Docebo Reports Third Quarter 2025 Results
Executive Summary
- Docebo reported Q3 2025 results beating prior‑year figures, with revenue up 11.2% to $61.6 M and net income rising 23.2% to $6.1 M ($0.21 EPS).
- Adjusted EBITDA increased 42.9% year‑over‑year to $12.4 M (20.1% of revenue) and free cash flow grew to $5.7 M, indicating stronger profitability and cash generation.
- The company announced several high‑profile customer wins in industrial services, government/education, beverage, and health sectors, plus new federal contracts with the U.S. DOE and DoD Air Force Cyber Academy.
Key Details
- Financial Highlights (Q3 2025 vs. Q3 2024)
- Subscription revenue: $58.0 M (+10.3%)
- Total revenue: $61.6 M (+11.2%)
- Gross profit: $49.5 M (+10.0%); gross margin 80.3% (down slightly from 81.1%).
- Net income: $6.1 M (+23.2%); basic & diluted EPS $0.21 (up 31.3%).
- Adjusted net income: $9.9 M (+19.9%); adjusted EPS $0.34 (up 25.9%).
- Adjusted EBITDA: $12.4 M (+42.9%); 20.1% of revenue.
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Operating cash flow: $5.3 M (+22.1%); free cash flow $5.7 M (+24.9%).
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Annual Recurring Revenue (ARR)
- ARR at Sep‑30‑2025: $235.6 M, up 10.1% YoY.
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Excluding the largest OEM customer, ARR grew ~14.0% YoY.
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Guidance – Q4 2025
- Total revenue forecast: $62.0 M–$62.2 M.
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Adjusted EBITDA as % of revenue: 20.5%–21.0%.
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Full‑Year 2025 Outlook (FY ending Dec 31 2025)
- Subscription revenue growth target: 11.75%.
- Total revenue growth target: 11.40%.
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Adjusted EBITDA as % of revenue target: 18.0%.
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Major Customer Wins
- Global industrial & environmental services firm (200k+ employees) – enterprise‑scale learning platform rollout.
- Valsts Administracijas Skola (Latvia) – national civil‑servant training system, EU‑funded.
- Leading North American beverage company – replacement of legacy compliance LMS.
- Amazon Health – unified learning ecosystem for sales, onboarding, leadership, compliance.
- Federal contracts: expansion with U.S. Department of Energy; DoD Air Force Cyber Academy (via Deloitte).
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Additional SLED deals: Wisconsin Dept. of Public Instruction, Temple University, City of Sugar Land, TX.
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Conference Call
- Date/Time: Friday, November 7 2025 at 8:00 am ET.
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Access via dial‑in numbers or webcast link provided in release.
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Non‑IFRS Measures Disclosed
- Adjusted EBITDA, Adjusted Net Income, Adjusted EPS, ARR, Average Contract Value, Working Capital, Free Cash Flow – definitions and reconciliation tables included.
Notable Quotes
“Docebo delivered another solid quarter, with results exceeding expectations… Our business continues to show steady progress, supported by stronger systems integrator partnerships and growing presence in the federal and SLED markets.” – Alessio Artuffo, CEO & President
Materiality Assessment: Material – Positive (significant revenue growth, profitability improvement, strong cash generation, and strategic customer wins that materially affect future outlook).