Learning platform D2L reports strong fiscal 2025 results & revenues

D2L has announced its financial results for the fourth quarter and the full year of Fiscal 2025, reporting increases in both revenue and subscription figures.

Total revenue for the fourth quarter reached USD $53.3 million, representing a 12% increase compared to the previous year. The company also noted a 13% rise in full-year revenue to USD $205.3 million. The subscription and support revenue increased by 11% year-over-year to USD $46.8 million for the fourth quarter and similarly grew to USD $180.6 million for the full year.

John Baker, Chief Executive Officer of D2L, stated, "We reported a strong fourth quarter that underscores our effective execution in Fiscal 2025, with revenue and Adjusted EBITDA exceeding guidance. We have strengthened our core learning platform and meaningfully broadened our product portfolio. Our investments in AI capabilities with D2L Lumi and improving the learning experience with Creator+ are hitting the mark and helping customers improve learning outcomes. As organisations navigate the near-term macroeconomic conditions, we are competitively well positioned as a strategic partner to help them implement a modern learning platform that is increasingly mission-critical."

The company reported a Constant Currency Annual Recurring Revenue of USD $205.3 million at the year-end, which reflected a 9% improvement over the previous year-end. Cash flow from operating activities increased by USD $12.2 million to reach USD $27.9 million in Fiscal 2025.

In terms of profitability, D2L achieved an Adjusted EBITDA of USD $9.4 million for Q4, corresponding to a 17.7% Adjusted EBITDA Margin, against USD $3.5 million (7.3% Adjusted EBITDA Margin) in the preceding year. Income for the period recorded a perceptible rise to USD $19.9 million compared to USD $0.6 million during the same period in the prior year.

The company has also highlighted their business and operational developments, noting an increase in its user base to over 20 million by the end of the year. D2L's customer base expanded to more than 1,430 as of 31 January 2025. This development spans colleges, universities, K-12 school districts, and companies in over 40 countries. Important corporate expansions included new collaborations with organisations such as Roger Williams University and Buesa Energy LLC.

D2L also welcomed Andrew Datars as its new Chief Technology Officer in January, amid numerous accolades for its learning systems. The D2L Brightspace platform was acknowledged by several industry awards, including those from Training Industry and the Craig Weiss Group.

Looking ahead to Fiscal 2026, D2L has issued guidance forecasting subscription and support revenue in the range of USD $194 million to USD $196 million, indicating a growth rate of 7-9% over Fiscal 2025. Overall, total revenue is expected to be between USD $219 million and USD $221 million, with expected growth of 7-8%.

Josh Huff, Chief Financial Officer, commented, "For this fiscal year, our expected growth rates reflect the impact of foreign exchange rates and the current macroeconomic environment, which we view as transitory in nature. We continue to see robust growth drivers for the company over the medium term, which we expect will lead to higher revenue growth along with further Adjusted EBITDA Margin expansion as we increase NRR, continue to grow our customer base and market share, and consider additional strategic acquisitions."

These projections underscore D2L's strategic intent to sustain growth momentum through measured investments, aimed at attaining higher profitability, alongside revenue increases for the upcoming fiscal year.