D2L (DTOL) AI Stock Analysis

• Market Cap: C$805.75M
• Dividend Yield: N/A
• Average Volume (3M): 25.07K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.70
• Revenue Growth: 15.95%
• EPS Growth: N/A
• Country: CA
• Employees: 1,000
• Sector: Technology
• Sector Strength: 87
• Industry: Education & Training Services
• EPS (TTM): 0.08
• Shares Outstanding: 27,385,399
• 10 Day Avg. Volume: 23,307
• 30 Day Avg. Volume: 25,066
• PEG Ratio: 0.22
• Price to Book (P/B): 6.51
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 3.29K
• Enterprise Value/Market Cap: 0.32
• Enterprise Value/Revenue: 0.32
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 8.48
• 1Y Price Target: C$18.80
• Price Target Upside: 26.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 73 Outperform
• Price Target: C$16.00 ▲(7.45%Upside)

D2L, Inc. has a robust financial performance with notable revenue and profit growth, and its corporate events reflect strategic strengths. Technical analysis shows moderate momentum, and the valuation is reasonable. These factors combine to provide a positive outlook, though long-term momentum resistance and lack of dividend yield are considerations.

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 Business Overview & Revenue Model

Company Description

D2L, Inc. (DTOL), also known as Desire2Learn, is a leading provider in the education technology sector, offering a comprehensive suite of cloud-based learning solutions. The company's core product, Brightspace, is an integrated learning platform that supports online, blended, and in-person education environments. D2L serves a diverse range of clients, including K-12 schools, higher education institutions, and corporate training programs, by providing tools that enhance learning engagement, accessibility, and outcomes.

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 Financial Statement Overview

Summary

D2L, Inc. presents an overall strong financial position with significant revenue and profit growth, strong cash flow generation, and improving balance sheet stability. The company has effectively managed its operations, turning around its profitability and enhancing shareholder value. While there are some concerns over past operational volatility, the company's current trajectory is positive, indicating a promising outlook.

Income Statement

D2L, Inc. shows a positive trend in revenue growth with a substantial increase from 2024 to 2025. The gross profit margin is strong, reflecting efficient cost management. The company has successfully turned around its profitability, moving from a net loss in previous years to a net profit in 2025, improving the net profit margin significantly. However, EBIT and EBITDA margins were volatile in past years, indicating potential operational challenges.

Balance Sheet

The company's debt-to-equity ratio is low, indicating low financial leverage, which is a positive sign of financial stability. Stockholders' equity has improved over the years, reflecting enhanced shareholder value. However, the equity ratio suggests moderate reliance on liabilities, which could pose risks in adverse conditions. The return on equity has improved, aligning with the company's improved profitability.

Cash Flow

D2L, Inc. exhibits strong cash flow management, with operating cash flow exceeding net income, indicating quality earnings. The free cash flow has grown significantly, demonstrating efficient capital expenditure management. The positive free cash flow to net income ratio highlights the company's ability to generate cash. The company has shown resilience in cash flow generation, supporting its operational and strategic initiatives.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	205.28M	182.38M	168.40M	151.88M	126.37M
Gross Profit	139.96M	122.20M	107.77M	87.95M	77.08M
EBITDA	14.57M	295.44K	-12.98M	-94.02M	-37.94M
Net Income	25.72M	-3.54M	-18.38M	-97.65M	-41.50M
Balance Sheet
Total Assets	232.92M	197.12M	176.61M	179.21M	85.70M
Cash, Cash Equivalents and Short-Term Investments	99.18M	116.94M	110.73M	114.68M	45.22M
Total Debt	11.18M	12.71M	13.01M	1.89M	4.11M
Total Liabilities	148.18M	140.24M	122.52M	112.83M	272.99M
Stockholders Equity	84.75M	56.88M	54.09M	66.38M	-187.29M
Cash Flow
Free Cash Flow	26.98M	9.93M	107.00K	-683.71K	14.91M
Operating Cash Flow	27.90M	15.66M	3.78M	112.25K	16.58M
Investing Cash Flow	-34.33M	-8.52M	-3.67M	-10.22M	-1.68M
Financing Cash Flow	-8.57M	-748.72K	-1.63M	79.08M	-2.14M

D2L Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 14.89
• 50DMA: Positive
• 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:DTOL, the sentiment is Positive. The current price of 14.89 is above the 20-day moving average (MA) of 14.32, above the 50-day MA of 14.06, and below the 200-day MA of 15.62, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 57.26 is Neutral, neither overbought nor oversold. The STOCH value of 69.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:DTOL.

D2L Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMG	75 Outperform	C$619.88M	27.63	29.19%	3.66%	32.49%	-0.20%
DCBO	74 Outperform	$1.19B	37.51	41.12%	―	20.52%	246.69%
DTOL	73 Outperform	C$805.75M	20.29	41.17%	―	15.95%	―
CVO	73 Outperform	C$737.39M	―	-9.00%	―	9.08%	37.74%
TIXT	65 Neutral	$1.48B	35.99	-5.70%	―	2.87%	-271.63%
THNC	59 Neutral	C$139.38M	93.67	2.02%	―	16.58%	―
Sector *	49 Neutral	C$2.96B	2.13	-80.92%	2.67%	12.55%	-24.47%

D2L Corporate Events

D2L’s 2025 Sustainability Report Highlights Global Educational Impact and Commitment to Sustainability

D2L has released its 2025 Sustainability Report, emphasizing its dedication to sustainability, social impact, and employee wellbeing. The report highlights D2L’s initiatives such as the acquisition of H5P, expansion to Mexico, and the introduction of AI-enabled tools to support learners and instructors. The company has also strengthened its ecosystem with the launch of the Higher Education Sustainability Roundtable and partnerships supporting refugees’ access to education. D2L maintains industry leadership with data security certifications and responsible AI initiatives, while promoting employee wellbeing and environmental sustainability through various programs.

The most recent analyst rating on (TSE:DTOL) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on D2L stock, see the TSE:DTOL Stock Forecast page.

D2L Inc. Reports Strong Q1 2026 Financial Results with Revenue and Profit Growth

D2L Inc. reported a 9% year-over-year increase in total revenue for the first quarter of fiscal 2026, reaching $52.8 million. The company saw significant growth in subscription and support revenue, which rose by 11% to $47.7 million, and an improvement in adjusted EBITDA, which more than doubled to $9.3 million. D2L’s strategic focus on platform innovation and market expansion is reflected in its strong financial performance, with a notable increase in gross profit and a reduction in cash outflows from operations. The company also maintained a strong balance sheet with $92.5 million in cash and no debt, underscoring its robust financial health and operational efficiency.

The most recent analyst rating on (TSE:DTOL) stock is a Buy with a C$14.50 price target. To see the full list of analyst forecasts on D2L stock, see the TSE:DTOL Stock Forecast page.