Docebo Q2 2026 Earnings Report

Docebo EPS Results

• Actual EPS: $0.35
• Consensus EPS: $0.27
• Beat/Miss: Beat by +$0.08
• One Year Ago EPS: N/A

Docebo Revenue Results

• Actual Revenue: $63.80 million
• Expected Revenue: $67.14 million
• Beat/Miss: Missed by -$3.34 million
• YoY Revenue Growth: N/A

Docebo Announcement Details

• Quarter: Q2 2026
• Date: 8/7/2026
• Time: Before Market Opens
• Conference Call Date: Friday, August 7, 2026
• Conference Call Time: 8:00AM ET

Docebo (NASDAQ:DCBO) develops cloud-based learning management and learning technology solutions for businesses and other organizations. Its platform is designed to help companies create, deliver, manage and measure employee, customer and partner training programs through online and blended learning.

The Docebo Learning Platform includes tools for course administration, content management, virtual and social learning, assessments, reporting and analytics. The company also offers capabilities focused on artificial intelligence, learning-content creation, skills development and measuring the impact of training. Its solutions are intended to support internal workforce development as well as extended-enterprise education and customer training.

Founded in 2005 by Claudio Erba, Docebo is headquartered in Toronto, Canada, and serves organizations internationally through a subscription-based software model. Alessio Artuffo became the company’s president and chief executive officer in January 2025, while Erba moved into the role of executive vice chairman.

Docebo Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: ARR growth re-accelerated for the second consecutive quarter, with strength across enterprise, mid-market, government, international, new business, and expansions. Management raised full-year revenue guidance by $3.5 million, primarily reflecting stronger enterprise performance.
• Positive Sentiment: Enterprise momentum is being supported by improved execution, a growing partner ecosystem, and products from the 365Talents acquisition. Management said major telecom and automotive customers would likely not have entered the sales process without the added skills capabilities.
• Neutral Sentiment: Docebo plans to invest in healthcare as a new vertical, initially building a small product, sales, and management team based on its government-market playbook. The company views healthcare as roughly a $3 billion TAM and expects the investment to expand beyond the second half of 2026 into 2027.
• Neutral Sentiment: The company is hiring its first foundational forward-deployed engineer to develop customized AI-agent workflows for major customers, with Agent Hub and Enterprise Knowledge expected to launch in early fall. Initial costs will be treated primarily as R&D, while future monetization and margin impacts remain under development.
• Positive Sentiment: Management said Docebo’s shares appear undervalued and identified share repurchases as the current capital-allocation priority, while characterizing new M&A as opportunistic rather than a near-term focus.

Presentation

[Operator]

Good morning, everyone, and welcome to Docebo's second quarter 2026 earnings call. All participants are currently in a listen-only mode. We will open the line for a question and answer session momentarily. Analysts can ask questions by pressing star one on their telephone keypad. If you would like to withdraw your question, again, press star one. We ask that analysts please limit themselves to two questions and return to the queue for any follow-ups. I'd now like to turn the call over to Docebo's Vice President of Investor Relations, Mike McCarthy. Please go ahead, Mike.

[Mike McCarthy, VP of Investor Relations at Docebo]

Thank you, Krista. Earlier this morning, Docebo issued its Q2 2026 results. The press release, which included a link to management's prepared remarks and our quarterly investor slide deck, were all posted to our investor relations website. This morning's call will allow participants to ask questions about our results and the written commentary that management provided this morning. Before we begin this morning's Q&A, Docebo would like to remind listeners that certain information discussed may be forward-looking in nature. Such forward-looking information reflects the company's current views with respect to future events. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking statements. For more information on the risks, uncertainties, and assumptions relating to forward-looking statements, please refer to Docebo's public filings, which are available on SEDAR and EDGAR.

[Mike McCarthy, VP of Investor Relations at Docebo]

During the call, we will reference certain non-IFRS financial measures. Although we believe these measures provide useful supplemental information about our financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please see our MD&A for additional information regarding our non-IFRS financial measures, including reconciliations to the nearest IFRS measures. Please note that unless otherwise stated, all references to any financial figures are in US dollars. I'd like to turn the call over to Docebo's CEO, Alessio Artuffo, and our CFO, Brandon Farber. Christine, you can open up the line.

[Operator]

If you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. Your first question comes from Robert Young with Canaccord Genuity. Please go ahead.

[Robert Young, Analyst at Canaccord Genuity]

Thanks. Good morning. First place, I'm sure there's lots of questions on this core deployed engineer model, place I'd like to start. How is it going to work alongside the existing professional services motion? What's the impact you anticipate on revenue and margins, both gross and EBITDA? I think you said that you're hiring FDEs, where are you in the process of building out that FDE motion?

[Alessio Artuffo, President and CEO at Docebo]

Good morning, Rob. It's Alessio. You are correct. We are starting with hiring a foundational FDE. That is intended so that we can build the playbook before we scale that practice further. The way we think about it is fairly straightforward. We think that on top of our upcoming release, the GA of Agent Hub and Enterprise Knowledge, both planned in the early fall, we are going to build custom agents workflows that aim to solve for vertical use cases. Very specific needs that our top customers to begin with have. Think about solving for specific operational challenges across QSR, healthcare, financial services. We know that these organizations have a data challenge. Everyone has an integration challenge. Everyone has a data discoverability and validity challenge. We are going to have these FDEs help with creating these custom workflows on top of our technology. Now, how does this compound?

[Alessio Artuffo, President and CEO at Docebo]

How does this create greater value? Our plan is to abstract these agents at a greater product level and make those agents available more broadly to a broader audience. In terms of monetization, look, we are going live with Agent Hub and Enterprise Knowledge in the fall, and we'll update you after that time.

[Robert Young, Analyst at Canaccord Genuity]

Okay. That's all very helpful. Where is this going to fall inside of the income statement on the cost side? Is it going to be something bundled in? Is it going to impact your gross margins, or is it something that's going to be part of your sales motion? I'm trying to understand where it'll impact the margin structure.

[Brandon Farber, CFO at Docebo]

Rob, when we start to hire them, it's going to be before the product is released. At the start, it will be more of an R&D type cost. These are going to work with our top 10, top 20 customers. As we think about scaling, charging professional services, this adding usage to our AI, whether that's through credits or fixed price, that's where it flips to gross margin. It really depends on when do they get released, when do we start monetizing. It's either going to be an R&D or cost.

[Robert Young, Analyst at Canaccord Genuity]

Okay. Second question, just on the confidence in the second half acceleration of ARR. Maybe we could talk about where that's specifically coming from, what gets you the most excited, then if you could touch on Q3 seasonality for the FedRAMP government opportunity alongside that. That'd be helpful. I'll pass the line. Thanks.

[Alessio Artuffo, President and CEO at Docebo]

Yeah. Let me talk a bit about the underlying ARR acceleration. This is the second quarter in a row where we have a re-acceleration, for sure we're super pleased with that. Rob, if you recall, in November of 2025, during a conference call, we referred to 2026 as the year of the enterprise. That view into 2026 had a point of view that the initiatives we were taking on the product, as well as broadly execution, were headed in the direction where we thought that 2026 was going to show the results of the work we were doing. When I unpack that, I think it's a story of three vectors, right? There is overall execution, where we made investments across the board over the past several years. There is a story of product with the acquisition of 365Talents and the acquisition of Zive, both.

[Alessio Artuffo, President and CEO at Docebo]

Frankly, a re-acceleration of shipping features in our core product as well, right? It's not only a story of buying technologies. To characterize growth re-acceleration, I always like to kind of separate our partner motion because it is a subcategory of execution, but it truly has become important. The large majority of our enterprise pipeline, roughly 80%, has a partner involved in some fashion, whether it's a co-sale fashion, whether it's an implement fashion, most times it's a hybrid of both. Shout out to partners like Deloitte and new partners like NIIT that are really embedded with our org, we work super well together. That story of acceleration is, I would say it hinges on several factors. It's broad-based, right? It's showing in net new, it's showing in expansion, it's showing in international.

[Alessio Artuffo, President and CEO at Docebo]

I like that very much because these multiple growth factors don't rely on just one segment doing all the work. As far as the confidence for the future, it's very high. We're extremely pleased with the growth of our pipeline. We look at our pipeline in terms of deals that are significant in material in size, above $500K, yeah, very excited about the coming quarters. As far as federal pipeline and quarter three, look, we think about government more broadly than just federal. We think about government as a combination of our success in state and local, as well as federal. Quarter three is a heavy federal quarter, but we don't disclose what's going to happen in the next quarter. We are just extremely pleased with the pipeline build-up and execution of our teams.

[Robert Young, Analyst at Canaccord Genuity]

Thanks for taking all the questions.

[Alessio Artuffo, President and CEO at Docebo]

Yeah. Thank you, Rob.

[Operator]

Your next question comes from the line of Ryan MacDonald with Needham & Company. Please go ahead.

[Ryan MacDonald, Analyst at Needham & Company]

Thanks for taking my questions. Congrats on a great quarter. Alessio, I wanted to ask about the investments and decided you're going to move into healthcare here. Obviously, interesting large opportunity, highly regulated industry, and I feel like there are some sort of correlations to federal government, and obviously we've had those investments over the last couple of years, and that's still sort of starting to generate a return or hit an inflection point. Can you just talk about sort of the decision to move into healthcare, how you think about the timeline for the return on the investments you're going to make there, and where you see a gap within healthcare organizations that you think Docebo can fill?

[Alessio Artuffo, President and CEO at Docebo]

Yes. Awesome. Ryan, your premise in seeing some parallels with the investments that we made broadly into government, I think it's very astute. I agree with you. There are several parallels. First, let me ground us in the context of the healthcare market as we have studied it. We value this, so we see this as roughly a $3 billion TAM over a roughly $30 billion corporate learning market that we already operate in. We already have an important base of healthcare customers, call it roughly $10 million of ARR. We've acquired the $10 million of ARR notwithstanding certain gaps of knowledge and product that we are now much more educated about.

[Alessio Artuffo, President and CEO at Docebo]

I would say that similarly to what happened in the past with the state and local education market, we have operated opportunistically, but we have not been extremely focused and strategic in the way we've addressed this market. Now, as we are a much more mature company, as we have matured our GTM engine, we believe that as an horizontal player, every opportunity we have to become more efficient in our GTM engine and more efficient in the way we address customers' needs, and build products for targeted audiences, the better off we're going to be. We're going to be better in our success of adoption. We're going to be better in our win rates. It was a no-brainer to start with healthcare because we believe the distance between where we are today capability-wise, and the optimal scenario is very much in reach.

[Alessio Artuffo, President and CEO at Docebo]

We don't have to do years of work to be in an optimal scenario to double our win rates. I think we have months of work as opposed to years of work. Now, healthcare is a broad definition and depending on how you slice and dice the verticals, we already have a view that is a multi-year view after which we would tackle life sciences. Life sciences carries along a bit more complexity in terms of technical requirements, which we are already partially addressing, but we're preparing ourselves over the next 12, 24 months to go even deeper. What else can I tell you? I think this is a great market. We're already winning in it. I mentioned it. It's a motion where we're going to invest in products. We're going to invest in the partner ecosystem.

[Alessio Artuffo, President and CEO at Docebo]

We have partners that are really great in the healthcare industry, and we work closely with them. Also, when I mentioned the content network, healthcare involves a story of content, our technology being such that you can now aggregate multiple content partners, and we can augment. That part is going to be important for our healthcare customers. Listen, one further validation point, we know that in healthcare alone, there are organizations that are very sizable. Frankly, in ARR, they are comparable to Docebo or in that range. All they do is healthcare learning. Just that validates that if we approach this deeply and become more specialized, which I think is very much in reach, we have an additional growth vector. Very excited about it.

[Ryan MacDonald, Analyst at Needham & Company]

Yeah, super helpful context and color there. Then, maybe as a follow-up. As we think about your sort of, let's call it the increasing verticalization of the platform, with specific verticals where you've seen some big opportunities, can you just talk about how you're seeing or viewing the balance of sort of the pipeline of opportunities for growth, sort of within some of your, let's call it your core markets or sort of more horizontal applications versus moving more into vertically specific applications? Is the healthcare expansion being done with sort of a view of more of a, let's call it a shorter runway or a limited opportunity within sort of broader enterprise? Or is this just based off of seeing some really nice early success, see a product market fit for the solution, naturally going after a new opportunity? Thanks.

[Alessio Artuffo, President and CEO at Docebo]

Yeah. I think a bit the opposite of that. Again, we've built Docebo up to where it is today as a horizontal player, with the exception of government, which we started specializing in a while, we've always recognized that there is greater benefit in the earlier stages of company as being a generalist. As you grow up as a business, you will realize that the generalist categorization starts to become an impediment to healthy growth. It shows in every function of the company. It shows also in the way we support the customers. I'm a big believer that in order to doing a great job with customers, you need to understand their business deeply and you need to address their needs deeply.

[Alessio Artuffo, President and CEO at Docebo]

When you know you have, just for a sheer example, somebody in a sales executive capacity that at 9:00 A.M. in the morning has a conversation with a manufacturer, and at 11:00 A.M. with a security company, and at 2:00 P.M. with a healthcare organization. Having that depth of knowledge of the business problems that each of these carry is incredibly hard to scale. I believe that it's incumbent upon us, as we continue to mature, to taking the most valuable verticals and creating a motion around it. The caveat there is there an opportunity to also verticalize the product and create capabilities that go beyond the lingo and the jargon? If there is, the combination of that product build alongside the knowledge creates an unstoppable force and an absolute differentiation in the market.

[Alessio Artuffo, President and CEO at Docebo]

We don't see it as a need to find a new pocket, rather as a desire to win at a higher rate and be seen more as a leader in those verticals.

[Ryan MacDonald, Analyst at Needham & Company]

Thanks a lot.

[Operator]

Your next question comes from the line of Erin Kyle with CIBC. Please go ahead.

[Erin Kyle, Analyst at CIBC]

Hi, good morning, and thanks for taking the questions. Alessio, maybe a question for you on the skills side. You've described it as a bit of a second door into new logos and a retention lever. Maybe in Q2, can you speak to how many enterprise deals were influenced by having that skills capability, and do you see it lifting your win rates versus a year ago?

[Alessio Artuffo, President and CEO at Docebo]

Sure. Thank you for the question. First let me tell you, we are beyond pleased with the progress that we've made so far in the integration process of 365Talents. It's like all integrations and acquisitions, there are always challenges, and we don't shy away from those, but the results speak for themselves. We are six months in, frankly, and our pipe targets, we've blown that up. We are very pleased with seeing the pipeline growth, including the 365Talents in enterprise combined offering. While I can't tell exactly the percentage of deals and attach rates, I don't know that that's something that we are necessarily disclosing. We've mentioned a couple of wins that are very significant in this quarter. One being one of the world's largest telecom and networking companies and one being the world's largest supplier of automotive safety systems.

[Alessio Artuffo, President and CEO at Docebo]

We would not have been at the table with them had we not offered the capabilities of 365Talents. To me, that is more than an initial validation. I think it really validates what we originally thought. When I look at our pipeline, there are many more of these coming up. The next step here is the job isn't done, to be clear. The job is far from being done. What we need to do and what we're doing is progressing at fast speed our product integration, so that the story of one plus one equals three becomes even more tangible, even in the product and not just in theory. We are ahead of schedule in that regard. I'm very pleased with our integration here.

[Alessio Artuffo, President and CEO at Docebo]

Additionally, I think the story wraps and comes all together as we launch Agent Hub and we develop further our agentic efforts. Agents that reason around data and take into consideration skills in order to train people on what they want and need is the ultimate connection of all of the points here. Again, I can't tell you how excited I am about 365Talents moving forward. More work to do and on the standalone side, we haven't even scratched the surface of the potential of this as a secondary product. That's what we hope to do in 2027 and beyond.

[Erin Kyle, Analyst at CIBC]

Thanks. That's helpful color. Then maybe just on the sales cycle side, we've seen some industry headlines recently about software sales cycles have begun to compress across most ACV buckets. Just wondering if Docebo's seeing this at all across your enterprise customers.

[Brandon Farber, CFO at Docebo]

Hey there, we have not seen that as of today. If anything, in H1, we've seen sales cycles decrease in a number of segments. A lot of that is related to execution. If you recall, Mark, our new CRO came in roughly July of last year, came in, did some tweaks and changed some processes that we're seeing fruits of that labor in H1. The commentary that you're referring to of other software companies seeing elongated sales cycles is not something we're seeing today.

[Erin Kyle, Analyst at CIBC]

Sorry, Brandon, just to clarify, we were actually seeing headlines that sales cycles were decreasing, not elongating. Good to see that Docebo's seeing the same.

[Brandon Farber, CFO at Docebo]

Yes, correct. Yep.

[Operator]

Your next question comes from the line of George Sutton with Craig-Hallum. Please go ahead.

[George Sutton, Senior Research Analyst at Craig-Hallum]

Thank you. Alessio, you called out NIIT. I'm curious if you could just give us a sense of the go to market with them. Is that one of the reasons why you're seeing the enterprise strength that you're seeing?

[Alessio Artuffo, President and CEO at Docebo]

George, for sure. NIIT is a relatively new partner. I called them out in the context of our partner motion being a significant contributor to our ARR re-acceleration. Kudos to the partners and to our partnership teams and broadly our GTM teams for the way we're leveraging this partner motion. It's a lot of work. It's not just over the past few months. I wouldn't regard a single partner as part of this. NIIT is a relatively new partner. We're doing great work with them. They have a great penetration. I would equally regard the partners that we worked with longer, like Deloitte, as a firm that is very aligned with the way we operate and we're very close with. Yeah, that's all I have to say about that.

[George Sutton, Senior Research Analyst at Craig-Hallum]

The topic of the week in AI, or certainly one of them, has been around rogue agents. I'm curious with your Agent Hub, how can you give confidence to customers that you've built proper guardrails in to protect them?

[Alessio Artuffo, President and CEO at Docebo]

Yeah. Look, first of all, our agents technology is something that we've been working on for a while. We have a very sophisticated team in our AI team that has been doing this for a long time. I trust their knowledge and expertise and depth in this area. Our CTO and I have a very strong point of view on the value of Docebo operating in the enterprise space sits very much also in its reliability and safety and security. Everything we're going to be building is going to have a strong point of view on safeguards and guard rail standards. Frankly, George, I think it's a distinct territory. We're going to be working closely with our customers and their security officers to progress how we document this and how we give confidence to everyone that what we're building is as bulletproof as it can be.

[George Sutton, Senior Research Analyst at Craig-Hallum]

Perfect. Thank you.

[Operator]

Your next question comes from the line of Matthew VanVliet with Cantor Fitzgerald. Please go ahead.

[Matthew VanVliet, Analyst at Cantor Fitzgerald]

Yeah, good morning. Thanks for taking the question. I guess as you look at expanding the product platform into healthcare and a couple other areas you talked about today, then integrating 365Talents, what is the view from here on future M&A in a broader capital allocation strategy?

[Alessio Artuffo, President and CEO at Docebo]

I'll start, I don't know if Brandon wants to then follow on the specifics for capital allocation. I would say, in pure business terms, we have executed two M&As with 365Talents and Zive. Different profile in terms of costs, and frankly, different profile in terms of product category and capabilities and whatnot. That has given us the point of view that we have a lot of work to do to truly benefit from what we have acquired. We're well ahead of integration schedule, but the integration and the work that now we can do on top of these technologies and alongside these teams, it's very significant. As a result, we are just incredibly focused on integrating and extracting value and building for future capabilities. We remain opportunistic. We always look at the market.

[Alessio Artuffo, President and CEO at Docebo]

We don't disregard any opportunity, but M&A presently, in terms of net new deals, is not our primary focus. Brandon?

[Brandon Farber, CFO at Docebo]

Yep. On capital allocation, it's something we think about daily, as different variables change, our priorities change. Right now, we look at stock price, we believe it is undervalued, based on the stock price today, we believe that that capital allocation is buying back shares. That could change in a couple weeks, could change in months, depending on how the share price does. We think about interest rates. We think about opportunistic M&A. It's a daily equation, right now, as Alessio mentioned, M&A is not top priority, when we look at the stock price, buying back shares is.

[Matthew VanVliet, Analyst at Cantor Fitzgerald]

Okay. Very helpful. Then you mentioned the success of the partner community helping you grow here. How much can you think about sort of the size and scale of that partner community? Are you trying to just maybe focus on going broader and deeper with the partners you have and developing those relationships, or is there still build-out of new partners into the ecosystem that you see on the roadmap?

[Alessio Artuffo, President and CEO at Docebo]

There's a great deal of opportunity because the word partner has, in our mind, different connotations. You have different categories of partners, different specialties, different verticalizations, different market positions. Think about content partners are a very important part of our business. We partner with several great companies in that area, it's plausible that we will increase the portfolio even more in the future. System integrators are the ones that we tend to think immediately more of in enterprise context. There is different degrees of system integrators. Some are regional, some are more global, some are very much specialized around certain verticals and sectors. For example, we work closely with a partner called TiER1, a great firm that has a great deal of expertise in the healthcare sector. It's important to have a broad-based, varied strategy around partners.

[Alessio Artuffo, President and CEO at Docebo]

Our job, frankly, is to becoming crisper and crisper and more clear as to how to couple partners in the areas where we want to win and continue to execute our GTM together. There's also partnerships that are more product-attached partnerships. I can think of marketplaces initiatives like AWS, where it's less of a commercial-first motion, but it's the ability to attach onto big commercial engines like the Amazon AWS one to enable customers to buy using credits. We've had a lot of deals and customers that have preferred that buying modality as opposed to a direct buying modality. All these avenues of buying, the way we think about it is how can we reduce the risk and friction of purchasing for the customer.

[Matthew VanVliet, Analyst at Cantor Fitzgerald]

Great. Thank you.

[Operator]

Your next question comes from the line of John Shao with TD Cowen. Please go ahead.

[John Shao, Analyst at TD Cowen]

Morning, guys. Thanks for taking my question. Maybe one more question on the healthcare vertical. Could you compare the healthcare opportunity today to where government was when you first began investing in FedRAMP? What kind of milestones should investors expect over the next 12-18 months to gauge the success?

[Alessio Artuffo, President and CEO at Docebo]

The first milestones are going to be setting up the team for success. We are going to be staffing an organization across product and GM to really conquer this new vertical while we continue, by the way, in parallel to winning the vertical. It's a bit like creating a more sophisticated plane while we fly already a plane. Once we have the team in seat, which is we're working on actively, then comes the development of It's org radius. It's the development of runbooks. It's the development of specific vertical product roadmap that allows us to have the confidence that we're executing towards something tangible that then leads to improved win rates, that it leads to customer satisfaction in general. That will occur over the next few quarters.

[Alessio Artuffo, President and CEO at Docebo]

I guess differently from federal, okay, in this category, I want to emphasize is that, we're already winning significant customers in healthcare right now. Some of these requirements at times have become more stringent and at times are a little looser. It's not that federal is either you have FedRAMP or you don't have FedRAMP. With healthcare, it's our ability to increase our right to win is going to be dependent upon how fast we execute on the people and product vectors. That's as simple as that. The faster we do all of the above, the faster we're going to increase our share of wallet in that industry.

[John Shao, Analyst at TD Cowen]

Got it. On FAE, I know it's still relatively early, but could you maybe talk about the revenue opportunity? Is it recurring or one time, and maybe the margin profile?

[Alessio Artuffo, President and CEO at Docebo]

I'm hesitant to share details that have not been fully ironed out yet. I describe the FDE opportunity on a principle basis because we believe in this AI era, customers are more and more in need of working with true builders. That's what we're prepared to do. We want to really enter in organizations and not just onboard them and let them do the work. We want to do the work with them and for them towards their own personalized outcomes. How does this translate in a recurring model and the marginality of it? It's something that, of course, we're thinking about deeply, and we believe we have good constructs.

[Alessio Artuffo, President and CEO at Docebo]

It's perhaps a bit premature to share in this call, and I feel more comfortable that we're going to have a more polished point of view as we talk in November post our Agent Hub release, which is going to be in the fall.

[John Shao, Analyst at TD Cowen]

That's great. Thank you.

[Alessio Artuffo, President and CEO at Docebo]

Thank you.

[Operator]

As a reminder, if you would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. Your next question comes from the line of Ken Wong with Oppenheimer. Please go ahead.

[Ken Wong, Analyst at Oppenheimer]

Fantastic. Thanks for taking my question. Brandon, I wanted to circle up on the guidance a little bit. You guys have a second straight quarter of accelerating underlying ARR. Just want to get a sense for what level of prudence is baked into the guidance. Have you guys changed your philosophy in terms of handicapping some of the big deal pipeline? Any color there would be helpful.

[Brandon Farber, CFO at Docebo]

Yeah, maybe let's just take a step back and look at the actual revenue increase. We raised our guidance by $3.5 million relative to last quarter. Transparently, $1.6 million of that was from our Q2 meet, $2.1 million of that is the flow through to H2. Even within that $2.1 million, you have $1.2 million of that being professional services and closer to $900,000 of sub. What's really driving that increase? What assumptions are we changing? When we go through our different segments, mid-market, our assumptions are pretty much flat. We've seen consistent performance. The team is still performing great. There's no changes. Governments, we already had strong expectations built into our guidance, so we knew we were going to execute in Q2. We had a record flat quarter in Q2. Q3, we do expect a solid FedRAMP quarter, and that was always baked into our guidance.

[Brandon Farber, CFO at Docebo]

What changed? It's really Enterprise. We came into 2026, I talked about it in February, where we assumed roughly flat Enterprise growth, which was conservative. We saw two quarters of great performance, strong win rates, good pipeline, that's given us the confidence to increase our Enterprise assumptions in H2. That's really what's driving the incremental revenue guide.

[Ken Wong, Analyst at Oppenheimer]

Okay. Fantastic. The other half of the guidance, you guys kept EBITDA unchanged. I think you called out healthcare as an investment that you guys are making in the back half. How should we think about the run rate of that investment, is this just a small start that ramps up? Is this something that we should expect to carry into 2027?

[Brandon Farber, CFO at Docebo]

It's going to be a relatively small pod for H2. The expenses will certainly continue to grow into 2027. How we're thinking about it is that H2 is more heavy on R&D investments. When I think about our spend patterns, like sales and marketing, we know it's going to be down sequentially in Q3. A lot of that is event-related spend that happens in Q2 and Q1. R&D will scale up throughout the year. From Q2, Q3 to Q4, we're going to see R&D scale up, and G&A is going to remain relatively flat. The Constitution team, it's going to be its own pod of engineering team with a specific product manager that's specialized in healthcare.

[Brandon Farber, CFO at Docebo]

We're going to scale up a sales team with a leader that's specific to healthcare and their own sellers of, we're going to start off small with a team of three, which is exactly what we did in government. We're really following the exact playbook of spend that we did in government.

[Ken Wong, Analyst at Oppenheimer]

All right. Fantastic. Thank you for the color.

[Operator]

Your next question comes from the line of Gavin Fairweather with ATB Cormark. Please go ahead.

[Gavin Fairweather, Analyst at ATB Cormark]

Oh, hey, good morning and thanks for taking my questions. Maybe just on internal use cases, I'm curious to what extent 365Talents in your AI releases are helping carve out a bit more differentiation in a competitive space, and if you've seen any movement in your win rates as a result.

[Alessio Artuffo, President and CEO at Docebo]

You're correct, Gavin. 365Talents is giving us a stronger posture in internal use cases where the topic of SBO or skills-based organization, upskilling and reskilling are critical topics. Frankly, we had a light response prior to 365Talents in that context. That becomes particularly true in the enterprise and strategic enterprise segments. Your observation, therefore, that 365Talents impacts our ability to win at larger scale internal use cases where our capabilities were lighter in the past is correct. When I think about our agentic capabilities, I believe this becomes even more true in the upcoming months. We're seeing a very positive return from the 365Talents side relative to this.

[Gavin Fairweather, Analyst at ATB Cormark]

That's great, very helpful. Just secondly, on the enterprise motion, it's been about a year, maybe a little bit more than that from the leadership changes. You've now had two very good quarters in a row. When you look at the sales team productivity, would you say that you've now kind of hit your stride, or are you seeing still potential improvement in that motion given sales cycle?

[Alessio Artuffo, President and CEO at Docebo]

No. First of all, it's a good opportunity to give kudos to our great management team, led by our CRO and our CMO and our EVP of partnerships. These guys have been working super hard and their teams on the enterprise side and even our mid-market function international, because it's not only a story of one segment, as I said earlier, it's a broad-based success. They've been doing really good. As far as whether, have we reached the max of what we can do? I believe there's a lot of runway ahead of us, that both in terms of the single unit productivity per seller. The ability to increase quotas given the amount of products that we are delivering to sales validated by customers and upcoming products, that's just something that we will likely do.

[Alessio Artuffo, President and CEO at Docebo]

Also, adding access to capabilities like Enterprise Knowledge and 365Talents opens up new territories in terms of not only companies, buyers, but also buyer personas that we're going to be able to sell into. We're going to get closer, much closer to the CIO office. We're going to get much closer to the Chief People Office as a result of these product capabilities. I think we're starting to scratch the surface of how this can look like over the next three years, and for that, I'm really excited.

[Gavin Fairweather, Analyst at ATB Cormark]

Thanks. I pass the line.

[Operator]

Your next question comes from the line of Suthan Sukumar with Stifel. Please go ahead.

[Suthan Sukumar, Analyst at Stifel]

Good morning, guys. For my first question, I wanted to touch on the ARR re-acceleration of H2. Obviously, there's some benefits there with the Dayforce and AWS headwinds tapering off this year, allowing the strong underlying growth to show. What is giving you guys that visibility from a net new ARR as a perspective? How much is that growth is coming from expansion versus net new?

[Brandon Farber, CFO at Docebo]

Thanks, Suthan. It's a good question. As we know, we are starting to lap some of the quarters that make it easier for us to re-accelerate on the top line. Just as a reminder, AWS turned H2 for lots of $4 million, and we have Dayforce, which we've disclosed, has essentially gone from $19.5 million to $6.5 million in the current quarter. We're lapsing in, let's call it, $19 million of headwinds over the next four quarters. What's giving us that confidence? It's really what I talked about before, where we're seeing strengths across our end markets, whether we're talking about mid-markets, gov. If you think about last Q3, we essentially won FedRAMP, I think it was three to four months prior to this September 30th close. We didn't have much of an opportunity to play in the FedRAMP space.

[Brandon Farber, CFO at Docebo]

This is really what we consider our first Q3 with significant pipe and the ability to win in FedRAMP. We have the FedRAMP opportunity. Enterprise, there's no doubt about it, the year-over-year growth is significant. We're seeing strong performance, good pipeline, and when you just add everything together, it's pretty easy to see how we can re-accelerate on the top line.

[Suthan Sukumar, Analyst at Stifel]

Okay. Good. Thank you for that color. For my second question, I want to touch on more from a balance sheet capital allocation perspective. You guys appear to be in investment mode, given the new FDE model, the healthcare vertical ramp. I have to think strategic acquisitions may still be part of the overall strategy. What is the deleveraging path here to get you to a more flexible balance sheet? Can you remind us on what your capital allocation priorities are?

[Brandon Farber, CFO at Docebo]

Yeah.

[Suthan Sukumar, Analyst at Stifel]

Thank you.

[Brandon Farber, CFO at Docebo]

If you look at the numbers today, and I'm just going to use some clean round numbers to make it a little bit easier. We have $45 million in cash. We have about $90 million of debt, let's call it $45 million net debt on our annual EBITDA of $65 million. As we know, we've announced an SIB for $70 million funded by $16 million in debt and $10 million in cash, that would take us from $90 million in debt to $150 million. At the same time, it's a bit of a nuanced question because we don't know how many shares will get tendered in the SIB. If we look at today and you think about a rational investor, our current stock price is relatively close. We're slightly above our SIB price.

[Brandon Farber, CFO at Docebo]

That would suggest we're going to have fairly to frankly no shares tendered in our SIB. That's just the rational assumption to make as of today. But, always never say never, we need to think about the maximum potential. We do think at the moment, as Alessio mentioned, we are looking at opportunities and active in looking. While Docebo made two acquisitions in H1, we don't believe that's the norm. We are very much an organic growth shop. That's in our DNA, and that will always be part of our DNA. Will we continue to look at other opportunities such as 365Talents that are easier bolt-ons that improve our sales and marketing efficiency because it's an easy add-on? We will look at that, but we just don't see any in the next 12 months.

[Brandon Farber, CFO at Docebo]

If you think about 12 months of runway or a strong free cash flow generation, we do think we have the capacity to look at maybe decreasing debt capacity and paying down debt, or building up cash through free cash flow generation.

[Brandon Farber, CFO at Docebo]

On your second question, new logo versus expansion. We are typically 65% new logo at 35% expansion, and we've seen that formula relatively similar in Q2. In Q1, it was a little more heavily shifted towards expansion because we had a couple of large expansions, but we're generally in that 65%-35% range.

[Suthan Sukumar, Analyst at Stifel]

Okay. Good. Thanks for taking my questions, guys. I will pass the line.

[Operator]

That concludes the question and answer session. I would now like to turn the conference back over to Alessio for closing comments.

[Alessio Artuffo, President and CEO at Docebo]

Thank you all for being on the call today, and we look forward to our next earnings call in November. Have a good day.

[Operator]

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.

Participants

Executives

• Mike McCarthy, VP of Investor Relations
• Alessio Artuffo, President and CEO
• Brandon Farber, CFO

Analysts

• Robert Young, Analyst at Canaccord Genuity
• Ryan MacDonald, Analyst at Needham & Company
• Erin Kyle, Analyst at CIBC
• George Sutton, Senior Research Analyst at Craig-Hallum
• Matthew VanVliet, Analyst at Cantor Fitzgerald
• John Shao, Analyst at TD Cowen
• Ken Wong, Analyst at Oppenheimer
• Gavin Fairweather, Analyst at ATB Cormark
• Suthan Sukumar, Analyst at Stifel