Skillsoft (SKIL) AI Stock Analysis

• Market Cap: $67.79M
• Dividend Yield: N/A
• Average Volume (3M): 235.57K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.50
• 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: 443,790
• 30 Day Avg. Volume: 235,575
• 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: 9.06
• Enterprise Value/Revenue: 1.19
• Enterprise Value/Gross Profit: 1.49
• Enterprise Value/Ebitda: 48.83
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 3.48
• Revenue Forecast (FY): $516.00M

• Rating: 40 Underperform
• Price Target: $8.50 ▼(-18.74% Downside)

Skillsoft's overall stock score reflects significant financial and technical challenges. The company's high leverage, declining revenues, and poor profitability are major concerns. Technical indicators suggest bearish momentum, and valuation metrics are unattractive with a negative P/E ratio. While strategic initiatives in AI and enterprise solutions offer some hope, immediate financial pressures dominate the outlook.

Positive Factors

Strategic Partnership with edX

The partnership with edX enhances Skillsoft's offerings, potentially increasing its market reach and customer base by integrating high-quality educational content.

AI-Driven Platform Development

The launch of an AI-driven platform can improve operational efficiency and customer engagement, positioning Skillsoft for future growth in the evolving ed-tech sector.

Public Sector Contract

Winning a significant public sector contract strengthens Skillsoft's revenue base and showcases its competitive edge in securing large-scale deals.

Negative Factors

High Leverage

High leverage indicates significant financial risk, potentially limiting Skillsoft's ability to invest in growth opportunities and affecting long-term financial stability.

Declining Revenue

Consistent revenue decline suggests challenges in maintaining market share and customer retention, impacting Skillsoft's long-term growth prospects.

Negative Cash Flow

Negative cash flow indicates operational inefficiencies and financial strain, potentially hindering Skillsoft's ability to fund strategic initiatives and growth.

Skillsoft Business Overview & Revenue Model

Company Description

Skillsoft (SKIL) is a leading provider of digital learning and talent management solutions, specializing in online training and development for businesses and organizations. The company operates primarily in the education technology sector, offering a diverse range of products and services that include e-learning courses, certification programs, and learning management systems. Skillsoft focuses on enhancing workforce skills and capabilities across various industries, catering to both individual learners and corporate clients.

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

Skillsoft's financial performance is challenged by declining revenues, negative profit margins, and high leverage. Despite a strong gross profit margin, the net profit margin is deeply negative, indicating substantial losses. The balance sheet shows a high debt-to-equity ratio, and while cash flow has improved, it remains insufficient to cover losses.

Income Statement

Skillsoft's income statement reveals significant challenges, with declining revenue and negative profit margins. The TTM data shows a gross profit margin of 80.63%, which is strong, but the net profit margin is deeply negative at -22.24%, indicating substantial losses. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. Revenue has decreased by 64.5% in the TTM period, highlighting a concerning trend.

Balance Sheet

The balance sheet shows a high debt-to-equity ratio of 13.61 in the TTM period, indicating heavy reliance on debt financing. The return on equity is negative, suggesting that the company is not generating returns for shareholders. Although the equity ratio is not explicitly calculated, the low stockholders' equity relative to total assets suggests limited financial stability.

Cash Flow

Cash flow analysis shows some positive aspects, with a significant free cash flow growth rate of 55.64% in the TTM period. However, the operating cash flow to net income ratio is low at 0.18, indicating that cash generation from operations is weak relative to net losses. The free cash flow to net income ratio is 0.80, suggesting some ability to cover losses with free cash flow.

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

Skillsoft Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.46
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 10.46 is above the 20-day moving average (MA) of 8.25, below the 50-day MA of 11.17, and below the 200-day MA of 15.54, indicating a bearish trend. The MACD of -1.10 indicates Negative momentum. The RSI at 44.63 is Neutral, neither overbought nor oversold. The STOCH value of 79.64 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	$81.22M	1.53	51.70%	―	-0.84%	-11.01%
UDMY	68 Neutral	$862.34M	-222.76	-1.78%	―	2.53%	95.79%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
COUR	62 Neutral	$1.27B	―	-7.43%	―	8.10%	43.35%
DAO	46 Neutral	$1.07B	54.49	―	―	-1.51%	155.73%
CHGG	44 Neutral	$103.78M	-1.32	-46.37%	―	-32.37%	90.99%
SKIL	40 Underperform	$67.79M	-0.49	-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.

Lawrence H. Summers Resigns from Skillsoft Board

On November 19, 2025, Lawrence H. Summers resigned from Skillsoft Corp.’s Board of Directors and all its committees, effective immediately. His departure was not due to any disagreements with the company’s financials, operations, policies, or practices.

Skillsoft Appoints Denis Nikolaev to Board of Directors

Skillsoft Corp. announced that Fahd Beg intends to resign from its Board of Directors, effective upon the approval of a replacement by MIH Learning B.V. This decision aligns with MIH’s process for refreshing director nominees. On November 15, 2025, Denis Nikolaev was appointed to fill the vacancy left by Mr. Beg. Mr. Nikolaev, a Managing Director at Prosus N.V., brings over 20 years of experience in the technology and internet sectors. His appointment is part of the MIH Subscription Agreement, which allows MIH to nominate directors proportional to its ownership in Skillsoft. Mr. Nikolaev will not receive compensation as a board member and has entered into the company’s indemnity agreement.

Skillsoft’s GM Apratim Purakayastha Resigns

On October 21, 2025, Apratim Purakayastha resigned from his role as GM, Talent Development Solutions at Skillsoft Corp., effective October 24, 2025. His departure was amicable and not due to any disagreements with the company’s operations, policies, or practices.