D2L Inc.

Good morning and thank you all for attending the D2L Inc second quarter fiscal 2026 financial results. My name is Brita and I will be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star followed by the number one on your telephone keypad. This morning's call is being recorded on September the 11th, 2025, at 8.30 a.m. Eastern Time, and I would now like to pass the conference over to your host, Craig Armitage, Investor Relations. Thank you. You may proceed, Craig.

Thank you, and good morning, everyone. Listeners are reminded that portions of today's discussion will include statements that contain forward-looking information. Any such statements are subject to risks and uncertainties that could cause actual results to differ materially from the conclusion, forecast, or projection in the forward-looking information. Further, certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information. For identification and discussion of such risks, uncertainties, factors, and assumptions, as well as further information concerning forward-looking statements, please refer to the company's annual and interim management discussion and analysis and the most recently filed annual information form, in each case which is filed under the company's profile and CDERplus at www.cdrplus.com. In addition, during this call, reference will be made to various non-IFRS financial measures, including constant currency revenue, adjusted EBITDA, adjusted EBITDA margin, adjusted gross margin, and free cash flow. These non-IFRS financial measures do not have any standardized meetings prescribed by IFRS and may not be comparable to similar measures presented by other public companies. Please refer to the company's MD&A for the three and six months ended July 31st, 2025 and 2024 for more information about these and certain other non-IFRS financial measures. including, where applicable, a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures from our financial statements. I'd now like to turn the call over to Mr. John Baker, Chief Executive Officer, D2L. Please go ahead, John.

Thank you, Craig, and thank you, everyone, for joining us for our Q2 earnings call. We released financial results after the market closed yesterday. which you can find on the investor relations section of our website at D2L.com. Please note that the results we're discussing today are in U.S. dollars. I'm also pleased to be joined this morning by Josh Hoff, our CFO. Our second quarter performance reflected strong SaaS revenue growth and improved year-over-year profitability, demonstrating continued execution on our balance of growth and profitability. This quarter, we also made a number of enhancements to our core products, as we continue to execute on our innovation agenda with a particular focus on AI to help us win in more markets globally. The Q2 highlights included total revenue growth of 11% to 54.8 million. Subscription and support revenue rose 14% to 50.1 million, driving increased full-year guidance. Adjusted gross margins were up 220 basis points to 71%, annual recurring revenue grew 7% over last year's Q2 to $212.6 million, and adjusted EBITDA increased to $7.5 million with adjusted EBITDA margin at 13.7%, up 510 basis points from last year's Q2. During Q2, we had solid performance across our go-to-market team, building sales and pipeline momentum despite continued challenges in the current market environment. We're welcoming new customers across our key markets. Two examples in North America, higher education for the University of People, an online university serving more than 150,000 students in over 200 countries and territories around the world. And Red Deer Polytechnic, a leading institution in Alberta, selected Brightspace to support its evolving digital learning strategy for 7,500 students. Internationally, we continue to grow our footprint across key regions, JIS Group and SASTRA University, both in India, selected Brightspace to advance their digital transformation. SASTRA University enrolls approximately 10,000 students and JIS Group serves over 45,000 students, making it one of India's largest private educational groups. And we're pleased to welcome Northwest University, one of South Africa's largest universities, with more than 60,000 students across three campuses and a growing online learning community. NWU as to our growing presence in the region. We continue to expand our reach in corporate learning, adding influential organizations to our customer base. In Q2, these included the Project Management Institute, a global leader in professional certifications and training, with nearly 750,000 members across more than 200 countries. And CPA Australia is now leveraging Brightspace to support its members' lifelong learning, building on our success CPA organizations globally. While we add these new flagship customers, we continue to provide additional value to our current customers and grow our impact with them over time. For example, a long-standing North American research university with approximately 50,000 students renewed early and added Course Merchant and Creator Plus with H5P as part of the long-term contract extension. We're also seeing healthy pipeline generation for new products, including our AI-offering D2L Lumi And while it's early days, Lumi bookings continue to increase at a healthy pace each quarter since launch. And at the end of Q2, we also unveiled an expanded list of AI experiences in D12 Lumi. Our team has now made it easier and faster to deliver personalized learning, guide learners with timely study support, offer virtual tutors, provide assessment feedback support, and provide insights into learner progress and where to act, allowing educators to focus on what truly matters, helping learners succeed. The future of AI and learning continues to be a top focus in my conversations with customers and prospects, and it was a prime topic at our user conference, which was held in Savannah, Georgia, this July. Fusion 2025 brought together over 1,200 people in person and many more online. Our customer engagements at Fusion and throughout the world reinforced our belief that AI will act as a catalyst for new investment cycles. With growing customer adoption, expanding use cases that demonstrate improved learning experiences and outcomes, and a clear roadmap for growth, D2L is well positioned to lead this AI transformation. We're proud to also be recognized for our continued impact in education. In Q2, D2L was named one of Canada's best managed companies for the 13th consecutive year. We're also honored to receive the prestigious title of overall Learning Management System Solution Provider of the Year in the 2025 EdTech Breakthrough Award, underscoring our leadership in delivering transformative learning experiences. And most recently, D2L and our clients jointly won eight Brandon Hall HCM Excellence Awards for delivering exceptional workforce learning. As you know, the late summer marks the return to school for many customers around the world, and I'm pleased to announce a strong start to this new school year. We now have over 21 million users on our Brightspace learning platform globally. In summary, it was a strong first half of the year for our company, and I want to thank all D2Lers for their exceptional work delivering on these important milestones. As I reflect on the quarter, it's clear that we're building momentum and that our customers see us as a very strategic partner to help them navigate the future of learning. With that, I'll turn the call over to Josh.