Skillsoft Corp. (SKIL) has been beaten down lately with too much selling pressure. While the stock has lost 37.1% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of ...

Investors interested in Technology Services stocks are likely familiar with Skillsoft Corp. (SKIL) and AppLovin (APP) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The Zacks Rank is a proven strategy that targets companies with positive earnings estimate revision trends, while our Style Sco ...

Core Insights - Skillsoft Corp. reported an earnings per share (EPS) of $1.65, exceeding the estimated $1.26, and showing a significant improvement from the previous year's loss of $1.82 per share [1][6] - The company has consistently surpassed consensus EPS estimates over the past four quarters, indicating strong performance [2][6] Financial Performance - The earnings surprise for the latest quarter was +30.95%, and the previous quarter saw a remarkable surprise of +143.81% with earnings of $0.92 against an expected loss of $2.1 per share [2] - Revenue for the quarter was $129 million, slightly below the estimated $131.6 million, representing a 6% decrease from the previous year's revenue of $137.23 million [3] - Revenue from Talent Development Solutions (TDS) was $101 million, reflecting a 2% decline from the prior year [3] - The company has surpassed consensus revenue estimates twice in the last four quarters [3][6] Valuation Metrics - The price-to-sales ratio is 0.13, indicating that the stock may be undervalued compared to sales [4] - The enterprise value to operating cash flow ratio is high at 46.16, suggesting potential overvaluation based on cash flow [4] Leverage and Liquidity - The debt-to-equity ratio is high at 144.58, indicating significant leverage [5] - The current ratio is 0.84, which is below the standard threshold of 1, suggesting potential liquidity concerns [5] - Despite these challenges, the company's consistent earnings surprises highlight its potential for future growth [5]

Skillsoft Corp. (SKIL) came out with quarterly earnings of $1.65 per share, beating the Zacks Consensus Estimate of $1.26 per share. This compares to a loss of $1.82 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +30.95%. A quarter ago, it was expected that this company would post a loss of $2.1 per share when it actually produced earnings of $0.92, delivering a surprise of +143.81%.Over the last four quarters, the company ha ...

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $129 million, down $8.2 million or 6% year over year [13] - Adjusted EBITDA was $28 million, down about 12% compared to $31.9 million last year, with an adjusted EBITDA margin of 21.7% compared to 23.3% last year [15] - GAAP net loss was $41.3 million, compared to a GAAP net loss of $23.6 million in the prior year period, primarily due to a non-cash Goodwill Impairment loss of $20.8 million related to the GK segment [16] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $100.8 million for the third quarter, down 2.1% year over year, with around 70% of the decline coming from the B2C learner product [12][11] - Global Knowledge (GK) revenue was $28.2 million, down approximately $6 million or 17.6% year over year, impacted by a shift in customer purchasing preferences and spending reductions from the U.S. government shutdown [13][9] - TDS's dollar retention rate (DRR) improved to 99% from 98% year over year, reflecting higher customer upgrades [14] Market Data and Key Metrics Changes - The enterprise portion of TDS, which represents around 91% of TDS, was down slightly due to customer churn from earlier in the year [11] - The public sector business showed signs of recovery with a DRR of 103-104, indicating stabilization after the government shutdown [34] Company Strategy and Development Direction - The company is focused on the talent development market, aiming to reach revenue inflection and return to growth while maintaining strong profitability and cash flow [5] - A strategic review of the GK segment has been initiated, with a shift towards a partnership-driven model rather than continued ownership [9][20] - The company is investing in AI capabilities to enhance its platform and address skills management needs, positioning itself for sustained growth [6][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the urgency of improving cash flow and the importance of the transformation strategy to align with market demands [23] - The company is optimistic about growth opportunities in FY27, with plans to roll out new branding and sales models [29][55] - Management emphasized the need for organizations to adapt to AI-driven skills management, viewing it as a generational reskilling opportunity [9][10] Other Important Information - Free Cash Flow for the quarter was negative $23.6 million, compared to a positive $4.1 million in the prior year period, with expectations of positive free cash flow of between $0 and $5 million for fiscal 2026 [17][18] - The company has restructured its cost structure, resulting in lower operating expenses year over year [15] Q&A Session Summary Question: What is the timeline for the strategic review of the GK segment? - Management indicated that it is inappropriate to speculate on the exact timing but emphasized the urgency of improving cash flow for the company overall [23] Question: How does the underperformance of GK affect TDS margins? - Management stated that TDS is the flagship for growth and profitability, and they are focused on maintaining profitability while investing in growth [26] Question: How is the public sector business shaping up post-government shutdown? - The public sector business is showing signs of recovery, with a healthy DRR and positive wins in Q3 [34] Question: What is the approach to investment cadence moving forward? - The focus will be on creating a track record in hitting TDS EBITDA while looking for ways to drive productivity before shifting to growth investments [51]

Skillsoft (NYSE:SKIL) Q3 2026 Earnings Call December 10, 2025 05:00 PM ET Company ParticipantsJohn Frederick - CFOStephen Poe - Head of Investor RelationsRon Hovsepian - Executive Chair and CEOConference Call ParticipantsKen Wong - AnalystOperatorThank you for standing by, and welcome to Skillsoft's third quarter fiscal 2026 results conference call. At this time, all participants are in a listen-only mode. After the speakers present, there will be a question-and-answer session. Please note that today's call ...

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $129 million, down $8.2 million or 6% year over year [15] - Adjusted EBITDA was $28 million, down about 12% compared to $31.9 million last year, with an adjusted EBITDA margin of 21.7% compared to 23.3% last year [17] - GAAP net loss was $41.3 million, compared to a GAAP net loss of $23.6 million in the prior year period, primarily due to a non-cash Goodwill Impairment loss of $20.8 million related to GK [18] - Free Cash Flow for the quarter was negative $23.6 million, compared to a positive $4.1 million in the prior year period [19] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $100.8 million, down 2.1% year over year, with around 70% of the decline coming from the B2C learner product [14] - Global Knowledge (GK) revenue was $28.2 million, down approximately $6 million or 17.6% year over year, impacted by a shift in customer purchasing preferences and spending reductions from the U.S. government shutdown [15][16] - TDS's dollar retention rate (DRR) improved to 99% from 98% year over year, while GK accounted for 73% of the revenue decline despite representing only 22% of total revenue [16][10] Market Data and Key Metrics Changes - The enterprise portion of TDS, which represents around 91% of TDS, was down slightly due to customer churn from earlier in the year [12] - The public sector business showed signs of recovery with a DRR of around 103-104, indicating stabilization after the government shutdown [36] Company Strategy and Development Direction - The company is focusing on the talent development market, aiming to reach revenue inflection and return to growth while maintaining strong profitability and cash flow [5] - A strategic review of the GK segment has been initiated, with a shift towards a partnership-driven model rather than continued ownership [10] - The company is investing in AI-driven skills management solutions, anticipating a market shift towards AI-powered skills solutions [7][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of skills visibility as a top investment priority for organizations, with over 70% of CHROs citing it as critical [5] - The company is optimistic about its positioning for growth in FY27, with a focus on product innovation and a leaner cost structure [8][9] - Management acknowledged the challenges faced in the GK segment but expressed confidence in the overall transformation and future growth potential [11][22] Other Important Information - The company expects full fiscal 2026 year revenue for TDS to be between $400-$410 million and adjusted EBITDA of between $112-$116 million [22] - GAAP cash, cash equivalents, and restricted cash were $77.5 million at quarter end, with total gross debt at $578 million [20][21] Q&A Session Summary Question: What is the timeline for the strategic review of GK? - Management indicated that it is inappropriate to speculate on the exact timing but emphasized the urgency to improve cash flow for the company overall [24] Question: How does GK's underperformance affect TDS margins? - Management noted that TDS is currently the flagship for growth and profitability, and they are focused on maintaining profitability while investing in growth [26][29] Question: How is the public sector business shaping up post-government shutdown? - Management reported that the public sector business is stabilizing, with positive signs in the federal business and a healthy DRR [36] Question: What is the approach to investment cadence moving forward? - Management stated that they will continue to drive productivity improvements and shift economic benefits into growth investments as they prove their model [52][53]

Earnings Supplement Q3 FY2026 December 10, 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 Ref ...

Financial Performance - Total revenues for the three months ended October 31, 2025, were $128.998 million, a decrease of 6.4% compared to $137.225 million for the same period in 2024[16] - Operating loss for the three months ended October 31, 2025, was $34.329 million, compared to a loss of $9.177 million in the same period of 2024[16] - Net loss for the nine months ended October 31, 2025, was $103.116 million, compared to a loss of $90.801 million for the same period in 2024, reflecting a year-over-year increase of 13.5%[16] - The net loss for the quarter ending October 31, 2025, is $41,279,000[25] - For the nine months ended October 31, 2025, Skillsoft reported a net loss of $103.1 million, compared to a net loss of $90.8 million for the same period in 2024[31] - The consolidated net loss for the three months ended October 31, 2025, was $41.279 million, compared to a net loss of $23.599 million for the same period in 2024[128] - Basic and diluted earnings per share for the three months ended October 31, 2025, were $(4.74), compared to $(2.86) for the same period in 2024[128] Assets and Liabilities - Total current assets decreased to $230.656 million as of October 31, 2025, down from $332.853 million as of January 31, 2025, representing a decline of 30.8%[14] - Total assets decreased to $897.582 million as of October 31, 2025, compared to $1.106 billion as of January 31, 2025, a reduction of 18.9%[14] - Total current liabilities decreased to $272.994 million as of October 31, 2025, down from $376.982 million as of January 31, 2025, a decline of 27.5%[14] - Shareholders' equity decreased to $3.988 million as of October 31, 2025, compared to $93.846 million as of January 31, 2025, indicating a significant decline[14] - As of October 31, 2025, Skillsoft's long-term debt amounted to $570.2 million, with current maturities of $6.4 million[70] - The fair value of Skillsoft's outstanding long-term debt as of October 31, 2025, was $511.2 million[115] Cash Flow and Expenses - Cash flows from operating activities resulted in a net cash outflow of $5.4 million for the nine months ended October 31, 2025, compared to a net cash inflow of $12.2 million in 2024[31] - The company reported a net decrease in cash, cash equivalents, and restricted cash of $25.8 million for the nine months ended October 31, 2025[31] - Skillsoft's cash and cash equivalents at the end of the period were $74.6 million, down from $97.9 million at the end of the same period in 2024[35] - The company incurred total operating expenses of $163.327 million for the three months ended October 31, 2025, an increase from $146.402 million in the same period of 2024[16] - Interest expense for the nine months ended October 31, 2025, was $44.115 million, compared to $48.538 million for the same period in 2024[126] - Cash paid for interest during the nine months ended October 31, 2025, was $41.8 million, compared to $48.4 million in 2024[35] Stock and Equity - The weighted average common shares outstanding for the nine months ended October 31, 2025, were 8,536,207, compared to 8,170,344 for the same period in 2024[16] - The total number of Class A common shares outstanding increased from 8,380,436 to 9,051,822 between January 31, 2024, and October 31, 2025[28][25] - As of October 31, 2025, Skillsoft had 9,051,822 shares of common stock issued and 8,752,045 shares outstanding[74] - The total additional paid-in capital as of October 31, 2025, is $1,575,259,000[25] - The total number of shares available for issuance under the 2020 Omnibus Incentive Plan was 496,019 as of October 31, 2025, following an amendment that increased the total shares available[80] Revenue Recognition - The company recognized revenue from subscription services on a straight-line basis over the contract term, which typically ranges from one to three years[97] - Revenue from professional services is recognized over time as services are performed, with billing commonly occurring in advance of the services being provided[99] - SaaS and subscription services revenue for the three months ended October 31, 2025, was $93,532, a decrease of 3.3% from $97,123 in the same period of 2024[100] - Total net revenues for the three months ended October 31, 2025, were $128,998, down 6.0% from $137,225 in the prior year[101] - Revenue from the United States for the three months ended October 31, 2025, was $83,537, a decrease of 6.4% compared to $88,960 in 2024[102] Impairments and Adjustments - The company reported an impairment of goodwill amounting to $20.771 million for the three months ended October 31, 2025[16] - The company incurred an impairment of goodwill amounting to $20.8 million during the nine months ended October 31, 2025[31] - The translation adjustment for the quarter ending October 31, 2025, was a loss of $13,879,000[25] - The restructuring charges for the three months ended October 31, 2025 totaled $4.15 million, primarily associated with costs of terminated employees[63] Future Projections - Future amortization expense related to intangible assets is expected to total $270.2 million over the next several fiscal years[48] - The company will continue to evaluate its cost structure and operating model, which may result in further restructuring actions[64]

Fiscal 2026 Third Quarter Select Metrics and Financial Measures (1) "Our TDS segment continues to make progress with the September announcement of the Skillsoft Percipio Platform, with agentic AI capabilities, and with the signing of our first four large enterprise customers," said Ron Hovsepian, Skillsoft Executive Chair and CEO. "In addition, AI now drives more than half of our design, curation, and production work for learning content. This is changing how we operate and strengthening the value we delive ...