SKIL

Yext (YEXT) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.17 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +23.53%. A quarter ago, it was expected that this software developer would post earnings of $0.13 per share when it actually produced earnings of $0.14, delivering a surprise of +7.69%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Yext, which belongs to the Zacks Technology Services industry, posted revenues of $111.1 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.18%. This compares to year-ago revenues of $113.09 million. The company has not been able to beat consensus revenue estimates over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Yext shares have lost about 16% since the beginning of the year versus the S&P 500's gain of 12.3%. While Yext has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Yext was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.18 on $111.9 million in revenues for the coming quarter and $0.68 on $443.6 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Skillsoft Corp. (SKIL), is yet to report results for the quarter ended July 2026. The results are expected to be released on September 9. This company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -9.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Skillsoft Corp.'s revenues are expected to be $98.64 million, down 23.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Yext (YEXT) : Free Stock Analysis Report Skillsoft Corp. (SKIL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

QXO, Inc. (QXO) came out with quarterly earnings of $0.08 per share, missing the Zacks Consensus Estimate of $0.09 per share. This compares to earnings of $0.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -11.11%. A quarter ago, it was expected that this company would post a loss of $0.09 per share when it actually produced a loss of $0.12, delivering a surprise of -33.33%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. QXO INC, which belongs to the Zacks Technology Services industry, posted revenues of $3.25 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 3.06%. This compares to year-ago revenues of $1.91 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. QXO INC shares have lost about 22.1% since the beginning of the year versus the S&P 500's gain of 13.2%. While QXO INC has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for QXO INC was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $4.91 billion in revenues for the coming quarter and $0.30 on $14.29 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Skillsoft Corp. (SKIL), another stock in the same industry, has yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.83 per share in its upcoming report, which represents a year-over-year change of -9.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Skillsoft Corp.'s revenues are expected to be $98.64 million, down 23.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report QXO, Inc. (QXO) : Free Stock Analysis Report Skillsoft Corp. (SKIL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Revenue decline of ~5% was attributed to legacy headwinds, specifically softness in government bookings from the prior year and anticipated attrition in the consumer segment. Management noted that expected offsets from labor-based offerings like professional services and coaching shifted to later in the fiscal year rather than being lost. The divestiture of Global Knowledge (GK) is intended to sharpen focus on the AI-native skills management platform, where management sees the strongest 'right to win'. A redesigned go-to-market model is showing early returns, evidenced by new platform customer agreements growing 67% quarter-over-quarter from 15 to 25. Strategic positioning is shifting from content vending to high-level partnerships, exemplified by a Fortune 500 energy company using the platform for CEO-level workforce priorities. The company's 'skills ontology'—codified over 20 years—is being positioned as a competitive moat that cannot be quickly replicated by newer AI entrants. Management is prioritizing 'skills intelligence' and 'workforce readiness' over passive content consumption to meet enterprise demand for measurable business outcomes. Refinancing the company's debt maturities is the top management priority immediately following the expected second-quarter close of the GK transaction. Full-year fiscal 2027 guidance remains unchanged, assuming that leading indicators like improved bookings and pipeline will convert to revenue in future quarters. The GK divestiture is expected to be accretive to growth rates and earnings by eliminating a business that has been in decline for many years. Free cash flow for continuing operations is projected to follow normal seasonality, with cash consumption in Q2 and Q3 followed by generation in Q4. Management expects the elimination of GK's operating losses to have a favorable impact on overall profitability and cash flow beginning in fiscal year 2028. The GK sale is expected to result in a short-term liquidity reduction of as much as $25 million in Q2 due to transaction costs, a requirement to leave $8 million in cash with the business, and ongoing operating losses. A transition services agreement and a strategic partnership will remain with the buyer to ensure customers still have access to blended learning experiences. The consumer business remains a significant headwind, declining 21% year-over-year during the first quarter. Management flagged a 53-point gap between leader and employee perceptions of AI readiness as a significant market opportunity and execution risk for clients. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management will redeploy focus toward accelerating growth and executing the debt refinancing once the transaction closes. The partnership with the buyer includes a $60 million plus pipeline and joint bids for blended learning experiences totaling approximately $8 million to $10 million. The 105% DRR in Q1 was a significant improvement from 91% in the prior year, though management expects some quarterly fluctuations. The long-term goal is to maintain a consistent DRR between 105% and 107% through initiatives aimed at reducing churn and increasing platform adoption. Adoption is currently running ahead of internal targets, leading management to increase their goals for the year. The growth to 25 new platform contracts is primarily coming from existing customers, which helps protect the core base of business.

This article first appeared on GuruFocus. Release Date: June 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Skillsoft Corp (NYSE:SKIL) reported a 67% quarter-over-quarter growth in new platform customer agreements, indicating strong market acceptance of their platform innovation strategy. The company achieved a dollar retention rate of 105% in the first quarter, reflecting strong customer retention and engagement. Skillsoft Corp (NYSE:SKIL) is focusing on AI-driven skills management, which is expected to enhance workforce readiness and business outcomes. The divestiture of the Global Knowledge segment is expected to simplify operations and sharpen the company's focus on its core business. The company maintained its full-year fiscal 2027 guidance, indicating confidence in its strategic direction and financial outlook. Skillsoft Corp (NYSE:SKIL) experienced a 5% year-over-year decline in revenue, driven by softness in government bookings and a decline in the consumer business. The company reported a GAAP net loss from continuing operations of $18.7 million for the first quarter. There was a 21% year-over-year decline in the consumer business, impacting overall revenue performance. The anticipated revenue from labor-based offerings such as professional services and coaching was deferred to later periods, affecting short-term financial results. The company faces upcoming debt maturities, which will require refinancing efforts to address financial obligations. Warning! GuruFocus has detected 3 Warning Signs with SKIL. Is SKIL fairly valued? Test your thesis with our free DCF calculator. Q: Can you discuss where you plan to focus the extra bandwidth post the divestiture of Global Knowledge (GK) and provide additional color on the partnership dynamics or financial impact of the separation? A: The extra management bandwidth will focus on accelerating growth and debt refinancing. The partnership with GK is strong, with strategic accounts and big deals in the pipeline, potentially generating $8 to $10 million in revenue. The relationship will continue with content sharing and new product development. - Ron Hosefian, CEO Q: Were there any strategic actions for the remaining core that required the completion of the GK sale to move forward? A: There are no significant strategic actions pending the GK sale. The focus remains on closing the transaction and moving towards debt refinancing. The company is concentrating on product development and AI initiatives. - Ron Hosefian, CEO Q: What were the dynamics behind the Q1 revenue decline, and was there any distraction from the GK sale? A: The decline was driven by softness in government contracts and a 21% year-over-year decline in the consumer business. However, leading indicators like a 105% DRR and higher bookings suggest a strengthening business. There was no distraction from the GK sale. - Ron Kisling, CFO Q: How should we think about the timeline for the upward trajectory of the DRR after the headwinds in the first half of '26? A: The goal is to maintain a DRR of 100% or better, aiming for consistent DRR of 105-107%. The focus is on maintaining and growing DRR over time, with fluctuations expected quarterly. - Ron Kisling, CFO Q: Can you speak about the adoption pace of the new Percipio platform and how upgrade rates are trending? A: The adoption pace is ahead of internal targets, leading to an increased target. The platform has signed 25 new contracts, primarily with current customers, positively impacting DRR. The market reaction to the skills management story has been very positive. - Ron Hosefian, CEO For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Tuesday, June 9, 2026 at 5 p.m. ET Executive Chair and Chief Executive Officer — Ronald W. Hovsepian Chief Financial Officer — Ronald W. Kisling Vice President, Investor Relations — Chad W. Lyne Chad W. Lyne: Thank you, operator. Good day, and thank you for joining us to discuss our results for the first quarter ended 04/30/2026. Before we jump in, I want to remind you that today's call will contain forward looking statements about the company's business outlook and our expectations that constitute forward looking statements within the meaning of the U. S. Private Securities Litigation Reform Act of 2 thousand. Including statements concerning financial and business trends our expected future business and financial performance, financial condition and market outlook. These forward looking statements and all statements that are not historical facts reflect management's current beliefs, expectations and assumptions and therefore are subject to risks and uncertainties that could cause actual results to differ materially from the conclusions, forecasts, estimates, or projections in the forward looking statements made today. For a discussion of the material risks and other important factors that could affect our actual results, we refer you to our most recent form 10 k Form 10 Q filed today, and other documents that we file with the Securities and Exchange Commission. We assume no obligation to update any forward looking or information which speak as of their respective dates. During the call, unless otherwise noted, all financial metrics we discuss other than revenue will be non GAAP financial measures. Are not prepared in accordance with generally accepted accounting principles. For example, listeners should be cautioned that references to phrases such as adjusted EBITDA, free cash flow denote non GAAP financial measures. Non GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. Presentation of the most directly comparable financial measures determined in accordance with GAAP as well as the definitions, uses, and reconciliations of non GAAP financial measures included in today's commentary to the most directly comparable GAAP financial measures are included in our earnings press release, which has been furnished to the SEC on Form 8 ks and is available at the at www.sec.gov. It is also available on our website at www.skillsoft.com. Note that we do not provide reconciliations for forward looking non GAAP financial measures. As we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. In addition, as of 04/30/2026, Skillsoft's GK segment was classified as discontinued operations, making the TDS segment the only remaining segment. Prior period results have been recast to conform to the current presentation. Adjusted EBITDA from continuing operations is our current segment measure of profit. Reconciliation of this measure to net income loss from continuing operations is included in our earnings press release for the fiscal quarter ended April 30, 26, as described above as well as Note 13 to the unaudited condensed consolidated financial statements. Included in Skillsoft's most recent Form 10 Q. Following today's prepared remarks, Ronald W. Hovsepian, Skillsoft's executive chair and chief executive officer Ronald W. Kisling, Skillsoft's Chief Financial Officer, will be available for Q&A. With that, it is my pleasure to turn the call over to Ronald W. Hovsepian. Ronald W. Hovsepian: Thanks, Nick, and good afternoon. Thank you to everyone for joining us today. I want to welcome Ronald W. Kisling to Skillsoft as our new chief financial officer. Ronald brings more than 40 years of finance experience including 15 years as CFO at high growth technology companies. His work at Fastly, Fitbit gives him a strong foundation for what we are building here. I am confident his discipline and judgment will be valuable as we enter the next phase of the company's transformation. I also want to thank John Wilbert Frederick for his contributions and partnership as we advanced our transformation over the past year. For our first quarter results, revenue declined ~5% on a year over year basis. 2 expected factors drove this. Booking softness in our government business in the first half of last year and anticipated declines in our consumer business. Expected a portion of these declines to be offset by labor based offerings with more immediate revenue recognition. Such as professional services and coaching. However, those opportunities shifted to periods later in this fiscal year. The underlying business is performing in line with our plan, and strategic progress is visible in the number New platform customer agreements grew 67% quarter over quarter from 15 to 25. And our dollar retention in the first quarter reached 105%. These results reflect early returns from our redesigned go to market model and platform innovation strategy. In Q1, we saw higher year over year bookings strong top of funnel engagement, expanding pipeline, and increasing average deal size. Today, I want to focus my remarks on 4 themes. First, the expected closing of the announced agreement for the divestiture of Global Knowledge will sharpen our focus and further simplify the company. Second, our transformation efforts to accelerate our path to enterprise growth through product innovation and go to market improvements, Third, AI is increasing the urgency and strategic value of what we deliver. Fourth, once the GK transaction closes, refinancing our debt will be a top management priority. We believe that combined, themes reflect a more focused company with clearer operating model and a more direct path to durable growth. Let me start with global knowledge. As we announced in May, we entered into a definitive agreement to sell the GK business to an affiliate of Enduring Ventures with an expected fiscal Q2 closing. With that expected close of the transaction, we are simplifying how we refer to our remaining business. What had been reported as our TDS segment will simply be referred to as Skillsoft. We believe this is the right direction for Skillsoft. GK served an important purpose, but post close, we will concentrate fully on our AI native skills management platform. Where we see the greatest opportunity to help organizations build workforce readiness and improve the impact of skills on business outcomes. This is where we have the biggest opportunity to accelerate growth with the strongest right to win. Upon successful completion of the transaction, we believe overall the financial impact will be near neutral while maintaining a strategic partnership for our customers. We expect the transaction to be accretive to growth rates and earnings. It strengthens our recurring revenue profile improves free cash flow visibility, and puts us in a better position to address our capital structure once the deal closes. That brings me to the second theme. Over the past several quarters, we have significantly redesigned our go to market model. Aligned sales resources more tightly to enterprise opportunities and continue to refine our product experience in ways that matter to our customers. Our Skillsoft platform is differentiated by bringing together content, skills intelligence, assessment, and AI enabled experiences in 1 system. As organizations look for partners who can connect learning activity to workforce capability and business outcomes. We believe that approach is resonating more clearly. As we closely watch the market evolve, we see customers who are transforming their organizations and preparing to lead in an AI world. A Fortune 500 global energy company left a competing vendor and returned to Skillsoft. They made our platform their enterprise wide learning and development front door to their HRIS system. They are using Skillsoft to address their 3 CEO level workforce priorities. Closing critical engineering succession gaps, executing a company wide AI upskilling program, and building the next generation of leadership pipelines. This is not a content vendor relationship. This is a strategic partnership at the highest level of business decision making. A leading US government contractor with over 8 thousand professionals, whose technical certifications directly determine billing rates replace their existing vendor with Skillsoft. Result was a 7x return on investment. $2.7 million in business value, and 82% of learners improving 426 benchmarks. They credit Skillsoft with transforming their learning function from a compliance cost to a driver of revenue and retention. By eliminating the drag from GK on continuing operations, the underlying progress we have made becomes easier to see. We have more work to do, but we are realistic about the pace. But improvements in retention, growth of platform adoption, and strong customer engagement support our view that the business is moving forward toward a more sustainable growth trajectory. Now let me turn to AI. Why we believe it is increasing the urgency and strategic value of what we do. AI is widening the skills gap faster than most organizations can close it. And that is driving demand for solutions that can translate AI into execution and measurable outcomes. Tomorrow, we are releasing our Skillsoft workforce readiness report. Which found that only 1 in 4 employees feel AI ready. Their reports surveyed 2,000 employees, managers, and executives globally. It uncovered a 53-point gap between how leaders and rate AI readiness. And found that 11% of their employees are assessed using formal skills benchmarks. These findings represent more than learning gaps. They are business execution risks and they underscore why platforms that can measure skills validate readiness, connect learning to outcomes, are becoming more important. This quarter, we released the AI powered skills visibility dashboard that gives managers real time intelligence into team capabilities. skilling progress, and readiness gaps. That is a direct response to what the enterprise buyers are telling us they need. Better visibility into whether their workforce is actually ready. We have spent the last 20 years delivering curated learning to enterprise workforces across many industries. That work has taught us which skills matter for which roles, how skills build on each other, and how skill development connects to business performance. We have codified all of that into our Skillsoft platform. We call this our skills ontology. And it is not something that can be built quickly. It is the foundation that makes our platform accurate, trusted, and governed in ways that matter to enterprise buyers. Offerings like KC and LX Design Studio build on that foundation. Helping customers move beyond passive consumption of learning content toward practice, simulation, and custom content creation at scale. Customers are looking for trusted partners who can help them securely and responsibly apply AI in ways that drive measurable business outcomes. Our combination of curated and blended learning journeys, skills intelligence, assessments, AI powered simulation, and the ability to prove impact is designed to do exactly that. Once the GK divestiture is complete, addressing our upcoming debt maturities will be management's top financial priority. We recognize this is important to all of our stakeholders. We will evaluate all alternatives with discipline and urgency. The actions we are taking to simplify the company improve leverage, and strengthen free cash flow visibility are all designed to give us maximum flexibility as we approach that work. To summarize, we have made meaningful strategic and operational progress. We have a simpler portfolio, a more focused operating model, a platform that enterprise customers are using to transform their businesses. Customers I described today are treating Skillsoft as a strategic partner and that reflects the market is moving in our direction. Demand for platforms that can deliver these skills visibility validate capability, and business aligned outcomes is growing. We believe Skillsoft is increasingly well positioned to translate that into durable value creation over time. There is still work ahead, and we remain realistic about the environment and the tasks in front of us. But the direction is clear. We are building a stronger company with a clear strategy and a more compelling long term profile. With that, let me turn the call over to Ronald W. Kisling to cover our financial results in more detail. Ronald? Ronald W. Kisling: Thank you, Ronald, and good afternoon, everyone. Before I move into the financials, I want to start by saying how excited I am to be joining Skillsoft at such an important time for the company. I was drawn to the clarity of the mission, the strength of the leadership team, and the opportunity to help advance a business that enables organizations to build the work capabilities they need to compete in an AI driven world. I am looking forward to partnering with Ronald and the Skillsoft team to build on the progress already underway. As a reminder, and as noted at the beginning of the call, consistent with prior quarters, our discussion will focus on non GAAP measures unless otherwise stated. Additionally, as noted in today's earnings release, and as Ronald discussed earlier on our call, our Global Knowledge business is now classified as discontinued operations. As a result, unless stated otherwise, the financials discussed today relate to our continuing operations which are comprised of our Talent Development Solutions business, which as Ronald discussed earlier, will simply be referred to as Skillsoft. Now turning to the results for the first quarter. Total revenue was $94.5 million down 4.7% over Q1 26 and our DRR was 105% in the first quarter. Up significantly from 91% in Q1 26. Our LTM dollar retention rate or DRR as of the first quarter 98% compared to 99% in the prior year quarter. Overall, revenue and LTM DRR were impacted by softness in government bookings in the first half of fiscal year 2026. Revenue was also impacted by anticipated declines in our consumer business. I will now turn to our expenses which continue to see year over year improvements. Cost of revenue was $15.7 million in the first quarter or 16.7% of revenue down 3.3% year over year largely reflecting the variable nature of our delivery model, and lower revenue volume in the quarter, partially offset by sales mix and increased technology related investments. Overall, adjusted total operating expenses were $67.9 million in the first quarter, or 71.8% of revenue, down $4.5 million or 6.2% year over year. Turning to the functional areas. Content and software development expenses were $12.7 million in the quarter, up approximately 4.8% year over year at 13.4% of revenue. Our selling and marketing expenses were $26.3 million in the first quarter down approximately 8.4% year over year or 27.8% of revenue, reflecting the benefit of lower spending due to the go to market redesign. And general and administrative expenses were $13.2 million in the first quarter, down approximately 13.7% year over year or 13.9% of revenue. Our adjusted EBITDA from continuing operations of $26.6 million was essentially flat compared to $26.8 million in the prior year's comparable quarter. With adjusted EBITDA margin as a percentage of revenue for the quarter improving to 28.2% from 27.1% in the prior year. Our GAAP net loss from continuing operations was $18.7 million in the first quarter compared to a GAAP net loss from continuing operations of $29.6 million in the prior year period. GAAP net loss per share from continuing operations was $2.12 compared to a $3.56 loss per share the prior period. Our adjusted net income was $10.2 million or $1.16 per share in the first quarter compared to an adjusted net income of $9.5 million or $1.15 per share in the prior year. Now moving to cash flow and balance sheet highlights. GAAP cash equivalents and restricted cash were $118 million at quarter end and our consolidated free cash flow for the first quarter was $25.4 million compared to $26.2 million in the prior year period. Total gross debt on a GAAP basis which includes borrowings on our term loan and accounts receivable facility, was $576 million at the end of Q1, down slightly from approximately $580 million at the end of the prior year period. Total net debt, which includes borrowings on our term loan and accounts receivable facility net of cash, cash equivalents and restricted cash was approximately $457 million down from approximately $481 million at the end of the prior year period. And lastly, our full year fiscal 27 guidance remains unchanged. We expect revenue of between $388 million and $406 million and adjusted EBITDA from continuing operations of between $108 million to $116 million or approximately 28% of revenue. We expect free cash flow for our continuing business operations in the range of $14 million to $22 million While we are encouraged by the strong cash collections in the first quarter, similar to last year, and in line with normal seasonality, we expect to consume cash in our continuing operations in the second and third quarters we then expect to generate free cash flow in the fourth quarter of the year all of which is reflected in the guidance range we have provided. While I am still only a few weeks into my role at Skillsoft, I am very excited that we are in the final stages of the process to complete the sale of Global Knowledge. We believe this transaction has tremendous strategic value for our shareholders and allowing us to focus on our key mission and capabilities. The global knowledge business has been in decline for many years. Our transformation efforts and specifically our repositioning towards large strategic accounts is having an impact and starting to show in our results with a revenue decline that slowed to 2% the most recent quarter. We continue to be excited to work with Global Knowledge in the future as a key strategic partner that will allow both companies to grow and meet the evolving needs of our customers. As a reminder, in recent quarters, we have not provided guidance for the Global Knowledge business. And our free cash flow guidance provided last quarter for fiscal year 27 also excluded the impact of Global Knowledge. While there are still uncertainties with respect to the timing and ultimate close of the planned sale, as well as the level of post closing support that will be required under transition services agreement. We want to share the estimated impact of the Global Knowledge business and transaction on our free cash flow and liquidity. Consistent with recent experience, we expect Global Knowledge to continue to incur adjusted EBITDA loss of between 10 million and $15 million on an annualized basis which closely mirrors Global Knowledge's free cash flow. Assuming the Global Knowledge transaction closes in the second quarter as expected, once the divestiture of Global Knowledge and the related transitions are complete, we anticipate this negative impact on our profitability and cash flow will be eliminated and will have a favorable impact beginning in fiscal year 2028. From a total company liquidity standpoint, as previously disclosed, we expect proceeds net of cash divested and excluding anticipated transaction costs of between $5 million and $8 million over a period of 2 years following the closing of the Global Knowledge transaction. Currently, we expect transaction related costs to be approximately $8 million to $10 million And as a result, we expect the overall transaction impact on long term liquidity to be neutral to slightly below neutral. Due to the deferred nature of the payments we anticipate receiving under the sale, the impact of global knowledge on total liquidity differs in upcoming periods when considering the combined impact of free cash flow transaction related costs, and transaction proceeds For the quarter ended 07/31/2026, assuming the sale closes, we expect a reduction in liquidity of as much as $25 million attributable to Global Knowledge and the related sale driven by a requirement leave a minimum of $8 million of cash with the business upon sale, the payment of approximately $8 million to $10 million of onetime transaction related expenses and ongoing operating losses. For the fiscal year ended 01/31/2027, which includes the first payment due from the buyer, we expect the total reduction as a liquidity of between $15 million and $20 million attributable to Global Knowledge. Under the terms of the agreement, we expect to receive an additional $4 million in proceeds in each of fiscal years 2028 and 2029 which is reflected in our estimates of net proceeds from the transaction. Before I turn the call back over for questions, I would like to remind stockholders our Annual Meeting of Stockholders will be held on June 25, Stockholders of record are encouraged to vote their shares in a timely manner in accordance with our annual meeting procedures. Operator, please open the line for questions. Operator: Thank you. We will now conducting a question-and-answer session. Before pressing the star key. Our first question comes from the line of Nancy Liu with Oppenheimer. Please proceed. Analyst: Great. Thanks for taking my questions and apologies for any background noise here. Just on the GK sale post the divestiture, can you talk about where you plan to focus the extra bandwidth if you could provide any additional color on the partnership dynamics or the financial impact for the separation, that would be great. Ronald W. Hovsepian: Yes. Hi, Nancy. How are you? Thank you for the question. If I heard you correctly, it was where do we expect to put the extra management bandwidth and to a little more information on where the partnership is and where that is going, I think, what I heard correct. Is that correct, Nancy? Yep. that is correct. Great. On the on your first part of the question, gonna go into 2 pieces. 1, the continued transformation and acceleration around growth is where we will deploy more management focus that is already begun. As part of it. And as we reflected in our comments, we were able to see some of that growth in the bookings in the in the first quarter that we referenced and solid pipeline. 2, the second area we will go to from a financial perspective is really focusing on the debt refinancing Those are the 2 key priorities of where I would deploy the management energy and focus for the company is what Ronald and I have discussed and prioritized. In terms of the partnership, we have had a very good working relationship with the global knowledge team. And, as I look at the pipeline and what we shared with the investors on the call, we did 1 thing very importantly. We focused on strategic accounts and winning a number of big deals. Those big deals have landed We have landed a very nice pipeline of some 60 plus million as part of that journey. And what is very exciting there is more coming through the pipeline, and that had a positive impact on their revenue slowing their decline. A lot time wise. It just did not fit our time horizon. So what is exciting about the relationship right now is I know of 3 deals right now that I have been associated with in the team that are tied to that partnership agreement, which is where we are combining a blended learning experience and bringing that blended learning experience to life at the customer. And there is there is several bids out there that add up to roughly $8 million to $10 million, and I know that we are looking at just on those 3 alone that we are focused on. So I am very excited about what that could bring for revenue jointly. And then we are gonna continue to talk about the partnership in other ways there is content from our side that they can use as well. That we have begun to migrate and give them access to, quote unquote, license. And that is turned into new products for global knowledge. Coming off of our base. So we see the relationship continuing. And I am excited to continue to be a good distribution partner to them and for them to use and leverage our content. Because that is what the customers want. They do want that piece of it. It just did not fit our time horizon in business. Model. Got it. That makes sense. And were there any strategic for the remaining core that required the completion of the GK sale to kind of move forward on? Not that I can think of. there is nothing here that is hitting me in your question, Nancy. We are just gonna stay very focused on getting that transaction closed and then moving right towards the debt refinancing. I think strategically, everything's in place around that execution effort. And, from the company perspective, us continuing to push on 2 dimensions, 1, where we are going with the product and all the AI work we have done to date and what we have delivered. We delivered in Q1, the first version of the of the LX Studio, the content creation part of the platform. We also are delivering the skills intelligence piece of it. So those 2 pieces of the platform that are build on built on foundational labs type componentry off of that same model. Are under are well underway. As we work on it. So I think our other strategic initiatives relate to the company are really well focused and underway as part of it. I do not see anything significant at this point that Ronald or I would call out to all of you to pay attention to. it is now just staying more focused on what we are doing and continuing to see what we saw in the in the, in the backlog and the pipeline that I referenced in my comments. Understood. Appreciate that. Analyst: And then on the quarter, there any particular dynamics you would call out from 1Q around the GDS decline? How much of that was consumer softness and the earlier government booking softness? Offsetting the better pipeline and deal size dynamics you called out. Or maybe perhaps was there any distraction from the GTL across the broader sales world? Ronald W. Kisling: Yes. that is a good question. I think when you look at the decline you know, it was really driven by the softness we saw in government contracts in the first half of last year as well as the continued decline in our consumer business, which is down 21% year over year. That drove that know, impact. Particularly in the quarter, the other dynamics that know, Ronald spoke about and I mentioned is that the leading indicators that we are seeing in the quarter that convert into revenue in future quarters looked very healthy and strong. We saw DRR of 15% in the quarter. And higher bookings on a year over year basis that I think reflect the strengthening of the business And I think it is fair to say we did not see any distraction in the in the TDS business. From the activities that were taking place on the GK transaction. Ronald W. Hovsepian: Yeah. Nancy and I would just add I would just add a little smidge to that on what Ronald said. This additional color. When Ron referred to the declines that happened last year in the bookings on the lost contracts. As you know, it is a 12-month to 15-month cycle as we go through it. So we are just finishing feeling that first half impact from the government contract losses, and a little bit of the consumer, as Ronald said. We expected to make some of that back up with our labor based business as Ronald mentioned in his prepared comments, and I did in mine as well, I believe. Those pieces, just got deferred on the calendar a little bit. So we still see those pieces coming as part of it, and that is why Ronald maintained the guidance as he went through the some of those numbers here. So other than that, I feel very comfortable where we are. We are right in the range that we said we would be. With just that 1 piece that we overcome. The good news is those bookings that Ronald referred to is, obviously, we get we get the benefit of that happening throughout the full year. So again, maintaining our guidance is the right way to look at the business at this early stage. Got it. I appreciate that. And then, as you mentioned, it is nice to see the 105% spend in the DRR this quarter. I know you mentioned there is a little bit of that lag effect I was wondering how should we think about the time line towards the upward trajectory after some of those headwinds impacting the first half of 26 subside? Yes. Are you talking about the revenue trajectory? The DRR trajectory. Yeah. The DRR. DRR. Rich. And which is, like, 2. Yeah. it is all linked. Yeah. Ronald W. Kisling: I think when we when we look at DRR, you know, we want it to be 100% or even better than that. We start to see a return. And over time, we would like to see consistent, you know, DRR, you know, 105, 107% So I think from a trajectory perspective, we are seeing progress toward where we ultimately want to be, and the focus is gonna be on maintaining and growing that DRR over time. You know, on the quarterly DRR, you know, you are gonna see some fluctuations. From quarter to quarter with the ultimate trend should be flat to up from what we saw in Q1. Ronald W. Hovsepian: Yeah. And the programmatic piece is that build on what Ronald's saying is we put in place a couple of big changes. We redefined our model in Q3 last year and rolled that out. That has brought a very clear go to market model for us with our customers. Behind that, the programs that we put in place are around improving churn rate while improving the overall growth trajectory. Those are things that are in place in play right now, and we saw some good performance come out of that in the quarter, which is great. Rich, as part of the overall journey. So if we can keep that kind of, work going throughout the full year, that will put us in line with the plan that we had laid out. Analyst: Got it. Perfect. And you mentioned some of those churn initiatives. Just on the guide, you talk a little bit more about some of those business dynamics you are baking in kind of at the low end, at the top end and what the progression through the year could look like? And that kind of gives you that confidence to maintain outlook with the 1 you just saw. Ronald W. Kisling: Yeah. So I think we talked a little bit about the dynamics in Q1, particularly some of the leading indicators, which gave us confidence that, you know, the guidance outlook on the revenue the 2088 to 04/2006, that we that the company had set at the end of February on the Q4 call. is the right way to go. I think a couple of comments I would make, you know, relative to that guidance is that guide does take into account some reflection of, you know, some level of variability and risk in the macro economy. I do not want to call that conservatism or, basically, just looking at what the environment is. It does reflect that in the business. And so that is really kind of the thinking point is to, you know, maintaining it. I think, you know, the you know, we are still focused on, you know, the AI leverage both on the revenue you know, and the cost side. But from a-- given the leading indicators that we see, we feel that we are very on track to the plans that we had at the beginning of the year. Analyst: Understood. And then shifting to the new Precipio platform, could you speak more about the pace of adoption relative to your internal expectations and how the upgrade rates are trending across the expanded group to 67% growth? Ronald W. Hovsepian: Yes. Happy to. We set an internal target for the year. And we are running ahead of that target for the year. I have actually increased the target. So, obviously, we are excited about that. And as I shared with you on this call, now up to 25 new platform contracts that have been signed with current customers, primarily. Which is great because we want to make sure we protect that. That base of business. And that is helping drive that DRR in a nice way. So the reaction in the market has been very positive to the skills management story or the skills supply chain story, and, we are fine tuning how we deliver that distinct need and what that means to the market. As it relates to business outcomes for the customer and as it relates to the technology they need to do that. So we are very pleased with what we are getting for feedback from our customers on the products as well as well as, what we are seeing in the reaction to it. So tell you the numbers and the and the reaction has been really, really good, and we will keep you posted on that as the year unfolds here. Great. Super helpful. And then with some CFO transition, congrats, John, on the upcoming retirement, and welcome, Ronald. Wondering what the transition brings in terms of any potential changes to focus priorities or philosophy in the upcoming year? Yeah. I will let Ronald speak to if he sees anything at this early stage and in fairness to him. But everything he and I have spoken about today aligns with the plans that we had mapped out. We are gonna maintain our focus to go get that debt refinance upon closure of this. And really focus the business on growth and I am appreciative of what John did to help us get to this stage. It was a natural break here as part of it towards his retirement. And then moving forward, really, on that core plan, that we had laid out here as a really piece of it. I am sure Ronald will make his adjustments as we get into the game further. As he sees things. But this next big lift is around the debt refinancing and really helping the company get to the next level of operationalization, in this in this simplified model, if I could say it that way. there is there is a lot of work to be done there that has not been identified, or I should not say it that way. It has been identified, but the plans are not all in place for all of it. The work we have to do. And we spent time as a leadership team just last week on that as a group. Yeah. Ronald W. Kisling: And the only other to add, you know, we talked extensively to you know, ahead of time, and I think in from the priorities, I think we are very much aligned Completing the GK, you know, transact transaction sets us up, I think, for a lot of opportunities to simplify the business, and you know, I want to really focus and take advantage of that simplification both in terms of the focus in our business, the focus that we are able to drive across go to market and our product organizations, but also across you know, the efficiencies we can make with a more simplified business and using that to leverage, you know, the transformation that we are doing is we are driving toward improving, you know, the revenue growth and, very much focused on adjusted EBITDA and cash flow. Ronald W. Hovsepian: Yeah. When Ron talked about that last week at the off-site, also, the other thing that you know, struck both of us was the importance of that in the refinancing as well. Yeah. Putting that part of the work that is being done there. To highlight that as part of it, Nancy, to your question. So but at the at the very top of the waves, steady as she goes. I should say steady. Faster. Faster, faster, faster is my request from the teams. And runs up for that challenge and I am really excited to have him here with all the background and experience that he brings to the company, to the team, and in each 1 of these areas. Because he is very engaged, and we all saw that last week as with the leadership team. Yeah. Ronald W. Kisling: I understand. I think it is a very well-thought-out transition of or timing of completing GK, you know, sets us up for the conversations in terms of getting the debt. And I think with those 2 things addressed, really allows the focus on the transformation, dealing with the simplified business, to really drive business outcomes. Analyst: that is it. Awesome. Appreciate the color and the thoughtful response here. that is it for me. Thanks, guys. Ronald W. Hovsepian: Thank you, Nancy. Ronald W. Kisling: Thank you, Nancy. Operator: Thank you. There are no further questions at this I would like to pass the call back over to management for any closing remarks. Ronald W. Hovsepian: Yes. This is Ronald Hovsepian. Again, very nice welcome in to Ronald for being here with us. Excited about what he will bring in his leadership and what he can do there. As I look at the quarter in the business overall, I would tell you that I am pleased with the leading and what they were pointing to. I would have liked to have made up that, expected revenue that slid a little bit, on the labor based part of our business, the professional services and the and the coaching aspect of it, but it did not slide out of the plan And where the pipeline is right now also, as I spoke to that, was very different than how it is been here in years past in terms of the coverage and where we are. So those pieces to me give me a lot of enthusiasm for where we are going. And then, getting the GK transaction signed was a gigantic step forward in the simplification of business and starting to really position us well for the next step of getting the debt refinancing done. And then really letting that growth start to shine through here as part of our overall journey. So, stay tuned. I look forward to our next update. And thank you for all the help. And talk to everybody soon. Thank you. Operator: This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation. Before you buy stock in Skillsoft, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Skillsoft wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of June 9, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Skillsoft (SKIL) Q1 2027 Earnings Transcript was originally published by The Motley Fool

Interested in Skillsoft Corp.? Here are five stocks we like better. Skillsoft’s Q1 revenue fell 4.7% year over year to $94.5 million as government booking softness and declines in the consumer business weighed on results. Even so, adjusted EBITDA margin improved to 28.2% and operating expenses declined. The company expects to close the sale of Global Knowledge in fiscal Q2, which management says will sharpen Skillsoft’s focus on its AI-native skills management platform and eventually improve profitability and cash flow. Management also said debt refinancing will become the top financial priority after the deal closes. Platform adoption and retention are improving, with new platform customer agreements up 67% sequentially and dollar retention at 105% in the quarter. Skillsoft also said AI-related product adoption is ahead of internal targets and kept its full-year fiscal 2027 guidance unchanged. Skillsoft Stock is a Labor and Talent Development Play Skillsoft (NYSE:SKIL) reported lower first-quarter fiscal 2027 revenue as expected weakness in government bookings and the company’s consumer business weighed on results, while management pointed to improving customer retention, platform adoption and bookings as signs that its transformation plan is gaining traction. On the company’s earnings call for the quarter ended April 30, 2026, Executive Chair and Chief Executive Officer Ron Hovsepian said revenue declined about 5% year over year, driven by “booking softness in our government business in the first half of last year” and “anticipated declines in our consumer business.” He said some expected offsets from labor-based offerings, including professional services and coaching, shifted to later periods in the fiscal year. → Meta Unveils Subscriptions: A New Offering With Real Growth Potential “The underlying business is performing in line with our plan, and the strategic progress is visible in the numbers,” Hovsepian said. He cited new platform customer agreements rising 67% sequentially, from 15 to 25, and dollar retention reaching 105% in the quarter. Chief Financial Officer Ron Kisling, who recently joined the company, said first-quarter revenue from continuing operations was $94.5 million, down 4.7% from the prior-year period. The company’s continuing operations are comprised of its Talent Development Solutions business, which management said will be referred to as Skillsoft after the planned sale of Global Knowledge. → Planet Labs: Coming Back Down to Earth Kisling said first-quarter dollar retention rate was 105%, up from 91% in the prior-year quarter. The last-12-month dollar retention rate was 98%, compared with 99% a year earlier. He said revenue and last-12-month retention were affected by softness in government bookings in the first half of fiscal 2026, while revenue was also pressured by declines in the consumer business. Adjusted EBITDA from continuing operations was $26.6 million, essentially flat with $26.8 million in the year-earlier quarter. Adjusted EBITDA margin improved to 28.2% from 27.1%. → The Energy Trade Is Bigger Than Oil Prices: 3 Stocks to Buy and 2 to Sell Skillsoft reported a GAAP net loss from continuing operations of $18.7 million, compared with a loss of $29.6 million in the prior-year period. GAAP net loss per share from continuing operations was $2.12, compared with a loss of $3.56 per share a year earlier. Adjusted net income was $10.2 million, or $1.16 per share, compared with $9.5 million, or $1.15 per share, in the prior-year quarter. Total adjusted operating expenses were $67.9 million, down $4.5 million, or 6.2%, year over year. Selling and marketing expenses fell 8.4% to $26.3 million, reflecting lower spending following the company’s go-to-market redesign, while general and administrative expenses declined 13.7% to $13.2 million. A major theme of the call was Skillsoft’s pending sale of its Global Knowledge business to an affiliate of Enduring Ventures. Hovsepian said the transaction is expected to close in fiscal Q2 and will allow Skillsoft to concentrate on its “AI-native skills management platform.” “We believe this is the right direction for Skillsoft,” Hovsepian said. “GK served an important purpose, but post-close, we will concentrate fully on our AI-native skills management platform, where we see the greatest opportunity to help organizations build workforce readiness and prove the impact of skills on business outcomes.” Kisling said Global Knowledge has been in decline for many years and is expected to continue generating adjusted EBITDA losses of $10 million to $15 million on an annualized basis until the divestiture and transition are complete. He said eliminating that negative impact should benefit profitability and cash flow beginning in fiscal 2028. From a liquidity standpoint, Kisling said Skillsoft expects proceeds net of cash divested and excluding transaction costs of $5 million to $8 million over two years after closing. Transaction-related costs are expected to total approximately $8 million to $10 million, making the long-term liquidity impact “neutral to slightly below neutral.” For the quarter ending July 31, 2026, assuming the sale closes, Skillsoft expects a liquidity reduction of as much as $25 million tied to the sale, including cash left with the business, transaction expenses and operating losses. Management said that after the Global Knowledge transaction closes, refinancing debt will become a central focus. Hovsepian said addressing upcoming debt maturities will be “management’s top financial priority” and that the company will evaluate alternatives “with discipline and urgency.” At quarter end, Skillsoft had GAAP cash, cash equivalents and restricted cash of $118.4 million. Total gross debt, including borrowings on the company’s term loan and accounts receivable facility, was $576 million, down slightly from about $580 million a year earlier. Net debt was approximately $457 million, down from about $481 million in the prior-year period. In response to an analyst question, Hovsepian said additional management bandwidth after the Global Knowledge sale would be directed toward accelerating growth and debt refinancing. Hovsepian said AI is increasing the urgency for enterprises to address skills gaps. He previewed Skillsoft’s Workforce Readiness Report, saying it found that only one in four employees feel AI-ready. The report, based on a survey of 2,000 employees, managers and executives globally, also found a 53-point gap between how leaders and employees rate AI readiness, and that only 11% of employees are assessed using formal skills benchmarks. Hovsepian said the company released an AI-powered skills visibility dashboard during the quarter, designed to provide managers with real-time insight into team capabilities, skilling progress and readiness gaps. Management also highlighted customer examples, including a Fortune 500 global energy company that returned to Skillsoft from a competing vendor and a U.S. government contractor that replaced an existing vendor with Skillsoft. Hovsepian said the contractor achieved a 7x return on investment, $2.7 million in business value and 82% of learners improving skill proficiency across 426 benchmarks. During the question-and-answer portion of the call, Hovsepian said adoption of the company’s new platform is running ahead of internal targets, prompting Skillsoft to raise its internal goal. He said the market reaction to its skills management offering has been “very positive.” Skillsoft maintained its fiscal 2027 outlook. The company expects revenue of $388 million to $406 million, adjusted EBITDA from continuing operations of $108 million to $116 million, or about 28% of revenue, and free cash flow from continuing operations of $14 million to $22 million. Kisling said the guidance reflects some variability and risk in the macroeconomic environment. He added that while first-quarter cash collections were strong, the company expects to consume cash in continuing operations in the second and third quarters before generating free cash flow in the fourth quarter. “Given the leading indicators that we see, we feel that we’re very on track to the plans that we had at the beginning of the year,” Kisling said. 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. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Skillsoft Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for June 2026.

Skillsoft Corp. (SKIL) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $0.05 per share. This compares to earnings of $0.3 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +2,220.00%. A quarter ago, it was expected that this company would post earnings of $1.27 per share when it actually produced earnings of $1.26, delivering a surprise of -0.79%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Skillsoft, which belongs to the Zacks Technology Services industry, posted revenues of $94.5 million for the quarter ended April 2026, missing the Zacks Consensus Estimate by 21.95%. This compares to year-ago revenues of $124.2 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Skillsoft shares have lost about 25.5% since the beginning of the year versus the S&P 500's gain of 8.2%. While Skillsoft has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Skillsoft was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.03 on $125.4 million in revenues for the coming quarter and $4.28 on $503.19 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Technology Services is currently in the bottom 30% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Richtech (RR), has yet to report results for the quarter ended March 2026. This developer of robotic technologies is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +25%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Richtech's revenues are expected to be $2.38 million, up 103.4% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Skillsoft Corp. (SKIL) : Free Stock Analysis Report Richtech Robotics Inc. (RR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Anticipated sale of Global Knowledge segment intended to center business around Skillsoft’s AI-native skills management platform New Percipio® platform customers grew 67% quarter over quarter Reaffirmed financial outlook for the full fiscal year BOSTON, June 09, 2026--(BUSINESS WIRE)--Skillsoft Corp. (NYSE: SKIL) ("Skillsoft", "we", "us", "our" or the "Company"), a leading AI-native skills management platform, today announced its financial results for the first quarter of fiscal 2027 ended April 30, 2026, and provided financial outlook for full fiscal 2027 year. Skillsoft previously had two operating and reportable segments: Talent Development Solutions ("TDS") and Global Knowledge ("GK"). On April 30, 2026, we determined that the business of our GK segment met the criteria to be classified as held for sale and as discontinued operations. As a result, our TDS segment is our only remaining operating and reportable segment as of such date. Accordingly, the historical results of our former GK segment are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented herein. Therefore, except for free cash flow(1), which includes both continuing and discontinued operations, all financial measures discussed below relate only to continuing operations. Free cash flow(1) guidance, however, is provided on a continuing operations basis. Fiscal 2027 First Quarter Select Metrics and Financial Measures Revenue of $94.5 million, down 5% from the prior year. Net Loss improved by 37% to $18.7 million compared to Net Loss of $29.6 million the prior year. Net Loss per share improved by 40% to $2.12 compared to net loss per share of $3.56 the prior year. Adjusted EBITDA(1) of $27 million, reflecting margin of 28% of Revenue, compared to $27 million and a margin of 27% of Revenue in the prior year. Free Cash Flow(1) of $25 million compared to $26 million in the prior year. "We continued to make meaningful strategic and operational progress in the first quarter, highlighted by our execution of an agreement to divest our Global Knowledge business, which once consummated, will represent an important step in simplifying Skillsoft’s operations and focusing the Company on its core enterprise platform opportunity," said Ron Hovsepian, Skillsoft Executive Chair and CEO. "As we move forward, Skillsoft will be centered on the business where we see the greatest opportunity to help organizations build workforce readiness, close critical skills gaps and connect learning activity to measurable business outcomes." Hovsepian continued, "We are seeing encouraging signs across the business, including customer growth in the new AI-native Skillsoft platform , strong customer retention and continued engagement from enterprises that are preparing their workforces for an AI-driven future. AI is widening the skills gap faster than many organizations can address it, and customers are looking for trusted partners that can help them measure readiness, validate capability and build skills at scale. We believe Skillsoft is well positioned to meet that need through our AI-native skills management platform, and we remain focused on disciplined execution, improving free cash flow visibility and creating long-term value for our stakeholders." Fiscal 2027 First Quarter Business Highlights In May 2026, Skillsoft announced an agreement to sell its GK business to an affiliate of Enduring Ventures. Skillsoft grew new customer agreements for its next-generation Skillsoft Percipio® Platform by 67% quarter-over-quarter. DRR(2) of 105% in the first quarter of 2027, up significantly from 91% in the year ago period; LTM DRR(2) of 98%, one percentage point lower than the year ago period. "I am excited to have joined Skillsoft at such a strategic moment for the Company," said Ron Kisling, Skillsoft Chief Financial Officer. "While I am still early in my tenure, I have been impressed by the strength of the team, the clarity of the strategic priorities and the opportunity ahead as we continue to focus on execution, operational discipline and long-term value creation." Full-Year Fiscal 2027 Financial Outlook The following table reflects Skillsoft’s reiterated financial outlook for fiscal 2027, based on current market conditions, expectations, and assumptions: Webcast and Conference Call Information Skillsoft will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss its financial results. To access the call, dial (877) 407‑3088 from the United States and Canada or (201) 389‑0927 from international locations. The live event can be accessed from the Investor Relations section of Skillsoft’s website at investor.skillsoft.com. A replay will be available for twelve months. About Skillsoft Skillsoft (NYSE: SKIL) is a leading AI-native skills management platform. The AI-native Skillsoft platform gives a clear view of workforce capability, closes critical skill gaps, and proves the impact of skills on business outcomes. With Skillsoft, organizations can build AI-ready teams, lower the cost and time of workforce development, and reduce execution risk as work continues to change. Thousands of organizations worldwide trust Skillsoft to power workforce readiness. Learn more at skillsoft.com. Skillsoft Public [email protected] Non-GAAP Financial Measures In addition to disclosing detailed operating results in accordance with U.S. GAAP, Skillsoft provides supplementary non-GAAP financial measures to consider in evaluating our operating performance. We track the non-GAAP financial measures that we believe are key financial measures of our success. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of U.S. GAAP financial disclosures. In addition, management uses these non-GAAP financial measures to assess operating performance, financial leverage and the effective use and allocation of resources; to provide more normalized period-to-period comparisons of operating results; to enhance investors’ understanding of the core operating results of our business; and to set management incentive targets. We believe investors use both U.S. GAAP and non-GAAP financial measures to assess management's decisions associated with our priorities and capital allocation, as well as to analyze how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. We disclose the non-GAAP financial measures included in this press release because we believe that they provide meaningful supplemental information. However, non-GAAP financial measures have limitations as analytical tools. Because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. They are not presentations made in accordance with U.S. GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with U.S. GAAP or operating cash flows determined in accordance with U.S. GAAP. As a result, these non-GAAP financial measures should not be considered in isolation from, or as a substitute analysis for, results of operations as determined in accordance with U.S. GAAP. Prior to the first quarter of fiscal 2027, Skillsoft reconciled both adjusted net income (loss) and adjusted EBITDA to net income (loss). However, as of April 30, 2026, we classified our GK segment as discontinued operations. As a result, commencing with the quarter ended April 30, 2026, we reconcile these non-GAAP measures to income (loss) from continuing operations, as the most directly comparable financial measure calculated in accordance with U.S. GAAP. This change reflects the fact that adjusted net income (loss) and adjusted EBITDA are intended to measure continuing operations only, and therefore exclude the operating results of our former GK segment, such that net income (loss) from continuing operations is the most directly-comparable GAAP measure. Note that all financial measures included below (other than free cash flow and adjusted free cash flow (levered), which each include both continuing and discontinued operations, relate only to continuing operations. Prior-period amounts have been recast to conform to the current presentation. In addition, commencing with the quarter ended April 30, 2026, we have: (i) added "litigation and regulatory matter expenses" as an exclusion to specified non-GAAP financial measures (as described below) as new non-ordinary course expenses that are not reflective of ongoing operations and that were not relevant to prior periods; and (ii) removed references to system migration costs as no longer applicable to the periods presented. The non-GAAP financial measures included in this press release are: adjusted net income (loss); adjusted net income (loss) per share; adjusted net income (loss) margin % (i.e., adjusted net income (loss) as a percentage of revenue); adjusted EBITDA; adjusted EBITDA margin % (i.e., adjusted EBITDA as a percentage of revenue); adjusted total operating expenses; adjusted costs of revenues; adjusted content and software development expenses; adjusted selling and marketing expenses; adjusted general and administrative expenses; free cash flow, and adjusted free cash flow (levered). We have provided at the back of this press release reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures for the three month periods ended April 30, 2026 and 2025. We do not reconcile our forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information. We provide non-GAAP financial measures that we believe will be achieved, however we cannot accurately predict all of the components of the adjusted calculations, and the U.S. GAAP financial measures may be materially different than the non-GAAP financial measures. The non-GAAP measures included in this press release are defined as follows: Adjusted net income (loss) is defined as net income (loss) excluding non-cash items, discrete and event-specific costs that do not represent normal cash operating expenses necessary for our business operations, and certain accounting income and/or expenses. Management believes these exclusions enhance the comparability of our results from period to period, and as compared to peers, and are useful in assessing our operating performance, and consist of the following (including the related tax effects), when applicable to the periods presented: Adjusted net income (loss) per share is defined as adjusted net income (loss) divided by the number of diluted weighted average shares outstanding. Adjusted net income (loss) margin % is defined as adjusted net income (loss) as a percentage of revenue. Adjusted EBITDA is defined as net income (loss) excluding (when applicable to the periods presented) the same exclusions set forth above for the determination of adjusted net income (loss) plus the additional exclusions set forth below. Management believes these exclusions enhance the comparability of our results from period to period, and as compared to peers, and are useful in assessing our operating performance. The additional exclusions are: Adjusted EBITDA margin %* is defined as adjusted EBITDA as a percentage of revenue. Adjusted costs of revenues is defined as costs of revenues excluding (where applicable) depreciation expense, long-term incentive compensation expense and transformation costs. Adjusted content and software development expenses is defined as content and software development expenses excluding (where applicable) depreciation expense, long-term incentive compensation expense and transformation costs. Adjusted selling and marketing expenses is defined as selling and marketing expenses excluding (where applicable) depreciation expense, long-term incentive compensation expense and transformation costs. Adjusted general and administrative expenses is defined as general and administrative expense excluding (where applicable) depreciation expense, long-term incentive compensation expense, litigation and regulatory expense, executive exit costs and transformation costs. Adjusted total operating expenses is defined as costs of revenues, content and software development expenses, selling and marketing expenses, and general and administrative expenses, in each case excluding (where applicable) depreciation expense, long-term incentive compensation expense, litigation and regulatory expense, executive exit costs and transformation costs. Free cash flow is defined as net cash provided by (used in) operating activities, less net purchases of property and equipment and internally developed software. Note that free cash flow does not represent residual cash flow available to Skillsoft for discretionary expenditures. Adjusted free cash flow (levered) is defined as free cash flow plus the cash impact of the charges excluded in the determination of adjusted EBITDA (as set forth above). Note that adjusted free cash flow (levered) does not represent residual cash flow available to Skillsoft for discretionary expenditures. Key Performance Metric Skillsoft also uses a supplementary key performance metric (dollar retention rate) that we believe is a key financial measure of our success. Key performance metrics are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present key performance metrics when reporting their results. In addition, management uses dollar retention rate to assess operating performance, and to enhance investors’ understanding of the core operating results of our business. We believe investors use dollar retention rate to assess how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. We use dollar retention rate because we believe that it provides meaningful supplemental information. However, this metric may not be comparable to other similarly titled measures of other companies. It is not a measure of financial condition or liquidity, and should not be considered in isolation from, or as a substitute analysis for, results of operations as determined in accordance with U.S. GAAP. Dollar retention rate ("DRR") - For existing customers at the beginning of a given period, DRR represents subscription renewals, upgrades, churn and downgrades in such period divided by the beginning total renewable base of such customers for such period. Renewals reflect customers who renew their subscription, inclusive of auto-renewals for multi-year contracts, while churn reflects customers who choose not to renew their subscription. Upgrades include orders from customers that purchase additional licenses or content (e.g., a new Leadership and Business module), while downgrades reflect customers electing to decrease the number of licenses or reduce the size of their content package. Upgrades and downgrades also reflect changes in pricing. We use our DRR to measure the long-term value of customer contracts as well as our ability to retain and expand the revenue generated from our existing customers. Cautionary Notes Regarding Forward Looking Statements This press release includes statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For all such statements, we claim the protection of the safe harbor for forward-looking statements provided by such sections and the Private Securities Litigation Reform Act of 1995, where applicable. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements include, but are not limited to, statements that address activities, events or developments that we expect or anticipate may occur in the future, including statements with respect to our guidance and outlook (including our Full Year Fiscal 2027 Financial Outlook), our product development and planning, our pipeline, future capital expenditures and capital allocation, future share repurchases, anticipated financial results, the impact of regulatory changes, our current and evolving business strategies and their anticipated impact, including with respect to our GK business, demand for our services, our competitive position, the benefits of new initiatives, growth of our business and operations, the effectiveness of our products, the outcomes of litigation proceedings and claims, the state and future of skilling in the workplace, our ability to successfully implement our plans, strategies, and objectives, our ability to regain and/or maintain compliance with New York Stock Exchange listing standards, and our expectations and intentions. Forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "may," "will," "would," "anticipate," "believe," "estimate," "expect," "intend," "plan," "contemplate," "continue," "project," "forecast," "seek," "outlook," "target," "goal," "objective," "potential," "possible," "probable," or similar expressions, employ such future or conditional verbs as "may," "might," "will," "could," "should," or "would," or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. Such statements are based upon the current beliefs and expectations of Skillsoft’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. All forward-looking disclosures are speculative by their nature, and we caution you against unduly relying on these forward-looking statements. Factors, many of which are beyond our control, that could cause or contribute to such differences include those described under "Part I - Item 1A. Risk Factors" and "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")" in our Annual Report on Form 10‑K for the fiscal year ended January 31, 2026 ("2026 Form 10-K"), as well as "Part II – Item 1A. Risk Factors and Item 7. MD&A" in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2026. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included in the 2026 Form 10-K, in this document and in our other filings with the Securities and Exchange Commission ("SEC"). The forward-looking statements contained in this document represent our estimates only as of the date of this press release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements, or otherwise, except as required by law. You are advised, however, to review any further factors and risks we describe in reports we file from time to time with the SEC after the date hereof. Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this press release, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved. Annualized, pro forma, projected and estimated numbers are not guarantees or assurances of future performance and may not reflect (and may be materially different from) actual results. All forward-looking statements contained herein are expressly qualified in their entirety by the foregoing cautionary statements. Industry and Market Data Within this document, we reference information and statistics regarding market share, industry data and our market position. Certain of this information has been obtained from various independent third-party sources, including independent industry publications, news reports, reports by market research firms and other independent sources. We believe that these external sources and estimates are reliable but have not independently verified them. In addition, certain of this information and statistics are based on our own internal surveys and assessments, which are developed in good faith using reasonable estimates. The information is based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above. View source version on businesswire.com: https://www.businesswire.com/news/home/20260609652799/en/ Contacts Investors: Ross [email protected] Media: [email protected]