D2L, Inc. (DTOL) AI Stock Analysis

• Market Cap: C$655.44M
• Dividend Yield: N/A
• Average Volume (3M): 35.40K
• Price to Earnings (P/E): 18.1
• Beta (1Y): 0.67
• Revenue Growth: 14.97%
• EPS Growth: N/A
• Country: CA
• Employees: 1,000
• Sector: Technology
• Sector Strength: 51
• Industry: Education & Training Services
• EPS (TTM): 0.66
• Shares Outstanding: 27,229,637
• 10 Day Avg. Volume: 56,676
• 30 Day Avg. Volume: 35,395
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.20
• Price to Cash Flow (P/CF): 14.00
• P/FCF Ratio: 13.90
• 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$19.25
• Price Target Upside: 60.42% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

D2L, Inc. shows a strong financial performance with significant revenue growth and improved profitability, supported by a positive earnings call. Despite some technical indicators suggesting bearish trends, the company's strategic focus and valuation present a balanced outlook.

Positive Factors

Financial Guidance

D2L modestly raised FY2025 guidance, reflecting the recent H5P acquisition, for which it's already starting to capture some revenue synergies.

Profitability

The adj. gross margin was 68.2% (+100bps y/y, +50bps q/q), while the adj. EBITDA margin was 9.6% (+1,090bps y/y, +20bps q/q), helped by continued cost discipline.

Negative Factors

Organic Growth

D2L is seeing a consistent subdued organic ARR growth of roughly +9% y/y, despite a tough y/y comp.

D2L, Inc. Business Overview & Revenue Model

Company Description

D2L Corporation provides an online integrated learning platform for learners in higher education, K–12, healthcare, government, and enterprise sectors. It offers Brightspace, a learning platform that combines usability, integrated analytics, and accessibility practices; Brightspace Learning Object Repository to manage learning objects and share content; Brightspace ePortfolio, which combines social sharing and learning concepts for learners; and Brightspace Insights, a solution to predict, measure, and guide student performance. It also provides Brightspace Degree Compass, a Web-based course recommendation tool that guides students' course selection; Brightspace LeaP, an adaptive learning platform to create individualized online learning experience for students; Brightspace Assignment Grader, an online grading tool that improves productivity and work-life balance; Brightspace Binder, a solution for students to collect, organize, and discover learning content; Brightspace Campus Life, an application that provides students with access to their courses, campus news and updates, upcoming events, and more; and Brightspace Course Catalog, a solution that enables users to search for the list of courses. In addition, it offers Brightspace Capture, a solution to record and broadcast media presentations; Brightspace Binder Shop, a solution for users to discover, evaluate, and recommend e-textbooks for learners; Brightspace Open Courses, an open online learning solution; Brightspace Pulse, an application that helps students to stay up to date and prepared by unifying course calendars, assignments, grades, and news; and D2L Wave, a platform for employees to gain new skills by accessing an online catalog of education options from various educational institutions. The company was founded in 1999 and is headquartered in Kitchener, Canada with locations in Toronto, Winnipeg, and Richmond, Canada; Towson, Maryland; Melbourne, Australia; London, United Kingdom; Brazil; and Singapore.

How the Company Makes Money

D2L makes money primarily through a subscription-based revenue model. Educational institutions and organizations pay for licenses to access the Brightspace platform, with pricing typically based on the number of users or the scope of services required. The company also generates revenue from professional services such as implementation support, training, and customization of its platform to meet specific institutional needs. Additionally, D2L may engage in strategic partnerships and collaborations that expand its market reach and integrate complementary technologies, further contributing to its revenue streams.

D2L, Inc. Financial Statement Overview

Summary

D2L, Inc. demonstrates solid financial performance with strong revenue growth and profitability improvements. The company has a robust cash flow position and maintains low leverage, contributing to financial stability. However, there is potential for further enhancing shareholder returns.

Income Statement

D2L, Inc. shows strong revenue growth with a TTM increase of 9.41% from the previous annual report. The gross profit margin is robust at 67.94% for TTM, indicating effective cost management. The net profit margin stands at 3.22% for TTM, a considerable improvement from prior losses, showcasing enhanced profitability. Both EBIT and EBITDA margins have turned positive in TTM, reflecting operational improvements.

Balance Sheet

The company maintains a healthy equity position with an equity ratio of 28.73% in TTM, indicating a stable financial base. The debt-to-equity ratio is low at 0.19, suggesting minimal leverage risk. ROE is 10.24% for TTM, highlighting a positive return on equity, though there is room for improvement to optimize shareholder returns.

Cash Flow

D2L, Inc. exhibits a strong cash flow position with a significant free cash flow growth of 115.95% in TTM. The operating cash flow to net income ratio is 3.51, demonstrating efficient cash generation relative to profits. Free cash flow to net income ratio of 3.34 further underscores strong cash conversion efficiency.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
199.53M	182.38M	168.40M	151.88M	126.37M	109.49M
	Gross Profit
135.48M	122.20M	107.77M	87.95M	77.08M	69.32M
	EBIT
2.17M	-7.11M	-20.40M	-74.71M	1.78M	-5.56M
	EBITDA
11.06M	295.44K	-12.98M	-94.02M	-37.94M	-1.88M
	Net Income Common Stockholders
6.42M	-3.54M	-18.38M	-97.65M	-41.50M	-5.72M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
108.25M	116.94M	110.73M	114.68M	45.22M	31.39M
	Total Assets
218.23M	197.12M	176.61M	179.21M	85.70M	64.32M
	Total Debt
12.06M	12.71M	13.01M	1.89M	4.11M	5.03M
	Net Debt
-96.20M	-104.23M	-97.73M	-112.78M	-41.11M	-26.36M
	Total Liabilities
155.53M	140.24M	122.52M	112.83M	272.99M	210.67M
	Stockholders Equity
62.70M	56.88M	54.09M	66.38M	-187.29M	-146.34M
Cash Flow		Free Cash Flow
21.45M	9.93M	107.00K	-683.71K	14.91M	4.07M
	Operating Cash Flow
22.52M	15.66M	3.78M	112.25K	16.58M	5.27M
	Investing Cash Flow
-29.27M	-8.52M	-3.67M	-10.22M	-1.68M	-1.16M
	Financing Cash Flow
-6.78M	-748.72K	-1.63M	79.08M	-2.14M	-2.24M

D2L, Inc. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:DTOL, the sentiment is Negative. The current price of 12 is below the 20-day moving average (MA) of 14.87, below the 50-day MA of 17.30, and below the 200-day MA of 15.26, indicating a bearish trend. The MACD of -1.51 indicates Positive momentum. The RSI at 26.82 is Positive, neither overbought nor oversold. The STOCH value of 11.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:DTOL.

D2L, Inc. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTOL	72 Outperform	C$655.44M	18.09	36.44%	―	14.97%	―
KXS	68 Neutral	C$4.60B	157.81	-0.10%	―	14.85%	-105.25%
CSU	63 Neutral	C$96.41B	96.28	30.90%	0.12%	21.56%	31.90%
LSPD	59 Neutral	C$1.94B	―	-5.18%	―	23.95%	39.68%
Sector *	57 Neutral	$20.06B	9.61	-11.19%	2.76%	5.41%	-24.85%

D2L, Inc. Corporate Events

D2L Inc. Announces Leadership Transition as Stephen Laster Departs

D2L Inc. announced the departure of Stephen Laster, who will leave the company on May 9, 2025, to become CEO of a non-competing private company. The transition of his responsibilities will be managed by D2L’s founder and CEO, John Baker, along with the senior leadership team. This change aligns with D2L’s strategy to focus on a human-centric and AI-first learning platform while maintaining growth and profitability. The company is well-positioned to become a category leader in learning technology.

D2L Inc. Reports Strong Fiscal 2025 Financial Results with Strategic Growth in Learning Technology

D2L Inc. reported a strong financial performance for the fourth quarter and fiscal year 2025, with total revenue increasing by 12% to $53.3 million in Q4 and a full-year revenue growth of 13% to $205.3 million. The company achieved significant growth in subscription and support revenue, as well as improved cash flow and Adjusted EBITDA, indicating robust operational execution. D2L’s strategic investments in AI and product expansion have positioned it as a competitive partner in the education sector, helping organizations navigate macroeconomic challenges with modern learning platforms.