI focus around the accelerated achievement of actual outcomes, specifically prioritizing revenue growth, while EBITDA improvements are also an opportunity here. I've taken a personal role in driving this forward across the company with specific focus on R&D, where I think we can see the biggest gains. Evangelical AI adoption and use combined with an intense focus on velocity are now absolute requirements at Sankific. Similar to our shift up market, we're now in the midst of this change, and I hope to be generating improved results from both later this year. I see these two vectors of change as very complementary. I've spoken before about the need to accelerate our product roadmap to better serve our larger customers. AI empowers us to do exactly that. Additionally, as the AI era evolves, moving to larger customers positions Thinkific to capitalize on this evolution. Larger customers have both larger revenue opportunities and larger expense buckets. Both are areas that Thinkific can leverage AI to help them with making us inherently more valuable. I think there's fear out there about the effects of AI on software, and I'm very aware of this. At Thinkific, we are constantly asking ourselves what our moats are and what significant value we bring in a world where software is significantly easier to develop. We have identified some key areas where we'll be deepening these strengths. Focusing on value, we can provide that others cannot build on their own. I believe there's opportunity here for us not just to survive, but ride the wave that AI is bringing to our industry to set ourselves up so that as each new model drops, we get exponentially better. Q1 marked the release of our new AI product, Thinker. As a reminder, Thinker is Thinkific's agentic product that allows any customer to create their own custom agents based on their own proprietary data and content. and to deliver those agents to their customers. Thinker agents differentiate from others and they're focused on teaching and learning. They specialize in specific topics offered by our customers and they're customizable and are highly reliable and accurate. This accuracy is increasingly important, both to our larger customers and as learners come to expect accuracy from their agents. Unlike generalized models, Thinkific agents are trained on our customers' data and further refined by Thinkific's own large data sets. Customer feedback has been very positive, reinforcing our conviction in the direction we're taking. While the benefits of Thinker are clear, its adoption raises new considerations for our customers. Pricing is primarily outcome-based, and as AI consumption scales, so do associated costs. While this means initial usage is muted, it also represents one opportunity for us to scale alongside the wave of AI advancements. We are working with our customers to design the right commercial models to ensure that token billing ties directly to financial outcomes of revenue or cost savings. in order to ensure customers are happy to scale their Thinker usage to any level. Thinker is also just one product area where we're leveraging AI. There are a number of others. We continue to make steady progress in executing against our new ideal customer profiles. We continue to see larger customers at the top of the funnel and improve our ability to close those larger names that have significant expansion potential in the future. One example from Q1 is a large online real estate marketplace that selected Thinkific to support continuous learning for its broker network while maintaining a strong sense of community. The initial rollout will focus on a subset of brokers with significant room to expand over time, given that their broader community is orders of magnitude larger. Notably, this opportunity came to us through word of mouth within the real estate ecosystem. Word of mouth referrals like this represent a strong signal for the strength of our offering. In Q1, at a customer's request, we advanced our work to ensure Thinkific aligns with HIPAA requirements. This work landed us a new and rapidly expanding customer, and it also strengthens our ability to expand in healthcare and adjacent segments where trust, privacy, and reliability are essential. As I shared at the start, we're in the midst of two critical changes, our upmarket focus and the opportunities that AI represents. What excites me is the urgency I see in the team. We've accelerated our execution, and will continue to do so. This energy and mindset shift combined with the powerful AI tools we're leveraging present real opportunity for growth. I'm confident that Thinkific has the ability to not only capitalize on these changes, but set ourselves up to be competitive in the AI era. With that, I'll turn the call over to Kevin to walk through the financials.

Thanks, Craig, and good afternoon, everyone. Our financial performance for Q126 was in line with our guided writing. Our plus segment continued to deliver double-digit growth, and commerce revenue passed over the 3.5 million mark for the first time. Adjusted EBITDA came in just ahead of the midpoint of our guided range. Overall, while we're impatient for our efforts to be reflected in stronger top-line growth, we are pleased by the way Thinkific is managing through this period of strategic change and are excited by the potential of AI to create meaningful advantages for us and our customers over the coming quarters. For the first quarter of fiscal 26, revenue totaled $18.7 million, a 5% increase year over year. The largest driver of growth is our plus segment, where we are seeing strong upmarket interest, along with improved traction on upgrades and retention. Plus grew 12%, totaling $5.1 million for the quarter. Crossing the $5 million mark for the first time is an important milestone, as we work to shift the bulk of our revenue to this larger and more durable segment. As expected, our self-serve segment continued to slow, with growth coming in at 2%. The continued slowdown of self-service is both a product of our own shift in marketing investment, along with the inherent challenges at the low end of the segment. This slowdown reaffirms we're making the right strategic decision to focus on larger and more established customers. As much of our commerce revenue is tied to self-service customer base, we're also seeing a corresponding slowdown on that front. That being said, total revenue earned from our commerce portfolio crossed the 3.5 million mark for the first time. Our depth in commerce is a key differentiator for us in the plus space and allows us to attract a broader array of customers compared to others in our field. Gross margin was 72%, down two points year-over-year, but consistent with the prior quarter. The year-over-year decline was primarily driven by a shift in revenue mix, reflecting stronger growth in commerce revenue relative to total subscriptions. TARPU was 175, 4% year-over-year, and flat sequentially compared to the prior quarter. Prescription growth was subdued as we continued to execute on our strategic pivot upmarket. This reflected deliberate reduction in customer acquisition spending in our traditional lower-tier creator segment while we continued to make progress upscaling our sales team to sell larger and more complicated deals. These factors resulted in a total ARR of 61.3 million, up 2% year-over-year, and up 300K sequentially. Commerce revenue growth was primarily driven by increased penetration of our commerce solution into our customer base, as measured by GPV as percentage of GMV. It rose to 64% from 56 a year ago. As noted in prior earnings calls, at the current levels and with our existing feature set, we believe penetration rates are approaching a plateau around the mid to high 60% range, and is expected to remain relatively stable in the near term. Take rate of 4.3% was down from 4.5 in Q1 of last year, but consistent with the prior quarter and within our anticipated range. Note that take rate will fluctuate depending on the types of commerce features being used by our customers in any given quarter. GPV of 75.7 million was up 16% year-over-year and 3% sequentially. The year-over-year growth in GPV is due primarily to the increased penetration of our commerce solution. GMV of $117.5 million was up 1% year-over-year and largely flat sequentially. Turning to operating expenses, total OpEx was $15.3 million, up approximately $2 million both sequentially and year-over-year. As we discussed last quarter, the increase was driven largely by a surge in AI-related investments. coupled with an increase in the depth and talent of our R&D team. As a result, R&D expenses increased to 7.1 million, up from 4.9 million in the prior year and 5.8 million in the prior quarter. We also incurred additional non-recurring costs in G&A, primarily related to the CFO transition. Sales and marketing was flat sequentially and down almost 400K over the last year, as we continue to refine our go-to-market approach and find savings and efficiencies across the board. Adjusted EBITDA with a loss of approximately 500,000. This was driven primarily by the largely one-time investments in our engineering organization to accelerate the adoption of AI tools and workflows. These investments will drive productivity gains and support a faster pace of product innovation, allowing us to accelerate our product roadmap. On the balance sheet, Cash and cash equivalents as of March 31 were 49.4 million, down from 50.7 in Q4 of last year. The decrease of 1.3 million was primarily a result of the usage of 152K in cash flow from ops, 900K in cash used in the NCIB, and tax remittances of approximately 115,000. I'll end with a few comments on guidance. C2 2026, we're expecting revenue of 18.2 to 18.5 million, representing approximately 1% year-over-year growth at the midpoint. Our revenue range represents continued stable gains and plus subscriptions offset by anticipated seasonal slowdown in commerce revenue. From an EBITDA standpoint, we expect similar results to Q1 with a range of minus 2 to minus 5% of revenue. While Q1 included some one-time costs related to AI investments, Q2 includes a company-wide gathering along with costs related to our CPTO transition. In closing, between shifting towards being an AI-centric organization and our transition to serve more upmarket customers, the next 12 months are going to be pivotal for Thinkific. We are not being patient and are pushing the pace of change faster every day. On a personal note, I'd like to welcome Lee to the finance team in the broader Thinkific community. As Greg mentioned, Lee will be a great asset to the team. and we are pleased to have him here with us. With that, we can open the floor to questions.

Thank you, and we will now begin the question and answer session. To ask a question, you may press a star, followed by the number one on your telephone keypad. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press a star, too. With that, your first question comes from the line of Stephen Mackelson with BMO Capital Markets. Please go ahead.

Hey, thanks for taking my question. So, Greg, it wasn't lost on us that you're stepping into more of a product role. Is that going to be a full-time thing? And I guess if so, like what sort of developments or specific things do you want to see that just weren't being achieved with the previous leadership?

Yeah, I appreciate the question, Stephen. So I don't intend to add more to the senior team here. So, yes, this change is permanent for the at least foreseeable future. I do have a strong engineering leader and product leader in VP roles. And for a company of our size, it's pretty typical to have VP product, VP engineering, and as well in some of the other R&D design and data as well have VPs reporting into me. So that's going to work for the foreseeable future, and this allows me to just get a lot closer to the R&D team. Part of it is just removing layers so that I can dive in and ensure we're on the right path here. Part of it is really the injection of more velocity. We're doing a really good job with AI adoption, but I think there's a huge step change I'd like to create here in terms of the process and decision-making and how we move forward at a pace to really take advantage of it, because AI can take us reasonably far, but there's a bunch more we can do culturally, I think, to accelerate the delivery of value for our customers. And then, yes, I'm looking at the whole roadmap. I think there's a lot of good in what we add plan and we're planning to do and a lot of value for customers coming and intend to complete the majority of that. There are some adjustments I'm making in part two to between the acceleration of output and some of the adjustments to the roadmap, I anticipate making more room for more AI-specific value that we can deliver to customers, which the intent there, obviously, is to drive some cost savings for customers and some revenue driving for Thinkific as well.

Very good to hear. Second question, just based on some simple ARPU math, it looks like the customer count has actually been holding up quarter over quarter, which is Not really what we would have expected given the higher priority given to the plus customers. I wonder if you can speak to any of the dynamics going on there. Are you just adding more self-service customers than you expected or is churn lower than you expected? Any color would be great.

Yeah, I think we've seen, certainly when we initially made some of those changes around the go-to-market and reducing the spend, as Kevin highlighted on the prepared remarks around the creator and bottom end of the market, we were surprised by how we did continue to add a number of customers there. I wouldn't say we're sort of through this whole journey yet, so we may still see some fluctuations there and you're right as we move to larger customers it may be that the customer count comes down and we see but we see larger dollar value customers and to some extent we are seeing sort of a shift to date it's remained as you said relatively stable with not a lot of change where we're kind of shedding some of the old bringing in the new at higher price points over time we may see that number come down though but for the good of moving to the right type of customers

Yeah, no, no, of course. That's it for me. I'll pass the line. Thank you.

Thanks, Stephen.

Thank you. And your next question comes from the line of Gavin Fairweather with ADV Coremark. Please go ahead.

Oh, hey, good afternoon. Thanks for taking my questions. Maybe just to build off that last discussion, just on the Q2 guidance, it does look like there's a modest kind of top line decline sequentially. I know you talked about... you know, a bit of seasonality around commerce. But, you know, have you seen any kind of change in self-serve retention or anything on the front in the current quarter that would maybe speak to that decline?

I think that is more, as we said, on the commerce related. And then we're being, we are quite optimistic here about what we can create with AI to start to unlock this. But Q2 is still in the midst of this transition and really specifically unlocking more with AI. So my hope is that we can do significantly better than this in the future, but being cautious on what we put out there in the near term.

Understood.

Just to add to Greg's point, so on Commerce down from Q2, we've got obviously inherent seasonality. But the other thing that comes with the self-serve customer base, which is the majority of our commerce revenues, we get a fair bit of volatility quarter to quarter. And just what we're seeing thus far in the quarter leads us to be a little bit more cautious, to Greg's point, on Q2 as it stands right now.

Understood. That's helpful. And then just on R&D costs, I hope you can help us out a little bit. $6.6 million in Q1, $4.5 million year-over-year, $5.2 million in Q3. Kind of hard from the outside looking in to quantify how much of that was tied to the third-party kind of surge and consultants coming in versus maybe token usage and kind of driving AI into the organization. Maybe you can just help us understand what a future baseline might look like and how we should think about the timing to getting back to that baseline. Okay.

Yeah, maybe I can give some color and then Kevin, you can talk more a little bit of baseline and then we may make some adjustments from there as well. So the majority of that was the more one-time in Q1 there. We do have on an OpEx generally some more one-time expenses in Q2 and that we are currently actually at the offsite for the whole team. But yeah, so On the R&D front, it wasn't a huge acceleration of, say, token expenditures there. I do expect us to increase the amount of token usage going forward, but a lot of that was more one-time in Q1 there.

Appreciate it. And then just lastly for me, just on Puffs, can you kind of discuss any product milestones that are coming up over the course of kind of Q2 or later bit of 2026 that you think are really going to unlock some further growth for that business?

One of the bigger ones is what we have actually coming out next month in May is a whole new learner hub. And so this allows our customers to bring together their thinker AI agents, their communities, and their courses and other learning experiences into one more cohesive experience. It's going to look and feel a lot different than what others have on the market. A lot of learning experiences right now are a little bit homogenized. And so this breaks us apart and put something that certainly when we've been putting in front of customers for the last few months has gotten rave reviews. So I think it creates a lot of opportunity. It also is a re-architecting of the underlying code to allow us to move faster on top of it with AI. So that's a big one I'm excited about. There's a bunch of, we've made some big recent improvements in our mobile app, in our community's experience that have gotten good reviews from customers and is actually starting to move metrics in a positive way there. And then there's more on the front of specifically what we can do for larger customers that's coming that are just a laundry list of asks that they have, whether it's to close more deals or stay with us longer. And then the piece I'm looking to inject more into the roadmap is how we introduce additional product to drive up ARPU and revenue opportunity with those customers, because I think there's a big opportunity to do that, certainly with the use of agents.

Thanks so much. I'll pass the line.

Thanks, Gavin.

And the next question comes from the line of Robert Young with Conocard Genuity. Please go ahead.

Hi, good evening. A couple questions. First one, I keep sending some of the other questions, but the ARR growth implied in the guidance, if you could help me understand the moving parts there. I'm trying to parse your comments and it sounds as though a lot of the decline, I guess it's 3 million decline quarter of a quarter at the midpoint thereabouts, is that mostly driven by commerce? That seems like that's a larger amount than would only be driven by commerce. And so how much of that would be plus decline and how much would be self-serve decline? If you just maybe lay out those pieces, that'd be really helpful.

And just to be clear, are you talking ARR?

Yeah, so I'm talking about revenue, but I'm just simplifying towards ARR. I'm just trying to understand. So first question would be ARR looks like it's going to decline in Q2 overall. And so the decline in the revenue guidance suggests that it would be larger than just a decline in commerce. I think that's what you'd said earlier in the call. Is that correct or is the self-serve or plus declining? Would ARR from those pieces decline? Does that make sense?

Yeah, I can jump in there. So the seasonality that you're seeing and the change from Q1 to Q2 this year is a little bit different from Q1 to Q2 last year. So Q2 last year, Q3 last year, we had a few customers in commerce having outsized success. As I mentioned, volatility and self-serve means that sometimes customers come on, have outsized success, and then retire from the business, change their business model, change something in their business that doesn't show up in the same way. And that's to some extent what we're seeing this year and going from Q1 to Q2. So the vast majority of the decline from Q1 to Q2 is commerce. And that is larger than what we saw last year, simply because last year we had some customers having outside success that we're not necessarily expecting to repeat this year. ARR should be in line with trends for Q2.

Okay, so then that would mean that the incremental or the added ARR in Q2 from both plus and self-serve would be positive?

Yes. I'd say in line with trend, which has been. Okay.

Yeah. Understood. Okay. Okay. My next question would be around the token usage that you mentioned. We're trying to understand where that shows up, the cost shows up in the income statement. Does it fall into gross margins? Because I think you said that gross margins is going higher due to mix. Could you dig into that just a little bit? Yeah, and I don't think you would... If you could identify where... Go ahead.

Kevin, confirm I'm wrong here, but I don't think you would see a significant impact from token usage in Q1. Q2 going forward, we'll see more, but although we have been using Tokage, it's not a huge line item at this point. We are doing a pretty good job of both leveraging the best of the models and the best models to managing the spend there as well. And then where you would see that, Kevin, I'm not actually sure, is that primarily R&D or have we split it incredibly across OpEx based on team usage?

It's based off team usage, but obviously the majority of it we currently expect in R&D, but I think we're learning as we go in terms of how the usage is going to differ from team to team.

Okay, and then what elements of the pricing model are consumption-based? Is it just thinker at this point, and are you thinking that that might expand over time?

It is thinker. And I do think we could expand that as well. So we do have some usage based pricing, but not on a token by token basis. And then with thinker we do which is it's the product itself is getting really positive response from customers very excited about using it. And we're just in the process of adjusting the pricing and the controls that customers have on the pricing. So they have some ability to either moderate what they spend on it over time or ideally pass that cost on to the end user so that they're not as at all gun-shy about turning it on to full board. Because most of our customers we're talking to are really excited to roll it out and expand it as broadly as they can, but they want to have some confidence about an ROI, and that's something we can give them if we allow them to flow through the cost to the final user.

Okay. The gross margin expansion question. due to mix, I think. What is the driver of that? Is that a shift towards bus with less commerce contribution or some other driver?

Growth margin, I'll just confirm here, I think is usually that is a shift in mix between subscription revenue and commerce revenue. And I believe that was the case here as well, which meant a slightly lower gross margin, less than less than 1% lower, but a slightly lower gross margin based on that mix. If I've got that right.

Yeah. Okay. So nothing to do with pricing or anything else like that. And then last question for me, and I'll pass the line. The, if you just give us a sense of the, the drivers behind the plus deceleration. I know that the target a few quarters ago was 30% growth and now it's somewhere around 12%, at least 12%. What are the headwinds there given all of the effort to sort of push that piece of the business? Is it just a retooling that's also impacting the plus growth or... Are you still aiming for 30% and think that's possible in the short run?

And I'll pass the line. Yeah, so I've talked about it a bit on this call and a bit on the last call, and it really kind of comes down to we've entered a new market with a different ideal customer profile. We had many of these customers before, but now that we're going heavy into it. we have realized there's some product gaps to fill. And so we're in the process of doing that with AI. I think we can fill them pretty quickly. That's largely what the roadmap currently is for this year is closing those gaps so that we're more competitive in that space with the larger customers while opening some new revenue opportunities. But largely it's things we need to do to amp up the product. I've seen some really good success on our CSM account management teams, support teams, working with customers to do more there as well as launch and onboarding. So we're actually seeing some gains on the operations and more hands-on work that we're doing with these customers to win more deals, get them up and running, see them through success and keep them longer. The last gap we really need to fill there is on the R&D side.

Okay. Thanks. That's it for me.

Great. Thanks, Rob.

And the next question comes from the line of Todd Cooper with CIBC. Please go ahead.

Oh, good evening. I had a longer-term question, Greg. I'm just wondering if you could frame out whether it's one-year, three-year, five-year, what does success look like in a transition model for Thinkific? What's the ideal customer look like? How are they using it? the products you can imagine. Can you just talk us through what that may look like or what you think it could look like at this point in time? Thanks.

Definitely, yeah. And so as we look forward and we see through these transitions, good looks like to me that it is not exclusively plus. I think that's sort of one misconception out there. Plus is a huge part of it because it's a higher price point, but I see self-serve and plus as plans, not customers. And so there's still an opportunity of bringing in people at the self-serve price point, and we see this consistently, and then moving their way through price points and many of them making their way to plus. The ideal customer for us is generally has a team. if they're coming in at a low price point, maybe five people or more, if they're coming in at the higher price points, often 25 and up, and sometimes in the thousands, they are delivering training to their customers and often as a revenue stream for them, which can be a real differentiator because that's something that we do extremely well. And so it's really focusing on them and making sure we're meeting their needs. So it's businesses that have teams that are delivering training to customers and ideally doing it at least in part as a revenue stream. And that sets us up well to set ourselves apart. And then how we help them is over the next few years, there's a lot we can do on the agentic side to just roll out agents to both help with their actual op-ex while creating revenue opportunities for us. So things that may cost them currently hundreds of thousands or millions that with the tooling we have could potentially do it for significantly less for them.

And have you thought through your pricing model with, I guess, a group of agents that you're offering to your customers versus a subscription model?

Yeah, and so thinker being the first step in that where it is more usage and outcome-based. What's really outcome-based is what we're trying to move towards is so that as they're getting outcomes through the use of agents that it's more pay based on outcome and success. And I think that it's an obvious trend in software and one we see a lot of opportunity in if we can do more to provide better outcomes for customers that either have a revenue-driving outcome a customer-facing outcome or in many cases an OPEX outcome for them, then they're a lot more amenable to the outcome or usage-based pricing. And so I think you'll see us and more and more software move in that direction.

And then sort of last thing for me, you say you're a first mover from your group of peers, but are you seeing a Gentic-based competitors show up already? And if so, who are they? And what types of products are they already demoing to the market?

Yeah, I mean, I wouldn't name, I don't want to throw a bunch of competitors on the call. But I would say that I do, I think every software company out there is looking at this. And if they're not, they're already dinosaurs is, is We do need to be looking at agentic solutions, and so it's a huge part of the stack now that I think any software company needs to be incorporating, and so I do see it all over the place. We were pretty quick to market with Thinker with the specific functionality that it has, and I think it's still something that it can stand out on. But I think there's a lot more we can do in terms of custom agents for customers or customizable agents for customers that go well beyond what Thinker is doing today. And I think you're going to continue to see this from most of our competitors, that they are offering more agentic solutions for sure.

Great. Thanks very much. Thanks.

And I'm showing no further questions at this time. I would like to turn it back to Greg Smith for closing remarks.

Thank you all, I appreciate the wonderful questions and insight and time you take to spend with our company. As I highlighted on the call, I think we're in the midst of a couple of exciting changes where I see a lot of opportunity And in particular, with the use of AI rolling out to the customers that we're best suited to serve, I think there's a very optimistic here that we can move a lot faster and deliver a lot more value and create more value for all of you as shareholders, us as Thinkific, and of course, for our customers, which is the base of it all. Thank you.

Thank you, presenters. And ladies and gentlemen, this now concludes today's conference call. Thank you all for joining. You may now disconnect.