Skillsoft (NYSE:SKIL) Releases Earnings Results, Beats Estimates By $1.11 EPS

Skillsoft (NYSE:SKIL) posted its earnings results on Tuesday. The company reported $1.16 earnings per share for the quarter, beating analysts’ consensus estimates of $0.05 by $1.11, FiscalAI reports. The firm had revenue of $94.50 million during the quarter, compared to analyst estimates of $121.10 million. Skillsoft had a negative net margin of 27.27% and a positive return on equity of 112.12%.

Here are the key takeaways from Skillsoft’s conference call:

• Skillsoft said the Global Knowledge divestiture is expected to close in fiscal Q2, which should simplify the company, sharpen focus on its core platform, and improve free cash flow visibility.
• The company highlighted improving sales momentum, including a 67% quarter-over-quarter increase in new platform customer agreements and a quarter DRR of 105%, which management said reflects stronger customer engagement and retention.
• First-quarter revenue fell 4.7% to $94.5 million, mainly due to prior-year government booking softness and continued consumer declines, while some expected revenue from professional services and coaching was pushed into later periods.
• Skillsoft reported better cost discipline, with selling and marketing and G&A expenses both down year over year, and adjusted EBITDA from continuing operations held roughly flat at $26.6 million with margin improving to 28.2%.
• Management kept full-year fiscal 2027 guidance unchanged, but said debt refinancing becomes the top priority after the GK transaction closes, underscoring ongoing balance sheet risk despite expected simplification benefits.

Skillsoft Trading Down 11.4%

Shares of SKIL stock opened at $6.14 on Wednesday. The company has a market cap of $54.99 million, a PE ratio of -0.38, a price-to-earnings-growth ratio of 0.21 and a beta of 2.23. Skillsoft has a 1 year low of $3.43 and a 1 year high of $21.25. The stock’s 50 day simple moving average is $6.53 and its two-hundred day simple moving average is $6.87. The company has a debt-to-equity ratio of 142.97, a current ratio of 0.89 and a quick ratio of 0.89.

Wall Street Analysts Forecast Growth

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Skillsoft in a research report on Friday, March 27th. One analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Skillsoft has an average rating of “Reduce”.

Hedge Funds Weigh In On Skillsoft

Large investors have recently modified their holdings of the stock. Bank of America Corp DE raised its holdings in Skillsoft by 330.0% during the 4th quarter. Bank of America Corp DE now owns 1,750 shares of the company’s stock valued at $42,000 after buying an additional 1,343 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in Skillsoft during the second quarter valued at $39,000. New York State Common Retirement Fund purchased a new stake in shares of Skillsoft in the second quarter valued at $96,000. Public Employees Retirement System of Ohio raised its stake in shares of Skillsoft by 330.2% in the fourth quarter. Public Employees Retirement System of Ohio now owns 6,130 shares of the company’s stock valued at $57,000 after acquiring an additional 4,705 shares during the period. Finally, NewEdge Advisors LLC lifted its holdings in shares of Skillsoft by 374.2% in the 4th quarter. NewEdge Advisors LLC now owns 7,331 shares of the company’s stock worth $68,000 after acquiring an additional 5,785 shares during the last quarter. Institutional investors own 87.00% of the company’s stock.

About Skillsoft

Skillsoft (NYSE: SKIL) is a leading provider of corporate digital learning solutions designed to help organizations develop skills and drive performance. The company offers a range of cloud-based learning platforms and content libraries that cover technical training, leadership development, compliance, and productivity applications. Skillsoft’s flagship platform, Percipio, delivers micro-learning modules, video tutorials, books and audiobooks, hands-on labs and simulations, and practice assessments within a unified interface that can be accessed on desktop or mobile devices.

Skillsoft’s content spans IT certification preparation, software development, cloud computing, cybersecurity, project management, and a variety of professional skills such as communication, management and sales.