Docebo revenue climbs 15% as AI learning platform pivot offsets OEM concentration

Docebo (NASDAQ:DCBO) reported solid financial results for the first quarter of 2026, underscored by a successful transition toward a more diversified customer base and record-setting cash flow efficiency.

The self-described "Enterprise Platform for the AI-era" posted total revenue of $65.6 million for the three months ended March 31, 2026, representing a 15% increase year-over-year.

Subscription revenue, the core of the company’s SaaS model, rose 12% to $60.6 million.

While the weakening of the U.S. dollar provided a 3-percentage-point tailwind to these figures, the underlying growth was driven by steady adoption of Docebo’s unified skills and knowledge platform.

Annual Recurring Revenue (ARR) ended the quarter at $248.9 million, up 10.6% from the previous year.

A key highlight of the quarter was the significant reduction in customer concentration.

Docebo’s largest OEM customer now represents just 3.2% of ARR, down from 9.4% a year ago.

When excluding this specific customer and adjusting for foreign exchange impacts, the company’s "core" ARR increased by approximately 13.7%, signaling robust health in its direct enterprise and broader partner channels.

While Docebo reported a GAAP net loss of $1.6 million ($0.06 per share)—compared to a profit in the prior year—the company’s adjusted metrics showed marked improvement.

Adjusted net income rose to $9.9 million, or $0.35 per share, up from $0.28 per share in Q1 2025.

Adjusted EBITDA also expanded to $11 million, representing 16.8% of total revenue.

The standout metric for the quarter was cash generation.

Free cash flow surged to $27.6 million, representing an exceptional 42% of total revenue, nearly tripling the $9 million reported in the same period last year.

This surge was driven by strong collections and enhanced operational efficiencies.

Gross profit for the quarter was $51.3 million, or 78.1% of revenue.

This margin was slightly lower than the 80.1% reported in the comparative period, reflecting ongoing investments in the company’s AI infrastructure and closed-loop learning technology.