Skillsoft (SKIL) AI Stock Analysis

• Market Cap: $87.01M
• Dividend Yield: N/A
• Average Volume (3M): 119.03K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -2.33%
• EPS Growth: 66.82%
• Country: US
• Employees: 2,200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 0.92
• Shares Outstanding: 8,709,508
• 10 Day Avg. Volume: 131,493
• 30 Day Avg. Volume: 119,033
• PEG Ratio: 0.03
• Price to Book (P/B): 2.62
• Price to Sales (P/S): 0.46
• P/FCF Ratio: 21.21
• Enterprise Value/Market Cap: 6.87
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 16.76
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): -0.83
• Revenue Forecast (FY): $516.00M

• Rating: 41 Neutral
• Price Target: $10.50 ▲(0.38% Upside)

Skillsoft's overall stock score is primarily impacted by its financial performance, characterized by declining revenues and high leverage. Technical analysis further indicates a bearish trend, while valuation metrics highlight ongoing financial challenges. Despite some positive transformation efforts, the company's financial instability remains a significant concern.

Positive Factors

Transformation and Strategic Investments

Skillsoft's transformation plan, including expense reductions and a dual business unit structure, enhances operational efficiency and positions the company for long-term growth.

TDS Enterprise Solution Growth

Consistent growth in the TDS enterprise solution indicates strong demand for comprehensive talent development, supporting sustained revenue expansion.

Precipio Platform Momentum

The Precipio platform's growth, especially in AI learning, reflects Skillsoft's ability to innovate and capture emerging educational trends, bolstering its competitive position.

Negative Factors

High Debt Levels

Skillsoft's high reliance on debt financing limits financial flexibility and increases risk, potentially impacting its ability to invest in growth opportunities.

Revenue Decline

Declining revenue, driven by economic uncertainty, poses a challenge to Skillsoft's growth prospects and financial health, requiring strategic adjustments.

Negative Profit Margins

Skillsoft's negative profit margins highlight operational inefficiencies and ongoing losses, which could hinder long-term profitability and shareholder value.

Skillsoft Business Overview & Revenue Model

Company Description

Skillsoft Corp. provides corporate digital learning services in the United States and internationally. The company operates through Content, Global Knowledge, and SumTotal segments. It offers enterprise learning solutions to prepare organizations for the future of work, as well as enable them to overcome critical skill gaps, drive demonstrable behavior-change, and unlock the potential in their greatest assets. In addition, it provides various platform capabilities, such as open platform, custom channels and journeys, administrator-promoted content, and flexible assignments, tracking and in-depth reporting, training groups, and records management. Further, the company offers learning management systems and talent management software. The company is based in Nashua, New Hampshire.

How the Company Makes Money

Skillsoft generates revenue through a subscription-based model, primarily offering access to its learning platforms and content libraries to corporate clients. The company charges organizations for annual or multi-year subscriptions, which allow employees to access a range of courses and learning resources. Additionally, Skillsoft earns revenue from sales of individual courses and certification programs, as well as through partnerships with other educational institutions and organizations that enhance its content offerings. The company also benefits from strategic partnerships with technology firms and other educational providers that expand its reach and enrich its learning ecosystem.

Skillsoft Financial Statement Overview

Summary

Skillsoft faces significant financial challenges, with declining revenues, negative profit margins, and high leverage. While there is some improvement in cash flow generation, the company's financial stability is compromised by high debt levels and ongoing losses. Strategic changes may be necessary to improve financial health and operational efficiency.

Income Statement

Skillsoft's income statement reveals significant challenges, with declining revenue and negative profit margins. The TTM data shows a gross profit margin of 80.63%, which is strong, but the net profit margin is deeply negative at -22.24%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Revenue has decreased by 64.5% in the TTM period, highlighting a concerning trend.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 13.61 in the TTM period, indicating heavy reliance on debt financing. The return on equity is negative, suggesting that the company is not generating returns for shareholders. Although the equity ratio is not explicitly calculated, the low stockholders' equity relative to total assets suggests limited financial stability.

Cash Flow

Cash flow analysis shows some positive aspects, with a significant free cash flow growth rate of 55.64% in the TTM period. However, the operating cash flow to net income ratio is low at 0.18, indicating that cash generation from operations is weak relative to net losses. The free cash flow to net income ratio is 0.80, suggesting some ability to cover losses with free cash flow.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	524.00M	530.99M	553.24M	555.12M	514.02M	0.00
Gross Profit	422.51M	396.12M	400.08M	232.85M	401.73M	-907.00K
EBITDA	35.63M	66.46M	-143.69M	-598.57M	69.04M	-907.00K
Net Income	-116.54M	-121.91M	-349.29M	-724.96M	-849.21M	-72.46M
Balance Sheet
Total Assets	969.43M	1.11B	1.27B	1.68B	2.24B	700.93M
Cash, Cash Equivalents and Short-Term Investments	100.51M	100.77M	136.31M	177.56M	152.19M	3.87M
Total Debt	577.61M	588.89M	641.17M	644.06M	559.75M	1.50M
Total Liabilities	630.11M	1.01B	1.07B	1.15B	1.18B	23.60M
Stockholders Equity	42.45M	93.85M	205.59M	531.76M	1.06B	677.32M
Cash Flow
Free Cash Flow	42.55M	11.60M	-15.09M	-36.20M	49.05M	-720.66K
Operating Cash Flow	53.47M	29.96M	2.82M	-20.93M	62.03M	-720.66K
Investing Cash Flow	-19.68M	-18.36M	-23.04M	-42.18M	-574.60M	856.25K
Financing Cash Flow	-41.06M	-51.51M	-10.81M	77.23M	440.35M	1.50M

Skillsoft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIL, the sentiment is Negative. The current price of 10.46 is below the 20-day moving average (MA) of 11.14, below the 50-day MA of 13.13, and below the 200-day MA of 16.97, indicating a bearish trend. The MACD of -0.80 indicates Negative momentum. The RSI at 41.34 is Neutral, neither overbought nor oversold. The STOCH value of 50.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIL.

Skillsoft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
STG	68 Neutral	$85.97M	1.79	52.08%	―	-0.67%	-10.69%
COUR	63 Neutral	$1.32B	―	-7.43%	―	8.10%	43.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UDMY	60 Neutral	$743.59M	―	-1.78%	―	2.53%	95.79%
DAO	46 Neutral	$1.20B	147.44	―	―	-3.31%	134.49%
CHGG	42 Neutral	$105.54M	―	-46.37%	―	-32.37%	90.99%
SKIL	41 Neutral	$87.01M	―	-126.76%	―	-2.33%	66.82%

Skillsoft Corporate Events

Skillsoft’s GM Apratim Purakayastha Resigns

On October 21, 2025, Apratim Purakayastha resigned from his role as GM, Talent Development Solutions at Skillsoft Corp., effective October 24, 2025. His departure was amicable and not due to any disagreements with the company’s operations, policies, or practices.

The most recent analyst rating on (SKIL) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on Skillsoft stock, see the SKIL Stock Forecast page.

Skillsoft Corp’s Earnings Call: Mixed Outlook Amid Transformation

The recent earnings call for Skillsoft Corp presented a mixed sentiment, reflecting both optimism and caution. While the company has made strides in its transformation efforts, profitability, and strategic investments, it faces ongoing challenges with revenue decline and external market conditions impacting segments like Global Knowledge. The growth in the TDS enterprise and Precipio platform offers a positive outlook, yet economic uncertainties continue to pose significant hurdles.

Skillsoft Corp Reports Q2 Fiscal 2026 Financial Results

Skillsoft Corp, a leading provider of AI-powered learning solutions, operates in the talent development sector, offering personalized and interactive learning experiences to organizations and learners worldwide. In its latest earnings report for the second quarter of fiscal 2026, Skillsoft highlighted its continued execution of a transformation plan, marking the fourth consecutive quarter of revenue growth in its Talent Development Solutions segment. However, total revenue saw a slight decline of 3% year-over-year, attributed to economic uncertainties impacting discretionary demand for live training.

Skillsoft Reports Q2 Fiscal 2026 Financial Results

On September 9, 2025, Skillsoft announced its financial results for the second quarter of fiscal 2026, which ended on July 31, 2025. The company reported a total revenue of $129 million, a 3% decrease from the previous year, with a GAAP net loss of $24 million, showing improvement from the prior year’s $40 million loss. Despite economic uncertainties affecting discretionary demand for live training, Skillsoft achieved its fourth consecutive quarter of revenue growth in its Talent Development Solutions segment. The company also highlighted positive free cash flow and expanded its reach through partnerships with AWS Marketplace and Salesforce. Looking forward, Skillsoft plans to introduce AI innovation-based products and adjust its go-to-market strategy to enhance business performance.

The most recent analyst rating on (SKIL) stock is a Hold with a $15.00 price target. To see the full list of analyst forecasts on Skillsoft stock, see the SKIL Stock Forecast page.