D2L, Inc. (TSE:DTOL)
TSX:DTOL
Earnings Data
Report Date
Jun 10, 2026After Close (Confirmed)
Period Ending
2027 (Q1)Consensus EPS Forecast
0.1Last Year’s EPS
0.08Same Quarter Last Year
Moderate Buy
Based on 6 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call presented a largely constructive performance: recurring revenue and ARR expanded, free cash flow and full-year adjusted EBITDA improved, margins expanded year-over-year, and strong AI product momentum (notably Lumi) and customer wins support the growth story. Near-term headwinds include elevated U.S. K-12 churn (impacting consolidated growth), margin pressure from a database migration and FX, a Q4 net loss driven by prior-year one-offs, and a decline in professional services revenue. Management provided FY2027 guidance that shows continued growth but below the company’s medium-term targets while signaling confidence in margin recovery as migration costs abate and AI-driven efficiencies scale. Overall, highlights (recurring revenue growth, cash generation, ARR expansion, AI traction and customer wins) outweigh the disclosed lowlights.Company Guidance
Revenue and Subscription Growth
Total revenue grew 6% for the full year to $217.5M and 5% in Q4 to $55.8M. Subscription and support revenue increased 10% for the full year to $198.4M and 9% in Q4 to $51.1M.
ARR Expansion
Annual recurring revenue increased 10% year-over-year to $219.8M (7% on a constant currency basis). Excluding U.S. K-12, ARR grew 14% (approximately 11% constant currency) with Q4 ARR growth of ~11% in higher education plus corporate markets on a constant currency basis.
Strong Cash Generation and Balance Sheet
Free cash flow for the fiscal year was $44.4M (up 63% year-over-year). Q4 free cash flow was $12.2M versus negative $0.6M in the prior year period. Cash and cash equivalents at year-end were $119.2M and the company had no debt.
Profitability Progress
Adjusted EBITDA increased 17% for the full year to $32.9M with an adjusted EBITDA margin of 15.1%. Q4 adjusted EBITDA was $8.1M (down from $9.4M prior year), reflecting timing and one-offs, but full-year margin expansion was achieved.
Gross Margin Improvement
Full-year adjusted gross margin expanded by ~60 basis points to 69.6% and subscription & support gross margin improved ~50 basis points to 73.3% despite near-term headwinds in the second half.
AI Product Momentum and Lumi Traction
AI capability expansion across workflows (4x expansion cited) and strong customer uptake for D2L Lumi: Lumi ARR exceeded $3.5M at year-end (up from roughly $2.0M at end of Q3, roughly +75%), and attach rate for new higher education customers exceeded 40%.
Customer Wins, Market Position and Usage
New customer wins across higher education, corporate and international markets (e.g., Henry Ford College, University of Colorado: Colorado Springs, Singapore University of Social Sciences). Platform supported >21 million users across >1,500 organizations in 40+ countries. Win rates in higher education consistently above 50%.
Capital Return Activity
Repurchased and canceled ~350,000 subordinate voting shares in Q4, bringing fiscal year repurchases to nearly 1M shares for ~$11M, representing cancellation of ~3.6% of opening shares outstanding.
Forward Guidance and Medium-Term Targets
FY2027 guidance: subscription & support revenue $212M–$214M (+7%–8%), total revenue $231M–$234M (+6%–8%), adjusted EBITDA $33M–$35M (~15% margin midpoint). Reiterated medium-term target: 10%–15% revenue growth and 18%–20% adjusted EBITDA margin by FY2028.
TSE:DTOL Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
TSE:DTOL Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 01, 2026 | C$8.58 | C$7.83 | -8.74% |
Dec 10, 2025 | C$16.48 | C$14.94 | -9.34% |
Sep 10, 2025 | C$16.51 | C$18.65 | +12.96% |
Jun 10, 2025 | C$13.18 | C$15.02 | +13.96% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does D2L, Inc. (TSE:DTOL) report earnings?
D2L, Inc. (TSE:DTOL) is schdueled to report earning on Jun 10, 2026, After Close (Confirmed).
What is D2L, Inc. (TSE:DTOL) earnings time?
D2L, Inc. (TSE:DTOL) earnings time is at Jun 10, 2026, After Close (Confirmed).
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What is TSE:DTOL EPS forecast?
TSE:DTOL EPS forecast for the fiscal quarter 2027 (Q1) is 0.1.