Key Takeaways SKIL saw a y/y revenue dip from a sharp GK decline, prompting management to review strategic alternatives.UDMY posted marginal revenue growth as subscriptions rose 8% y/y and paid subscribers jumped 88%.SKIL trades at a much lower forward P/E despite EBITDA resilience, driven by broad-based cost reductions.Both Skillsoft (SKIL) and Udemy (UDMY) are online learning platforms focusing on workforce development and lifelong learning. While SKIL is zeroing in on corporate digital learning solutions ...

Core Viewpoint - Skillsoft Corp. (SKIL) is currently viewed as a better investment option compared to Symbotic Inc. (SYM) for those seeking undervalued stocks due to its strong earnings outlook and favorable valuation metrics [3][7]. Valuation Metrics - SKIL has a forward P/E ratio of 2.28, significantly lower than SYM's forward P/E of 154.24, indicating that SKIL is more attractively priced relative to its earnings [5]. - The PEG ratio for SKIL is 0.23, while SYM's PEG ratio is 5.14, suggesting that SKIL is expected to grow its earnings at a more favorable rate compared to SYM [5]. - SKIL's P/B ratio stands at 20.73, compared to SYM's P/B of 75.91, further highlighting SKIL's relative undervaluation [6]. Investment Ratings - SKIL holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while SYM has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3]. - Based on the valuation figures and earnings outlook, SKIL has earned a Value grade of A, whereas SYM has received a Value grade of F, reinforcing SKIL's position as the superior value option [6].

Key Takeaways SKIL posted a 6% YoY revenue decline in Q3 2026, yet delivered $28M in adjusted EBITDA.Skillsoft cut operating expenses 4.1% YoY by reducing content, software, sales, marketing and G&A costs.SKIL's GK segment posted negative EBITDA of $3.3M, while Talent Development Solutions remained profitable.Skillsoft Corp. (SKIL) registered a 6% year-over-year decline in its top line during the third quarter of 2026. This detriment was primarily caused by a 18% dip in Global Knowledge (GK) revenues. While ...

Group 1: Ciena Corporation (CIEN) - Ciena Corporation is a network technology company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 22.3% over the last 60 days [1] - The company has a PEG ratio of 1.11, significantly lower than the industry average of 5.29, and possesses a Growth Score of A [1] Group 2: Skillsoft Corp. (SKIL) - Skillsoft Corp. is a digital learning solutions provider with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 19.8% over the last 60 days [2] - The company has a PEG ratio of 0.20, compared to the industry average of 0.76, and possesses a Growth Score of B [2] Group 3: Patria Investments Limited (PAX) - Patria Investments Limited is a private equity company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.6% over the last 60 days [3] - The company has a PEG ratio of 0.81, lower than the industry average of 1.70, and possesses a Growth Score of A [3]

Core Insights - Skillsoft Corp. (SKIL) is transitioning to an AI-native platform, which is becoming essential for the company's growth strategy and market approach [1][8] - The CEO has compared Skillsoft's AI-driven model to that of Netflix, indicating strong management confidence in this strategic pivot [2] - AI integration has led to a 2.4% year-over-year reduction in content and software development expenses due to increased productivity [3][8] Financial Performance - SKIL's revenues decreased by 6% year-over-year to $129 million in Q3 of fiscal 2026, primarily due to an 18% decline in the Global Knowledge segment [4] - The Talent Development Solutions segment shows potential for growth despite overall revenue challenges [4] AI Integration and Strategy - Over 50% of content design, curation, and production utilized AI in Q3 of fiscal 2026, demonstrating the company's commitment to AI in its operations [2][8] - The integration of AI and CAISY into the next-generation Skillsoft Percipio aims to enhance learning experiences and support enterprise contracts [5][8] Market Position and Valuation - Skillsoft's stock has decreased by 73% over the past year, contrasting with a 19.4% growth in the industry [6] - The company trades at a forward price-to-sales ratio of 0.14, significantly lower than peers VerifyMe (1.04) and Agora (2.94) [10] - Skillsoft holds a Value Score of A, while its peers have lower scores, indicating a favorable valuation perspective [13]

Core Viewpoint - Investors in the Technology Services sector should consider Skillsoft Corp. (SKIL) and AppLovin (APP) as potential value opportunities, with SKIL currently presenting a stronger case for investment [1]. Group 1: Company Rankings and Outlook - Skillsoft Corp. has a Zacks Rank of 1 (Strong Buy), indicating a favorable earnings outlook, while AppLovin holds a Zacks Rank of 2 (Buy) [3]. - SKIL has likely experienced a stronger improvement in its earnings outlook compared to APP, making it more appealing to value investors [3]. Group 2: Valuation Metrics - SKIL has a forward P/E ratio of 2.13, significantly lower than APP's forward P/E of 40.72, suggesting SKIL is undervalued relative to APP [5]. - The PEG ratio for SKIL is 0.21, indicating strong expected EPS growth, while APP's PEG ratio is 2.04, suggesting less favorable growth expectations [5]. - SKIL's P/B ratio is 19.44, compared to APP's P/B of 141.61, further highlighting SKIL's relative value [6]. Group 3: Value Grades - Based on various valuation metrics, SKIL holds a Value grade of A, while APP has a Value grade of D, reinforcing SKIL's position as the superior value option [6].

Core Insights - Skillsoft Corp. (SKIL) shares have decreased by 72.2% over the past year, significantly underperforming its industry, which grew by 17.3%, and the Zacks S&P 500 Composite, which rose by 21% [1] - The company is currently reviewing strategic alternatives for its Global Knowledge (GK) business segment, which has experienced a 16% decline in revenues, leading to a potential sale [5][8] - Management is optimistic about the future of its AI-driven Percipio platform, which has already secured its first four large enterprise customers [9] Performance Comparison - Over the past six months, SKIL has declined by 47.1%, while Acuity, Inc. (AYI) and AppLovin (APP) have seen growth of 22.2% and 79.5%, respectively [4] - In the last year, Acuity and AppLovin have increased by 18.2% and 92.2%, respectively, further highlighting SKIL's underperformance [1] Financial Metrics - Skillsoft's return on equity (ROE) stands at 83.1%, significantly higher than the industry average of 15.3% [11] - The return on invested capital (ROIC) for Skillsoft is 11.6%, which is above the industry average of 7.7% [13] - SKIL is trading at 1.76 times forward 12-month price-to-earnings, well below the industry average of 26.05 times, and its trailing 12-month EV-to-EBITDA ratio is 2.55, compared to the industry average of 18.29 [14] Strategic Outlook - The management's decision to focus on the Talent Development Solutions (TDS) segment and the AI-backed Percipio platform is seen as a critical move for future growth [10][16] - The potential sale of the GK segment could positively impact the company's balance sheet and market position [6][10] - The current trading discount presents an attractive opportunity for value-oriented investors [14][17]

Core Insights - Both Skillsoft (SKIL) and Futu Holdings (FUTU) are technology-driven companies targeting niche growth markets, appealing to growth-focused investors [1] Group 1: Skillsoft (SKIL) - In Q3 fiscal 2026, SKIL experienced a 6% year-over-year decline in revenue, primarily due to an 18% drop in the Global Knowledge (GK) segment, which contributed nearly 22% to the top line [2][10] - The GK segment incurred a non-cash goodwill impairment loss of $20.8 million, leading to an adjusted net loss of $4.9 million, prompting management to consider strategic alternatives for this segment [3][6] - The Talent Development Solutions (TDS) segment saw a 2% year-over-year decline, but the company is optimistic about its AI-native roadmap, having signed its first four large enterprise customers [4] - SKIL's adjusted net income improved significantly, with an 83% sequential and 27% year-over-year growth, although the adjusted EBITDA margin decreased by 30 basis points sequentially and 160 basis points year-over-year [5] - Management's focus is shifting towards the digital subscription business, as indicated by the lack of revenue and adjusted EBITDA guidance for the GK segment [6] Group 2: Futu Holdings (FUTU) - In Q3 2025, FUTU reported an impressive 86.3% year-over-year revenue growth, driven by a 90.6% increase in brokerage commission and handling charge income, and a 79.2% rise in interest income [7][10] - The company achieved a 42.6% year-over-year growth in funded accounts and a 30.8% increase in brokerage accounts, with a total user growth of 16.8% year-over-year [8] - FUTU's client acquisition strategy has been successful, particularly in Hong Kong, contributing to a 79% year-over-year increase in total client assets and a 105% rise in trading volume [9] - The company is also experiencing significant growth in crypto trading, with a 161% sequential increase in trading volume and a 90% sequential surge in crypto assets [11] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for SKIL indicates year-over-year declines of 3.6% in sales and 3.7% in EPS for fiscal 2026, with one estimate increasing over the past 60 days [12] - In contrast, the Zacks Consensus Estimate for FUTU shows year-over-year surges of 60.2% in sales and 90.2% in EPS for 2025, with two estimates moving upward in the past 60 days [13] - SKIL is trading at a forward price-to-earnings ratio of 1.56, significantly lower than its 3-month median of 3.75, while FUTU's ratio is 15.46, below its 3-month median of 17.45, indicating that SKIL appears undervalued compared to FUTU [15] Group 4: Overall Verdict - Both SKIL and FUTU are emerging tech stocks with growth potential, with SKIL undergoing a structural pivot towards a lean AI-native digital subscription model, while FUTU benefits from customer base expansion and crypto market opportunities [17] - SKIL is considered a more compelling opportunity for growth-oriented investors due to its lower valuation compared to FUTU, with SKIL holding a Zacks Rank 1 (Strong Buy) and FUTU a Zacks Rank 2 (Buy) [18]

Core Insights - Skillsoft Corp. (SKIL) is reviewing strategic alternatives for its Global Knowledge (GK) business segment, considering a potential sale due to a 6% year-over-year decline in total revenues, primarily driven by an 18% drop in GK revenues, which represent 21.7% of total revenues [1][8] Group 1: Financial Performance - The decline in the GK segment is attributed to reduced demand for physical and virtual instructor-led sessions, resulting in a $20.8 million non-cash goodwill impairment loss and a $4.9 million adjusted net loss [2] - Talent Development Solutions (TDS) revenues experienced a minor decline of 2% year-over-year, mainly due to a decrease in B2C learner products, while enterprise stabilization is noted [3] - SKIL's share price has decreased by 45.5% over the past three months, contrasting with the industry's growth of 1.3% [5] Group 2: Strategic Focus - Management's decision to withhold revenue and adjusted EBITDA guidance for the GK segment indicates a strategic shift to focus on the TDS segment and its digital subscription business [4] - The company is optimistic about its AI-native roadmap, particularly the Percipio Platform, with early success shown by signing four large enterprise customers [3][8] Group 3: Valuation Metrics - SKIL trades at a 12-month forward price-to-sales ratio of 0.12, significantly lower than peers Coherent Corp. at 4.21 and Dave at 4.56 [9] - The Zacks Consensus Estimate for EPS for 2025 is $4.17, revised up by 19.8% over the past 60 days, while the estimate for 2026 is $4.54, revised down by 9.9% [11]

"Learning delivers the most value when it stays connected to how skills are built and used across the organization,†said Matthew Glitzer, Chief Revenue Officer, Skillsoft. "By integrating edX programs into the Skillsoft platform, customers gain access to trusted academic learning that fits into a continuous skills journey, supporting stronger adoption, improved retention, and better alignment with business priorities.†Leading institutions, including the University of Oxford, Saïd Business School, Harvard ...