Skillsoft Corp (SKIL)
NYSE:SKIL
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Skillsoft
(NYSE:SKIL)
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Rating:51Neutral
Price Target:
$7.50
▼(-20.97% Downside)
Action:Reiterated
Date:05/22/26
SKIL scores slightly below average primarily due to weak financial performance—declining revenue, ongoing losses, and negative equity with high leverage—despite improving free cash flow. More constructive earnings-call trends (cost discipline, margin progress, and AI-driven engagement) and neutral technicals provide support, while valuation remains constrained by loss-making results and corporate-event risk is balanced by the planned divestiture versus NYSE noncompliance.
Positive Factors
AI-native platform repositioning
Management completed a strategic transformation to an AI-native skills platform and launched the next-generation Percipio. This structural shift ties proprietary content, platform and data to AI features, raising differentiation, product stickiness and scalable recurring revenue potential over years.
Negative Factors
High leverage and negative equity
A large gross debt load alongside negative equity materially weakens the balance sheet and constrains strategic options. Persistent leverage raises refinancing, covenant and interest-burden risks that can absorb cash flow, limit investment, and force asset sales or dilutive financings over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
AI-native platform repositioning
Management completed a strategic transformation to an AI-native skills platform and launched the next-generation Percipio. This structural shift ties proprietary content, platform and data to AI features, raising differentiation, product stickiness and scalable recurring revenue potential over years.
Read all positive factors
Skillsoft Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlySkillsoft (SKIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$63.22M
Dividend YieldN/A
Average Volume (3M)143.22K
Price to Earnings (P/E)―
Beta (1Y)1.56
Revenue Growth-3.45%
EPS Growth-9.46%
CountryUS
Employees2,200
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)-16.28
Shares Outstanding8,955,077
10 Day Avg. Volume81,549
30 Day Avg. Volume143,216
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 Cap8.70
Enterprise Value/Revenue1.07
Enterprise Value/Gross Profit1.45
Enterprise Value/Ebitda16.12
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.64
Revenue Forecast (FY)$503.00M
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 ...
How the Company Makes Money
Skillsoft primarily generates revenue by selling subscriptions to its digital learning content and software platforms to organizations (typically enterprises) under term contracts. Key revenue streams generally include: (1) recurring subscription ...
Skillsoft Earnings Call Summary
Earnings Call Date:Apr 07, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Jun 10, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful progress on strategic transformation, cost reduction, product development and notable AI-driven engagement gains, combined with improved adjusted EBITDA and positive free cash flow. However, challenges remain: parts of the top line declined (notably Global Knowledge and consumer), GAAP losses widened due to impairments and restructuring, retention/upgrade rates have softened versus a strong prior-year comp, and macro/geopolitical factors are creating booking and divestiture uncertainties. On balance, operational improvements, margin expansion and early platform traction outweigh the medium-term revenue and geopolitical headwinds.Positive Updates
Strategic transformation and AI-native repositioning
Completed a strategic transformation to reposition Skillsoft as an AI-native skills platform, emphasizing three core assets—content, platform and data—and announced a new AI-native Percipio platform (announced Sept, GA in Feb).
Negative Updates
Total revenue decline and mixed top-line performance
Total Q4 revenue was $130.7M, down $3.1M or 2.3% YoY. While TDS revenue ($102.6M) was nearly flat YoY, Learner and Global Knowledge did not achieve top-line growth.
Read all updates
Q4-2026 Updates
Positive
Negative
Strategic transformation and AI-native repositioning
Completed a strategic transformation to reposition Skillsoft as an AI-native skills platform, emphasizing three core assets—content, platform and data—and announced a new AI-native Percipio platform (announced Sept, GA in Feb).
Read all positive updates
Company Guidance
The company guided TDS revenue for fiscal 2027 of $388M–$406M with adjusted EBITDA of $108M–$116M (about 28% of revenue) and TDS free cash flow of $14M–$22M; that follows Q4 results of total revenue $130.7M (‑2.3% YoY) comprised of TDS $102.6M (nearly flat YoY) and Global Knowledge $28.0M (‑9.4% YoY), a TDS LTM dollar retention rate of 98% (vs. 105% LY), adjusted EBITDA of $31.2M (+~4% YoY) with a 23.9% margin (vs. 22.4% LY) (TDS contributed ~ $33M), operating expenses of $99.5M (76% of revenue, down 4.2% YoY), cost of revenue $34.2M (26% of revenue), content & dev $12.8M (10% of revenue), S&M $37.5M (29%), G&A $15.0M (11%), GAAP net loss $36.7M (loss per share $4.19) and adjusted net income $11.0M (adj. EPS $1.26); cash flow highlights included Q4 free cash flow $26.5M (vs. $13.2M prior), fiscal‑year free cash flow ~$6.5M (just above guidance), cash $104.5M, gross debt $578M and net debt ~$474M, after achieving ~$45M of gross cost reductions (about half reinvested); management also pointed to strong AI engagement trends (AI skill benchmark completions +994% YoY; AI content +261%; AI Journey +222%; CAISY learners +146% and CAISY launches +341%) and 15 paying customers on the new platform as drivers of the outlook.Skillsoft Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
18
Very Negative
Cash Flow
54
Neutral
| Breakdown | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 512.67M | 530.99M | 553.24M | 555.12M | 527.76M |
| Gross Profit | 378.04M | 396.12M | 400.08M | 403.11M | 376.68M |
| EBITDA | 34.10M | 66.46M | -143.69M | -594.35M | 94.61M |
| Net Income | -139.82M | -121.91M | -349.29M | -724.96M | -70.21M |
Balance Sheet | |||||
| Total Assets | 992.89M | 1.11B | 1.27B | 1.64B | 2.24B |
| Cash, Cash Equivalents and Short-Term Investments | 100.82M | 100.77M | 136.31M | 170.36M | 152.19M |
| Total Debt | 586.26M | 588.89M | 641.17M | 644.06M | 559.75M |
| Total Liabilities | 1.02B | 1.01B | 1.07B | 1.11B | 1.18B |
| Stockholders Equity | -30.23M | 93.85M | 205.59M | 531.76M | 1.06B |
Cash Flow | |||||
| Free Cash Flow | 23.28M | 11.60M | -15.09M | -36.20M | 49.05M |
| Operating Cash Flow | 25.05M | 29.96M | 2.82M | -20.93M | 62.03M |
| Investing Cash Flow | -18.55M | -18.36M | -23.04M | -42.18M | -574.60M |
| Financing Cash Flow | -8.05M | -51.51M | -10.81M | 77.23M | 440.35M |
Skillsoft Technical Analysis
Positive
9.49
Price Trends
5.90
Positive
6.48
Positive
9.46
Negative
Market Momentum
0.22
Positive
52.54
Neutral
41.18
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 7.49, above the 50-day MA of 5.90, and above the 200-day MA of 9.46, indicating a neutral trend. The MACD of 0.22 indicates Positive momentum. The RSI at 52.54 is Neutral, neither overbought nor oversold. The STOCH value of 41.18 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 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
UnderperformOutperform
Sector (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $40.11M | 3.67 | 51.85% | ― | 1.58% | 8.26% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $677.28M | -13.30 | -3.21% | ― | -1.15% | 89.07% | |
55 Neutral | $1.38B | 52.14 | -5.29% | ― | 9.41% | -51.90% | |
53 Neutral | $160.10M | 90.81 | -62.94% | ― | -43.54% | 90.44% | |
51 Neutral | $63.22M | -0.54 | -709.20% | ― | -3.45% | -9.46% |
* Consumer Defensive Sector Average
SKIL
Skillsoft
7.18
-12.60
-63.70%
CHGG
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1.55
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2.71
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-46.23%
DAO
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12.96
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39.96%
UDMY
Udemy Inc
4.63
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-32.61%
Skillsoft Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Skillsoft Posts Mixed Q4 Results, Refocuses on TDS
Neutral
Apr 7, 2026
On April 7, 2026, Skillsoft reported results for its fourth quarter and full fiscal year ended Jan. 31, 2026, showing total revenue slipping to $131 million for the quarter and $513 million for the year, with flat Talent Development Solutions reve...
Business Operations and StrategyExecutive/Board Changes
Skillsoft Adds Cybersecurity Leader Art Gilliland to Board
Positive
Mar 31, 2026
Skillsoft, a leading AI-native skills management platform, has appointed cybersecurity executive Art Gilliland to its Board of Directors effective March 25, 2026, with his Class II director term running until the 2026 annual shareholder meeting. G...
Business Operations and StrategyDelistings and Listing ChangesRegulatory Filings and Compliance
Skillsoft Faces NYSE Noncompliance, Pursues Compliance Plan
Negative
Mar 30, 2026
On March 30, 2026, Skillsoft disclosed that it received a NYSE notice on March 26 stating the company is not in compliance with Section 802.01B listing standards, after its 30‑day average market capitalization and stockholders’ equity ...
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.