Skillsoft (US:SKIL)2025-06-09 20:06Revenue 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].