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 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]

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]