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Skillsoft (SKIL)
NYSE:SKIL
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Skillsoft
(NYSE:SKIL)
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Rating:41Neutral
Price Target:
$13.00
▼(-11.68% Downside)
Skillsoft's overall stock score is primarily impacted by its weak financial performance and unattractive valuation metrics. The technical analysis also indicates bearish momentum, contributing to the low score. While there are some positive aspects from the earnings call, they are not enough to offset the significant financial and valuation challenges.
Skillsoft (SKIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$115.14M
Dividend YieldN/A
Average Volume (3M)33.37K
Price to Earnings (P/E)―
Beta (1Y)1.55
Revenue Growth-2.33%
EPS Growth66.82%
CountryUS
Employees2,200
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.92
Shares Outstanding8,709,508
10 Day Avg. Volume55,468
30 Day Avg. Volume33,374
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)2.62
Price to Sales (P/S)0.46
P/FCF Ratio21.21
Enterprise Value/Market Cap5.19
Enterprise Value/Revenue1.14
Enterprise Value/Gross Profit1.41
Enterprise Value/Ebitda16.76
Forecast
1Y Price Target
$13.00Price Target Upside-11.68% Downside
Rating ConsensusHold
Number of Analyst Covering0
Skillsoft Business Overview & Revenue Model
Company DescriptionSkillsoft 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 MoneySkillsoft 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 Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:Dec 16, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed outlook for Skillsoft. While the company has shown positive steps in transformation, profitability, and strategic investments, it continues to face challenges with revenue decline and external market conditions affecting segments like Global Knowledge. The highlights of growth in the TDS enterprise and Precipio platform are balanced by the lowlights of revenue decline and economic uncertainty.Q2-2026 Updates
Positive Updates
Consistent Profitability and Improved Adjusted EBITDA Margins
Despite a lower revenue base, Skillsoft delivered consistent profitability and improved adjusted EBITDA margins due to successful expense reduction and operational improvement initiatives. Adjusted EBITDA was $28.3 million, flat compared to last year, with a margin of 22% compared to 21.4% last year.
Transformation and Strategic Investments
Skillsoft is one year into its transformation plan, showing encouraging results. The company has delivered $45 million in expense reductions and has begun to stabilize its core TDS enterprise segment. Key transformation actions include creating a dual business unit structure, operational execution improvements, and building a talented bench of leaders.
TDS Enterprise Solution Growth
The TDS enterprise solution demonstrated a fourth consecutive quarter of revenue growth. TDS performance benefits from a market shift towards comprehensive talent development solutions.
Customer Wins and Demand for Scalable Solutions
Skillsoft secured significant customer wins in Q2, including partnerships with a global athletic apparel brand, a semiconductor manufacturer, and a European digital services provider. These wins reflect demand for scalable learning solutions.
Precipio Platform Momentum
The Skillsoft Precipio platform showed significant growth with technology learners up 50% year over year, AI learners up 74%, and AI learning hours up 158%.
Negative Updates
Revenue Decline and Economic Uncertainty
Skillsoft experienced a 2.6% year-over-year decline in total revenue, primarily due to economic uncertainty impacting customer discretionary training spending.
Global Knowledge Segment Decline
The Global Knowledge segment revenue was down 9.6% year over year due to softening demand, particularly in North America and geopolitical instability in The Middle East.
Federal Business Churn
Churn and erosion in the federal business materially affected the TDS LTM dollar retention rate, reducing performance by approximately four percentage points.
Free Cash Flow Challenges
Free cash flow for the quarter was negative $22.6 million, compared to negative $16.1 million in the prior year period, although year-to-date free cash flow remains positive.
Company Guidance
During Skillsoft's Second Quarter Fiscal 2026 Results Conference Call, the company provided updated guidance amid ongoing macroeconomic challenges. Skillsoft adjusted its full-year revenue outlook to $510 million to $530 million, reflecting anticipated continued softness in federal spending, particularly within its Global Knowledge segment. Despite a lowered revenue base, the company maintained its full-year expectations for adjusted EBITDA, targeting between $112 million and $118 million, and reiterated its free cash flow guidance of $13 million to $18 million for the year. Skillsoft also highlighted a fourth consecutive quarter of revenue growth in its Talent Development Solutions (TDS) enterprise solution, which comprises over 90% of the TDS segment. The company emphasized its strategic focus on enterprise customers and ongoing transformation initiatives, which include a dual business unit structure, AI-driven product innovations, and cost reductions totaling $45 million.Skillsoft Financial Statement Overview
Summary
Skillsoft faces significant financial challenges, with declining revenues, persistent losses, and high leverage. While there are signs of improvement in cash flow generation, the company's financial health is under pressure due to high debt levels and continued operational losses.Income Statement
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.35
Negative
Balance Sheet
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.40
Negative
Cash Flow
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.50
Neutral
| 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
Neutral
14.72
Price Trends
14.73
Negative
16.58
Negative
19.82
Negative
Market Momentum
-0.37
Positive
51.30
Neutral
54.02
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIL, the sentiment is Neutral. The current price of 14.72 is below the 20-day moving average (MA) of 14.76, below the 50-day MA of 14.73, and below the 200-day MA of 19.82, indicating a bearish trend. The MACD of -0.37 indicates Positive momentum. The RSI at 51.30 is Neutral, neither overbought nor oversold. The STOCH value of 54.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | 158.17M | 11.23 | 10.26% | 2.87% | -9.70% | -30.98% | |
70 Neutral | 1.85B | -36.31 | -13.31% | ― | 7.10% | 49.18% | |
66 Neutral | 1.08B | -35.94 | -13.13% | ― | 3.93% | 63.52% | |
58 Neutral | 1.05B | 33.23 | -3.84% | ― | -1.66% | 0.00% | |
52 Neutral | 867.36M | -9.24 | -54.25% | ― | 56.38% | -16.84% | |
41 Neutral | $115.14M | ― | -126.76% | ― | -2.33% | 66.82% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% |
* Consumer Defensive Sector Average
Performance Comparison
SKIL
Skillsoft
14.72
0.67
4.77%
GOTU
Gaotu Techedu
3.55
0.76
27.24%
DAO
Youdao
8.88
5.75
183.71%
IH
iHuman
2.96
1.43
93.46%
COUR
Coursera
11.59
3.75
47.83%
UDMY
Udemy Inc
7.44
-0.63
-7.81%
Skillsoft Corporate Events
Business Operations and StrategyFinancial Disclosures
Skillsoft Reports Q2 Fiscal 2026 Financial Results
Neutral
Sep 9, 2025
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.
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.