Skillsoft (SKIL) AI Stock Analysis

• Market Cap: $138.63M
• Dividend Yield: N/A
• Average Volume (3M): 32.38K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.60
• Revenue Growth: -3.31%
• EPS Growth: 61.14%
• Country: US
• Employees: 2,200
• Sector: Consumer Defensive
• Sector Strength: 47
• Industry: Education & Training Services
• EPS (TTM): 0.30
• Shares Outstanding: 8,573,027
• 10 Day Avg. Volume: 20,058
• 30 Day Avg. Volume: 32,385
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 4.39
• Enterprise Value/Revenue: 1.14
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: 9.24
• 1Y Price Target: $15.50
• Price Target Upside: -3.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 50 Neutral
• Price Target: $15.50 ▼(-3.31% Downside)

Skillsoft's overall stock score is primarily impacted by its financial challenges, including declining revenues and high leverage. While there are positive developments in cash flow and profitability, the bearish technical indicators and negative valuation metrics weigh heavily on the score. The earnings call provided some optimism with improved profitability and strategic initiatives, but macroeconomic uncertainties and declining segments remain concerns.

Skillsoft Business Overview & Revenue Model

Company Description

Skillsoft (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 Money

Skillsoft 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 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.

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.

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	530.99M	530.99M	553.24M	555.12M	514.02M	0.00
Gross Profit	427.70M	396.12M	400.08M	232.85M	401.73M	-907.00K
EBITDA	65.81M	66.46M	-143.69M	-598.57M	69.04M	-907.00K
Net Income	-121.91M	-121.91M	-349.29M	-724.96M	-849.21M	-72.46M
Balance Sheet
Total Assets	1.11B	1.11B	1.27B	1.68B	2.24B	700.93M
Cash, Cash Equivalents and Short-Term Investments	100.77M	100.77M	136.31M	177.56M	152.19M	3.87M
Total Debt	588.89M	588.89M	641.17M	644.06M	559.75M	1.50M
Total Liabilities	1.01B	1.05B	1.07B	1.15B	1.18B	23.60M
Stockholders Equity	93.85M	93.85M	205.59M	531.76M	1.06B	677.32M
Cash Flow
Free Cash Flow	11.60M	11.60M	-15.09M	-36.20M	49.05M	-720.66K
Operating Cash Flow	29.96M	29.96M	2.82M	-20.93M	62.03M	-720.66K
Investing Cash Flow	-18.36M	-18.36M	-23.04M	-42.18M	-574.60M	856.25K
Financing Cash Flow	-51.51M	-51.51M	-10.81M	77.23M	440.35M	1.50M

Skillsoft Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 16.03
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 16.03 is above the 20-day moving average (MA) of 14.86, above the 50-day MA of 15.06, and below the 200-day MA of 19.86, indicating a neutral trend. The MACD of 0.15 indicates Negative momentum. The RSI at 52.87 is Neutral, neither overbought nor oversold. The STOCH value of 81.78 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SKIL.

Skillsoft Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IH	75 Outperform	$148.52M	10.62	11.29%	2.95%	-9.70%	-30.98%
COUR	73 Outperform	$1.82B	―	-8.40%	―	7.10%	49.18%
UDMY	64 Neutral	$1.03B	―	-12.62%	―	3.93%	63.52%
DAO	63 Neutral	$1.09B	32.60	25.15%	―	-1.66%	―
Sector *	63 Neutral	$20.42B	14.38	-3.60%	3.17%	2.07%	-6.17%
GOTU	56 Neutral	$884.37M	―	-32.95%	―	56.38%	-16.84%
SKIL	50 Neutral	$138.63M	―	-108.11%	―	-3.31%	61.14%

Skillsoft Corporate Events

Skillsoft Announces Q1 Fiscal 2026 Financial Results

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.

Skillsoft Appoints New Corporate Controller on June 5

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.