Skillsoft (US:SKIL)2025-12-10 21:08Financial 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]