Industry Overview - The Technology Services industry ranks within the top 40% of Zacks Ranked Industries and is expected to outperform the market over the next three to six months [1][8] - The industry is mature with strong demand for services, leading to significant growth in the first half of 2025, which is likely to continue in the second half [1][3] Market Trends - The global shift toward digitization is creating opportunities in markets such as 5G, blockchain, and artificial intelligence (AI) [3] - Companies are rapidly adopting generative AI, machine learning (ML), and data science to gain competitive advantages [3][4] - There is robust demand for multi-cloud-enabled software solutions as businesses transition from legacy platforms to modern cloud-based infrastructure [3] Company Highlights Coherent Corp. (COHR) - Coherent is positioned in the industrial, communications, electronics, and instrumentation markets, offering diversified applications [7] - Expected revenue and earnings growth rates for the current year are 11.5% and 29.3%, respectively, with a 4.1% improvement in the Zacks Consensus Estimate for current-year earnings over the last 30 days [9] Vimeo Inc. (VMEO) - Vimeo provides cloud-based video software solutions, including video hosting, management, and analytics [10][11] - Expected revenue and earnings growth rates for the next year are 6.2% and over 100%, respectively, with no change in the Zacks Consensus Estimate for next-year earnings over the last 60 days [12] Skillsoft Corp. (SKIL) - Skillsoft offers personalized learning experiences and operates in two segments: Talent Development Solutions and Global Knowledge [13][14] - Expected revenue and earnings growth rates for the current year are 1.2% and -157%, respectively, with a 54.8% improvement in the Zacks Consensus Estimate for current-year earnings over the last 60 days [15] Vontier Corp. (VNT) - Vontier focuses on transportation and mobility solutions, operating through three segments: Mobility Technologies, Repair Solutions, and Environmental and Fueling Solutions [16] - Expected revenue and earnings growth rates for the current year are 0.1% and 9%, respectively, with a 2.9% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [17] SPX Technologies Inc. (SPXC) - SPX Technologies is a diversified supplier in the HVAC and detection and measurement markets, operating in two segments [18] - Expected revenue and earnings growth rates for the current year are 12.7% and 17%, respectively, with a 3.2% improvement in the Zacks Consensus Estimate for current-year earnings over the last seven days [19]

Core Viewpoint - Skillsoft Corp. (SKIL) has experienced significant selling pressure, resulting in a 30.2% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential turnaround for the stock [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is utilized to determine if a stock is oversold, with readings below 30 indicating oversold conditions [2]. - SKIL's current RSI reading is 28.35, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. Group 2: Fundamental Indicators - There has been a strong consensus among sell-side analysts to raise earnings estimates for SKIL, leading to a 52.8% increase in the consensus EPS estimate over the last 30 days [7]. - An upward trend in earnings estimate revisions typically correlates with price appreciation in the near term [7]. Group 3: Analyst Ratings - SKIL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a turnaround [8].

Core Viewpoint - Skillsoft Corp. (SKIL) has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, making it a valuable tool for investors [2][3]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to price movements based on their buying or selling actions [3]. Skillsoft's Earnings Outlook - The recent upgrade for Skillsoft indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - Over the past three months, the Zacks Consensus Estimate for Skillsoft has increased by 46.1%, reflecting analysts' growing confidence in the company's earnings potential [7]. Zacks Rank System - The Zacks Rank system categorizes stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Skillsoft's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

Financial Data and Key Metrics Changes - Total revenue for Q1 was $124.2 million, down approximately $3.6 million or 2.8% year over year [19] - Adjusted EBITDA was $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year [21] - GAAP net loss was $38 million compared to $27.6 million in the prior year, with GAAP net loss per share at $4.57 compared to $3.42 [22] - Free cash flow was $26.2 million, an improvement of $15.8 million from $10.4 million in the prior year [23] Business Line Data and Key Metrics Changes - Talent Development Solutions (TDS) revenue was $99.1 million, up 1% year over year [18] - Global Knowledge (GK) revenue was $25.1 million, down approximately $4.7 million or 15.7% year over year, impacted by softer demand in the public sector [18][19] - TDS dollar retention rate for Q1 was 99%, compared to 100% last quarter and 99% one year ago [19] Market Data and Key Metrics Changes - There was a decline in U.S. public sector discretionary live learning spending, while large-scale non-U.S. public sector deals increased [10] - The company is investing in international growth, particularly in sectors like AI, cloud computing, and cybersecurity [11] Company Strategy and Development Direction - The company is focused on executing its transformation plan and driving success for customers and learners [5][8] - A renewed focus on go-to-market strategy is emphasized, with new leadership additions aimed at enhancing brand awareness and demand [6][7] - The company aims to return to top-line growth and deliver continued margin expansion while generating positive free cash flow [16] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making processes [8][16] - Confidence in the business strategy was reinforced by positive feedback from customer events and a strong deal pipeline [15][38] - The outlook for the full fiscal year remains unchanged, with expectations for revenue between $530 million and $545 million [26] Other Important Information - The company is closely monitoring macroeconomic conditions and potential impacts on business [26] - The first quarter is typically the highest seasonal free cash flow quarter, with expectations of cash usage in the second quarter [23][24] Q&A Session Summary Question: What are the underlying KPIs that give confidence in the full-year target? - Management highlighted the growth in TDS and a strong deal pipeline in GK, suggesting potential for improvement if the market stabilizes [30][32] Question: How should we think about the government business and its recent softness? - Management noted that discretionary spending in the U.S. federal sector impacted revenue, but there is positive activity in European public sectors [48][50] Question: What changes or improvements can be expected under the new CFO? - The focus will be on integrating finance into every decision and aligning it with go-to-market strategies to drive growth [54]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $124.2 million, down approximately $3.6 million or 2.8% year over year [18] - Adjusted EBITDA was $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year [20] - GAAP net loss was $38 million compared to $27.6 million in the prior year, with GAAP net loss per share at $4.57 compared to $3.42 [21] - Free cash flow improved to $26.2 million compared to $10.4 million in the prior year, reflecting an increase of $15.8 million [22] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $99.1 million, up 1% year over year [17] - Global Knowledge revenue was $25.1 million, down approximately $4.7 million or 15.7% year over year, impacted by softer demand in the public sector [17][18] - TDS dollar retention rate for the first quarter was 99%, compared to 100% last quarter and 99% one year ago [18] Market Data and Key Metrics Changes - There was a decline in U.S. Public sector discretionary live learning spending, while large scale non-U.S. Public sector deals increased [9][10] - The company is investing in international growth, particularly in sectors like AI, cloud computing, and cybersecurity [10] Company Strategy and Development Direction - The company is focused on executing its transformation plan and driving success for customers and learners [5][8] - A renewed focus on go-to-market strategy is emphasized, with new leadership additions aimed at enhancing brand awareness and demand [6][8] - The company aims to return to top-line growth and deliver continued margin expansion while generating positive free cash flow [15][24] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making processes [7][15] - Confidence in the business strategy was reinforced by positive feedback from customer events and a strong deal pipeline [14][36] - The company expects to see most growth in the back half of the fiscal year, contingent on market stabilization [8][24] Other Important Information - The company is closely monitoring macroeconomic conditions and potential impacts on business [24] - The leadership team has been expanded with the addition of a new Chief Marketing Officer to enhance marketing efforts [6] Q&A Session Summary Question: What are you seeing in the underlying KPI or deals that give you confidence in reiterating the full year target? - Management expressed confidence in TDS growth and noted a positive deal pipeline in GK, contingent on market stabilization [30] Question: Is there a component of GK being worse and TDS better in your underlying assumptions? - Management acknowledged that discretionary spending was impacted in Q1, particularly in live learning, but noted improvements in the last month of the quarter [32][33] Question: What is the next phase of the business transformation process? - Management indicated that the focus will shift towards increasing growth rates and enhancing go-to-market strategies [35][36] Question: Can you provide context on the government business and its performance? - Management noted softness in U.S. Federal discretionary spending but observed good activity in European public sectors [47][48] Question: What specific changes or improvements can we expect with the new CFO? - The new CFO emphasized the importance of integrating finance into all business decisions to support go-to-market strategies [52]

Earnings Supplement Q1 FY2026 June 9, 2025 1 Cautionary Notes Regarding Forward Looking Statements This document includes statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For all such statements, we claim the protection of the safe harbor for forward-looking statements provided by such sections and the Private Securities Litigation Reform A ...

[PART I — FINANCIAL INFORMATION - UNAUDITED](index=4&type=section&id=PART%20I%20%E2%80%94%20FINANCIAL%20INFORMATION%20-%20UNAUDITED) [Item 1. Unaudited Financial Statements](index=4&type=section&id=Item%201.%20Unaudited%20Financial%20Statements) Skillsoft reported Q1 2025 revenues of $124.2 million, a net loss of $38.0 million, and a decrease in total assets to $1.02 billion [Unaudited Condensed Consolidated Balance Sheets](index=4&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Total assets decreased to $1.02 billion as of April 30, 2025, driven by reductions in accounts receivable and intangible assets, while liabilities and equity also declined Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2025 | January 31, 2025 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $127,841 | $100,766 | | Accounts receivable, net | $95,988 | $178,989 | | Total current assets | $277,837 | $332,853 | | Goodwill | $317,071 | $317,071 | | Intangible assets, net | $401,967 | $427,221 | | **Total assets** | **$1,022,486** | **$1,106,069** | | **Liabilities & Equity** | | | | Deferred revenue (current) | $243,788 | $282,295 | | Total current liabilities | $324,915 | $376,982 | | Long-term debt | $572,232 | $573,267 | | **Total liabilities** | **$959,837** | **$1,012,223** | | **Total shareholders' equity (deficit)** | **$62,649** | **$93,846** | [Unaudited Condensed Consolidated Statements of Operations](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Revenues decreased to $124.2 million, operating loss improved to $18.2 million, but net loss widened to $38.0 million due to fair value adjustments Statement of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Total revenues | $124,201 | $127,793 | | Total operating expenses | $142,387 | $151,625 | | Operating income (loss) | $(18,186) | $(23,832) | | Net income (loss) | $(38,049) | $(27,636) | | Net income (loss) per share (Basic and diluted) | $(4.57) | $(3.42) | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly increased to $31.3 million, while investing and financing activities used $5.1 million and $2.0 million respectively, ending with $130.9 million cash Cash Flow Summary (in thousands) | Cash Flow Activity | Three Months Ended April 30, 2025 | Three Months Ended April 30, 2024 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $31,298 | $14,937 | | Net cash provided by (used in) investing activities | $(5,134) | $(4,517) | | Net cash provided by (used in) financing activities | $(1,953) | $(4,252) | | Net increase (decrease) in cash | $27,595 | $3,081 | | Cash, cash equivalents and restricted cash, end of period | $130,932 | $149,604 | [Notes to Unaudited Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) Key notes detail the company's segment structure, significant financial balances, legal proceedings, share repurchase authorization, and recent management changes - The company operates through two reportable segments: Talent Development Solutions (TDS) and Global Knowledge (GK)[36](index=36&type=chunk) - A derivative lawsuit challenging the Codecademy acquisition was dismissed in February 2025, with the dismissal becoming final[53](index=53&type=chunk) - The Board authorized a **$10 million** share repurchase program, but no shares were repurchased as of April 30, 2025[66](index=66&type=chunk) - John Frederick was appointed as the new Chief Financial Officer effective May 15, 2025[113](index=113&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=19&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses a 2.8% revenue decline driven by the GK segment, offset by TDS growth, and a 6.1% decrease in operating expenses due to cost savings, while maintaining sufficient liquidity - A comprehensive resource reallocation plan (CRRP) generated approximately **$45 million** in annualized cost savings[132](index=132&type=chunk) - The GK segment revenue declined **15.7%** year-over-year, while the TDS segment revenue increased **1.1%** year-over-year[131](index=131&type=chunk) - The company expects current cash, operating cash flow, and available credit to fund operations for at least the next twelve months[150](index=150&type=chunk) [Results of Operations](index=31&type=section&id=MD%26A_Results_of_Operations) Total revenue decreased to $124.2 million, driven by a 15.7% decline in GK segment revenue, while operating expenses fell 6.1%, leading to an improved operating loss but a wider net loss Segment Revenue and Contribution Profit (in thousands) | Segment | Metric | Q1 2026 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | :--- | | **TDS** | Revenues | $99,148 | $98,075 | 1.1% | | | Business unit contribution profit | $68,479 | $66,458 | 3.0% | | **GK** | Revenues | $25,053 | $29,718 | (15.7)% | | | Business unit contribution profit | $8,603 | $11,153 | (22.9)% | Operating Expense Changes (in thousands) | Expense Category | Q1 2026 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Cost of revenues | $32,247 | $34,471 | (6.5)% | | Selling and marketing | $39,609 | $42,292 | (6.3)% | | General and administrative | $22,952 | $25,309 | (9.3)% | | **Total operating expenses** | **$142,387** | **$151,625** | **(6.1)%** | [Liquidity and Capital Resources](index=39&type=section&id=MD%26A_Liquidity_and_Capital_Resources) The company maintains $127.8 million in cash, supported by a $586.6 million term loan and a $75.0 million A/R facility, with operating cash flow increasing to $31.3 million - The company has an outstanding principal balance of **$586.6 million** on its Initial Term Loans, maturing in July 2028[151](index=151&type=chunk)[155](index=155&type=chunk) - The company has access to a **$75.0 million** Accounts Receivable Facility, with **$1.0 million** drawn as of April 30, 2025[160](index=160&type=chunk)[161](index=161&type=chunk) Cash Flow Summary (in thousands) | Cash Flow Activity | Q1 2026 | Q1 2025 | | :--- | :--- | :--- | | Net cash from operating activities | $31,298 | $14,937 | | Net cash from investing activities | $(5,134) | $(4,517) | | Net cash from financing activities | $(1,953) | $(4,252) | [Critical Accounting Estimates](index=43&type=section&id=MD%26A_Critical_Accounting_Estimates) Critical accounting estimates involve significant judgment in revenue recognition, valuation and impairment testing of intangible assets and goodwill, and accounting for income taxes - Revenue recognition requires judgment in allocating transaction prices for contracts with multiple performance obligations[175](index=175&type=chunk) - Impairment testing of goodwill and intangible assets relies on significant estimates, and changes could lead to future impairment charges[183](index=183&type=chunk)[184](index=184&type=chunk) - Accounting for income taxes involves significant estimates for deferred tax assets and uncertain tax positions[186](index=186&type=chunk)[187](index=187&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=27&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company faces market risks from interest rate and foreign currency fluctuations, with hypothetical changes impacting pre-tax interest expense by $2.9 million and pre-tax income by $3.0 million respectively - A **100 basis point** change in interest rates would impact annual pre-tax interest expense by approximately **$2.9 million**[191](index=191&type=chunk) - The company uses interest rate swaps on a notional amount of **$300.0 million** to manage interest rate risk[191](index=191&type=chunk) - A **10%** change in foreign currency exchange rates would impact annual pre-tax income by approximately **$3.0 million**[194](index=194&type=chunk) [Item 4. Controls and Procedures](index=27&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of April 30, 2025, with no material changes to internal control over financial reporting - Disclosure controls and procedures were concluded to be effective as of April 30, 2025[196](index=196&type=chunk) - No material changes to internal control over financial reporting were identified during the quarter[197](index=197&type=chunk) [PART II — OTHER INFORMATION](index=28&type=section&id=PART%20II%20%E2%80%94%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=28&type=section&id=Item%201.%20Legal%20Proceedings) Information on legal proceedings, including the dismissal of a stockholder derivative lawsuit, is incorporated by reference from Note 6 - Legal proceedings information is incorporated by reference from Note 6 – "Commitments and Contingencies"[201](index=201&type=chunk) [Item 1A. Risk Factors](index=28&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were reported from the previously disclosed Annual Report on Form 10-K - No material changes to risk factors were disclosed from the 2025 Form 10-K[202](index=202&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=28&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company reported no unregistered sales of equity securities during the period - None[203](index=203&type=chunk) [Item 5. Other Information](index=28&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement during the quarter[206](index=206&type=chunk) [Item 6. Exhibits](index=29&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including certifications and new employment agreements

Revenue Performance - Total revenue for the first quarter of fiscal 2026 was $124 million, down 3% from the prior year[9]. - Talent Development Solutions (TDS) revenue was $99 million, up 1% from the prior year, marking the third consecutive quarter of growth for this segment[9][10]. - Global Knowledge (GK) revenue was $25 million, down 16% from the prior year[9]. - Total revenues for the three months ended April 30, 2025, were $124,201, a decrease of 5.0% compared to $127,793 for the same period in 2024[29]. - Total revenues for Q1 2025 were $124,201, a decrease of 2.5% from $127,793 in Q1 2024[32]. - Talent Development Solutions revenue was $99,148 in Q1 2025, slightly up from $98,075 in Q1 2024, with a contribution margin of 69.1%[34]. - Global Knowledge revenue decreased to $25,053 in Q1 2025 from $29,718 in Q1 2024, with a contribution margin of 34.3%[34]. Financial Losses and Income - GAAP net loss was $38 million, compared to a net loss of $28 million in the prior year, with a net loss per share of $4.57[9]. - Net loss for the three months ended April 30, 2025, was $(38,049), compared to a net loss of $(27,636) in the same period of 2024, reflecting a 37.5% increase in losses[29]. - The company reported a basic and diluted net income (loss) per share of $(4.57) for the three months ended April 30, 2025, compared to $(3.42) for the same period in 2024[29]. - The net income margin for Q1 2025 was (30.6)%, compared to (21.6)% in Q1 2024, highlighting ongoing challenges[32]. Cash Flow and Financial Health - Free cash flow for the quarter was $26 million, significantly up from $10 million in the prior year[9]. - The company anticipates the second quarter to be the lowest free cash flow quarter as working capital normalizes[6]. - Net cash provided by operating activities for the three months ended April 30, 2025, was $31,298, compared to $14,937 for the same period in 2024, reflecting a 109.5% increase[31]. - Free cash flow for Q1 2025 was $26,164, significantly higher than $10,420 in Q1 2024, indicating improved cash generation[41]. - Adjusted free cash flow (levered) for Q1 2025 was $31,144, compared to $13,502 in Q1 2024, demonstrating strong financial health[41]. Operational Efficiency - Adjusted EBITDA was $22 million, reflecting a margin of 18% of revenue, compared to $19 million and 15% in the prior year[9]. - Adjusted EBITDA for Q1 2025 increased to $22,131, up 16.3% from $18,898 in Q1 2024[32]. - Total GAAP operating expenses decreased to $108,910 in Q1 2025 from $117,578 in Q1 2024, reflecting cost management efforts[36]. - Adjusted total operating expenses for Q1 2025 were $102,070, down from $108,895 in Q1 2024, indicating improved operational efficiency[36]. Company Outlook and Recognition - The company reaffirmed its fiscal 2026 outlook, expecting GAAP revenue between $530 million and $545 million and Adjusted EBITDA between $112 million and $118 million[8]. - Skillsoft was recognized as "Most Dedicated to Employee Growth" in the Digiday WorkLife Awards, emphasizing its commitment to employee development[10]. - Skillsoft CAISY™, an AI-powered coach, is now available in over 40 languages, enhancing the company's product offerings[10]. Balance Sheet Highlights - Cash and cash equivalents as of April 30, 2025, were $127,841, up from $100,766 as of January 31, 2025, indicating a 26.9% increase[27]. - Total assets decreased to $1,022,486 as of April 30, 2025, from $1,106,069 as of January 31, 2025, representing a decline of 7.6%[27]. - Total current liabilities decreased to $324,915 as of April 30, 2025, from $376,982 as of January 31, 2025, a reduction of 13.8%[27]. - Deferred revenue as of April 30, 2025, was $243,788, down from $282,295 as of January 31, 2025, a decrease of 13.6%[27]. - Total shareholders' equity (deficit) decreased to $62,649 as of April 30, 2025, from $93,846 as of January 31, 2025, a decline of 33.2%[27].

Core Viewpoint - The market anticipates Skillsoft Corp. (SKIL) to report a year-over-year increase in earnings despite lower revenues when it releases its quarterly results for the period ending April 2025 [1] Earnings Expectations - The earnings report is expected on June 9, 2025, with a consensus estimate of a quarterly loss of $2.65 per share, reflecting a year-over-year change of +22.5%. Revenues are projected to be $123.5 million, down 3.4% from the previous year [3][2] Estimate Revisions - The consensus EPS estimate has been revised 10.51% higher in the last 30 days, indicating a reassessment by analysts [4] Earnings Surprise Prediction - The Zacks Earnings ESP model shows that the Most Accurate Estimate matches the Zacks Consensus Estimate, resulting in an Earnings ESP of 0%. The stock currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [12] Historical Performance - Skillsoft has a history of beating consensus EPS estimates, having done so in the last four quarters. In the most recent quarter, it exceeded expectations by delivering a surprise of +202.93% [13][14] Conclusion - While Skillsoft does not appear to be a strong candidate for an earnings beat, investors should consider other factors before making decisions regarding the stock ahead of the earnings release [17]

Group 1: Earnings Performance - Skillsoft Corp. reported quarterly earnings of $2.11 per share, exceeding the Zacks Consensus Estimate of a loss of $2.05 per share, and showing improvement from a loss of $3.09 per share a year ago, resulting in an earnings surprise of 202.93% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Skillsoft's revenues for the quarter ended January 2025 were $133.75 million, surpassing the Zacks Consensus Estimate by 4.22%, although this represents a decline from year-ago revenues of $137.54 million [2] Group 2: Stock Performance and Outlook - Skillsoft shares have declined approximately 28.7% since the beginning of the year, compared to a decline of 8.8% for the S&P 500 [3] - The future performance of Skillsoft's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$2.48 on revenues of $132.23 million, and for the current fiscal year, it is -$7.11 on revenues of $539.99 million [7] Group 3: Industry Context - The Technology Services industry, to which Skillsoft belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]