Thinkific Labs (THNC.TO) after trade Wednesday said it is restructuring its workforce and operations to focus more on Thinkific Plus.
The company said it is eliminating 96 positions and expects the move to reduce annual operating costs by about $19 million, with most of the savings expected to begin in the fourth quarter. Thinkific also expects to incur about $5 million in restructuring charges, mainly in the third quarter.
The company is targeting a free cash flow margin of 25% or more of revenue in 2027 following the cost reductions, it added.
Thinkific also said it is maintaining its revenue outlook for the third quarter and raising its adjusted EBITDA margin forecast to 7% to 10% of revenue, up from its previous guidance of 2% to 5%. The updated forecast excludes restructuring costs related to the workforce changes, it added.
The company's shares closed down 4% at CA$1.20 and were subsequently halted by regulators.