D2L Inc. reports 10% growth in annual recurring revenue

Global learning technology leader D2L Inc.

(TSX: DTOL) has announced its financial results for fiscal 2026, showcasing resilience amidst a complex market.

The company achieved a 10% increase in Annual Recurring Revenue (ARR), reaching a total of US$219.8 million.

A major pillar of this success is the company’s focus on AI-driven innovation through its platform, Lumi, which has significantly boosted customer engagement.

While D2L faced challenges with higher churn in the U.S.

K-12 sector due to cautious spending, these headwinds were balanced by robust performance in higher education, corporate, and international markets.

Outside of the U.S.

K-12 sector, ARR growth reached an impressive 14%.

Looking ahead to fiscal 2027, the company remains optimistic, projecting continued revenue growth of 6-8% as it leans further into its 'AI-first' vision to maintain its competitive edge in the global education technology landscape.