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Skillsoft
(NYSE:SKIL)
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Rating:49Neutral
Price Target:
$7.00
▼(-26.24% Downside)
Action:Reiterated
Date:07/11/26
The score is held down primarily by stressed financial fundamentals—shrinking revenue, ongoing losses, and a highly leveraged balance sheet with negative equity—despite improving cash generation. Technicals are neutral-to-mildly positive and the earnings call supports a stable near-term outlook via reiterated guidance and improving retention/margins, but valuation remains constrained by the negative P/E and the investment case is highly sensitive to execution on liquidity and refinancing.
Positive Factors
Positive cash generation
Sustained positive operating and free cash flow provides recurring internal funding for operations, capex and refinancing efforts. Over a 2–6 month horizon this improves liquidity optionality and reduces reliance on external capital if cash conversion trends continue.
Negative Factors
High leverage and negative equity
A heavily leveraged balance sheet with negative equity restricts financial flexibility and increases refinancing and covenant risk. Over the medium term, servicing principal and interest can crowd out investment and force dilutive or disruptive financing if execution slips.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive cash generation
Sustained positive operating and free cash flow provides recurring internal funding for operations, capex and refinancing efforts. Over a 2–6 month horizon this improves liquidity optionality and reduces reliance on external capital if cash conversion trends continue.
Read all positive factors
Skillsoft Key Performance Indicators (KPIs)
Any
Revenue by Geography
Shows where Skillsoft earns its revenue across regions, highlighting dependence on particular markets, exposure to local economic or currency risks, and where the company has room to expand its customer base.
Shows where Skillsoft earns its revenue across regions, highlighting dependence on particular markets, exposure to local economic or currency risks, and where the company has room to expand its customer base.
Data provided by:
The Fly
The FlySkillsoft (SKIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.85M
Dividend YieldN/A
Average Volume (3M)136.18K
Price to Earnings (P/E)―
Beta (1Y)1.73
Revenue Growth-8.42%
EPS Growth-3.59%
CountryUS
Employees2,225
SectorConsumer Defensive
Sector Strength42
IndustrySoftware - Application
Share Statistics
EPS (TTM)-16.60
Shares Outstanding8,967,529
10 Day Avg. Volume158,851
30 Day Avg. Volume136,184
Financial Highlights & Ratios
PEG Ratio-0.06
Price to Book (P/B)-2.57
Price to Sales (P/S)0.15
P/FCF Ratio3.34
Enterprise Value/Market Cap8.17
Enterprise Value/Revenue1.08
Enterprise Value/Gross Profit1.43
Enterprise Value/Ebitda9.67
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.28
Revenue Forecast (FY)$503.20M
Skillsoft Business Overview & Revenue Model
Company Description
Skillsoft Corp. provides skills management platform and associated learning solutions in the United States, Other Americas, Europe, the Middle East, Africa, and the Asia-Pacific. It operates in two segments, Talent Development Solutions and Global...
How the Company Makes Money
Skillsoft primarily makes money by selling access to its learning content and platforms on a contracted, recurring basis, generally structured as subscriptions or term licenses for organizations. Key revenue streams include: (1) Subscription and l...
Skillsoft Earnings Call Summary
Earnings Call Date:Jun 09, 2026
(Q1-2027)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Neutral
The call presented a balanced mix of encouraging operational progress and continued financial challenges. Positive signals include improving quarterly dollar retention (105%), margin expansion to 28.2%, expense reductions, positive adjusted net income, platform adoption acceleration (67% QoQ growth in new platform deals), and a clearer strategic focus following the planned GK divestiture. Offsetting these positives are a year-over-year revenue decline (~4.7%), a steep 21% drop in the consumer business, delayed revenue from labor-based services, near-term liquidity pressure and transaction costs related to the GK sale, flat adjusted EBITDA versus prior year, and material debt that must be refinanced. Management maintained full-year guidance and emphasized debt refinancing and simplification as top priorities, but execution risk remains around GK transition timing, short-term cash impacts, and refinancing outcomes.Positive Updates
Revenue and Continuing Operations Results
Total revenue of $94.5M in Q1 FY27, down 4.7% year-over-year (management previously described as ~5% decline); results reflect continuing operations after Global Knowledge was classified as discontinued.
Negative Updates
Top-Line Decline and Segment Headwinds
Revenue declined ~4.7% YoY in Q1, driven by booking softness in government contracts (first half of FY26) and an anticipated decline in the consumer business.
Read all updates
Q1-2027 Updates
Positive
Negative
Revenue and Continuing Operations Results
Total revenue of $94.5M in Q1 FY27, down 4.7% year-over-year (management previously described as ~5% decline); results reflect continuing operations after Global Knowledge was classified as discontinued.
Read all positive updates
Company Guidance
The company reiterated unchanged fiscal 2027 guidance of $388M–$406M revenue, $108M–$116M adjusted EBITDA (≈28% of revenue) and $14M–$22M free cash flow for continuing operations, noting Q1 supports the plan (Q1 revenue $94.5M, down 4.7% YoY; Q1 DRR 105% with LTM DRR 98%; Q1 adjusted EBITDA $26.6M, margin 28.2%; GAAP net loss from continuing ops $18.7M; adjusted net income $10.2M or $1.16/sh; cash & restricted cash $118M; Q1 consolidated FCF $25.4M). Management expects to consume cash in Q2–Q3 and generate FCF in Q4, and to prioritize refinancing post the expected Q2 closing of the Global Knowledge (GK) sale; GK has been running at an adjusted EBITDA/free cash flow loss of ~$10M–$15M annualized, the deal is expected to yield net proceeds of ~$5M–$8M over two years (with ~$8M–$10M transaction costs and ~$8M cash to remain with GK), and the company estimates GK-driven liquidity reductions of up to ~$25M for the quarter ended 7/31/26 and ~$15M–$20M for the year ending 1/31/27 (plus $4M in proceeds in each of FY28 and FY29).Skillsoft Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
18
Very Negative
Cash Flow
52
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 482.97M | 512.67M | 530.99M | 553.24M | 555.12M | 527.76M |
| Gross Profit | 364.69M | 378.04M | 396.12M | 400.08M | 403.11M | 376.68M |
| EBITDA | 53.88M | 34.10M | 66.46M | -143.69M | -594.35M | 94.61M |
| Net Income | -144.89M | -139.82M | -121.91M | -349.29M | -724.96M | -70.21M |
Balance Sheet | ||||||
| Total Assets | 853.01M | 992.89M | 1.11B | 1.27B | 1.64B | 2.24B |
| Cash, Cash Equivalents and Short-Term Investments | 115.56M | 100.82M | 100.77M | 136.31M | 170.36M | 152.19M |
| Total Debt | 574.57M | 586.26M | 588.89M | 641.17M | 644.06M | 559.75M |
| Total Liabilities | 925.83M | 1.02B | 1.01B | 1.07B | 1.11B | 1.18B |
| Stockholders Equity | -72.81M | -30.23M | 93.85M | 205.59M | 531.76M | 1.06B |
Cash Flow | ||||||
| Free Cash Flow | 7.98M | 23.28M | 11.60M | -15.09M | -36.20M | 49.05M |
| Operating Cash Flow | 22.69M | 25.05M | 29.96M | 2.82M | -20.93M | 62.03M |
| Investing Cash Flow | -16.92M | -18.55M | -18.36M | -23.04M | -42.18M | -574.60M |
| Financing Cash Flow | -9.42M | -8.05M | -51.51M | -10.81M | 77.23M | 440.35M |
Skillsoft Technical Analysis
Positive
9.49
Price Trends
7.10
Positive
5.96
Positive
8.21
Negative
Market Momentum
0.17
Negative
51.87
Neutral
79.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIL, the sentiment is Positive. The current price of 9.49 is above the 20-day moving average (MA) of 6.73, above the 50-day MA of 7.10, and above the 200-day MA of 8.21, indicating a neutral trend. The MACD of 0.17 indicates Negative momentum. The RSI at 51.87 is Neutral, neither overbought nor oversold. The STOCH value of 79.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SKIL.
Skillsoft Risk Analysis
Skillsoft disclosed 48 risk factors in its most recent earnings report. Skillsoft reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Skillsoft Peers Comparison
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $53.17M | 0.99 | 40.13% | ― | 2.50% | 23.59% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
62 Neutral | $1.64B | -15.02 | -10.06% | ― | 9.79% | 8.61% | |
55 Neutral | $1.61B | 156.88 | -3.46% | ― | 9.41% | -51.90% | |
49 Neutral | $63.85M | ― | 1023.93% | ― | -8.42% | -3.59% | |
46 Neutral | $95.56M | -1.08 | -62.94% | ― | -43.54% | 90.44% |
* Consumer Defensive Sector Average
SKIL
Skillsoft
7.12
-7.89
-52.56%
CHGG
Chegg
0.85
-0.50
-36.81%
STG
Sunlands Online Education Group
3.97
-6.83
-63.24%
DAO
Youdao
13.47
4.64
52.55%
COUR
Coursera
5.71
-2.62
-31.45%
Skillsoft Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
Skillsoft Divests Global Knowledge to Sharpen Core Focus
Positive
Jul 10, 2026
On July 6, 2026, Skillsoft completed the divestiture of its Global Knowledge Training LLC business, selling all interests in the instructor-led training unit to EHJob GP LLC, an affiliate of Enduring Ventures, under a previously agreed Sale and Pu...
Delistings and Listing ChangesRegulatory Filings and Compliance
Skillsoft’s NYSE Compliance Plan Accepted, Listing Secured
Positive
Jul 8, 2026
On July 8, 2026, Skillsoft announced that the New York Stock Exchange accepted its business plan to regain compliance with continued listing standard 802.01B, following a March 2026 notice that its market capitalization and stockholders’ equ...
Executive/Board ChangesShareholder Meetings
Skillsoft Shareholders Approve Directors, Executive Pay and Plan
Positive
Jun 30, 2026
At its June 25, 2026 annual meeting, Skillsoft shareholders elected three Class II directors—Michael S. Klein, Denis Nikolaev, and Arthur Gilliland—to three-year terms and approved, on an advisory basis, the compensation of the company...
Business Operations and StrategyM&A TransactionsRegulatory Filings and Compliance
Skillsoft Advances Divestiture With Saudi Regulatory Approval
Positive
Jun 18, 2026
On June 18, 2026, Skillsoft Corp. said Saudi Arabia’s General Authority for Competition approved EHJob GP LLC’s purchase of Skillsoft’s Global Knowledge business, meaning all required regulatory clearances for the divestiture are...
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Skillsoft Streamlines Business Around AI-Native Skills Platform
Positive
Jun 9, 2026
Skillsoft reported financial results for the first quarter of fiscal 2027, ended April 30, 2026, alongside full-year guidance, as it restructures around its core AI-native skills platform. The company reclassified its Global Knowledge segment as h...
Business Operations and StrategyM&A Transactions
Skillsoft Divests Global Knowledge to Refocus on AI
Positive
May 21, 2026
On May 20, 2026, Skillsoft Corp. signed a definitive agreement to sell its Global Knowledge instructor-led training business to an affiliate of Enduring Ventures for initial consideration of $10 million, subject to working capital and debt adjustm...
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Skillsoft appoints new CFO amid transformation efforts
Positive
May 21, 2026
On May 19, 2026, Skillsoft’s board appointed veteran technology finance executive Ron Kisling as chief financial officer, effective May 20, 2026, as part of the company’s next phase of transformation following the agreed sale of its Gl...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.