Docebo (DCBO) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong enterprise and mid-market performance, exceeding expectations with double-digit revenue growth, robust customer momentum, and notable pipeline quality.

• Achieved $248.9M in Annual Recurring Revenue (ARR) as of March 31, 2026, with 92% from subscriptions and a 20.2% subscription revenue CAGR from 2022 to 2025.

• AI-driven innovation, including AgentHub and 365Talents, is central to product differentiation and workforce readiness, expanding beyond learning to skills intelligence.

• Expansion into government (Federal and SLED) markets is progressing, supported by renewed FedRAMP certification and a growing pipeline.

• Recognized as a leader in enterprise learning management by G2 and other industry analysts.

Financial highlights

• Q1 2026 total revenue rose 15% year-over-year to $65.6M, with subscription revenue up 12% to $60.6M.

• Free cash flow margin reached 42% in Q1 2026, driven by one-time working capital benefits and high-quality customer prepayments.

• Adjusted EBITDA margin was 16.8% in Q1 2026, with Adjusted Net Income of $9.9M and Adjusted EPS of $0.34–$0.35.

• Record new logo dollar per customer achieved in Q1 2026; average contract value increased 25.9% to $71,000.

• Nearly $78M in free cash flow generated since 2016 while scaling ARR.

Outlook and guidance

• Revenue guidance raised by $3.5M, with $2.2M attributed to the Q1 beat; ongoing conservatism in enterprise outlook until multi-quarter strength is confirmed.

• FY 2026 guidance: subscription revenue $253.5M–$255.5M, total revenue $271.0M–$273.0M, Adjusted EBITDA $54.5M–$56.5M.

• FY26 Adjusted EBITDA margin guidance is approximately 20.5%.

• Q2 free cash flow expected to normalize below Q1 due to timing of working capital.

• H2 2026 and 2027 expected to be meaningful for government segment growth.