D2L (DTOL) AI Stock Analysis

• Market Cap: C$788.77M
• Dividend Yield: N/A
• Average Volume (3M): 35.61K
• Price to Earnings (P/E): 19.6
• Beta (1Y): 0.66
• Revenue Growth: 15.95%
• EPS Growth: N/A
• Country: CA
• Employees: 1,000
• Sector: Technology
• Sector Strength: 78
• Industry: Education & Training Services
• EPS (TTM): 0.08
• Shares Outstanding: 27,385,399
• 10 Day Avg. Volume: 33,154
• 30 Day Avg. Volume: 35,610
• 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$18.83
• Price Target Upside: 30.76% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 71 Outperform
• Price Target: C$16.50 ▲(14.58%Upside)

D2L, Inc. demonstrates a strong financial position with notable revenue and profit growth, enhancing its shareholder value. The corporate events highlight successful strategic initiatives. However, the technical analysis presents mixed signals, and the stock is moderately valued with a P/E ratio of 20.47. These factors combined give the stock a score of 70.75, indicating a positive but cautious 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 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 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
	EBIT
6.20M	-7.11M	-20.40M	-74.71M	1.78M
	EBITDA
14.57M	295.44K	-12.98M	-94.02M	-37.94M
	Net Income Common Stockholders
25.72M	-3.54M	-18.38M	-97.65M	-41.50M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
99.18M	116.94M	110.73M	114.68M	45.22M
	Total Assets
232.92M	197.12M	176.61M	179.21M	85.70M
	Total Debt
11.18M	12.71M	13.01M	1.89M	4.11M
	Net Debt
-88.00M	-104.23M	-97.73M	-112.78M	-41.11M
	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: 14.40
• 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 14.4 is above the 20-day moving average (MA) of 14.12, above the 50-day MA of 13.44, and below the 200-day MA of 15.51, indicating a neutral trend. The MACD of 0.05 indicates Negative momentum. The RSI at 54.08 is Neutral, neither overbought nor oversold. The STOCH value of 70.13 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$571.18M	25.24	29.19%	2.89%	32.49%	-0.20%
DTOL	71 Outperform	C$788.77M	19.63	41.17%	―	15.95%	―
Sector *	62 Neutral	$11.80B	10.08	-7.46%	2.99%	7.37%	-8.21%
DCBO		$776.68M	34.40	41.12%	―	―	―
TIXT		$995.59M	30.46	-5.70%	―	―	―
CVO	61 Neutral	C$710.78M	―	-9.00%	―	8.86%	56.67%
THNC	56 Neutral	C$137.34M	91.40	2.02%	―	16.58%	―

D2L Corporate Events

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.

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.