Skillsoft Corp (SKIL)
NYSE:SKIL
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Skillsoft
(NYSE:SKIL)
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Rating:42Neutral
Price Target:
$4.50
▼(-52.58% Downside)
Action:ReiteratedDate: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
High gross profit margin
An 80.63% gross margin indicates durable unit economics in Skillsoft's subscription content business. High gross margins give room to invest in product, AI and sales while absorbing restructuring costs, supporting long-term potential to convert revenue into operating profit as scale improves.
Negative Factors
Persistent revenue decline
Top‑line contraction — driven largely by the Global Knowledge segment — is a structural risk: declining revenue reduces operating leverage, limits reinvestment capacity, and makes sustaining fixed costs harder, pressuring margins and forcing strategic moves like divestitures or partnerships.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross profit margin
An 80.63% gross margin indicates durable unit economics in Skillsoft's subscription content business. High gross margins give room to invest in product, AI and sales while absorbing restructuring costs, supporting long-term potential to convert revenue into operating profit as scale improves.
Read all positive factors
Skillsoft (SKIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$34.60M
Dividend YieldN/A
Average Volume (3M)134.20K
Price to Earnings (P/E)―
Beta (1Y)1.57
Revenue Growth-3.55%
EPS Growth61.83%
CountryUS
Employees2,200
SectorConsumer Defensive
Sector Strength42
IndustryEducation & Training Services
Share Statistics
EPS (TTM)1.65
Shares Outstanding8,758,515
10 Day Avg. Volume100,051
30 Day Avg. Volume134,201
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 Cap15.51
Enterprise Value/Revenue1.04
Enterprise Value/Gross Profit1.41
Enterprise Value/Ebitda7.66
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)4.64
Revenue Forecast (FY)$510.00M
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 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 al...
Skillsoft Key Performance Indicators (KPIs)
Skillsoft Earnings Call Summary
Earnings Call Date:Dec 10, 2025
(Q3-2026)
| % Change Since: |
Next Earnings Date:Apr 07, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment with notable advancements in AI-driven platform development and customer retention countered by significant challenges in the Global Knowledge segment and financial performance setbacks. While strategic initiatives show promise, immediate financial metrics depict a struggle.Positive Updates
AI-Driven Platform Development
The next-generation Skillsoft Precipio platform was launched, unifying content, blended learning, hands-on practice, and skills intelligence. Initial customer response has been strong, and the company remains confident in delivering its commitments for FY '27 and beyond.
Negative Updates
Revenue Decline
Total revenue was $129 million in Q3, down $8.2 million or 6% year over year, primarily due to the struggles in the Global Knowledge (GK) segment.
Read all updates
Q3-2026 Updates
Positive
Negative
AI-Driven Platform Development
The next-generation Skillsoft Precipio platform was launched, unifying content, blended learning, hands-on practice, and skills intelligence. Initial customer response has been strong, and the company remains confident in delivering its commitments for FY '27 and beyond.
Read all positive updates
Company Guidance
During Skillsoft's Third Quarter Fiscal 2026 Results Conference Call, several key metrics and strategic decisions were discussed to guide future growth. The company reported total revenue of $129 million, a 6% year-over-year decline, with Global Knowledge (GK) contributing significantly to this drop by accounting for 73% of the revenue decline while representing only 22% of total revenue. The Talent Development Solutions (TDS) segment showed a slight downturn with a 2.1% decrease in revenue year-over-year. The consolidated adjusted EBITDA was $28 million, a 12% decline from the previous year, with GK contributing a negative $3.3 million to EBITDA. The TDS LTM dollar retention rate improved to 99% from 98%, indicating higher customer upgrades. Despite challenges, Skillsoft is optimistic about future growth, emphasizing the strategic transition to an AI-powered platform and content model, and restructuring its go-to-market approach with a focus on enterprise solutions and large customer adoption, which showed a 115% dollar retention rate in Q3. The company anticipates positive free cash flow of between $0 and $5 million for fiscal 2026, excluding GK's impact. Skillsoft is undergoing a strategic review to potentially transition GK to a partnership model, which they believe will align better with company growth goals and market needs.Skillsoft Financial Statement Overview
Summary
Income Statement
40
Negative
Balance Sheet
30
Negative
Cash Flow
35
Negative
| 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
Negative
9.49
Price Trends
6.00
Negative
7.51
Negative
11.18
Negative
Market Momentum
-0.49
Negative
37.94
Neutral
70.44
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 4.01, above the 50-day MA of 6.00, and below the 200-day MA of 11.18, indicating a bearish trend. The MACD of -0.49 indicates Negative momentum. The RSI at 37.94 is Neutral, neither overbought nor oversold. The STOCH value of 70.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | $50.89M | 1.57 | 51.85% | ― | -0.84% | -11.01% | |
64 Neutral | $932.92M | -23.64 | -8.12% | ― | 8.10% | 43.35% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
58 Neutral | $635.80M | 227.74 | 1.74% | ― | 2.53% | 95.79% | |
55 Neutral | $1.19B | 77.54 | -5.25% | ― | -1.51% | 155.73% | |
43 Neutral | $76.54M | -0.97 | -67.91% | ― | -32.37% | 90.99% | |
42 Neutral | $34.60M | ― | -264.56% | ― | -3.55% | 61.83% |
* Consumer Defensive Sector Average
SKIL
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Skillsoft Corporate Events
Business Operations and StrategyFinancial Disclosures
Skillsoft Reports Q3 2026 Financial Results
Negative
Dec 10, 2025
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 st...
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.