TORONTO--(BUSINESS WIRE)--November 07, 2025--
Docebo Inc. (NASDAQ: DCBO; TSX:DCBO) ("Docebo" or the "Company"), a leading learning platform provider with a foundation in artificial intelligence (AI) and innovation, announced financial results for the three and nine months ended September 30, 2025. All amounts are expressed in US dollars unless otherwise stated.
"Docebo delivered another solid quarter, with results exceeding expectations, both enabled by the pace with which we are bringing innovation to our customers through our AI-First platform strategy," said Alessio Artuffo, CEO and President of Docebo. "Our business continues to show steady progress, supported by stronger systems integrator partnerships and growing presence in the federal and SLED markets. As we close the year, we remain focused on disciplined execution, innovation, and delivering long-term value for our customers, employees, and shareholders."
Third Quarter 2025 Financial Highlights
-- Subscription revenue of $58.0 million, an increase of 10% from the
comparative period in the prior year, represented 94% of total revenue.
-- Subscription revenue increased by 9% after adjusting for the positive
impact of approximately 1 percentage point resulting from the weakening
of the U.S. dollar relative to foreign currencies.
-- Total revenue of $61.6 million, an increase of 11% from the comparative
period in the prior year.
-- Total revenue increased by 10% after adjusting for the positive impact of
approximately 1 percentage point given the weakening of the U.S. dollar
relative to foreign currencies.
-- Gross profit of $49.5 million, an increase of 10% from the comparative
period in the prior year, represented 80.3% of revenue compared to 81.1%
of revenue for the comparative period in the prior year.
-- Net income of $6.1 million, or $0.21 per share, compared to net income of
$5.0 million, or $0.16 per share for the comparative period in the prior
year.
-- Adjusted Net Income1 of $9.9 million, or Adjusted Earnings per share of
$0.34, compared to Adjusted Net Income of $8.3 million, or Adjusted
Earnings per share of $0.27 for the comparative period in the prior year.
-- ARR was $235.6 million, an increase of 10.1% from the comparative period
in the prior year. ARR was negatively impacted in the quarter by $0.2
million due to the effects of foreign exchange.
-- Our largest OEM customer represented 6.2% of ARR as at September 30,
2025, compared to 9.4% as at September 30, 2024
-- Excluding our largest OEM customer, ARR increased by approximately 14.0%
from the comparative period in the prior year.
-- Adjusted EBITDA1 of $12.4 million, representing 20.1% of total revenue,
compared to $8.7 million, representing 15.7% of total revenue, for the
comparative period in the prior year.
-- Cash flow from operating activities of $5.3 million, compared to $4.3
million for the comparative period in the prior year.
-- Free Cash Flow1 of $5.7 million, representing 9.2% of total revenue for
the three months ended September 30, 2025, compared to $4.5 million,
representing 8.2% of total revenue, for the comparative period in the
prior year.
Third Quarter 2025 Customer Updates
-- Notable new customer wins include a leading global provider in the
industrial and environmental services sector with more than 200,000
employees that selected Docebo to unify its regional learning systems
into a single, global platform. The solution will support multiple use
cases, including sales, customer support, engineering, and HR enablement,
combining centralized oversight with local flexibility. Referred through
a channel partner, the customer chose Docebo for its ability to deliver
enterprise-scale visibility, configurability, and a modern learner
experience.
-- Valsts Administr cijas Skola (VAS), the Latvian School of Public
Administration, is the country's largest training institution for civil
servants, serving more than 60,000 employees across 160 public entities.
Backed by European Union funding, VAS selected Docebo to unify and
modernize its Employee Experience learning systems, to support onboarding,
professional development, leadership, and compliance training. Partnering
with a regional reseller, Docebo won this competitive tender over major
global and local providers, strengthening our position in the government
and education sectors and demonstrating our ability to deliver learning
at national scale.
-- One of the leading North American beverage companies with more than
25,000 employees and a portfolio of 100+ brands, selected Docebo to
replace its legacy compliance training platform. The deployment will
simplify administration, enhance reporting, and deliver a modern learner
experience across the organization. Drawn to Docebo Creator for its
content creation and translation capabilities, this competitive win over
major HCM and LMS vendors highlights Docebo's ability to deliver scalable,
high-value learning solutions for large global enterprises.
-- In a cross-sell with an existing customer, Amazon Health, the healthcare
division of Amazon, selected Docebo to power a unified learning ecosystem
supporting Customer and Employee Experience use cases across its
expanding health services portfolio. The platform will deliver training
in sales enablement, onboarding, leadership development, compliance, and
partner education. Chosen for its AI-driven personalization and
flexibility, this strategic win highlights Docebo's ability to scale
intelligent, enterprise-wide learning for global organizations.
-- In the Fed/SLED space, Docebo signed two Federal deals, one an expansion
with the U.S. Department of Energy and, through Deloitte, the Department
of Defense's Air Force Cyber Academy, reinforcing Docebo's growing role
in government and cybersecurity training. Additionally, several new SLED
deals were signed including the State of Wisconsin Department of Public
Instruction, Temple University, and the City of Sugar Land, Texas,
reflecting increasing adoption of Docebo's AI-First learning platform
across the public sector.
(1) Please refer to "Non-IFRS Measures and Reconciliation of Non-IFRS Measures" section of this press release.
Financial Outlook
Docebo is providing financial guidance for the three months ended December 31, 2025 as follows:
-- Total revenue between $62.0 million and $62.2 million -- Adjusted EBITDA as a percentage of total revenue between 20.5% to 21.0%
Management expects subscription revenue to be in line with total revenue growth.
Docebo is revising financial guidance for the fiscal year ended December 31, 2025 as follows:
-- Subscription revenue growth of 11.75% -- Total revenue growth of 11.40% -- Adjusted EBITDA as a percentage of total revenue of 18.0%
The information in this section is forward-looking. Please see the sections entitled "Non-IFRS Measures and Reconciliation of Non-IFRS Measures" and "Key Performance Indicators" in this press release for how we define "Adjusted EBITDA" and the section entitled "Forward-Looking Information." A reconciliation of forward-looking "Adjusted EBITDA" to the most directly comparable IFRS measure is not available without unreasonable effort, as certain items cannot be reasonably predicted because of their high variability, complexity and low visibility. Docebo believes that this type of guidance provides useful insight into the anticipated performance of its business.
Third Quarter 2025 Results
Selected Financial Measures
Three months ended September 30, Nine months ended September 30,
2025 2024 Change Change 2025 2024 Change Change
$ $ $ % $ $ $ %
------ ------ ------ -------- ------- ------- ------- ---------
Subscription
Revenue (in
thousands of
US dollars) 58,046 52,615 5,431 10.3% 169,295 150,326 18,969 12.6%
Professional
Services (in
thousands of
US dollars) 3,576 2,818 758 26.9% 10,355 9,564 791 8.3%
------ ------ ------ ---- ------- ------- ------ -----
Total Revenue
(in thousands
of US
dollars) 61,622 55,433 6,189 11.2% 179,650 159,890 19,760 12.4%
------ ------ ------ ---- ------- ------- ------ -----
Gross Profit
(in thousands
of US
dollars) 49,490 44,971 4,519 10.0% 144,539 129,245 15,294 11.8%
Percentage of
Total
Revenue 80.3% 81.1% 80.5% 80.8%
Net Income (in
thousands of
US dollars) 6,109 4,959 1,150 23.2% 10,659 14,826 (4,167) (28.1)%
Earnings per
Share -
Basic 0.21 0.16 0.05 31.3% 0.36 0.49 (0.13) (26.5)%
Earnings per
Share -
Diluted 0.21 0.16 0.05 31.3% 0.35 0.48 (0.13) (27.1)%
Cash Provided
by Operating
Activities
(in thousands
of US
dollars) 5,293 4,335 958 22.1% 19,482 19,522 (40) (0.2)%
Key Performance Indicators and Non-IFRS Measures
As at September 30,
2025 2024 Change Change %
----- ----- ------ ----------
Annual Recurring Revenue (in millions of US
dollars) 235.6 214.1 21.5 10.1%
Average Contract Value (in thousands of US
dollars) 62.8 54.3 8.5 15.7%
Three months ended September 30, Nine months ended September 30,
2025 2024 Change Change 2025 2024 Change Change
$ $ $ % $ $ $ %
------ ----- ------- --------- ------ ------ ------- ---------
Adjusted
EBITDA (in
thousands of
US dollars) 12,404 8,680 3,724 42.9% 30,550 24,101 6,449 26.8%
Adjusted Net
Income (in
thousands of
US dollars) 9,901 8,255 1,646 19.9% 27,310 23,458 3,852 16.4%
Adjusted
Earnings per
Share -
Basic 0.34 0.27 0.07 25.9% 0.93 0.77 0.16 20.8%
Adjusted
Earnings per
Share -
Diluted 0.34 0.27 0.07 25.9% 0.90 0.76 0.14 18.4%
Working
Capital (in
thousands of
US dollars) 5,561 9,891 (4,330) (43.8)% 5,561 9,891 (4,330) (43.8)%
Free Cash Flow
(in thousands
of US
dollars) 5,663 4,533 1,130 24.9% 26,036 22,177 3,859 17.4%
Conference Call
Management will host a conference call on Friday, November 7, 2025 at 8:00 am ET to discuss these third quarter results. To access the conference call, please dial +1-646-960-0169 or +1-888-440-6849 or access the webcast at https://docebo.inc/events-and-presentations/default.aspx. The Company will post Prepared Management Remarks (in .pdf format) regarding its Q3 2025 results, which will be the subject of this call, on the Investor Relations section of Docebo's website at https://investors.docebo.com.
The unaudited condensed consolidated interim financial statements for the nine months ended September 30, 2025 and Management's Discussion & Analysis for the same period have been filed on SEDAR+ at www.sedarplus.ca and on EDGAR at www.sec.gov. Alternatively, these documents along with a presentation in connection with the conference call can be accessed online at https://investors.docebo.com.
An archived recording of the conference call will be available until November 14, 2025 and for 90 days on our website. To listen to the recording, please visit the webcast link which can be found on Docebo's investor relations website at https://docebo.inc/events-and-presentations/default.aspx or call +1-609-800-9909 or +1-800-770-2030 and enter passcode 8722408#.
Forward-Looking Information
This press release contains "forward-looking information" and "forward-looking statements" (collectively, "forward-looking information") within the meaning of applicable securities laws.
In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "targets", "expects", "is expected", "an opportunity exists", "budget", "scheduled", "estimates", "outlook", "forecasts", "projection", "prospects", "strategy", "intends", "anticipates", "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or, "will", "occur" or "be achieved", and similar words or the negative of these terms and similar terminology. In addition, any statements that refer to expectations, intentions, projections or other characterizations of future events or circumstances contain forward-looking information. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events or circumstances.
This forward-looking information in this press release includes, but is not limited to, statements regarding the Company's business; the guidance for the three months ended December 31, 2025 in respect of total revenue, Adjusted EBITDA as a percentage of total revenue and subscription revenue and fiscal year ended December 31, 2025 in respect of total revenue growth, Adjusted EBITDA as a percentage of total revenue and subscription revenue growth discussed under "Financial Outlook" in this press release; the impact of AI on our business; future financial position and business strategy; the learning management industry; our growth rates and growth strategies; addressable markets for our solutions; the achievement of advances in and expansion of our platform; expectations regarding our revenue and the revenue generation potential of our platform and other products; our business plans and strategies; expectations regarding increasing adoption of Docebo's AI First learning platform across the public sector; and our competitive position in our industry (including the government and education sectors). This forward-looking information is based on our opinions, estimates and assumptions in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we currently believe are appropriate and reasonable in the circumstances. Despite a careful process to prepare and review the forward-looking information, there can be no assurance that the underlying opinions, estimates and assumptions will prove to be correct. Certain assumptions include: our ability to build our market share and enter new markets and industry verticals; our ability to attract and retain key personnel; our ability to maintain and expand geographic scope; our ability to execute on our expansion plans; our ability to continue investing in infrastructure to support our growth; our ability to obtain and maintain existing financing on acceptable terms; our ability to execute on profitability initiatives; our ability to maintain the authorization required for use of our platform across the public sector; currency exchange and interest rates; the impact of inflation and global macroeconomic conditions; the impact of competition; our ability to respond to the changes and trends in our industry or the global economy; and the changes in laws, rules, regulations, and global standards are material factors made in preparing forward-looking information and management's expectations.
Forward-looking information is necessarily based on a number of opinions, estimates and assumptions that, while considered by the Company to be appropriate and reasonable as of the date of this press release, are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to:
-- the Company's ability to execute its growth strategies;
-- the impact of changing conditions in the global corporate e-learning
market;
-- increasing competition in the global corporate e-learning market in which
the Company operates;
-- fluctuations in currency exchange rates and volatility in financial
markets;
-- changes in the attitudes, financial condition and demand of our target
market;
-- the Company's ability to operate its business and effectively manage its
growth under evolving macroeconomic conditions, such as high inflation
and recessionary environments;
-- developments and changes in applicable laws and regulations;
-- fluctuations in the length and complexity of the sales cycle for our
platform, especially for sales to larger enterprises;
-- issues in the use of AI in our platform and potential resulting
reputational harm or liability; and
-- such other factors discussed in greater detail under the "Risk Factors"
section of our Annual Information Form dated February 27, 2025 ("AIF"),
which is available under our profile on SEDAR+ at www.sedarplus.ca.
Our guidance for the three months ended December 31, 2025 in respect of total revenue, Adjusted EBITDA as a percentage of total revenue and subscription revenue and for the fiscal year ended December 31, 2025 in respect of total revenue, and Adjusted EBITDA as a percentage of total revenue, is in each case subject to certain assumptions and associated risks as stated above under this "Forward-Looking Information," section and in particular the following:
-- currency assumptions, in particular that the US dollar will remain strong
against other major currencies;
-- there will be continued macro-economic headwinds that will specifically
affect our small and medium sized business and lower mid-market
customers;
-- there will be a seven-figure negative impact on our Annual Recurring
Revenue base resulting from a large enterprise customer terminating its
agreement with us following its acquisition of an organization that has
an in-house LMS;
-- our ability to win business from new customers and expand business from
existing customers;
-- the timing of new customer wins and expansion decisions by our existing
customers;
-- maintaining our customer retention levels, and specifically, that
customers will renew contractual commitments on a periodic basis as those
commitments come up for renewal, at rates not materially inconsistent
with our historical experience; and
-- with respect to Adjusted EBITDA as a percentage of revenue, our ability
to contain expense levels while expanding our business.
If any of these risks or uncertainties materialize, or if the opinions, estimates or assumptions underlying the forward-looking information prove incorrect, actual results or future events might vary materially from those anticipated in the forward-looking information. The opinions, estimates or assumptions referred to above and described in greater detail in the "Summary of Factors Affecting our Performance" section of our MD&A for the three and nine months ended September 30, 2025 and in the "Risk Factors" section of our AIF, should be considered carefully by prospective investors.
Although we have attempted to identify important risk factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other risk factors not presently known to us or that we presently believe are not material that could also cause actual results or future events to differ materially from those expressed in such forward-looking information. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. No forward-looking statement is a guarantee of future results. Accordingly, you should not place undue reliance on forward-looking information, which speaks only as of the date made. The forward-looking information contained in this press release represents our expectations as of the date specified herein, and are subject to change after such date. However, we disclaim any intention or obligation or undertaking to update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required under applicable securities laws.
All of the forward-looking information contained in this press release is expressly qualified by the foregoing cautionary statements.
Additional information relating to Docebo, including our AIF, can be found on SEDAR+ at www.sedarplus.ca.
About Docebo
Docebo is redefining the way enterprises leverage technology to create and manage content, deliver training, and measure the business impact of their learning programs. With Docebo's end-to-end learning platform, organizations worldwide are equipped to deliver scaled, personalized learning across all their audiences and use cases, driving growth and powering their business.
Results of Operations
The following table outlines our unaudited condensed consolidated interim statements of income and comprehensive income for the following periods:
Three months ended Nine months ended
September 30, September 30,
(In thousands
of US dollars,
except per
share data) 2025 2024 2025 2024
$ $ $ $
---------- ---------- ---------- ----------
Revenue 61,622 55,433 179,650 159,890
Cost of revenue 12,132 10,462 35,111 30,645
---------- ---------- ---------- ----------
Gross profit 49,490 44,971 144,539 129,245
Operating
expenses
General and
administrative 9,173 8,384 26,292 24,715
Sales and
marketing 17,600 17,759 58,348 51,087
Research and
development 11,905 11,153 38,007 32,331
Share-based
compensation 1,925 1,815 4,447 5,670
Foreign
exchange loss
(gain) 96 266 1,161 (544)
Depreciation
and
amortization 743 877 2,388 2,519
---------- ---------- ---------- ----------
41,442 40,254 130,643 115,778
---------- ---------- ---------- ----------
Operating
income 8,048 4,717 13,896 13,467
Finance income,
net (198) (623) (1,388) (1,839)
Other (income)
loss -- (1) (2) (16)
---------- ---------- ---------- ----------
Income before
income taxes 8,246 5,341 15,286 15,322
Income tax
expense 2,137 382 4,627 496
---------- ---------- ---------- ----------
Net income 6,109 4,959 10,659 14,826
---------- ---------- ---------- ----------
Other
comprehensive
loss (income)
Item that may
be reclassified
subsequently to
income:
Exchange
loss (gain)
on
translation
of foreign
operations 91 (761) (1,072) 583
Comprehensive
income 6,018 5,720 11,731 14,243
========== ========== ========== ==========
Earnings per
share - basic 0.21 0.16 0.36 0.49
Earnings per
share -
diluted 0.21 0.16 0.35 0.48
Weighted
average number
of common
shares
outstanding -
basic 28,746,111 30,221,380 29,517,317 30,296,756
Weighted
average number
of common
shares
outstanding -
diluted 29,460,738 30,940,172 30,200,616 31,013,951
Key Statement of Financial Position Information
(In thousands of US
dollars, except September 30, December 31,
percentages) 2025 2024 Change Change
$ $ $ %
------------------------ ------------- ------------ -------- ---------
Cash and cash
equivalents 66,129 92,540 (26,411) (28.5)%
Total assets 173,229 190,713 (17,484) (9.2)%
Total liabilities 127,992 132,952 (4,960) (3.7)%
Total long-term
liabilities 6,924 4,350 2,574 59.2%
------------------------ ------------- ------------ ------- -----
Non-IFRS Measures and Reconciliation of Non-IFRS Measures
This press release makes reference to certain non-IFRS measures including key performance indicators used by management and typically used by our competitors in the SaaS industry. These measures are not recognized measures under IFRS and do not have a standardized meaning prescribed by IFRS and are therefore not necessarily comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures are used to provide investors with alternative measures of our operating performance and liquidity and thus highlight trends in our business that may not otherwise be apparent when relying solely on IFRS measures. We also believe that securities analysts, investors and other interested parties frequently use non-IFRS measures, including SaaS industry metrics, in the evaluation of companies in the SaaS industry. Management also uses non-IFRS measures to facilitate operating performance comparisons from period to period, the preparation of annual operating budgets and forecasts and to determine components of executive compensation. The non-IFRS measures referred to in this press release include "Annual Recurring Revenue", "Average Contract Value", "Adjusted EBITDA", "Adjusted Net Income", "Adjusted Earnings per Share - Basic and Diluted", "Working Capital" and "Free Cash Flow".
Key Performance Indicators
We recognize subscription revenues ratably over the term of the subscription period under the provisions of our agreements with customers. The terms of our agreements, combined with high customer retention rates, provides us with a significant degree of visibility into our near-term revenues. Management uses a number of metrics, including the ones identified below, to measure the Company's performance and customer trends, which are used to prepare financial plans and shape future strategy. Our key performance indicators may be calculated in a manner different than similar key performance indicators used by other companies.
-- Annual Recurring Revenue: We define Annual Recurring Revenue as the
annualized equivalent value of the subscription revenue of all existing
contracts (including Original Equipment Manufacturer contracts) as at the
date being measured, excluding non-recurring revenues from implementation,
support and maintenance fees. Our customers generally enter into annual
or multi-year contracts which are non-cancellable or cancellable with
penalty. Accordingly, our calculation of Annual Recurring Revenue assumes
that customers will renew the contractual commitments on a periodic basis
as those commitments come up for renewal. Subscription agreements may be
subject to price increases upon renewal reflecting both inflationary
increases and the additional value provided by our solutions. In addition
to the expected increase in subscription revenue from price increases
over time, existing customers may subscribe for additional features,
learners or services during the term. We believe that this measure
provides a fair real-time measure of performance in a subscription-based
environment. Annual Recurring Revenue provides us with visibility for
consistent and predictable growth to our cash flows. Our strong total
revenue growth coupled with increasing Annual Recurring Revenue indicates
the continued strength in the expansion of our business and will continue
to be our focus on a go-forward basis.
-- Average Contract Value: Average Contract Value is calculated as total
Annual Recurring Revenue divided by the number of active customers.
Annual Recurring Revenue and Average Contract Value as at September 30, 2025 and 2024 were as follows:
2025 2024 Change Change %
----- ----- ------ --------
Annual Recurring Revenue (in millions of US
dollars) 235.6 214.1 21.5 10.1%
Average Contract Value (in thousands of US
dollars) 62.8 54.3 8.5 15.7%
Adjusted EBITDA
Adjusted EBITDA is defined as net income excluding net finance income, depreciation and amortization, income taxes, share-based compensation and related payroll taxes, other income, foreign exchange gains and losses, acquisition related compensation, transaction related expenses and restructuring costs, if any.
The IFRS measure most directly comparable to Adjusted EBITDA presented in our financial statements is net income.
The following table reconciles Adjusted EBITDA to net income for the periods indicated:
Three months ended September Nine months ended September
30, 30,
(In thousands of
US dollars) 2025 2024 2025 2024
$ $ $ $
------ ----- ------- ---- ------- ---- ------- ---
Net income 6,109 4,959 10,659 14,826
Finance income,
net(1) (198) (623) (1,388) (1,839)
Depreciation and
amortization(2) 743 877 2,388 2,519
Income tax
expense 2,137 382 4,627 496
Share-based
compensation(3) 1,925 1,815 4,447 5,670
Other income(4) -- (1) (2) (16)
Foreign exchange
loss (gain)(5) 96 266 1,161 (544)
Acquisition
related
compensation(6) 1,015 1,005 3,074 2,989
Transaction
related
expenses(7) 6 -- 470 --
Restructuring(8) 571 -- 5,114 --
------ ----- ------- ---- ------- ---- ------- ---
Adjusted EBITDA 12,404 8,680 30,550 24,101
------ ----- ------- ---- ------- ---- ------- ---
Adjusted EBITDA
as a percentage
of total
revenue 20.1% 15.7% 17.0% 15.1%
(1) Finance income, net, is primarily related to interest income earned on
cash and cash equivalents as the funds are invested in highly liquid
short-term interest-bearing marketable securities which is offset by
interest expenses incurred on lease obligations, and contingent
consideration as well as bank fees and other expenses.
(2) Depreciation and amortization expense is primarily related to
depreciation expense on right-of-use assets (known as "ROU assets"),
property and equipment and acquired intangible assets.
(3) These expenses represent non-cash expenditures recognized in connection
with the issuance of share-based compensation to our employees and
directors and cash payroll taxes paid on gains earned by option holders
when stock options are exercised.
(4) Other income, net is primarily comprised of rental income from subleasing
office space.
(5) These non-cash gains and losses relate to foreign exchange translation.
(6) These costs represent the earn-out portion of the consideration paid to
the vendors of previously acquired businesses that is associated with the
achievement of certain acquisition related performance and other
obligations.
(7) These expenses relate to professional, legal, consulting, accounting and
other fees related to acquisition activities that would otherwise have
not been incurred and are not considered an expense indicative of
continuing operations.
(8) There was a reduction in workforce during 2025 that resulted in severance
payments to employees.
Adjusted Net Income and Adjusted Earnings per Share - Basic and Diluted
Adjusted Net Income is defined as net income excluding amortization of intangible assets, share-based compensation and related payroll taxes, acquisition related compensation, transaction related expenses, restructuring costs, foreign exchange gains and losses, and income taxes.
Adjusted Earnings per share - basic and diluted is defined as Adjusted Net Income divided by the weighted average number of common shares (basic and diluted).
The IFRS measure most directly comparable to Adjusted Net Income presented in our financial statements is net income.
The following table reconciles net income to Adjusted Net Income for the periods indicated:
Three months ended
September 30, Nine months ended September 30,
(In thousands
of US
dollars) 2025 2024 2025 2024
$ $ $ $
------------ ------------- ------------- -------------
Net income for
the period 6,109 4,959 10,659 14,826
Amortization
of intangible
assets 179 176 528 521
Share-based
compensation 1,925 1,815 4,447 5,670
Acquisition
related
compensation 1,015 1,005 3,074 2,989
Transaction
related
expenses 6 -- 470 --
Restructuring 571 -- 5,114 --
Foreign
exchange loss
(gain) 96 266 1,161 (544)
Deferred
income tax
expense
(recovery) -- 34 1,857 (4)
------------ ------------- ------------- -------------
Adjusted net
income 9,901 8,255 27,310 23,458
============ ============= ============= =============
Weighted
average
number of
common shares
- basic 28,746,111 30,221,380 29,517,317 30,296,756
Weighted
average
number of
common shares
- diluted 29,460,738 30,940,172 30,200,616 31,013,951
Adjusted
earnings per
share -
basic 0.34 0.27 0.93 0.77
Adjusted
earnings per
share -
diluted 0.34 0.27 0.90 0.76
Working Capital
Working Capital as at September 30, 2025 and 2024 was $5.6 million and $9.9 million, respectively. Working Capital is defined as current assets, excluding the current portion of the net investment in finance lease and contract costs, minus current liabilities, excluding borrowings, if any, and the current portion of contingent consideration and lease obligations. The decrease in working capital from September 30, 2024 to September 30, 2025 is driven by the use of cash and cash equivalents to purchase shares under the NCIB, as well as the recognition of the ASPP liability. Working Capital is not a recognized measure under IFRS.
The following table represents the Company's working capital position as at September 30, 2025 and 2024:
2025 2024
$ $
Current assets 137,318 140,815
Less: Current portion of net investment in finance
lease 0 (66)
Less: Current portion of contract costs (11,553) (7,715)
------- -------
Current assets, net of net investment in finance
lease and contract costs 125,765 133,034
======= =======
Current liabilities 121,068 124,846
Less: Current portion of lease obligations (864) (1,703)
------- -------
Current liabilities, net of lease obligations 120,204 123,143
------- -------
Working capital 5,561 9,891
======= =======
Free Cash Flow
Free Cash Flow is defined as cash flows from operating activities less cash used for purchases of property and equipment and capitalized internal-use software costs, plus non-recurring expenditures such as the payment of acquisition-related compensation, the payment of transaction-related costs, and the payment of restructuring costs. Free Cash Flow is not a recognized measure under IFRS. The IFRS measure most directly comparable to Free Cash Flow presented in our financial statements is cash flow from operating activities.
The following table reconciles our cash flows from operating activities to Free Cash Flow for the periods indicated:
Three months ended September Nine months ended September
30, 30,
(In thousands
of US
dollars) 2025 2024 2025 2024
$ $ $ $
------- ----- -------- ---- ------- ---- -------- ---
Cash flow from
operating
activities 5,293 4,335 19,482 19,522
Purchases of
property and
equipment (223) (471) (809) (958)
Acquisition
related
compensation
paid -- 669 2,690 3,307
Transaction
related
expenses
paid 8 -- 537 306
Restructuring
costs paid 585 -- 4,136 --
------- ----- -------- ---- ------- ---- -------- ---
Free cash flow 5,663 4,533 26,036 22,177
------- ----- -------- ---- ------- ---- -------- ---
Free cash flow
as a
percentage of
total
revenue 9.2% 8.2% 14.5% 13.9%
View source version on businesswire.com: https://www.businesswire.com/news/home/20251107340369/en/
CONTACT: Mike McCarthy
Vice President - Investor Relations
(214) 830-0641
mike.mccarthy@docebo.com
(END) Dow Jones Newswires
November 07, 2025 06:00 ET (11:00 GMT)
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