Docebo: Share Buyback, Earnings Outperformance, and Improving Profitability Support Continued Buy Rating

Needham analyst Ryan MacDonald has reiterated their bullish stance on DCBO stock, giving a Buy rating today.

Ryan MacDonald has given his Buy rating due to a combination of factors that underscore both capital allocation discipline and solid operating performance. He highlights the newly approved substantial issuer bid, under which Docebo plans to repurchase $60 million of its shares at a set price, financed through a mix of existing cash and borrowings, as a clear signal of management’s confidence in the company’s intrinsic value and cash generation. He also points to preliminary fourth-quarter 2025 figures that exceeded his expectations on revenue and adjusted EBITDA, as well as a strong full-year annual recurring revenue level, as evidence that underlying demand and execution remain robust.

In addition, Ryan MacDonald notes that the company’s 2026 outlook, while slightly under his prior revenue assumptions, still implies healthy top-line expansion and a meaningful ramp in profitability. Importantly, the adjusted EBITDA guidance is above the Street’s consensus even after incorporating the near-term margin drag from the recent 365Talents acquisition, suggesting improving operating leverage and integration discipline. Taken together, the shareholder-friendly buyback, better-than-expected preliminary results, and an outlook that balances growth with enhanced profitability support his view that the shares offer an attractive risk-reward profile at current levels, justifying a continued Buy rating.

According to TipRanks, MacDonald is an analyst with an average return of -3.7% and a 39.76% success rate. MacDonald covers the Technology sector, focusing on stocks such as Docebo, Nerdy, and Liveperson.