Thinkific (THNC) jumped 90% after announcing a reorganization and positive revision to Q3 guidance, with management expecting to hit the top end on revenue…

… and come in well above on EBITDA, thanks to 500 bps of margin expansion at the midpoint…

… driven by a 31% reduction to headcount, which is expected to save the company $19M on a run-rate basis. With AI changing the landscape, today’s move could be a case study for other small cap software names…

… though part of the bid likely reflects the pessimism priced into THNC shares, which still trade below 1x sales. Let’s see if it’s a one-off, or if other companies follow suit.

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