Skillsoft (NYSE:SKIL) Issues Earnings Results

Skillsoft (NYSE:SKIL) released its earnings results on Tuesday. The company reported $1.26 earnings per share for the quarter, missing analysts’ consensus estimates of $1.27 by ($0.01), FiscalAI reports. The firm had revenue of $130.65 million for the quarter, compared to analyst estimates of $130.15 million. Skillsoft had a negative net margin of 26.02% and a positive return on equity of 40.31%. During the same period in the prior year, the company posted ($3.75) EPS.

Here are the key takeaways from Skillsoft’s conference call:

• Skillsoft says it has completed a strategic shift to an AI‑native skills platform, cutting roughly $45M of costs and reinvesting about half into go‑to‑market and AI product work; the new Percipio platform is generally available (Feb) and has 15 paying customers plus an upgraded CAISY simulation product.
• Management highlighted improved profitability and cash generation — Q4 adjusted EBITDA was $31.2M (23.9% margin) and Q4 free cash flow was $26.5M, with FY26 free cash flow slightly above expectations at $6.5M.
• Revenue and GAAP results were mixed — total Q4 revenue declined 2.3% to $130.7M, Global Knowledge revenue fell ~9.4% to $28M, and GAAP net loss widened to $36.7M mainly from an intangible impairment and restructuring charges.
• FY27 guidance for the TDS segment is $388M–$406M revenue and $108M–$116M adjusted EBITDA (~28%), with $14M–$22M free cash flow excluding GK; management says the guide is conservative given geopolitical/Middle East risks and ongoing weakness in the consumer business while a strategic review of Global Knowledge continues.

Skillsoft Trading Down 1.2%

NYSE SKIL opened at $4.37 on Wednesday. The business’s fifty day moving average is $5.24 and its 200-day moving average is $8.85. Skillsoft has a one year low of $3.43 and a one year high of $24.01. The stock has a market capitalization of $38.24 million, a price-to-earnings ratio of -0.28, a PEG ratio of 0.13 and a beta of 1.74. The company has a debt-to-equity ratio of 142.97, a current ratio of 0.84 and a quick ratio of 0.84.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on SKIL shares. Weiss Ratings reissued a “sell (e+)” rating on shares of Skillsoft in a research report on Friday, March 27th. Zacks Research downgraded shares of Skillsoft from a “strong-buy” rating to a “hold” rating in a research report on Monday, February 9th. Finally, Wall Street Zen downgraded shares of Skillsoft from a “buy” rating to a “hold” rating in a research report on Saturday, December 13th. One investment analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Skillsoft currently has an average rating of “Reduce”.

Institutional Investors Weigh In On Skillsoft

Large investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC grew its holdings in shares of Skillsoft by 374.2% during the fourth quarter. NewEdge Advisors LLC now owns 7,331 shares of the company’s stock worth $68,000 after purchasing an additional 5,785 shares in the last quarter. XTX Topco Ltd purchased a new position in shares of Skillsoft during the fourth quarter valued at approximately $100,000. Engineers Gate Manager LP purchased a new position in shares of Skillsoft during the fourth quarter valued at approximately $125,000. Jump Financial LLC purchased a new stake in Skillsoft in the fourth quarter worth $97,000. Finally, Public Employees Retirement System of Ohio grew its stake in Skillsoft by 330.2% in the fourth quarter. Public Employees Retirement System of Ohio now owns 6,130 shares of the company’s stock worth $57,000 after purchasing an additional 4,705 shares during the period. Hedge funds and other institutional investors own 87.00% of the company’s stock.

About Skillsoft

Skillsoft (NYSE: SKIL) is a leading provider of corporate digital learning solutions designed to help organizations develop skills and drive performance. The company offers a range of cloud-based learning platforms and content libraries that cover technical training, leadership development, compliance, and productivity applications. Skillsoft’s flagship platform, Percipio, delivers micro-learning modules, video tutorials, books and audiobooks, hands-on labs and simulations, and practice assessments within a unified interface that can be accessed on desktop or mobile devices.

Skillsoft’s content spans IT certification preparation, software development, cloud computing, cybersecurity, project management, and a variety of professional skills such as communication, management and sales.