Skillsoft (SKIL) AI Stock Analysis

• Market Cap: $35.82M
• Dividend Yield: N/A
• Average Volume (3M): 190.81K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.62
• Revenue Growth: -3.55%
• EPS Growth: 61.83%
• Country: US
• Employees: 2,200
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Education & Training Services
• EPS (TTM): 1.65
• Shares Outstanding: 8,758,515
• 10 Day Avg. Volume: 179,932
• 30 Day Avg. Volume: 190,809
• 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: 15.01
• Enterprise Value/Revenue: 1.04
• Enterprise Value/Gross Profit: 1.41
• Enterprise Value/Ebitda: 7.68
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.64
• Revenue Forecast (FY): $510.00M

• Rating: 42 Neutral
• Price Target: $4.50 ▼(-52.58% Downside)
• Action: Reiterated Date: 02/25/26
• Date: Action: Reiterated 02/25/26

The score is held down primarily by weak financial performance (declining revenue, ongoing losses, very high leverage, and deteriorating free cash flow). Technicals also reflect a strong downtrend, though oversold readings provide only limited support. The latest earnings call was mixed, with GK-driven weakness and cash burn partially offset by improving retention, AI platform execution, and modest FY26 free-cash-flow guidance (excluding GK).

Positive Factors

AI-driven platform launch

Launching the unified Precipio platform is a structural product consolidation that supports longer-term customer retention and upsell. A single, AI-enabled platform reduces integration friction, lowers long-term delivery costs, and anchors enterprise accounts around scalable, differentiated offerings.

High gross margin

A sustained gross margin above 80% indicates a highly scalable content and platform business with low incremental cost to serve additional users. This structural margin cushion supports investment in product development and AI content automation while insulating gross profitability from modest revenue declines.

Improving enterprise retention

Very high dollar retention, especially 115% among large enterprises, shows durable revenue stickiness and successful expansion within accounts. This reduces customer acquisition pressure and supports predictable subscription revenue, important for subscription-based cash generation over coming quarters.

Negative Factors

Very high leverage

Extremely high leverage with deeply negative ROE implies limited financial flexibility and elevated solvency risk. Interest or refinancing shocks could force cost-cutting or asset disposals, constraining strategic investments and making long-term execution on AI and platform initiatives more precarious.

Revenue decline & negative margins

Persistent revenue contraction combined with negative operating and net margins signals structural profitability issues. Even with high gross margins, operating inefficiencies and declining top line reduce scale benefits and threaten sustainable free cash generation unless revenue stabilizes or cost structure permanently improves.

Severe free cash flow deterioration

A dramatic drop in free cash flow and weak operating cash conversion indicate the business is burning liquidity. Over months, weak FCF undermines the ability to fund platform rollouts, repay debt, or invest in sales; persistent negative cash flow raises refinancing and continuity risks.

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 extensive library of online courses and learning resources. The company charges organizations on a per-user basis for its learning platforms, which allows businesses to provide their employees with ongoing training and development. Key revenue streams include sales from enterprise subscriptions, individual course purchases, and professional certification programs. Additionally, Skillsoft has established partnerships with various educational institutions and training providers, which enhance its offerings and widen its customer base, contributing significantly to its overall earnings.

Skillsoft Financial Statement Overview

Summary

Weak fundamentals: revenue is declining (TTM -1.57%), profitability is deeply negative (TTM net margin -22.24%, EBIT margin -11.38%), leverage is very high (debt-to-equity 13.61) with very poor ROE (-145.94%), and free cash flow has deteriorated sharply (TTM FCF growth -85.41%).

Income Statement

Skillsoft's income statement reveals significant challenges. The company has experienced negative revenue growth in recent periods, with a TTM revenue decline of 1.57%. Profitability metrics are concerning, with a negative net profit margin of -22.24% and an EBIT margin of -11.38% in the TTM. Despite a strong gross profit margin of 80.63%, the company struggles with operational efficiency and profitability, as indicated by negative EBIT and net income figures.

Balance Sheet

The balance sheet shows high leverage, with a TTM debt-to-equity ratio of 13.61, indicating significant financial risk. The return on equity is deeply negative at -145.94%, reflecting poor shareholder returns. The equity ratio is low, suggesting limited equity financing relative to total assets. These factors highlight potential solvency concerns and financial instability.

Cash Flow

Cash flow analysis indicates substantial challenges. The TTM free cash flow growth rate is -85.41%, showing a sharp decline. The operating cash flow to net income ratio is 0.18, suggesting weak cash generation relative to net losses. While the free cash flow to net income ratio is relatively high at 0.80, it is primarily due to negative net income, indicating cash flow issues.

Breakdown	TTM	Jan 2025	Jan 2024	Jan 2023	Jan 2022	Dec 2020
Income Statement
Total Revenue	515.77M	530.99M	553.24M	555.12M	514.02M	0.00
Gross Profit	381.25M	396.12M	400.08M	232.85M	401.73M	-907.00K
EBITDA	70.04M	66.46M	-143.69M	-598.57M	69.04M	-907.00K
Net Income	-134.22M	-121.91M	-349.29M	-724.96M	-849.21M	-72.46M
Balance Sheet
Total Assets	897.58M	1.11B	1.27B	1.68B	2.24B	700.93M
Cash, Cash Equivalents and Short-Term Investments	74.57M	100.77M	136.31M	177.56M	152.19M	3.87M
Total Debt	576.59M	588.89M	641.17M	644.06M	559.75M	1.50M
Total Liabilities	893.59M	1.01B	1.07B	1.15B	1.18B	23.60M
Stockholders Equity	3.99M	93.85M	205.59M	531.76M	1.06B	677.32M
Cash Flow
Free Cash Flow	6.21M	11.60M	-15.09M	-36.20M	49.05M	-720.66K
Operating Cash Flow	12.35M	29.96M	2.82M	-20.93M	62.03M	-720.66K
Investing Cash Flow	-19.17M	-18.36M	-23.04M	-42.18M	-574.60M	856.25K
Financing Cash Flow	-18.68M	-51.51M	-10.81M	77.23M	440.35M	1.50M

Skillsoft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.49
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 9.49 is above the 20-day moving average (MA) of 6.13, above the 50-day MA of 7.60, and below the 200-day MA of 12.72, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 30.06 is Neutral, neither overbought nor oversold. The STOCH value of 20.71 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	$60.42M	1.14	51.70%	―	-0.84%	-11.01%
COUR	64 Neutral	$1.08B	-20.71	-8.27%	―	8.10%	43.35%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
UDMY	60 Neutral	$730.02M	204.90	1.87%	―	2.53%	95.79%
DAO	55 Neutral	$1.27B	85.82	―	―	-1.51%	155.73%
CHGG	43 Neutral	$69.93M	-0.67	-66.17%	―	-32.37%	90.99%
SKIL	42 Neutral	$35.82M	―	-215.67%	―	-3.55%	61.83%

Skillsoft Corporate Events

Skillsoft Reports Q3 2026 Financial Results

On December 10, 2025, Skillsoft Corp. announced its financial results for the third quarter of fiscal 2026, reporting a total revenue of $129 million, a 6% decrease from the previous year, and a net loss of $41 million. The company is reviewing strategic alternatives for its Global Knowledge segment, which has negatively impacted revenue and earnings, while continuing to invest in AI innovation with the launch of the next-generation Skillsoft Percipio Platform. The TDS segment showed signs of stabilization with the signing of four large enterprise customers and a recovery in its federal business.

The most recent analyst rating on (SKIL) stock is a Hold with a $10.50 price target. To see the full list of analyst forecasts on Skillsoft stock, see the SKIL Stock Forecast page.