Q1/F27: A Decent Quarter; SIB Could Boost Near-Term Sentiment

Research evidence excerpt

Q1/F27: A Decent Quarter; SIB Could Boost Near-Term Sentiment

Technology

D2L Inc.

TD SECURITIES INC. - CANADA QUICK TAKE: EARNINGS UPDATE

June 9, 2026

Price: C$9.17 (06/9/2026) Q1/F27: A Decent Quarter; SIB Could Boost

Price Target: C$13.00 Near-Term Sentiment

BUY (1)

ESG SCORE: 67/100

John Shao, CFA, CPA^ THE TD COWEN INSIGHT

416 307 9014

FQ1 was a decent beat, with a sequentially more upbeat tone from management in the press

john.shao@tdsecurities.com

release. More importantly, we believe the announced SIB to return up to C$20mm should

Kiran Sritharan^ boost near-term sentiment and could help stabilize the stock price, particularly if execution

416 944 7690 continues.

kiran.sritharan@tdsecurities.com

Key Data Impact: POSITIVE

Symbol TSX: DTOL-T

Market Cap C$248.6MM SIB announcement: Consistent with our previous note where we noted that a SIB was on

the table, the company announced the purchase for cancellation up to C$20mm of its

Subordinate Voting Shares at a price range of C$10.50 to C$11.50, implying a 14.5% to 25.4%

premium to the closing price on June 9, 2026. The SIB will commence on June 12, 2026, and

expire on July 17, 2026. According to D2L, none of its directors or officers intend to tender their

SV shares to the SIB.

We believe today’s SIB announcement is the right move, considering D2L’s valuation (6.8x NTM

EBITDA) and its strong cash balance of $95.7mm with no debt. More importantly, it provides

a liquidity event for investors previously seeking an exit and, as such, could help stabilize the

stock price should execution continue.

FQ1 beat, guide maintained. Both Q1/F27 revenue and Adj. EBITDA landed above our

estimates and consensus (Figure 1); but management maintained the F27 guide indicating a

conservative approach ahead.

ARR growth is stable.