Skillsoft (SKIL) Announces Financial Earnings Results For The Fourth Quarter And Full Year Of Fiscal 2025

Skillsoft Corp. (SKIL) today announced its financial results for the recent quarter, revealing a mixed performance. The company reported a quarterly revenue of $133.8 million, surpassing expectations by $5.4 million. However, Skillsoft posted a quarterly diluted earnings per share of -$3.75, which fell short of the estimated -$2.05. Despite the earnings miss, the revenue beat highlights the company’s ability to generate higher-than-anticipated sales.

Key Highlights:

• Skillsoft reported full-year revenue above the top end of its outlook range and adjusted EBITDA at the top end of the outlook range.
• The company experienced strong growth in adjusted EBITDA and margin expansion, with a strong free cash flow performance for the quarter and full year.
• Strategic transformation initiatives have positioned Skillsoft well for continued improvement in fiscal 2026.
• Fiscal 2025 fourth quarter revenue was $134 million, with Talent Development Solutions revenue up 1% from the prior year.
• GAAP net loss for the fiscal year was $122 million, a significant improvement from the previous year’s loss of $349 million.
• Adjusted EBITDA from continuing operations was $109 million, reflecting a margin of 21% of revenue.
• Skillsoft’s financial outlook for fiscal 2026 includes GAAP revenue between $530 million and $545 million and adjusted EBITDA between $112 million and $118 million.

Summary:

Skillsoft Corp. reported its financial results for the fourth quarter and full fiscal year 2025, showcasing a strong performance with revenue and adjusted EBITDA exceeding expectations. The company achieved a total revenue of $531 million for the year, with a notable improvement in GAAP net loss, which decreased to $122 million from $349 million in the previous year. Adjusted EBITDA from continuing operations reached $109 million, representing a 21% margin of revenue. The company’s strategic transformation initiatives have been successful, positioning it for further growth and improvement in fiscal 2026. Skillsoft’s Executive Chair and CEO, Ron Hovsepian, emphasized the company’s strong execution and readiness for continued progress, despite potential macroeconomic challenges.

Looking ahead, Skillsoft has provided a financial outlook for fiscal 2026, projecting GAAP revenue between $530 million and $545 million and adjusted EBITDA between $112 million and $118 million. The company continues to focus on its transformation plan, aiming to return to top-line growth, expand margins, and generate positive free cash flow. Skillsoft’s CFO, Rich Walker, expressed confidence in the company’s ability to execute its initiatives and achieve its financial goals. The company’s efforts in enhancing its ecosystem and integrating with leading technology partners, along with the growing interest in its AI capabilities, are expected to contribute to its future success.

Skillsoft Corp. (SKIL) has experienced a rollercoaster ride in its stock price over the past year, with a remarkable 87.80% increase, despite a tumultuous three-month period where the stock plummeted by 40.64%. The recent one-week gain of 5.10% suggests a potential recovery, although the one-month decline of 5.94% indicates ongoing volatility. Fundamentally, the company faces significant challenges, as evidenced by its negative price-to-earnings ratio of -0.42 and a troubling net profit margin of -61.78%, reflecting substantial losses. The revenue two-year compound annual growth rate (CAGR) of -6.37% further underscores the company’s struggle to grow its top line. Additionally, the return on invested capital stands at a concerning -36.86%, highlighting inefficiencies in generating returns from its investments. These metrics paint a picture of a company grappling with profitability and growth issues, even as its stock price shows signs of resilience. Investors should weigh these fundamental weaknesses against the recent price movements when considering their positions in SKIL.

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.