Core Viewpoint - Skillsoft announced the grant of restricted stock units (RSUs) to new executives as part of their employment inducement strategy under NYSE Rule 303A.08, highlighting the company's commitment to attracting top talent in the AI-native skills management sector [1]. Group 1: Employee Inducement Grants - On February 18, 2026, Skillsoft's Talent and Compensation Committee granted 95,000 RSUs to Bernard Barbour as an inducement for his hiring as Chief Technology and Product Officer [1]. - The RSUs granted to Barbour will vest 50% ratably over four years, while the remaining 50% is contingent on achieving specified annual revenue growth targets, with vesting up to 175% based on performance [1]. - Additionally, 25,000 RSUs were granted to David Koehn as an inducement for his hiring as SVP, Product Management on January 5, 2026 [1]. Group 2: Company Overview - Skillsoft is recognized as a global leader in AI-native skills management, focusing on the integration of learning, skills intelligence, and workforce insights to enhance business outcomes [1]. - The company supports over 105 million learners globally and is trusted by 60% of the Fortune 1000, indicating a strong market presence and demand for its services [1].

Core Insights - Skillsoft Corp. (SKIL) shares have decreased by 75.2% over the past year, contrasting with a 4.4% growth in its industry and a 19.1% rise in the Zacks S&P 500 Composite [1] - The company has underperformed compared to peers such as Coherent Corp. (COHR), which saw a 161.5% increase, and Dave's (DAVE) 71.2% growth during the same period [1] Financial Performance - In the last six months, SKIL has lost 47.2%, while Coherent Corp and Dave experienced rallies of 95.9% and 0.4%, respectively [4] - For the third quarter of fiscal 2026, Skillsoft reported a 6% year-over-year decline in revenue, primarily due to a 16% drop in the Global Knowledge (GK) segment [5][6] - The GK segment's revenue decline was attributed to reduced demand for both physical and virtual instructor-led sessions, resulting in a non-cash goodwill impairment loss of $20.8 million and an adjusted net loss of $4.9 million [6] Strategic Initiatives - Skillsoft is conducting a strategic review of its GK segment with the potential for a sale, which could impact the balance sheet due to market reduction [5][6] - The Talent Development Solutions (TDS) segment experienced a 2% year-over-year dip, but management remains optimistic about the future growth potential driven by AI, particularly through the Percipio platform [7][9] Valuation Metrics - SKIL is trading at 1.6 times forward earnings, significantly lower than the industry average of 23.4 times, and has a trailing 12-month EV-to-EBITDA ratio of 2.5 compared to the industry average of 17.1 [10] - The company's return on equity (ROE) stands at 83.1%, well above the industry average of 15.6%, indicating effective utilization of shareholders' equity [12] - Return on invested capital is at 11.6%, surpassing the industry average of 7.7%, showcasing the company's efficiency in generating operating profits [14] Liquidity Concerns - Skillsoft's current ratio is 0.8, significantly below the industry average of 1.6, raising concerns about its liquidity sustainability [15] - The consensus estimate for revenues in the fourth quarter of fiscal 2026 is $130.2 million, reflecting a 2.7% decline year-over-year, while the EPS estimate is $1.27, indicating a 39.8% year-over-year decline [16] Future Outlook - For fiscal 2026, the revenue consensus estimate is $512.2 million, suggesting a 3.6% year-over-year dip, with EPS expected to fall by 3.7% to $4.17 [17] - The management's strategic review of the GK segment is seen as crucial for the company's future, with potential benefits for the TDS segment and the Percipio platform [18][19]

Core Insights - Skillsoft (SKIL) and Udemy (UDMY) are direct competitors in the online learning and corporate training sector, focusing on workforce development and lifelong learning [1] Group 1: Skillsoft (SKIL) - Skillsoft experienced a turbulent growth trajectory, with a 6% year-over-year revenue decline in Q3 of fiscal 2026, primarily due to an 18% drop in the Global Knowledge (GK) segment, which constitutes 22% of total revenue [2][3] - The GK segment incurred a $20.8 million non-cash goodwill impairment loss, resulting in a $4.9 million adjusted net loss, prompting management to consider strategic alternatives for this segment [3] - The Talent Development Solutions (TDS) segment saw a 2% year-over-year decline, but management remains optimistic about its AI-native roadmap, having signed its first four large enterprise customers [3] - Cost reductions led to a $28 million adjusted EBITDA, despite a 130 basis points dip in adjusted EBITDA margin year-over-year, indicating resilience amid declining GK revenues [5] - Skillsoft is trading at a forward P/E ratio of 1.92, significantly lower than Udemy's 10.25, making it more attractive to investors [12] Group 2: Udemy (UDMY) - Udemy reported $195.7 million in revenue for Q3 of 2025, reflecting a marginal year-over-year increase, with subscription revenues growing 8% and accounting for 74% of total revenues [6] - The company achieved an 88% year-over-year increase in paid subscribers in the consumer segment, alongside a 2% rise in total enterprise customers, attributed to AI integration and a focus on high-value recurring revenue streams [7] - Udemy's adjusted EBITDA margin expanded by 600 basis points to 12%, driven by operational discipline and a shift towards high-margin subscriptions [7] - Despite these positives, Udemy faces challenges, including a 5% year-over-year increase in Udemy Business revenues and a net dollar retention rate of 93%, impacted by the downsizing of legacy contracts [8] - The consensus estimate for Udemy's 2026 sales is $806 million, reflecting a 2.2% year-over-year increase, while EPS is projected to decline by 5.5% [11] Group 3: Investment Recommendation - Skillsoft is recommended for investment due to its lower valuation and potential for long-term returns as it focuses on becoming a leaner AI-first entity [14][16] - Udemy is advised to be retained for now, pending further justification of revenue growth from customer and subscriber increases [16]

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].

Core Insights - Skillsoft Corp. (SKIL) experienced a 6% year-over-year decline in revenue during Q3 2026, primarily due to an 18% drop in Global Knowledge (GK) revenues, although the company maintained its margins through operational discipline [1][9] Financial Performance - The company recorded total operating expenses of $101 million, a 4.1% decrease year-over-year, achieved by reducing content, software, sales, marketing, and general and administrative expenses [2][9] - Productivity improvements from AI and a focused strategy led to a 2.4% year-over-year reduction in content and software development expenses, while selling and marketing expenses decreased by 7.1% due to headcount reductions [3][9] - General and administrative expenses saw an 11.9% year-over-year decline, contributing to an adjusted EBITDA of $28 million, with an adjusted EBITDA margin of 22%, down from 23.3% in the previous year [4][9] Segment Analysis - The Talent Development Solutions segment remained profitable, while the GK segment reported a negative EBITDA of $3.3 million, indicating a strategic shift towards higher-margin SaaS platforms to stabilize long-term margins [5][9] Market Performance - Over the past year, SKIL's stock has decreased by 71.3%, contrasting with the industry growth of 10.2%, while peers Nable (NABL) and Agora (API) saw declines of 30.3% and 8.6%, respectively [6][9] Valuation Metrics - SKIL trades at a 12-month forward price-to-earnings ratio of 1.99X, significantly lower than the industry average of 25.21X and cheaper than Nable's 12.9X and Agora's 26.81X [10] - The Zacks Consensus Estimate for EPS for 2025 is $4.17, revised up by 19.8% in the last 60 days, while the estimate for 2026 is $4.54, revised down by 9.9% [13]

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]