Skillsoft (NYSE:SKIL) Issues Earnings Results, Beats Estimates By $0.34 EPS

Skillsoft (NYSE:SKIL) issued its earnings results on Wednesday. The company reported $1.17 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.34, FiscalAI reports. Skillsoft had a negative return on equity of 221.25% and a negative net margin of 30.00%.The firm had revenue of $98.25 million for the quarter, compared to analyst estimates of $99.00 million.

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

• Revenue guidance was reduced to $380 million–$390 million from $388 million–$406 million, as accelerating weakness in the consumer coding-learning business and AI-driven disruption pressured demand.
• Skillsoft maintained fiscal 2027 adjusted EBITDA guidance of $108 million–$116 million and continuing-operations free cash flow guidance of $14 million–$22 million, supported by cost discipline despite lower revenue expectations.
• The enterprise business showed signs of stabilization, with revenue down roughly 1% year over year, dollar retention improving to 95%, and management citing expanding pipeline activity and early customer adoption of its AI platform products.
• AI product momentum is emerging through LX Design Studio, AI Coach, and CAISY; Skillsoft remains on track for its $5 million platform-bookings target this fiscal year, while CAISY learners increased 23% year over year.
• Debt refinancing remains a major priority, with approximately $575 million of gross debt and $481 million of net debt at quarter-end. The company has formed a board committee and hired advisors, but provided no timeline or outcome for addressing upcoming maturities.

Skillsoft Trading Down 5.0%

NYSE SKIL opened at $6.34 on Thursday. The stock’s 50-day moving average price is $7.33 and its two-hundred day moving average price is $6.36. The company has a market cap of $56.84 million, a PE ratio of -0.38, a PEG ratio of 0.22 and a beta of 2.22. Skillsoft has a 1 year low of $3.43 and a 1 year high of $18.45.

Wall Street Analysts Forecast Growth

A number of research analysts recently commented on SKIL shares. Oppenheimer reiterated a “market perform” rating on shares of Skillsoft in a research note on Thursday. Weiss Ratings upgraded Skillsoft from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, August 5th. Two investment analysts have rated the stock with a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company has an average rating of “Reduce”.

Insider Activity at Skillsoft

In other news, Director Jim Frankola bought 27,000 shares of the firm’s stock in a transaction on Monday, June 15th. The stock was bought at an average cost of $6.05 per share, for a total transaction of $163,350.00. Following the completion of the acquisition, the director directly owned 95,306 shares in the company, valued at $576,601.30. This represents a 39.53% increase in their position. The purchase was disclosed in a filing with the SEC, which is available at this hyperlink. 16.20% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Skillsoft

A number of large investors have recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new position in Skillsoft in the 2nd quarter worth approximately $39,000. Bank of America Corp DE raised its stake 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 purchasing an additional 1,343 shares during the period. Public Employees Retirement System of Ohio raised its stake in Skillsoft by 330.2% during the 4th quarter. Public Employees Retirement System of Ohio now owns 6,130 shares of the company’s stock valued at $57,000 after purchasing an additional 4,705 shares during the period. NewEdge Advisors LLC lifted its holdings in shares of Skillsoft by 374.2% in the fourth quarter. NewEdge Advisors LLC now owns 7,331 shares of the company’s stock valued at $68,000 after purchasing an additional 5,785 shares in the last quarter. Finally, Wells Fargo & Company MN lifted its holdings in shares of Skillsoft by 116.2% in the fourth quarter. Wells Fargo & Company MN now owns 7,393 shares of the company’s stock valued at $69,000 after purchasing an additional 3,974 shares in the last quarter. Institutional investors and hedge funds own 87.00% of the company’s stock.

Key Skillsoft News

Here are the key news stories impacting Skillsoft this week:

• Positive Sentiment: Skillsoft reported quarterly earnings of $1.17 per share, above the $0.83 analyst consensus and up from $0.92 a year earlier. Adjusted EBITDA guidance remained at $108 million-$116 million, while free cash flow guidance stayed at $14 million-$22 million. Skillsoft Corp. Beats Q2 Earnings Estimates
• Positive Sentiment: The company highlighted continued adoption of its AI platform: CAISY learners increased 23% year over year and organizations using CAISY grew 9%. Skillsoft is also targeting approximately $5 million in platform bookings by the end of fiscal 2027. Skillsoft Targets Platform Bookings While Cutting Revenue Outlook
• Neutral Sentiment: Second-quarter revenue was $98.2 million, down 3% year over year and slightly below the $99.0 million consensus. Skillsoft also reported a $15.0 million loss from continuing operations and a $42.4 million total net loss, including discontinued operations. The company completed the sale of its Global Knowledge business in July, which changes the composition of future results. Skillsoft Reports Second-Quarter Revenue
• Negative Sentiment: Management cut fiscal 2027 revenue guidance to $380 million-$390 million from $388 million-$406 million, below the roughly $397.9 million analyst estimate. The outlook reduction, combined with lower quarterly revenue and continuing losses, outweighed the earnings beat and was the primary reason for the weaker stock performance. Skillsoft Shares Fall on Outlook Cut and Lower Revenue

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.