D2L Inc.

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the D2L Inc. Fiscal 2027 First Quarter Results Conference Call. At this time, all participants are in a listen-only mode. Following the presentation, we will conduct a question-and-answer session. Instructions will be provided for you at that time for questions. If anyone has any difficulty hearing the conference, you may press star-zero for operator assistance at any time. This morning's call is being recorded on June 10, 2026 at 8.30 a.m. Eastern Time. I would now like to turn the call over to Craig Armitage, Investor Relations. Please go ahead.

Thank you and good morning. 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 and Interim Management Discussion and Analysis and the most recently filed Annual Information Form. in each case as filed under the company's profile on CDARplus at www.cdarplus.com. In addition, during this call, reference will be made to various non-IFRS financial measures, including adjusted EBITDA, adjusted EBITDA margin, adjusted gross profit, adjusted gross profit margin, and free cash flow. These non-IFRS financial measures do not have any standardized meanings 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 quarter ended April 30th, 2026 and year ended January 31, 2026 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 John Baker, Chief Executive Officer, D2L. Please go ahead, John.

Thank you, Craig, and thank you, everyone, for joining us for our Q1 earnings call. We released our financial results after market closed yesterday, and you can find those materials on the investor relations section of our website. Please note that the results we're discussing today are U.S. dollars. I'm joined this morning by Josh Huff, our CFO, and we look forward to taking you through the results and answering your questions. The first quarter of fiscal 2027, represented a strong start to the year, with good execution across our core growth markets. Subscription and support revenue grew 10% to $52.7 million. ARR increased 9% to $225.2 million. We generated $8.3 million of adjusted EBITDA, and our financial position remains very healthy, with close to $100 million in cash and no debt at quarter ends. Importantly, we're executing very well across our largest growth markets, higher education, corporate, and international. ARR from these markets increased approximately 13% year-over-year, and we saw ongoing strength in both new customer bookings and pipeline generation, which supports our growth expectations for the year ahead. In North America, higher education is a good quarter for new customer activity. Our competitive positioning continues to strengthen, which is translating into consistently high win rates, This past quarter, we once again displaced all three of our main competitors. Notable new customers included Humber Polytechnic, one of Canada's largest polytechnic institutions focused on career-oriented and applied learning to over 86,000 students. Loyola University Chicago, a premier private research university with nationally recognized academic programs. Midwestern University, a leader in medical education that has been training the next generation of healthcare professionals for more than 125 years. Wiley University, which has been expanding access to more inclusive and high-quality educational opportunities for more than 150 years. And StraighterLine, a leading provider of affordable online general education courses that support college pathways. In K-12, we saw a number of new logos, strong renewals, and healthy pipelines. And in corporate learning, we continue to expand our footprint across professional associations and employee learning, including the Royal Conservatory of Music, a globally recognized leader in music education and certification, the American Traffic Safety Services Association, a prominent industry body that represents close to 12,000 professionals, and the world's leading professional body for plastic surgeons. Our international growth strategy is an important driver of our performance. and we're encouraged by our win rates and strong demand signals across key markets globally. Many institutions are advancing their digital transformation vision, which includes modernizing their learning platform. This shift away from legacy systems is creating significant long-term opportunity for D2L and we're capitalizing on this, growing international ARR at 15 plus percent annually. Recent customer additions included one of the largest private education groups in Mexico, A growing education organization in the Middle East focused on delivering modern digital-first learning experiences and a leading trade and investment agency in the Asia-Pacific region. We continue to see both new and renewed customers commit to longer-term agreements, consistent with the historic trend of five-year contracts in education and three-year contracts in corporate. One Canadian higher education customer recently renewed with D12 for 12 years after conducting a deep analysis of the learning platform market. This speaks to the durability of the Brightspace platform within our customers' environments, their confidence in our AI roadmap, and their trust in D2L as a long-term strategic partner. Recently, I had the opportunity to spend time in Europe, Asia, and Australia meeting with customers and partners, and it's very clear that many of these institutions are operating at the leading edge of where learning is going, particularly how they're approaching digital transformation and the application of AI. That perspective reinforces our confidence in the direction of our platform and our strategy. We continue to see increased alignment globally around the need for more intelligent, personalized, and efficient learning experiences. And as a result, we're experiencing growing adoption of our AI capability, including Detail Lumi, supporting both new customer wins and deeper engagement with existing customers. Detail Lumi is attached on over 40% of new customer agreements in higher education. and ARR Growth continues to accelerate. This success reflects the growing body of evidence that D12 Lumi is significantly enhancing learning outcomes and improving operational efficiency for our customers. With each new success story, we're building meaningful momentum and strengthening our leadership position in AI. This AI leadership is something that we're excited to showcase more fully at our upcoming user conference, D12 Fusion, which will take place in July in Phoenix. We look forward to hosting leaders from around the world to explore the future of learning together from AI and innovation to learner engagement and human connection. I look forward to connecting with many of our investment community contacts there as well. As we scale AI capabilities across our platform and customer base, we believe there's a growing opportunity to drive greater efficiency within our own operations. We're beginning to realize early productivity gains and expect this operational leverage will become increasingly visible as these improvements take hold, supporting margin expansion and increasing profitability in the years ahead. Now, before I hand it over to Josh, I also want to briefly touch on capital allocation. We've been more active on our NCIB program in recent quarters, reflecting our confidence in the business. In addition, we announced a $20 million Canadian substantial issuer bid, which we view as an attractive opportunity to repurchase shares at current valuation levels, while maintaining flexibility to invest in growth opportunities at this important time in our market. I would also like to acknowledge and thank Ian Giffen for his leadership and meaningful contributions during his tenure as lead director. We're grateful for his thoughtful guidance, strong governance leadership, and commitment to D12's long-term success. As Ian steps down after 10 years following this week's annual general meeting, I look forward to working closely with Bob Courtauld as he assumes the role of lead director and continues to contribute his experience and perspective to D12's growth. With that, I'll turn the call over to Josh to walk through the financial results and outlook in more detail.