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Skillsoft (SKIL)
NYSE:SKIL

Skillsoft (SKIL) AI Stock Analysis

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Skillsoft

(NYSE:SKIL)

Rating:43Neutral
Price Target:
$17.00
▲(4.10%Upside)
Skillsoft's stock score is primarily influenced by its challenging financial performance, including high debt levels and declining revenues. Technical indicators suggest bearish momentum, and valuation metrics reflect ongoing operational losses. While the earnings call highlighted some strategic improvements and leadership changes, these have not yet significantly offset the broader financial and market challenges.

Skillsoft (SKIL) vs. SPDR S&P 500 ETF (SPY)

Skillsoft Business Overview & Revenue Model

Company DescriptionSkillsoft (SKIL) is a global leader in corporate digital learning, providing enterprise learning solutions designed to drive business growth and improve employee performance. The company offers a comprehensive suite of content, including courses, videos, and books across various sectors, such as technology and developer, leadership and business skills, and compliance. Skillsoft's learning platform, Percipio, leverages advanced technology to provide an engaging and personalized learning experience for its users.
How the Company Makes MoneySkillsoft generates revenue primarily through subscriptions to its digital learning platform, Percipio. Enterprises and organizations pay for access to Skillsoft's extensive library of educational content, which covers a wide range of subjects and skills. The company also offers customized learning solutions tailored to the specific needs of businesses, which can include bespoke content development and integration with existing corporate systems. Additionally, Skillsoft engages in strategic partnerships and alliances to enhance its offerings and expand its reach, which contributes to its revenue streams.

Skillsoft Earnings Call Summary

Earnings Call Date:Jun 09, 2025
(Q1-2026)
|
% Change Since: -10.37%|
Next Earnings Date:Sep 15, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed outlook. While there were significant achievements such as leadership strengthening, growth in the TDS segment, and strong cash flow generation, there were also notable challenges, including a decline in Global Knowledge revenue, total revenue decrease, and macroeconomic uncertainties impacting discretionary spending. The overall sentiment is balanced with both positive and negative aspects.
Q1-2026 Updates
Positive Updates
Introduction of New CFO and CMO
The company appointed John Frederick as the new CFO and Raianne Reiss as the new Chief Marketing Officer to strengthen leadership and drive the company’s strategic plan.
Continued Growth in TDS Segment
The Talent Development Solutions (TDS) segment reported a revenue of $99.1 million, up 1% year-over-year, marking three consecutive quarters of growth.
Strong Cash Flow Generation
The company generated $31.3 million of cash flow from operations and $26.2 million in free cash flow, an improvement of $15.8 million compared to the previous year.
Positive Adjusted EBITDA Growth
Adjusted EBITDA grew to $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year.
Expansion of AI and Certification Offerings
Skillsoft expanded its product offerings, including AI capabilities and a certification dashboard, to enhance learner experience and skill tracking.
Negative Updates
Decline in Global Knowledge Revenue
Global Knowledge revenue fell by approximately 15.7% year-over-year, impacted by softer demand within the U.S. public sector and a higher mix of reseller business.
Macro Uncertainty Impacting Revenue
The company faced macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making, affecting live learning revenue.
Total Revenue Decline
Total revenue decreased by approximately $3.6 million or 2.8% year-over-year, primarily due to challenges in the Global Knowledge segment.
GAAP Net Loss Increase
GAAP net loss increased to $38 million compared to $27.6 million in the previous year, with GAAP net loss per share at $4.57 compared to $3.42 per share.
Company Guidance
During the Skillsoft First Quarter Fiscal 2026 Results Conference Call, the company reiterated its financial guidance for the full fiscal year. Skillsoft expects revenue to range between $530 million and $545 million, with adjusted EBITDA between $112 million and $118 million. Despite macroeconomic uncertainties impacting discretionary spending, particularly in live learning revenue, Skillsoft reported total revenue of $124.2 million, down 2.8% year-over-year, while adjusted EBITDA improved to $22.1 million or 17.8% of revenue. The Talent Development Solutions segment grew by 1% year-over-year, generating $99.1 million in revenue. Global Knowledge revenue, however, declined by 15.7% to $25.1 million. The company achieved positive free cash flow of $26.2 million, an increase of $15.8 million from the prior year. Skillsoft remains confident in achieving its fiscal year guidance, driven by continued strategic investments and a focus on go-to-market strategies, despite current market challenges.

Skillsoft Financial Statement Overview

Summary
Skillsoft faces significant financial challenges, with declining revenues, persistent losses, and high leverage. Despite some improvement in cash flow generation, the company's financial health is under pressure due to high debt levels and continued operational losses.
Income Statement
34
Negative
Skillsoft's income statement shows a decline in total revenue from 2024 to 2025, indicating a challenging revenue environment. Gross profit margin remains relatively high, suggesting cost management efficiency, but persistent negative EBIT and net income reflect ongoing operational challenges. The company struggles with profitability, as evident from the negative EBIT and EBITDA margins.
Balance Sheet
45
Neutral
The balance sheet reveals a high debt-to-equity ratio, highlighting significant leverage that poses financial risk. Stockholders' equity has diminished over recent periods, reducing financial stability. The equity ratio is low, indicating a higher reliance on debt financing.
Cash Flow
50
Neutral
Cash flow analysis indicates modest improvement in operating cash flow, which is now positive, reflecting some operational cash generation. Free cash flow also turned positive, but the growth rate is volatile. The operating cash flow to net income ratio suggests that cash flows are not yet aligned with profitability.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Dec 2020
Income StatementTotal Revenue
530.99M553.24M555.12M514.02M0.00
Gross Profit
396.12M400.08M232.85M401.73M-907.00K
EBIT
-69.62M-308.61M-804.12M-408.03M-907.00K
EBITDA
66.46M-143.69M-598.57M69.04M-907.00K
Net Income Common Stockholders
-121.91M-349.29M-724.96M-849.21M-72.46M
Balance SheetCash, Cash Equivalents and Short-Term Investments
100.77M136.31M177.56M152.19M3.87M
Total Assets
1.11B1.27B1.68B2.24B700.93M
Total Debt
588.89M641.17M644.06M559.75M1.50M
Net Debt
488.13M504.86M466.50M407.56M-2.37M
Total Liabilities
1.05B1.07B1.15B1.18B23.60M
Stockholders Equity
93.85M205.59M531.76M1.06B677.32M
Cash FlowFree Cash Flow
11.60M-15.09M-36.20M49.05M-720.66K
Operating Cash Flow
29.96M2.82M-20.93M62.03M-720.66K
Investing Cash Flow
-18.36M-23.04M-42.18M-574.60M856.25K
Financing Cash Flow
-51.51M-10.81M77.23M440.35M1.50M

Skillsoft Technical Analysis

Technical Analysis Sentiment
Negative
Last Price16.33
Price Trends
50DMA
19.64
Negative
100DMA
22.49
Negative
200DMA
19.80
Negative
Market Momentum
MACD
-0.83
Positive
RSI
31.30
Neutral
STOCH
23.74
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 16.33 is below the 20-day moving average (MA) of 19.84, below the 50-day MA of 19.64, and below the 200-day MA of 19.80, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 31.30 is Neutral, neither overbought nor oversold. The STOCH value of 23.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIL.

Skillsoft Risk Analysis

Skillsoft disclosed 36 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

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
IHIH
75
Outperform
$124.06M9.5010.27%3.56%-10.89%-45.97%
73
Outperform
$1.39B-10.84%7.26%39.62%
71
Outperform
$1.09B-27.17%5.43%14.22%
62
Neutral
$11.92B10.48-7.50%2.95%7.40%-8.18%
61
Neutral
$969.40M-36.29%58.34%-602.43%
DADAO
60
Neutral
$1.07B51.5225.15%-2.04%
43
Neutral
$150.80M-108.11%-3.31%61.14%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
SKIL
Skillsoft
16.33
6.54
66.80%
GOTU
Gaotu Techedu
3.99
-0.99
-19.88%
DAO
Youdao
8.73
5.02
135.31%
IH
iHuman
2.40
0.69
40.35%
COUR
Coursera
8.50
1.85
27.82%
UDMY
Udemy Inc
7.15
-1.16
-13.96%

Skillsoft Corporate Events

Business Operations and StrategyFinancial Disclosures
Skillsoft Announces Q1 Fiscal 2026 Financial Results
Positive
Jun 9, 2025

On June 9, 2025, Skillsoft Corp. announced its financial results for the first quarter of fiscal 2026, ending April 30, 2025. Despite a challenging economic environment, Skillsoft reported solid financial results, with a third consecutive quarter of growth in its Talent Development Solutions segment. The company saw a slight decline in total revenue, but improved its Adjusted EBITDA and free cash flow. Skillsoft reaffirmed its financial outlook for the full fiscal year, emphasizing continued growth in revenue and Adjusted EBITDA. The company also highlighted its commitment to employee development, being recognized for its dedication to employee growth and AI literacy.

The most recent analyst rating on (SKIL) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Skillsoft stock, see the SKIL Stock Forecast page.

Executive/Board Changes
Skillsoft Appoints New Corporate Controller on June 5
Neutral
Jun 5, 2025

On June 2, 2025, Jose Torres resigned as Skillsoft Corp.’s Chief Accounting Officer to pursue other opportunities, leading to his departure from the company. Subsequently, Keith Swiniarski, previously the Vice President of Finance, was appointed as the new Corporate Controller and principal accounting officer effective June 5, 2025. Swiniarski, who has extensive experience in accounting and finance, will continue his role as VP, Finance, and received a compensation adjustment in line with his new responsibilities.

The most recent analyst rating on (SKIL) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Skillsoft stock, see the SKIL Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Skillsoft Appoints John Frederick as New CFO
Neutral
May 20, 2025

On May 15, 2025, Skillsoft appointed John Frederick as the new Chief Financial Officer, succeeding Rich Walker, who will remain as an advisor until July 4, 2025. Frederick, who has extensive experience in financial and operational leadership, has been with Skillsoft as Chief Transformation Officer since August 2024. His appointment is expected to support Skillsoft’s strategic goals of enhancing operational execution, achieving profitability, and unlocking shareholder value. The transition is not related to any financial or operational disagreements, and Walker’s departure is amicable.

The most recent analyst rating on (SKIL) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Skillsoft stock, see the SKIL Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Skillsoft Reports Strong Q4 2025 Financial Results
Positive
Apr 14, 2025

On April 14, 2025, Skillsoft Corp. announced its financial results for the fourth quarter and full fiscal year ending January 31, 2025, reporting revenue and adjusted EBITDA at the top end of its outlook range. The company experienced strong free cash flow performance and significant margin expansion, despite a slight decrease in total revenue compared to the previous year. Skillsoft’s strategic transformation initiatives have positioned it for continued improvement in fiscal 2026, with a financial outlook projecting GAAP revenue between $530 million and $545 million and adjusted EBITDA between $112 million and $118 million. The company’s focus on AI capabilities and ecosystem integrations has shown promising early interest, with nearly a million launches of its AI simulator, Skillsoft CAISY™, and new partnerships with technology leaders like SAP Talent Intelligence Hub.

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.