A pair of Canadian technology companies whose paths have diverged since going public on the Toronto Stock Exchange in 2021âToronto FinTech firm Propel Holdings and Vancouver-based online course creation software platform Thinkific Labsâshared their latest financial results earlier this week.
For Propel, the second quarter of 2025 was even better than its record-breaking Q1. Propel managed to grow its revenue 34 percent year-over-year to a new high of $143 million USD, while also expanding its net income to $15.1 million, an increase of 36 percent compared to the same period last year, according to its latest earnings report.
Propel has outperformed since its 2021 IPO, while Thinkific has struggled to regain its former heights.
Propel founder and CEO Clive Kinross claimed in a statement that demand from Propelâs clients remained strong despite ongoing macroeconomic uncertainty and some tightening in the traditional consumer credit market.
Thinkificâs Q2 earnings revealed more modest growth as it began a strategic move towards serving larger companies, according to the companyâs latest earnings report.
During the second quarter, Thinkific grew its revenue nearly 12 percent year-over-year, to $18.1 million USDânarrowly beating its guidance thanks in part to an increase in its average per-user revenue.
While Thinkific eked out a small profit of nearly $400,000 USD during this period, its net income declined 60 percent in Q2 compared to the same period last year. However, Thinkific grew its adjusted earnings before income, taxes, depreciation, and amortization (EBITDA) by 20 percent to $1 million in the second quarter.
In a statement, Thinkific CFO Corinne Hua argued that the companyâs Q2 performance highlights its âability to execute through strategic changeâ while still meeting its goals.
Propel was one of the last Canadian tech companies to conduct an initial public offering (IPO) in 2021 before the boom subsided, and has continued to outperform its peers since then. The FinTech firm went public at $9.75 CAD per share, but its stock price has more than tripled to $36.33 at time of publication. Many of the other companies from the same cohort have seen their shares fall and struggled to regain their former heights, and some have returned to private markets or faced takeovers.
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The digital lending company facilitates access to credit through operating brands like CreditFresh, MoneyKey, Fora Credit, and the recently purchased QuidMarket. Propel targets underserved consumers and claims to use artificial intelligence (AI) to evaluate loan applicants better than traditional credit scores.
Thinkific helps entrepreneurs and established businesses make, market, and sell digital learning products. Like Propel, Thinkific also went public amid the 2021 flood of new tech issues, but its fate since then has diverged from Propel and mirrored many of its peers. Since its IPO at $13 CAD per share, Thinkificâs shares have dropped precipitously, falling nearly 85 percent to $2.025 at time of publication.
In recent years, Thinkific has undergone multiple rounds of layoffs and achieved profitability. Q2 marked the official launch of Thinkificâs move to court larger customers, which Hua said the company believes will deliver âstrong and stable long-term growth.â
Kinross expressed confidence in Propelâs ability to deliver strong results during the second half of 2025. âIn a dynamic environment, our AI-powered platform, disciplined risk management, and diversified multi-jurisdictional footprint will continue to differentiate us,â the CEO said.
For its part, Thinkific forecasts either similar results or modest growth in Q3, projecting total revenue of between $18.1 million and $18.4 million USD while maintaining positive adjusted EBITDA as the company continues its move upmarket.
Feature image courtesy of Maxim Hopman on Unsplash