Thinkific LabsTHNCF 72 Gross Margin % is 71.69% as of Mar. 2026, which is 6% below its 10-year median of 76.31. GuruFocus rates THNCF with a GF Score™ of 72/100 and a GF Value™ of $2.52 (Significantly Undervalued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Thinkific Labs ranks better than 82.09% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Thinkific Labs had a gross margin of 71.69% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Thinkific Labs Gross Margin % Related Terms
Thinkific Labs Gross Margin % Historical Data
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The historical data trend for Thinkific Labs's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
THNCF vs CRM, SHOP, UBER: Gross Margin % Comparison
For the Software - Application subindustry, Thinkific Labs's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Thinkific Labs Gross Margin % vs Software Industry
For the Software industry and Technology sector, Thinkific Labs's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Thinkific Labs's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Thinkific Labs (THNCF) has a Gross Margin % of 71.69% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Thinkific Labs and its competitors. This is near median its historical median of 76.31. Over the past decade, Thinkific Labs' Gross Margin % has ranged from 72.61 to 80.52. According to the industry distribution chart, Thinkific Labs ranks #481 out of 2685 companies in the Software industry, placing it in the top 17.9%.
Is Thinkific Labs' Gross Margin % too high?
Thinkific Labs' current Gross Margin % of 71.69% is near median its 10-year median of 76.31. Over the past 10 years, this metric has ranged from a low of 72.61 to a high of 80.52. The Software industry median Gross Margin % is 40.45. Thinkific Labs' value of 71.69% is 77.2% above this industry median. Based on the distribution chart, Thinkific Labs ranks #481 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Thinkific Labs has a GF Score™ of 72/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Thinkific Labs' Gross Margin % compare to CRM and SHOP?
According to the Software industry distribution chart, Thinkific Labs ranks #481 out of 2685 companies for Gross Margin %. This places Thinkific Labs in the top 18% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Thinkific Labs' value of 71.69% is 77.2% above this benchmark. Historically, Thinkific Labs' own Gross Margin % has ranged from 72.61 to 80.52 over the past decade. While the company's 10-year median is 76.31 vs. the industry median of 40.45, Thinkific Labs has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Thinkific Labs's current Gross Margin % of 71.69% is 77.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Thinkific Labs and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Thinkific Labs's current Gross Margin % is 71.69%, which is near median its own 10-year median of 76.31. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Thinkific Labs stock overvalued right now?
Based on GuruFocus' analysis, Thinkific Labs (THNCF) is currently considered Significantly Undervalued. The stock's GF Value™ is $2.52, compared to a current price of $0.89 — trading 64.6% below its estimated fair value. The current Gross Margin % is 71.69%, which is near median its 10-year median of 76.31 and 77.2% above the Software industry median of 40.45. Thinkific Labs' overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Thinkific Labs (THNCF), the current Gross Margin % is 71.69% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Thinkific Labs (THNCF) Overvalued in 2026?
Based on GuruFocus' analysis, Thinkific Labs stock appears to be undervalued.
The current stock price of $0.89 is trading 64.6% below its estimated GF Value™ of $2.52.
GuruFocus considers Thinkific Labs to be Significantly Undervalued.
Key valuation signals for THNCF:
Gross Margin %: 71.69% (near median its 10-year median of 76.31)
GF Value™: $2.52 vs. price of $0.89 (64.6% below fair value)
Industry Position: 77.2% above the Software median (#481 of 2685)
No single metric tells the full story. See the THNCF stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Thinkific Labs Inc is a cloud-based software platform. Its business activity is to provide a learning commerce platform that helps businesses scale and generate revenue through courses, communities, AI and commerce. The company's platform provides its customers with a learning commerce solution that enables them to create new revenue streams, retain customers, and build community through customized courses, membership sites, communities, digital products and other experiences. Its sources of revenue consist of software subscriptions to its cloud-based platform and revenue from payment processing. Geographically, it operates in Canada; United States, generating maximum revenue; and Rest of the World.
72GF Score
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