D2L Inc. Announces Fourth Quarter and Fiscal 2026 Financial Results
Executive Summary
- D2L reported FY 2026 revenue of $217.5 M, a 5.9% YoY increase, with subscription and support revenue up 9% to $51.1 M in Q4.
- Adjusted EBITDA for the full year rose 17% to $32.9 M despite a Q4 decline; free cash flow surged 62.6% YoY to $44.4 M.
- The company provided FY 2027 guidance (subscription revenue $212‑$214 M, total revenue $231‑$234 M, Adjusted EBITDA $33‑$35 M) and outlined a medium‑term target operating model for FY 2028.
Key Details
- Revenue Highlights
- Q4 subscription & support revenue: US$51.1 M (+9% YoY).
- Full‑year subscription & support revenue: US$198.4 M (+9.8% YoY).
- Professional services & other revenue fell 27% YoY to US$4.7 M in Q4.
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Total FY 2026 revenue: US$217.5 M, up 5.9% YoY.
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ARR
- Annual Recurring Revenue (ARR) year‑end: US$219.8 M, +10% YoY.
- Constant‑currency ARR: US$214.1 M, +7% YoY.
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Excluding U.S. K‑12 churn, ARR grew ~14% YoY.
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Profitability & Cash
- Adjusted EBITDA FY 2026: US$32.9 M (+17% YoY).
- Q4 Adjusted EBITDA: US$8.1 M, down 14% YoY; margin fell to 14.5%.
- Free cash flow FY 2026: US$44.4 M (+62.6% YoY); Q4 free cash flow US$12.2 M (21.9% margin).
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Operating cash flow FY 2026: US$43.0 M, +US$15.1 M YoY.
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Balance Sheet
- Cash & equivalents year‑end: US$119.2 M (no debt).
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Repurchased and cancelled 992,700 subordinate voting shares (3.6% of outstanding).
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Customer & Market Updates
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21 M users across 1,500+ customers in 40+ countries.
- New customer wins in North American higher education, global universities, and corporate sector (e.g., Henry Ford College, University of Colorado‑Colorado Springs, Singapore University of Social Sciences).
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Awards: Top LMS 2025 (Training Industry), Best Enterprise LMS (Talented Learning), multiple Brandon Hall Group HCM Excellence awards.
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Guidance FY 2027
- Subscription & support revenue: $212‑$214 M (+7‑8%).
- Total revenue: $231‑$234 M (+6‑8%).
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Adjusted EBITDA: $33‑$35 M (≈15% margin at midpoint).
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Medium‑Term Outlook (FY 2028)
- Target revenue growth: 10‑15% YoY.
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Target Adjusted EBITDA margin: 18‑20%.
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Conference Call
- Date: Thursday, April 2 2026, 9:00 am ET. Dial‑in numbers and webcast link provided.
Notable Quotes
“We reported 10% subscription growth, increased ARR by 10% to nearly $220 million, increased free cash flow by 63%, and further strengthened our balance sheet,” – John Baker, Founder & CEO.
“Our AI‑first approach is resonating with customers, driving revenue momentum for D2L Lumi…” – John Baker.