Skillsoft (NYSE:SKIL) Announces Quarterly Earnings Results, Beats Estimates By $0.34 EPS

Skillsoft (NYSE:SKIL) issued its quarterly earnings data on Wednesday. The company reported $1.17 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.83 by $0.34, FiscalAI reports. The firm had revenue of $98.25 million during the quarter, compared to analysts’ expectations of $99.00 million. Skillsoft had a negative return on equity of 108.05% and a negative net margin of 36.13%.

Here are the key takeaways from Skillsoft’s conference call:

• Revenue guidance was reduced to $380 million–$390 million from $388 million–$406 million, as accelerating weakness in the consumer coding-learning business and AI-driven disruption pressured demand.
• Skillsoft maintained fiscal 2027 adjusted EBITDA guidance of $108 million–$116 million and continuing-operations free cash flow guidance of $14 million–$22 million, supported by cost discipline despite lower revenue expectations.
• The enterprise business showed signs of stabilization, with revenue down roughly 1% year over year, dollar retention improving to 95%, and management citing expanding pipeline activity and early customer adoption of its AI platform products.
• AI product momentum is emerging through LX Design Studio, AI Coach, and CAISY; Skillsoft remains on track for its $5 million platform-bookings target this fiscal year, while CAISY learners increased 23% year over year.
• Debt refinancing remains a major priority, with approximately $575 million of gross debt and $481 million of net debt at quarter-end. The company has formed a board committee and hired advisors, but provided no timeline or outcome for addressing upcoming maturities.

Skillsoft Stock Down 34.1%

SKIL opened at $4.20 on Friday. The firm has a market cap of $37.64 million, a P/E ratio of -0.23, a PEG ratio of 0.21 and a beta of 2.22. The business’s fifty day simple moving average is $7.28 and its 200 day simple moving average is $6.35. Skillsoft has a 52 week low of $3.43 and a 52 week high of $18.45.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Oppenheimer restated a “market perform” rating on shares of Skillsoft in a research report on Thursday. Weiss Ratings upgraded shares of Skillsoft from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Skillsoft currently has an average rating of “Reduce”.

Skillsoft News Roundup

Here are the key news stories impacting Skillsoft this week:

• Positive Sentiment: Skillsoft reported quarterly earnings of $1.17 per share, above the $0.83 analyst consensus and up from $0.92 a year earlier. Skillsoft Corp. Beats Q2 Earnings Estimates
• Positive Sentiment: The company maintained its fiscal 2027 adjusted EBITDA guidance of $108 million to $116 million and free cash flow outlook of $14 million to $22 million, providing some support for its profitability and cash-generation plans. Skillsoft Reports Financial Results for the Second Quarter of Fiscal 2027
• Positive Sentiment: Skillsoft said CAISY learner growth reached 23% year over year, while the number of organizations using the AI platform increased 9%. Management is also targeting $5 million in platform bookings by the end of fiscal 2027.
• Neutral Sentiment: Second-quarter revenue was $98.25 million, slightly below the $99 million analyst estimate and down 3% from the prior-year period. Skillsoft also completed the sale of its Global Knowledge business in July, making year-over-year comparisons less straightforward. Skillsoft Q2 2027 Earnings Call Transcript
• Negative Sentiment: Skillsoft cut fiscal 2027 revenue guidance to $380 million-$390 million from $388 million-$406 million, below the roughly $397.9 million consensus estimate. The outlook reduction was the primary catalyst for the stock’s decline. Skillsoft Cuts Revenue Outlook
• Negative Sentiment: Despite the reported EPS beat, Skillsoft posted a $42.4 million net loss, including $27.4 million from discontinued operations, while revenue remains under pressure. Investors are therefore focusing more on the weaker sales outlook than on the headline earnings beat. Skillsoft Shares Fall on Outlook Cut

Insider Activity at Skillsoft

In other news, Director Jim Frankola acquired 27,000 shares of the business’s stock in a transaction dated Monday, June 15th. The stock was acquired at an average price of $6.05 per share, with a total value of $163,350.00. Following the completion of the transaction, the director directly owned 95,306 shares in the company, valued at approximately $576,601.30. This represents a 39.53% increase in their position. The acquisition was disclosed in a document filed with the SEC, which is available at this hyperlink. 16.20% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Skillsoft

Institutional investors and hedge funds have recently modified their holdings of the company. Bank of America Corp DE increased its stake in shares of Skillsoft by 330.0% during the 4th quarter. Bank of America Corp DE now owns 1,750 shares of the company’s stock valued at $42,000 after acquiring an additional 1,343 shares during the last quarter. Cubist Systematic Strategies LLC grew its holdings in Skillsoft by 20.5% in the first quarter. Cubist Systematic Strategies LLC now owns 9,370 shares of the company’s stock valued at $180,000 after purchasing an additional 1,593 shares during the period. JPMorgan Chase & Co. increased its position in Skillsoft by 6.0% during the third quarter. JPMorgan Chase & Co. now owns 31,174 shares of the company’s stock worth $406,000 after purchasing an additional 1,772 shares during the last quarter. Vanguard Group Inc. increased its position in Skillsoft by 0.7% during the third quarter. Vanguard Group Inc. now owns 257,767 shares of the company’s stock worth $3,356,000 after purchasing an additional 1,841 shares during the last quarter. Finally, State Street Corp raised its stake in Skillsoft by 4.2% during the fourth quarter. State Street Corp now owns 56,560 shares of the company’s stock worth $526,000 after purchasing an additional 2,289 shares during the period. Hedge funds and other institutional investors own 87.00% of the company’s stock.

Skillsoft Company Profile

Skillsoft (NYSE: SKIL) is a leading provider of corporate digital learning solutions designed to help organizations develop skills and drive performance. The company offers a range of cloud-based learning platforms and content libraries that cover technical training, leadership development, compliance, and productivity applications. Skillsoft’s flagship platform, Percipio, delivers micro-learning modules, video tutorials, books and audiobooks, hands-on labs and simulations, and practice assessments within a unified interface that can be accessed on desktop or mobile devices.

Skillsoft’s content spans IT certification preparation, software development, cloud computing, cybersecurity, project management, and a variety of professional skills such as communication, management and sales.