Skillsoft Corp. (SKIL) Q3 2025 Earnings Call Transcript
TDS Revenue $103 million, up 2% year-over-year, primarily due to efforts to capitalize on the market shift from learning and skills to talent development.
Global Knowledge Revenue $34 million, down approximately $4 million or 10% year-over-year, but improved sequentially from a 20% drop in the previous two quarters.
Total Revenue $137 million, down approximately $2 million or 1% year-over-year.
Cost of Revenue $34 million or 25% of revenue, down 6% year-over-year due to cost savings from resource reallocation actions.
Content and Software Development Expenses $14 million or 10% of revenue, down 4% year-over-year due to resource reallocation actions.
Selling and Marketing Expenses $38 million or 28% of revenue, down 9% year-over-year due to resource reallocation actions.
General and Administrative Expenses $19 million or 14% of revenue, increased by $3 million or 17% year-over-year due to one-time costs related to the CEO employment agreement and targeted retention awards.
Total Operating Expenses $105 million or 77% of revenue, down $4 million or 4% year-over-year.
Adjusted EBITDA $32 million or 23% of revenue, up $2 million compared to the $30 million or 22% margin profile one year ago.
GAAP Net Loss $24 million, improved from a GAAP net loss of $28 million in the prior year.
Adjusted Net Loss $15 million, improved from adjusted net loss of $23 million in the prior year.
Free Cash Flow Positive free cash flow of $4 million, driven primarily by disciplined collections management.
Cash Flow from Operations (9 months) $12.2 million, with capital expenditures of $13.8 million resulting in negative free cash flow of $1.6 million, an improvement of $18.9 million from the prior year.
Adjusted Free Cash Flow (9 months) Positive adjusted free cash flow of $15.6 million, an improvement of $26 million compared to the prior year.
Cash, Cash Equivalents and Restricted Cash $102 million at the end of Q3.
Total Gross Debt $591 million at the end of Q3, down from approximately $622 million at the end of Q2.
Total Net Debt Approximately $489 million, down from approximately $492 million at the end of the fiscal second quarter.
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Ciena, Skillsoft, and Patria Investments Show Strong Growth Potential
- Ciena Earnings Estimate Boost: Ciena Corporation (CIEN) has seen its current year earnings estimate increase by 22.3% over the past 60 days, indicating strong growth potential in the network technology sector and solidifying its Zacks Rank of 1.
- Skillsoft Earnings Growth: Skillsoft Corp. (SKIL) has experienced a 19.8% increase in its current year earnings estimate in the last 60 days, with a PEG ratio of 0.20, significantly lower than the industry average of 0.76, highlighting its competitive edge in the digital learning solutions market.
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Skillsoft Stock Drops 25% Following Q3 Results and Revised Guidance
Stock Performance: Skillsoft Corp. (SKIL) shares dropped 25.23% to $5.76 following disappointing third-quarter fiscal 2025 results and lowered full-year guidance.
Revenue Decline: The company reported a 7% year-over-year decrease in total revenue to $125 million, with specific declines in Content and Instructor-Led Training revenues.
Revised Outlook: Skillsoft reduced its full-year revenue and adjusted EBITDA forecasts due to decreased customer spending and extended sales cycles.
Trading Activity: The stock experienced a significant increase in trading volume, exceeding 4.3 million shares, compared to an average of about 580,000 shares.
Skillsoft Reviews Strategic Alternatives for GK Segment Amid $41M Net Loss in Q3
- Strategic Review: Skillsoft is reviewing strategic alternatives for its Global Knowledge (GK) segment, considering a potential sale to improve performance, particularly in light of an $18 million revenue decline.
- Financial Performance: Total revenue for Q3 was $129 million, down 6% year-over-year, with Talent Development Solutions (TDS) revenue at $101 million, reflecting a 2% decrease, indicating pressure in market competitiveness.
- Increased Net Loss: The net loss for Q3 reached $41 million, significantly up from $24 million in the prior year, resulting in a loss per share increase from $2.86 to $4.74, highlighting ongoing challenges in profitability.
- Cash Flow Situation: Free cash flow was negative $24 million, a stark decline from positive cash flow of $4 million in the previous year, underscoring urgency in the company's cash management and operational efficiency efforts.
Transcript of Skillsoft SKIL Q3 2026 Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Skillsoft Corp. (SKIL) Exceeds Q3 Earnings Projections
Earnings Performance: Skillsoft Corp. reported quarterly earnings of $1.65 per share, exceeding estimates and showing a significant improvement from a loss of $1.82 per share a year ago, marking a +30.95% earnings surprise.
Revenue Insights: The company generated $129 million in revenue for the quarter, slightly missing the consensus estimate and down from $137.23 million year-over-year, with mixed trends in earnings estimate revisions leading to a Zacks Rank #3 (Hold).
Stock Performance: Skillsoft shares have declined by approximately 68.5% since the start of the year, contrasting with the S&P 500's gain of 16.3%, raising questions about the stock's future trajectory.
Industry Outlook: The Technology Services industry, where Skillsoft operates, ranks in the top 32% of Zacks industries, suggesting potential for better performance, while investors are advised to monitor earnings estimates and industry trends closely.
Centerra Gold and Three Value Stocks to Buy Amid Market Uncertainty
- Market Uncertainty Intensifies: The U.S. market faces increased volatility in early 2026 due to trade threats from the Trump administration and rising geopolitical risks, which diminishes investor confidence and elevates the importance of value investing.
- Positive Outlook for Centerra Gold: Centerra Gold anticipates a 48% year-over-year growth in EPS for 2026, with estimates raised by 17 cents over the past week, reflecting strong performance driven by rising gold prices and effective cost control.
- Strategic Restructuring at Plains GP Holdings: Plains GP Holdings plans to exit the Canadian NGL business, expected to enhance cash flow and financial flexibility, with a projected 27% growth in EPS for 2026 and a 30-cent increase in estimates over the past 60 days.
- Expansion of Angi's Digital Marketplace: Angi forecasts a 36% year-over-year growth in EPS for 2026, with estimates raised by 16 cents in the past week, as it aims to launch a modern AI platform to improve operational efficiency, showcasing its growth potential in essential home services.
Ciena, Skillsoft, and Patria Investments Show Strong Growth Potential
- Ciena Earnings Estimate Boost: Ciena Corporation (CIEN) has seen its current year earnings estimate increase by 22.3% over the past 60 days, indicating strong growth potential in the network technology sector and solidifying its Zacks Rank of 1.
- Skillsoft Earnings Growth: Skillsoft Corp. (SKIL) has experienced a 19.8% increase in its current year earnings estimate in the last 60 days, with a PEG ratio of 0.20, significantly lower than the industry average of 0.76, highlighting its competitive edge in the digital learning solutions market.
- Patria Investments Earnings Adjustment: Patria Investments Limited (PAX) has seen a modest 1.6% increase in its current year earnings estimate over the past 60 days, and with a PEG ratio of 0.81, it demonstrates solid performance in the private equity sector.
- Semiconductor Market Growth Outlook: The global semiconductor manufacturing market is projected to grow from $452 billion in 2021 to $971 billion by 2028, indicating strong market opportunities for companies like Ciena, Skillsoft, and Patria amidst rising demand for artificial intelligence, machine learning, and Internet of Things technologies.
Skillsoft Stock Drops 25% Following Q3 Results and Revised Guidance
Stock Performance: Skillsoft Corp. (SKIL) shares dropped 25.23% to $5.76 following disappointing third-quarter fiscal 2025 results and lowered full-year guidance.
Revenue Decline: The company reported a 7% year-over-year decrease in total revenue to $125 million, with specific declines in Content and Instructor-Led Training revenues.
Revised Outlook: Skillsoft reduced its full-year revenue and adjusted EBITDA forecasts due to decreased customer spending and extended sales cycles.
Trading Activity: The stock experienced a significant increase in trading volume, exceeding 4.3 million shares, compared to an average of about 580,000 shares.
Skillsoft Reviews Strategic Alternatives for GK Segment Amid $41M Net Loss in Q3
- Strategic Review: Skillsoft is reviewing strategic alternatives for its Global Knowledge (GK) segment, considering a potential sale to improve performance, particularly in light of an $18 million revenue decline.
- Financial Performance: Total revenue for Q3 was $129 million, down 6% year-over-year, with Talent Development Solutions (TDS) revenue at $101 million, reflecting a 2% decrease, indicating pressure in market competitiveness.
- Increased Net Loss: The net loss for Q3 reached $41 million, significantly up from $24 million in the prior year, resulting in a loss per share increase from $2.86 to $4.74, highlighting ongoing challenges in profitability.
- Cash Flow Situation: Free cash flow was negative $24 million, a stark decline from positive cash flow of $4 million in the previous year, underscoring urgency in the company's cash management and operational efficiency efforts.
Transcript of Skillsoft SKIL Q3 2026 Earnings Call
- Author's Perspective: The views and opinions presented are solely those of the author.
- No Official Endorsement: The content does not necessarily reflect the views of Nasdaq, Inc.
Skillsoft Corp. (SKIL) Exceeds Q3 Earnings Projections
Earnings Performance: Skillsoft Corp. reported quarterly earnings of $1.65 per share, exceeding estimates and showing a significant improvement from a loss of $1.82 per share a year ago, marking a +30.95% earnings surprise.
Revenue Insights: The company generated $129 million in revenue for the quarter, slightly missing the consensus estimate and down from $137.23 million year-over-year, with mixed trends in earnings estimate revisions leading to a Zacks Rank #3 (Hold).
Stock Performance: Skillsoft shares have declined by approximately 68.5% since the start of the year, contrasting with the S&P 500's gain of 16.3%, raising questions about the stock's future trajectory.
Industry Outlook: The Technology Services industry, where Skillsoft operates, ranks in the top 32% of Zacks industries, suggesting potential for better performance, while investors are advised to monitor earnings estimates and industry trends closely.
