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 ...

Core Insights - Skillsoft Global Knowledge has been awarded the 2025 Global AWS Partner Award, highlighting its role in driving innovation and building solutions on Amazon Web Services (AWS) [1] - The company has been recognized as the EMEA Training Partner of the Year, reflecting its significant impact in equipping learners in the region with skills in cloud, data, and security [1] Company Recognition - The award signifies Skillsoft Global Knowledge's leadership in the training sector, particularly in relation to AWS [1] - The recognition as EMEA Training Partner of the Year underscores the company's commitment to enhancing learning opportunities in the cloud computing domain [1]

Core Insights - Skillsoft Corp. (SKIL) shares have decreased by 69.2% year-to-date, significantly underperforming its industry, which has grown by 22.4%, and the Zacks S&P 500 Composite, which has risen by 20.7% [1] - The company has also lagged behind peers such as JBT Marel Corporation and MediaAlpha, which have seen increases of 9.9% and 17.8%, respectively [1] Year-to-Date Share Price Performance - Year-to-date, Skillsoft has declined by 69.2%, while JBT Marel and MediaAlpha have shown growth of 9.9% and 17.8% [1] - Over the past six months, Skillsoft's performance has been a decline of 58.2%, contrasting with JBT Marel's 12.9% growth and MediaAlpha's 20% growth [4] AI-Focused Innovations - Skillsoft's strategy includes AI-driven innovations aimed at enhancing learning design and skills intelligence, with over 20,000 certificates earned in areas like cloud, data, AI, and cybersecurity [5] - The company has improved a global semiconductor manufacturer's learning ecosystem for 43,000 employees, showcasing its commitment to AI-led innovation [6] - The Percipio platform has seen a 74% year-over-year increase in AI learners and a 158% increase in AI learning hours, indicating strong market demand for AI upskilling solutions [8] Financial Performance and Guidance - Skillsoft has lowered its fiscal 2026 revenue guidance from an initial expectation of $530-$545 million to a new range of $510-$530 million due to weak federal and discretionary spending [14] - The Zacks Consensus Estimate for fiscal 2026 revenues is $515.9 million, reflecting a 2.8% year-over-year decline, while the earnings per share estimate is $3.48, indicating a 19.6% year-over-year dip [18] Valuation and Capital Return - Skillsoft's return on equity (ROE) stands at 16.03%, surpassing the industry average of 15.29%, suggesting effective utilization of shareholders' equity [9] - The company is trading at a forward price-to-earnings ratio of 1.48, significantly below the industry average of 26.64, indicating potential undervaluation [11] Liquidity Position - As of the second quarter of fiscal 2026, Skillsoft's current ratio is 0.85, down from 0.88 in the previous year, which is below the industry average of 1.58, indicating challenges in meeting short-term obligations [16]

Core Insights - Both Skillsoft (SKIL) and Docusign (DOCU) are focusing on enterprise software and productivity solutions, with SKIL providing cloud-based learning and DOCU offering eSignature and contract lifecycle management solutions [1] Group 1: Skillsoft (SKIL) - SKIL's revenue trajectory has shown improvement, with a 4% increase in revenues after a 7.4% sequential dip in Q1 FY2026 [2] - The Talent Development Solutions (TDS) segment remained flat at $101 million, while the TDS Enterprise Solution has seen four consecutive quarters of revenue growth, contributing over 90% to the TDS segment [2] - The Global Knowledge segment reported $28 million in revenues, down 10% year-over-year but up 12% sequentially [2] - Adjusted EBITDA margin expanded by 70 basis points and 60 basis points, attributed to prudent expense management and operational enhancements [3] - SKIL experienced a 50% year-over-year increase in technology learners, with AI learners and AI learning hours surging 74% and 158% year-over-year, respectively [3] - Management has cut the revenue outlook to $510-$530 million from $530-$545 million due to macroeconomic and geopolitical instability [4] - SKIL reported a net loss of $23.8 million in Q2 FY2026, an improvement from a $39.6 million loss in the same quarter last year [4] - The company faces competition from established players like Coursera and Udemy, necessitating rapid investments that could lead to further losses [4] Group 2: Docusign (DOCU) - DOCU's revenue increased by 9% year-over-year and 4.8% sequentially in Q2 FY2026, reflecting strong subscription revenue growth [5] - Subscription revenues, which account for 98% of total revenues, rose 9% year-over-year and 5% sequentially, indicating robust customer retention [5] - Billing climbed 13% year-over-year, outpacing revenue growth, showcasing strong demand and pricing power [5] - Dollar net retention increased to 102%, reinforcing customer base retention [5] - Management raised the fiscal 2026 revenue guidance to $3.189-$3.201 billion from $3.151-$3.163 billion [5] - DOCU maintains a solid balance sheet with cash reserves of $844 million and no current debt, generating $218 million in free cash flow during Q2 FY2026 [6] - Despite strong revenue growth, DOCU faced a 20-basis point decline in adjusted gross margin and a 240-basis point drop in adjusted operating margin, raising concerns about sustainable profitability [7] - Competition from major players like Adobe Acrobat Sign poses additional risks to DOCU's growth potential [8] Group 3: Comparative Analysis - The Zacks Consensus Estimate for SKIL indicates a year-over-year decline of 2.8% in sales and 19.6% in EPS for fiscal 2026 [9] - In contrast, DOCU's estimates show a year-over-year increase of 7.3% in sales and 3.9% in EPS for fiscal 2026 [10] - SKIL is trading at a 12-month forward price-to-earnings ratio of 2.16, lower than its median of 3.95, suggesting it may be undervalued compared to DOCU, which has a forward P/E ratio of 17.26 [11] - Both companies present compelling growth narratives, with SKIL showing consistent growth and momentum in AI learning, while DOCU benefits from strong customer retention and a solid balance sheet [13] - SKIL is anticipated to offer better growth potential due to its undervaluation, providing a margin of safety that lowers downside risks [14]

Core Insights - Skillsoft Corp. (SKIL) shares increased by 17.9% to close at $10.82, following a notable trading volume, despite a 46.3% loss over the past four weeks [1] - The company's Percipio platform has driven significant growth, with a 50% year-over-year increase in technology learners, 74% growth in AI learners, and a 158% rise in AI learning hours in Q2 of fiscal 2026 [2] - Skillsoft is projected to report quarterly earnings of $1.26 per share, reflecting a year-over-year increase of 169.2%, while revenues are expected to be $131.56 million, down 4.1% from the previous year [2] Earnings and Estimates - The consensus EPS estimate for Skillsoft has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] - The stock currently holds a Zacks Rank 1 (Strong Buy), indicating strong market confidence [5] Industry Context - Skillsoft operates within the Zacks Technology Services industry, where another company, Richtech (RR), has seen a decline of 43.9% over the past month, closing at $3 [5] - Richtech's consensus EPS estimate for its upcoming report is -$0.03, which is a 40% improvement from the previous year, and it currently holds a Zacks Rank of 3 (Hold) [6]

Core Viewpoint - Skillsoft Corp. (SKIL) is currently viewed as a better investment opportunity compared to Climb Global Solutions (CLMB) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Analyst Outlook - Skillsoft Corp. has a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while Climb Global Solutions has a Zacks Rank of 5 (Strong Sell) [3]. - The stronger Zacks Rank for SKIL suggests an improving analyst outlook, making it a more favorable option for investors [3]. Group 2: Valuation Metrics - SKIL has a forward P/E ratio of 3.02, significantly lower than CLMB's forward P/E of 21.88, indicating that SKIL may be undervalued [5]. - The PEG ratio for SKIL is 0.30, while CLMB's PEG ratio is 1.82, further suggesting that SKIL offers better value considering its expected earnings growth [5]. - SKIL's P/B ratio stands at 2.12, compared to CLMB's P/B of 4.39, reinforcing the notion that SKIL is more attractively priced relative to its book value [6]. Group 3: Overall Value Assessment - Based on the analysis of various valuation metrics, SKIL has earned a Value grade of A, while CLMB has a Value grade of C, indicating that SKIL is perceived as a better value investment [6][7].

Core Insights - Skillsoft Corp. (SKIL) is leveraging AI-driven innovation to transform workforce upskilling, with the Percipio platform being central to this strategy [1][5] - The company has secured significant client engagements, including a semiconductor manufacturer enhancing learning for 43,000 employees, validating the effectiveness of its platform [1] - A European digital services provider's collaboration with Skillsoft resulted in over 20,000 certifications earned globally, indicating a growing demand for scalable learning solutions [2] Engagement Metrics - The AI learner base on the Percipio platform increased by 74% year over year, while AI learning hours surged by 158%, reflecting heightened engagement with Skillsoft's offerings [3][8] - These metrics are crucial for enhancing enterprise value and establishing recurring revenue streams through multi-year contracts [3] Financial Performance - Skillsoft achieved a nearly 5.9% reduction in content and software development expenses year over year, contributing to improved margins with a 10-basis-point increase in adjusted EBITDA [4][8] - The company's AI strategy has been instrumental in driving certification achievements and margin improvements, positioning it favorably in the evolving workforce landscape [5] Valuation and Market Position - Skillsoft's stock has declined by 53.6% over the past six months, underperforming the industry average growth of 13.3% [6] - The company trades at a 12-month forward price-to-sales ratio of 2.18, which is lower than peers such as First Advantage Corporation (9.78) and Xperi Inc. (6.15) [10] - Skillsoft holds a Value Score of A, with positive EPS estimates for fiscal years 2026 and 2027, indicating potential for recovery [13]

Core Insights - Skillsoft Corp. (SKIL) shares have declined 52.6% in the past six months, underperforming its industry which grew by 22.9% and the Zacks S&P 500 Composite which rose by 19.4% [1] - Over the past year, SKIL has also underperformed compared to competitors Parsons and Peraso, with a decline of 30.2% against Parsons' 13.8% drop and Peraso's 26.4% rise [4] AI-Driven Strategy - SKIL's future growth is heavily reliant on AI-led innovation, focusing on intelligent learning design and skills intelligence, with over 20,000 certifications earned by its global workforce in relevant fields [5][6] - The demand for scalable learning solutions is increasing as companies adapt to workforce changes and AI technology, which SKIL aims to meet through its product strategy [6] Financial Performance - In the second quarter of fiscal 2026, SKIL reported a 5.9% year-over-year decline in content and software development expenses, attributed to productivity gains from AI [9] - The company achieved $45 million in expense reductions since implementing transformation actions, resulting in an adjusted EBITDA margin increase to 22% from 21.4% year-over-year [10][11] - SKIL's year-to-date free cash flow (FCF) stands at $3.5 million, with management projecting adjusted EBITDA of $112-$118 million and FCF of $13-$18 million for the year [13] Capital Management and Valuation - By the end of the second quarter of fiscal 2026, SKIL's return on equity (ROE) was 16.03%, surpassing the industry's 15.89%, indicating effective capital management [14] - SKIL is currently priced at 2.12 times forward 12-month price-to-earnings, significantly below the industry average of 25.19 times, and its trailing 12-month EV-to-EBITDA ratio is 3.05, well below the industry average of 15.87 [15] Investment Recommendation - The company's focus on AI-led innovation and cost-cutting initiatives is expected to improve margins and free cash flow, making it an attractive investment opportunity [19] - SKIL is currently undervalued and offers strong capital returns, making it a recommended addition for long-term investors [20]

Group 1: Skillsoft Corp. (SKIL) - Skillsoft is an instructor-led training services company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 519.3% over the last 60 days [1] - Skillsoft has a PEG ratio of 0.33 compared to the industry average of 1.13, indicating strong growth potential [1] - The company possesses a Growth Score of B [1] Group 2: Micron Technology, Inc. (MU) - Micron is a memory and storage products company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 24.4% over the last 60 days [2] - Micron has a PEG ratio of 0.52 compared to the industry average of 1.51, suggesting favorable growth characteristics [2] - The company possesses a Growth Score of A [2] Group 3: Futu Holdings Limited (FUTU) - Futu is an online brokerage and wealth management platform with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 6.2% over the last 60 days [3] - Futu has a PEG ratio of 0.67 compared to the industry average of 1.13, indicating potential for growth [3] - The company possesses a Growth Score of B [3]