D2L Inc.

Hello, everyone, and thank you for joining the D2L Inc. Q4 2026 Financial Results Call. My name is Lucy, and I'll be coordinating your call today. During the presentation, you can register a question by pressing star followed by one on your telephone keypad. If you change your mind, please press star followed by two. It is now my pleasure to hand over to your host, Craig Armitage, to begin. Please go ahead.

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 a 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 management's discussion and analysis and the most recently filed annual information form. In each case, it's filed on the company's profile on CDAR Plus at www.cdarplus.com. In addition, during the call, reference will be made to various non-IFRS financial measures, including adjusted EBITDA, adjusted EBITDA margin, just a gross margin and free cash flow. These non-IFRS financial measures do not have a standardized meaning 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 years ended January 31st, 2026 and 2025 for more information that these and other non-IFRS financial measures including were applicable. a reconciliation of historical non-IFRS financial measures to the most directly comparable IFRS financial measures from our financial statements. With that, I'll turn the call over to John Baker, Chief Executive Officer at D2L. Please go ahead, John.

Thank you, Craig, and thank you, everyone, for joining us for our Q4 earnings call. We released financial results after the markets 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 joined this morning by Josh Huff, our CFO, and we look forward to taking you through the results today and addressing any questions. Last year, fiscal 2026, was a strong year of execution and progress for D2L across our growth markets. We delivered 10% subscription and support revenue growth. ending the year at 198.4 million, increased ARR to roughly 220 million, generated 44.4 million of free cash flow, and we strengthened our balance sheet with 119 million in cash and no debt. Last year, our platform supported more than 21 million users globally across our customer base of more than 1,500 organizations in over 40 countries. At the same time, the year was not without challenges. Namely, we experienced higher churn in our U.S. K-12 customer base. While K-12 is the smallest of the three main markets, this dynamic is weighing on near-term revenue growth. For context, K-12 represents 10% of our ARR at the year end, and roughly half of that is in the U.S. To give investors a better view of the underlying performance in our core growth markets, higher education, corporate, and international, We've included KPIs that exclude K-12 for some of our data points this quarterly update. Demand across these markets remains strong. ARR grew by 14% and almost 11% in constant currency. Our sales and marketing team demonstrated another strong quarter of execution in a year that's had lower than normal B volumes in North America higher education. That said, we're seeing good demand signals across our core growth markets. Pipeline generation exceeded expectations last year and remains healthy entering this new fiscal year, reinforcing our confidence in our future growth. Turning to the Q4 operating highlights, it was a solid quarter for new bookings and customer additions. In North America higher education, we saw a gradual improvement in market conditions with a modest uptick in full campus RFPs and increased interest in continuing education and adult learning applications for upskilling. We believe our competitive position is stronger than ever, and that's reflected in win rates consistently above 50%. This past quarter, we won business from all three of our main competitors with new customers that included Henry Ford College, a large community college in Michigan with a strong focus on workforce development. The University of Colorado, Colorado Springs, a public research university known for engineering, health sciences, and expanding digital programs. and Okanagan College, British Columbia's largest regional post-secondary institution, which serves over 20,000 learners. In K-12, we continue to provide great service to the largest school districts in North America. And in Q4, we added Hudson Global Scholars, a K-12 organization delivering U.S. curriculum and diploma programs to K-12 students globally. Internationally, we entered the new year with good momentum. Year over year, International ARR growth exceeded 15% in fiscal 2026, and we're seeing strong pipelines as we look ahead. Recent new customer wins include the University of Free State in South Africa, one of the largest public universities serving 37,000 students through a significant online learning presence. The University of Prince Mugren in Saudi Arabia, a private institution focused on English language education. White Cliff College in New Zealand, a leading creative arts and design institution. And building on our market leadership in Singapore, we also added Singapore University of Social Sciences, which specializes in lifelong learning for working adults. After my recent trip to Singapore, it's clear our clients in that region are on the leading edge when it comes to adopting new AIs for this new era. In corporate learning, We're also expanding our customer portfolio to include a large statewide public health agency serving millions of residents. This win reflects the strength of our platform in supporting large, highly regulated organizations with complex needs. And we added the American Society of Interior Designers, which represents more than 25,000 professionals and educators nationwide. In addition to these new customers, we continue to win third-party recognition for D2L's product leadership. During the quarter, D2L Brightspace was recognized as the top learning management system by training industry and one of the best enterprise learning management systems by Talented Learning. We also received multiple Brandon Hall Group Awards for both D2L Brightspace and D2L Lumi. We appreciate the efforts of the D2Lers who have partnered with our clients so closely. to build amazing learning experiences that helped us win these awards. Now, before I talk about the latest AI milestones, I want to frame this through the lens of D2L's long-term vision. For more than 25 years, we've been unified in our mission to transform the way the world learns, and we've done that through multiple technology shifts. We moved to mobile, then to cloud, and we've learned to stay focused on what matters the most to educators and learners. Over this period, we've had the vision to deliver personalized learning at scale, and we see AI as a powerful enabler of the work that we're doing with our clients. We're implementing AI in the way that our customers have asked for, within the core learning platform that always sits at the center of teaching and learning. D2L Brightspace is a system of record and a system of engagement for more than 21 million users. Many use it for hours each day. And because our customers operate in a regulated mission-critical environment, we've built a foundation of responsible AI, giving them a trusted platform that is built to operate safely and reliably at scale. And we're in the center of a broader ecosystem that supports thousands of third-party products. In 2025, for example, there were 2.1 billion integration links from our platform into partner sites. With this as a foundation, Our AI strategies focused on embedding AI into the core workflows educators and learners use every day to improve outcomes, while at the same time delivering better efficiency. This past year, we've had a 4X expansion of AI capabilities across more workflows for educators supporting new languages and into new experiences for learners, such as tutoring, feedback, and just-in-time interventions. We continue to see strong interest from customers for D2L learning. ARR was more than 3.5 million at the year end, up from roughly 2 million at the end of Q3. And the attach rate is accelerating, reaching over 40% now for new higher education customers. Importantly, our position as an AI-first, next-generation platform is resonating in our markets. It's helping us win new customers and secure renewals, supporting both a high retention rate and increasing win rates. And it's against this backdrop that we see an opportunity to accelerate our market share gains globally. And we're investing to capitalize on this momentum. In addition to customer-facing applications, we're increasingly developing AI through all aspects of the company on a foundation of responsible adoption. We have extended AI into internal workflows across engineering, go-to-market, customer support, and customer success. And we're already seeing a positive impact among customers. all of our teams. For example, our learning services group cut the cost of converting old Word documents into engaging, highly interactive learning by over 80%. What took days is now taking minutes, and it has a big impact on the quality of learning for students. These innovations are focused on supporting higher revenue per employee over time while improving customer outcomes. This operational leverage will become more visible as these improvements continue to scale, supporting margin expansion and increasing profitability in future years. With that, I'll turn the call over to Josh to walk through our financial results and our outlook in more detail. Over to you, Josh.