D2L (DTOL) AI Stock Analysis

• Market Cap: C$827.12M
• Dividend Yield: N/A
• Average Volume (3M): 20.60K
• Price to Earnings (P/E): 20.7
• Beta (1Y): 0.67
• Revenue Growth: 15.95%
• EPS Growth: N/A
• Country: CA
• Employees: 1,000
• Sector: Technology
• Sector Strength: 90
• Industry: Education & Training Services
• EPS (TTM): 0.08
• Shares Outstanding: 27,385,399
• 10 Day Avg. Volume: 15,469
• 30 Day Avg. Volume: 20,604
• PEG Ratio: 1.94
• Price to Book (P/B): 7.01
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.66
• Enterprise Value/Market Cap: 0.61
• Enterprise Value/Revenue: 0.62
• Enterprise Value/Gross Profit: 3.49
• Enterprise Value/Ebitda: 9.93
• 1Y Price Target: C$18.50
• Price Target Upside: 21.95% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 78 Outperform
• Price Target: C$17.00 ▲(12.06%Upside)

D2L's strong financial performance and positive corporate events are the most significant factors driving the overall score. Technical analysis reinforces a moderately positive outlook, while valuation remains fair. The absence of earnings call data limits potential insights into management's 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 Business Overview & Revenue Model

Company Description

D2L, also known as Desire2Learn, is a global educational technology company that specializes in providing learning management systems (LMS) and solutions. Its flagship product, Brightspace, is a comprehensive cloud-based LMS platform designed to support online and blended learning for educational institutions, corporations, and government organizations. D2L is committed to delivering innovative tools that enhance learning experiences and improve educational outcomes.

How the Company Makes Money

D2L primarily generates revenue through subscription-based licensing of its Brightspace platform. Educational institutions, corporations, and government bodies pay for access to the platform on a per-user, per-year basis, often under multi-year contracts. The company also offers additional services such as implementation support, training, and customer support, which contribute to its revenue. D2L partners with other technology providers to integrate complementary tools and services into its platform, further enhancing its value proposition and expanding its market reach.

D2L Financial Statement Overview

Summary

D2L has shown strong financial performance with significant revenue growth, improved profitability, a stable balance sheet, and robust cash flow. These factors highlight efficient cost management and operational efficiency.

Income Statement

D2L has demonstrated impressive revenue growth, with the TTM revenue increasing to $209.6M from $205.3M in the previous annual period. The company has turned profitable, with a TTM net income of $28.4M, significantly improving from negative figures in prior years. Gross and net profit margins have improved as well, highlighting efficient cost management and a strong market position.

Balance Sheet

The balance sheet shows a solid equity base with $83.8M in stockholders' equity and a low debt-to-equity ratio due to manageable total debt levels. The equity ratio is healthy, indicating a stable financial structure. However, the company should continue to monitor liabilities to ensure ongoing financial stability.

Cash Flow

D2L's cash flow statements are robust, with a significant increase in operating cash flow and free cash flow in the TTM period, reflecting strong cash generation capabilities. The free cash flow to net income ratio is positive, indicating effective conversion of income into cash. These metrics support the company's operational efficiency and potential for reinvestment.

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: 15.17
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 15.17 is above the 20-day moving average (MA) of 14.60, above the 50-day MA of 14.38, and below the 200-day MA of 15.76, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 60.07 is Neutral, neither overbought nor oversold. The STOCH value of 84.16 is Negative, 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
DTOL	78 Outperform	C$827.12M	20.68	41.17%	―	15.95%	―
CMG	77 Outperform	C$652.89M	28.70	29.19%	2.50%	19.11%	-15.97%
DCBO	77 Outperform	$1.27B	40.81	41.12%	―	20.52%	246.69%
TIXT	67 Neutral	$1.53B	35.99	-5.70%	―	2.87%	-271.63%
CVO	67 Neutral	C$830.27M	―	-9.00%	―	9.08%	37.74%
Sector *	63 Neutral	$34.70B	5.15	-11.38%	1.67%	5.54%	-17.15%
THNC	59 Neutral	C$145.59M	99.55	2.02%	―	16.58%	―

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.