Q2 2027 D2L Inc Earnings Call Transcript

Sep 10, 2026 / 01:00 PM GMT

Release Date Price: $7.2 (-4.89%)

Transcript

Key Points

Positve

Excluding the K-12 market, ARR grew more than 10% year over year, marking the fourth consecutive quarter of double-digit growth in core higher education and corporate markets, which account for over 90% of revenue.
D2L Inc (DTLIF) continues to strengthen its competitive position in higher education, displacing major competitors and adding new customers such as Brown University, Golden Gate University, and UNSW Sydney, a top 20 global university.
The company expanded its presence in the corporate market with new customers including the American Society of Safety Professionals, the Royal College of Anesthetists, and the Public Service Alliance of Canada.
Creator Plus adoption rate exceeded 35% among existing customers, and D2L Lumi surpassed $5 million in ARR with over 40% attach rate on new customer deployments, demonstrating strong AI product traction.
D2L Inc (DTLIF) maintains a strong balance sheet with $106.4 million in cash and no debt, and repurchased approximately 2 million shares in Q2, returning capital to shareholders while investing in growth.

Negative

Subscription and support revenue increased only 2% to $50.9 million, and ARR grew just 5% to $223.4 million, significantly impacted by previously disclosed US K-12 customer churn.
The company revised its fiscal 2027 revenue guidance downward due to softer demand in advisory professional services and the delayed go-live of a new customer deployment, which reduced subscription revenue by approximately $0.8 million in Q2.
Adjusted EBITDA declined to $6.5 million (11.6% of revenue) from $7.5 million (13.7% of revenue) in the prior year period, reflecting revenue impacts and planned investments in sales and marketing.
D2L Inc (DTLIF) reported a net loss of $3.1 million in Q2, compared to net income of $2.7 million in the prior year period, primarily due to a non-cash fair value loss of $4.8 million related to the loan receivable from Skillswave.
The US K-12 market remains challenging with significantly higher than normal churn over the past 12 months, and while retention trends are expected to normalize in Q3, the segment continues to be a drag on overall growth.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

DTOL.TO - D2L Inc
Q2 2027 D2L Inc Earnings Call
Sep 10, 2026 / 01:00PM GMT

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Presentation
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Unidentified_1 [1]
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Hello, everyone.

Thank you for joining us and welcome to D2L second quarter 2027 financial results digital conferencing call.

After today's paired remarks, we will host a question-and-answer session.

If you would like to ask a question, please press one to raise your hand.

To withdraw your question, press one again.

I will now hand the conference over to Craig Armitage, Investor relations.

Craig, please go ahead.

Good morning.

Thank you.

Listeners are reminded that portions of today's discussion will include statements to contain or looking information, any such statements are subject to risks and uncertainties that could cause actual results to differ materially from

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