Docebo lifts 2026 growth outlook, funds $60 million dividend

By Grace Kim

Docebo raised its 2026 revenue-growth forecast to 14%, above the 10.6% midpoint of its initial February forecast, as an expanding product portfolio and public-sector pipeline support growth into 2027, Chief Financial Officer Brandon Farber said on the third-quarter earnings call. Subscription revenue grew 12.4% in the third quarter, and the company guides to 12.8% growth in the fourth.

What does the higher outlook mean for Q4?

Farber said the fourth-quarter outlook includes “almost little to none incremental revenues from Q4 bookings,” partly because enterprise deals tend to close in December. He also said a stronger U.S. dollar in October reduced annual recurring revenue through foreign-exchange effects.

In short, Docebo expects Q4 growth without a new booking surge.

How will Docebo fund the $60 million dividend?

• The one-time special dividend of roughly $60 million will draw on remaining debt capacity, lifting debt from $90 million to $150 million.
• Farber estimated net debt at approximately $108 million, or 1.9 times projected adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $56 million.
• Docebo spent $82 million in 2026 to repurchase 4.1 million shares at an average price of $19.97. In its most recent substantial issuer bid, the company filled only $2.5 million of a possible $70 million.

Management and the board determined that the dividend represented the best use of excess capital. Capital priorities remain investing in the business, pursuing acquisitions opportunistically and returning cash to shareholders. Docebo completed two acquisitions in 2026, but Farber said the company remains primarily focused on organic growth and execution over the next 12 months.

The dividend raises cash returns while leaving Docebo with more debt.

Can government deals close in time to support 2027?

Docebo entered the third quarter with a government pipeline building faster than expected, Chief Executive Officer Alessio Artuffo said. Some significant deals did not close during the quarter, but he expressed confidence that they would close within the fiscal year.

Artuffo said Docebo is developing relationships across federal, state and local government, including through partners such as Deloitte, and is adding staff to support the business.

Farber said Docebo did not believe U.S. elections affected third-quarter results. He attributed the timing of opportunities to the agencies Docebo works with, saying some could buy in the fourth quarter. Docebo has historically expected the third quarter to be its strongest for FedRAMP-related business, but Farber described this year as an anomaly.

The pipeline is larger, while contract timing remains the main uncertainty.

Where do healthcare and new products expand sales?

Docebo is preparing a more focused push into healthcare. Artuffo said the company hired specialists across sales, product and engineering and is using customer input to shape its product roadmap. He said the priority is to execute in that vertical in 2027 and 2028 before taking on another major vertical expansion.

Knowledge extends Docebo’s learning capabilities to a broader set of enterprise information, including content in SharePoint, Salesforce, Confluence, Notion and Google Drive. Customers have responded positively, though the product remains at an early stage.

More than half of Docebo’s customers already use its products for external use cases as well as internal purposes, giving the company experience selling beyond learning and development teams. Artuffo expects Knowledge and AI agents to make chief information officers (CIOs) more prominent in purchasing decisions and potentially open access to additional budgets, though he said it was too early to quantify the opportunity.

On Skills Intelligence, Artuffo said Docebo has accelerated integration of 365Talents, acquired earlier in the year. Large enterprises have benefited most from the combined products so far, and he said the company is on track to exceed its original budget expectations for the offering.

Farber said new capabilities and the hybrid pricing model could contribute to annual recurring revenue growth in 2027. Docebo is still developing expectations for average revenue per user and product attach rates (the share of customers adopting additional products), while the company sees prospect interest and a fourth-quarter pipeline.

New products could open additional buyer budgets in 2027, but management has not quantified the opportunity.

What drives the 2027 margin outlook?

Adjusted EBITDA grew approximately 34% in the third quarter, Farber said. He expects some EBITDA margin expansion in 2027, with research and development (R&D) roughly flat as a percentage of revenue and continued operating leverage in general and administrative (G&A) expenses. Docebo plans to provide 2027 guidance in February.

Professional services, which is growing faster than subscriptions, has weighed on gross margin. Farber expects a similar trend in the fourth quarter, followed by more consistent growth between the two businesses in 2027 that could allow gross margins to rise. Subscription gross margins have remained broadly consistent with historical levels.

Faster professional-services growth is the near-term margin drag; a better balance between the businesses could help in 2027.

What does Docebo sell?

Claudio Erba founded Docebo in 2005, and the Toronto-based company serves organizations internationally. Its cloud-based learning-management and learning-technology platform creates, manages, delivers and measures training for employees, customers, partners and other learners.

Platform tools include course administration, content delivery, artificial intelligence-supported learning, reporting, analytics and integrations with other enterprise software. Docebo also supports content creation and management, instructor-led and virtual training, and extended-enterprise education programs.

Entering Q4, Docebo has a higher 2026 growth forecast, more debt and broader products, while significant government deals still await closing.