The company reported total revenue of $57.1 million, comfortably beating the $56.2 million forecast by FactSet. This growth was driven by an influx of new customers and expanded sales to existing clients, effectively insulating the firm from a 14% drop in professional services and other revenue, which fell to $4.4 million.

Despite the revenue beat, bottom-line income contracted to $1.7 million, or 3 cents per share, down from 3.3 million and 6 cents per share a year prior. Management attributed this decline to a significant foreign-exchange gain recorded in the previous year's comparative period. Looking ahead, D2L maintained its fiscal 2027 outlook, projecting revenue growth between 6% and 8% for a total range of $231 million to $234 million. Even with this latest rally, the stock remains down roughly 23% for the year as the company continues to navigate a challenging environment for software equities.