D2L (DTOL) AI Stock Analysis

• Market Cap: C$996.75M
• Dividend Yield: N/A
• Average Volume (3M): 46.15K
• Price to Earnings (P/E): 22.5
• Beta (1Y): 0.65
• Revenue Growth: 15.43%
• EPS Growth: 6573.55%
• Country: CA
• Employees: 1,000
• Sector: Technology
• Sector Strength: 88
• Industry: Education & Training Services
• EPS (TTM): 0.07
• Shares Outstanding: 27,376,034
• 10 Day Avg. Volume: 58,747
• 30 Day Avg. Volume: 46,146
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$20.20
• Price Target Upside: 10.99% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 77 Outperform
• Price Target: C$21.00 ▲(15.38% Upside)

D2L's strong financial performance and positive earnings call are the most significant factors contributing to the high score. The bullish technical indicators support the stock's upward momentum, although the high RSI suggests caution. The valuation is reasonable, but the lack of dividend yield may deter some investors.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in subscription services, indicates strong demand and a robust business model, supporting long-term expansion.

Product Innovation

Ongoing product innovation, especially in AI, enhances competitive advantage and customer retention, driving future growth and market leadership.

Financial Health

A strong balance sheet with low leverage provides financial stability and flexibility, enabling strategic investments and resilience against market fluctuations.

Negative Factors

Professional Services Revenue Decline

A decline in professional services revenue indicates potential challenges in diversifying income streams, which could impact overall revenue stability.

U.S. K-12 Market Churn

Increased churn in the U.S. K-12 market suggests potential market saturation or competitive pressures, which could hinder growth in this segment.

Temporary Gross Margin Impact

The temporary impact on gross margins due to technology migration may affect short-term profitability, requiring careful management to mitigate long-term effects.

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 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: 18.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 18.2 is above the 20-day moving average (MA) of 16.89, above the 50-day MA of 16.00, and above the 200-day MA of 16.21, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 63.93 is Neutral, neither overbought nor oversold. The STOCH value of 76.39 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
DTOL	77 Outperform	C$996.75M	22.54	45.71%	―	15.43%	6573.55%
DCBO	69 Neutral	1.20B	42.11	61.75%	―	18.51%	32.49%
CVO	69 Neutral	882.83M	-28.18	-18.58%	―	10.09%	-8.79%
THNC	60 Neutral	133.96M	143.80	-0.57%	―	16.12%	0.00%
CMG	58 Neutral	527.08M	24.57	25.78%	2.51%	8.53%	-8.25%
TIXT	55 Neutral	1.70B	-3.22	-22.61%	―	5.06%	-638.59%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

D2L Corporate Events

D2L Inc. Reports Strong Q2 2026 Financial Results with 11% Revenue Growth

D2L Inc. reported a strong financial performance for the second quarter of Fiscal 2026, with total revenue increasing by 11% year-over-year to $54.8 million. The company saw significant growth in subscription and support revenue, which rose by 14% to $50.1 million, and an increase in annual recurring revenue by 7% to $212.6 million. D2L’s adjusted EBITDA also improved, reaching $7.5 million compared to $4.2 million in the previous year. The company achieved a net income of $2.7 million, reversing a loss from the prior year. These results reflect D2L’s successful execution of its innovation agenda, including the launch of new products with transformative AI capabilities, and its focus on securing flagship customers in key markets. Despite a decrease in professional services revenue due to cautious spending in the U.S. market, D2L maintains a strong balance sheet with $102.5 million in cash and no debt.

The most recent analyst rating on (TSE:DTOL) stock is a Buy with a C$18.00 price target. To see the full list of analyst forecasts on D2L stock, see the TSE:DTOL Stock Forecast page.