Docebo (DCBO) AI Stock Analysis

• Market Cap: C$721.70M
• Dividend Yield: N/A
• Average Volume (3M): 175.61K
• Price to Earnings (P/E): 16.7
• Beta (1Y): 0.59
• Revenue Growth: 16.25%
• EPS Growth: 31.71%
• Country: CA
• Employees: 991
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.61
• Shares Outstanding: 28,764,470
• 10 Day Avg. Volume: 243,206
• 30 Day Avg. Volume: 175,608
• PEG Ratio: 0.33
• Price to Book (P/B): 8.61
• Price to Sales (P/S): 2.58
• P/FCF Ratio: 21.89
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$42.04
• Price Target Upside: 65.59% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): 2
• Revenue Forecast (FY): C$363.82M

• Rating: 72 Outperform
• Price Target: C$26.00 ▲(2.40% Upside)
• Action: Upgraded Date: 03/01/26
• Date: Action: Upgraded 03/01/26

The score is supported primarily by strong financial performance (profitability, low leverage, and solid free-cash-flow generation) and a reasonable P/E valuation. These positives are tempered by weak technical momentum (price below key moving averages with negative MACD) and a cautious earnings outlook with near-term headwinds (NRR pressure, enterprise underperformance, and restructuring/execution risk).

Positive Factors

High gross profit margin

A sustained gross margin above 80% indicates durable unit economics for Docebo's SaaS platform; it provides structural buffer to invest in product, sales and AI capabilities while supporting long-term profitability even if revenue growth moderates.

Recurring revenue / ARR growth (ex-Dayforce)

Excluding the one-off Dayforce reduction, 14% ARR growth demonstrates durable demand for the LMS across mid-market and EMEA. Recurring ARR expansion and enterprise wins (Veolia, Amazon) support predictable multi-period revenue and customer-base scaling.

Strong balance sheet and positive cash trends

Low financial leverage and growing free cash flow enhance financial flexibility to fund product R&D, FedRAMP initiatives and AI monetization. A healthy capital structure reduces insolvency risk and supports multi-quarter strategic investments.

Negative Factors

Dayforce wind-down hit to ARR

An accelerated Dayforce wind-down removes a recurring revenue stream and creates structural ARR volatility over multiple quarters. Management expects Dayforce to become immaterial by 2027, forcing Docebo to replace that revenue with organic ARR or new enterprise deals.

AWS contract roll-off

A scheduled $4M ARR contract termination is a structural revenue loss that will persist unless replaced. This reduces base recurring revenue and pressures retention and new sales to fill a measurable gap across the next several quarters.

Churn and retention pressures

Near-term retention headwinds indicate structural customer-base vulnerability; if retention weakens sustainably, it elevates acquisition needs and compresses lifetime value, making long-term margin and ARR targets harder to sustain.

Docebo Business Overview & Revenue Model

Company Description

Docebo Inc. provides a cloud-based learning management system to train internal and external workforces, partners, and customers in North America, Europe, and the Asia-Pacific region. Its platform helps customers to centralize learning materials from peer enterprises and learners into one learning management system (LMS) to expedite and enrich the learning process, increase productivity, and grow teams uniformly. The company's learning platform includes Docebo Learn LMS, a cloud-based learning platform; Docebo Shape, an AI-based learning content creation tool; Docebo Content that allows to unlock the industry's best-learning content; Docebo Learning Impact, a learning measurement tool; Docebo Learning Analytics that allows learning administrators to prove their learning programs are powering their business, as well as connecting learning data to business results; Docebo Connect that connects Docebo to custom tech stack and making integrations; and Docebo Flow that allows businesses to directly inject learning into the flow of work. It also provides Docebo for Salesforce, a native integration that leverages Salesforce's application programming interface and technology architecture to produce a learning experience; and Docebo Embed (OEM) that allows original equipment manufacturers to embed and re-sell Docebo as a part of their software. In addition, the company offers Docebo Mobile App Publisher product that allows companies to create and publish own branded version of Docebo Go.Learn mobile learning applications; Docebo Extended Enterprise that breeds customer education, partner enablement, and retention; and Docebo Discover, Coach & Share that enhances the learning experience to create a culture of social learning. It serves customers in the technology, media, manufacturing, consulting and professional services, and retail industries. The company was formerly known as Docebo Canada, Inc. Docebo Inc. founded in 2005 and is based in Toronto, Canada.

How the Company Makes Money

Docebo generates revenue primarily through subscription-based pricing models for its LMS platform. Clients pay recurring fees based on the number of users or features they require, creating a steady revenue stream. Key revenue streams include subscription fees, professional services for implementation and customization, and additional services such as training and support. The company also benefits from strategic partnerships with other technology providers that enhance its platform's capabilities, as well as from expanding its customer base across various industries, including healthcare, finance, and manufacturing, which contribute to its overall earnings.

Docebo Financial Statement Overview

Summary

Strong overall fundamentals: high and durable gross margins (~79–81%), clear profitability inflection with solid 2025 operating margin (~10%) and net margin (~15%), very low leverage (debt-to-equity ~0.06), and strong free cash flow (~29M) with high conversion to earnings (~0.97x). Key risks are the sharp slowdown in 2025 revenue growth (4.6%) and slight margin compression versus 2024.

Income Statement

Revenue has scaled strongly over the last several years (from ~63M in 2020 to ~247M in 2025), with growth moderating materially in 2025 (4.6%) after much faster expansion in prior years. Profitability has improved meaningfully versus earlier loss years, with 2025 showing solid operating profitability (about 10.1% operating margin) and a healthy net margin (~15.5%). A key positive is consistently very high gross margin (~79–81%), supporting durable economics. The main weaknesses are the clear deceleration in top-line growth and some compression in operating profitability versus 2024 (operating and EBITDA margins slightly lower), which suggests rising costs or investment intensity.

Balance Sheet

The balance sheet appears conservatively financed with very low leverage (debt-to-equity ~0.06 in 2025), leaving ample flexibility. Equity has grown versus 2023–2025, and returns on equity are exceptionally high in 2024–2025, reflecting strong earnings generation relative to the equity base. The primary watch-out is that total debt increased in 2025 versus 2024 (though still small in absolute terms), and the step-change decline in equity from 2022 to 2023 indicates past structural movements that could create year-to-year comparability noise.

Cash Flow

Cash generation is a standout: operating cash flow and free cash flow were both strong in 2024–2025 (free cash flow ~29M in 2025) with free cash flow closely matching reported net income (about 0.97x in 2025), indicating good earnings quality and conversion. Free cash flow has been consistently positive since 2022 and improved sharply from 2023 onward. The key weakness is that cash flow relative to reported earnings remains modest based on the provided coverage figure (still below 0.25 in 2024–2025), and cash flow was volatile earlier in the period (negative operating/free cash flow in 2021), highlighting historical variability even if the current trend is favorable.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	246.94M	216.93M	180.84M	142.91M	104.24M
Gross Profit	195.00M	175.64M	146.34M	114.73M	83.46M
EBITDA	28.15M	27.28M	8.28M	-15.71M	-10.92M
Net Income	38.17M	26.74M	2.84M	7.02M	-13.60M
Balance Sheet
Total Assets	206.27M	190.71M	158.38M	283.67M	268.22M
Cash, Cash Equivalents and Short-Term Investments	73.90M	92.58M	72.03M	216.47M	215.32M
Total Debt	4.49M	1.50M	2.11M	3.07M	4.00M
Total Liabilities	132.31M	132.95M	107.65M	91.46M	77.57M
Stockholders Equity	73.96M	57.76M	50.72M	192.21M	190.66M
Cash Flow
Free Cash Flow	29.10M	28.00M	15.33M	1.21M	-4.40M
Operating Cash Flow	30.10M	29.25M	15.96M	2.29M	-3.25M
Investing Cash Flow	-1.87M	-1.50M	-9.52M	-2.15M	-1.15M
Financing Cash Flow	-48.90M	-6.84M	-151.00M	1.58M	422.00K

Docebo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 25.39
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DCBO, the sentiment is Neutral. The current price of 25.39 is above the 20-day moving average (MA) of 24.74, below the 50-day MA of 27.01, and below the 200-day MA of 35.05, indicating a neutral trend. The MACD of -0.86 indicates Negative momentum. The RSI at 49.69 is Neutral, neither overbought nor oversold. The STOCH value of 61.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:DCBO.

Docebo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCBO	72 Outperform	C$721.70M	16.69	56.90%	―	16.25%	31.71%
ENGH	69 Neutral	C$980.11M	15.58	12.20%	5.69%	-0.72%	-9.27%
THNC	65 Neutral	C$125.47M	143.70	0.65%	―	14.05%	-62.16%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OTEX	59 Neutral	$8.57B	12.20	10.55%	3.27%	-5.01%	13.21%
NTAR	46 Neutral	C$30.75M	-6.96	―	―	-59.22%	83.08%

Docebo Corporate Events

Docebo Launches US$60 Million Share Buyback Through Substantial Issuer Bid

Docebo Inc. has formally launched its previously announced substantial issuer bid to repurchase for cancellation up to 2,941,176 of its outstanding common shares at a fixed price of US$20.40 per share, for a total consideration of up to US$60 million, with the offer set to expire on March 10, 2026 unless extended, varied or withdrawn. The move signals management’s confidence in the company’s valuation and capital position, and may enhance earnings per share and shareholder value by reducing the public float, while also giving investors a defined opportunity to tender their shares under regulated terms in both Canada and the United States.

The most recent analyst rating on (TSE:DCBO) stock is a Hold with a C$29.00 price target. To see the full list of analyst forecasts on Docebo stock, see the TSE:DCBO Stock Forecast page.

Docebo Buys 365Talents to Fuse Skills Intelligence With AI Learning Platform

Docebo has acquired French skills intelligence specialist 365Talents in a cash deal valued at about US$54.6 million, with up to US$5.1 million in additional earn-out consideration, as it seeks to fuse AI-driven skills mapping with its enterprise learning platform. By maintaining the 365Talents brand and leadership while progressively integrating their platforms, Docebo aims to create an AI-native layer that links skills detection, personalized learning and workforce decisions in real time, enabling large enterprise customers to move from skills insights to action, close the loop between training and measurable outcomes, and potentially strengthen Docebo’s competitive position in the fast-growing market for AI-enabled workforce readiness solutions.

The most recent analyst rating on (TSE:DCBO) stock is a Buy with a C$35.00 price target. To see the full list of analyst forecasts on Docebo stock, see the TSE:DCBO Stock Forecast page.