SKIL

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. Completed the divestiture of Global Knowledge (GK) to eliminate operational complexity and focus management attention exclusively on the core enterprise platform opportunity. Attributed the revenue guidance reduction to accelerating weakness in the consumer segment, specifically citing AI's impact on coding-related learning demand. Reported that the core enterprise business is approaching stabilization, with revenue down approximately 1% as legacy headwinds from federal cost-cutting begin to subside. Launched the 'skills supply chain' framework to address a perceived gap in how organizations identify, develop, and deploy talent through AI-native intelligence. Achieved a 7% increase in adjusted EBITDA despite lower revenue, driven by a redesigned go-to-market model and disciplined expense management. Maintained healthy enterprise retention with a dollar retention rate of 95%, supported by early customer validation of new AI platform capabilities. Positioned the company as an 'AI-native' skills management provider, moving beyond content access to offer personalized, hands-on development and automated content creation. Targeting $5 million in new AI-native platform bookings by the end of the fiscal year, supported by a growing pipeline of enterprise interest. Prioritizing the resolution of upcoming debt maturities through a special board committee and advisors, leveraging the simplified post-GK capital structure. Anticipating a durable growth trajectory in the enterprise business as new AI products like LX Design Studio and AI Coach move from early access to broader adoption. Planning a significant operational simplification, including a targeted 95% reduction in SKUs to streamline contracting and back-office systems. Maintaining full-year adjusted EBITDA and free cash flow guidance by proactively adjusting the investment profile to offset top-line consumer segment pressure. Classified Global Knowledge as discontinued operations, with the disposal expected to consume approximately $15 million in cash for operations and transaction costs. Identified AI agents as a specific competitive headwind for the consumer coding business, necessitating a shift toward a pure profitability-maximization strategy for that segment. Noted that while the enterprise business is stabilizing, sales cycles remain impacted by customers taking time to define their broader AI and human capital strategies. Reported a GAAP net loss from continuing operations of $15 million, an improvement from the $18 million loss in the prior year period. Management expects the acceleration of the decline in consumer revenue to continue due to AI's impact on coding development. The segment will be managed strictly for profitability and cash flow to support the total company outlook, rather than pursuing top-line growth. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The 1% decline in enterprise revenue was linked to prior-year federal budget cuts, a headwind expected to dissipate starting in Q3. Management cited 'good early acceptance' of AI products and pipeline expansion as key indicators of an approaching growth inflection point. Skillsoft is currently in the 'early acceptance phase' and has set a $5 million bookings target to demonstrate separate recognition of value for AI-native products. Management declined to provide specific long-term growth vectors yet but confirmed they are successfully achieving incremental value for new AI features. AI has significantly changed customer conversations, elevating Skillsoft to higher-level strategic discussions regarding the 'skills supply chain.' Management believes their solution can be adopted incrementally without requiring a 'big bang' replacement of existing HCM or LMS systems. Significant opportunities remain to leverage AI for internal process streamlining and to simplify the geographic footprint post-GK divestiture. A major SKU rationalization project is underway to reduce complexity in sales, contracting, and financial systems entering next year.

Image source: The Motley Fool. Wednesday, Sept. 9, 2026 at 5:00 p.m. ET Executive Chair and Chief Executive Officer - Ronald Hovsepian Chief Financial Officer - Ronald Kisling Investor Relations - Nick Teves Operator: Thank you for standing by, and welcome to Skillsoft's second quarter fiscal year 2027 results conference call. [Operator Instructions] Please note that today's call is being recorded, and a replay of the call and webcast will be available shortly after the call concludes for a period of 12 months. I would now like to hand the conference over to your first speaker today, Nick Teves, Investor Relations. Thank you. Please go ahead. Nick Teves: Thank you, operator. Good day, and thank you for joining us to discuss our results for the second quarter ended July 31, 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 1995, including statements concerning financial and business trends, our expected future business and financial performance, and our expectations for the future of the company 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, the 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 statements or information which speaks 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, which are not prepared in accordance with generally accepted accounting principles and, except with respect to consolidated free cash flow or otherwise noted, will refer to continuing operations. For example, listeners should be cautioned that references to phrases such as adjusted EBITDA and free cash flow denote non-GAAP financial measures. Non-GAAP financial measures do not have standardized meanings, may not be comparable to similar measures presented by other public companies that describe similar metrics, and should not be considered in isolation or as a substitute for GAAP financial measures. A 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 for second quarter fiscal 2027, which has been furnished to the SEC on Form 8-K and is available at www.sec.gov and 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. Following today's prepared remarks, Ron Hovsepian, Skillsoft's Executive Chair and Chief Executive Officer, and Ron Kisling, Skillsoft's Chief Financial Officer, will be available for Q&A. With that, it's my pleasure to turn the call over to Ron Hovsepian. Ronald Hovsepian: Thanks, Nick, and good afternoon. Thank you to everyone for joining us today. Over the past several quarters, we have simplified Skillsoft, sharpened our focus, and concentrated our investments on the areas where we have the greatest opportunity to differentiate and deliver measurable customer outcomes. With the completed divestiture of Global Knowledge, we are now centered on our core mission, helping enterprises build workforce readiness through an AI-native skills management platform. The platform connects trusted learning content with skills and work, helping customers develop capability faster and deploy talent where it creates measurable business impact. Today, I'll cover 3 priorities. Our sharper focus after the sale, our AI platform investments and growth opportunity ahead, and our plan to address our capital structure. Let me start with our strategic focus. GK played a meaningful role in Skillsoft's history and will remain an important partner for customers that value instructor-led training. But ownership of that business added complexity, diluted our growth profile, and required management attention that can now be directed toward our enterprise platform opportunity. We now have a simpler story, a cleaner operating model, and a clearer path to improving growth, predictability, and free cash flow visibility over time, all of which is contributing to the stability of our business. By concentrating our capital, talent, and investments, we are better positioned to serve our customers, driving recurring revenue, and expand margins over the long term. For the consumer business, our objective entering the year was to maximize profitability and cash generation, and that strategy has remained unchanged. While broader consumer weakness and the growing impact of AI on the coding-related learning demand have increased top-line pressure in the segment, we are proactively adjusting our investment profile to preserve margins and deliver against profitability objectives established at the start of the year. Shifting to our enterprise offering, AI is changing job requirements, operating models, and the mix of human and AI skills that organizations need. Skills connect people to roles, projects, and business priorities. Yet we believe most organizations lack a consistent way to understand the skills they have, the skills they need, and whether their workforce is ready. Skillsoft brings content and an AI-native technology platform together around skills management to address that gap. We have added new content creation capabilities. Our trusted learning content helps organizations build the leadership, technology, compliance, and the AI capabilities strategies require, while our platform helps them identify gaps, focus development, and assess readiness. Customers can begin their skills management journey by integrating our differentiated, interoperable platform with their own data and current point solutions. We believe that this combination uniquely positions us to help customers translate AI disruption into workforce capability in a secure, measurable, and scalable way. We are now seeing customers respond to our broader value proposition. New platform activity continued to expand during the quarter. Retention remained healthy, with dollar retention of 95%, and our pipeline reflecting growing interest from organizations working to identify and quickly close skills gaps. We continue to see our customers validate the incremental value created by new AI capabilities in the platform. We remain on track to hit our goal of $5 million in platform bookings by the end of this fiscal year. Two recent developments show how AI is creating greater value across our platform. We're helping customers create company-specific content faster and expand access to personalized, hands-on development. First, our next-generation AI-based LX Design Studio platform capability reached general availability. LX Design Studio enables customers to turn their own expertise into custom courses, assessments, and interactive practice experiences within the Skillsoft platform. In early adopter testing conducted from February through June 2026, the LX Design Studio capability reduced production time of comparable interactive courses from a typical 2 to 3 weeks to 3 to 5 days. In addition, 80% of the participating customers designed and published a custom CAISY Conversation experience in just 15 minutes. A global IT and business consulting firm shows how customers are putting this capability to work. The customer used LX Design Studio to create and publish more than 70 interactive courses and assessments by combining its internal expertise with Skillsoft's unique instructional design expertise and trusted content library. And more than half of these employees leverage CAISY simulations to practice high-stakes conversations and receive feedback on their performance. Second, we are expanding access to personalized, hands-on development. In July, we launched early access for AI Coach. AI Coach brings personalized coaching into the Skillsoft platform, expanding access to a service historically reserved for a limited employee population. It helps employees reflect, set development goals, and act on what they have learned. This creates a more continuous and personalized development experience. More than 30 customers were identified for early access. Early customer traction continues to build with 7 organizations already piloting the solution, including top-tier global technology, telecommunications, and financial services companies. Customers consistently cite AI Coach's ability to scale expertise across complex organizations as a key driver of interest, while its alignment to the International Coaching Federation standards continues to resonate as a differentiator. AI Coach builds on the momentum we are already seeing for AI-powered practice through CAISY, our conversation simulator. CAISY enables employees to practice role-specific scenarios in a safe environment and receive immediate, actionable feedback before applying those skills on the job. By the end of Q2, the number of CAISY learners increased 23% year-over-year, while the number of organizations using CAISY grew 9%, the growing demand for AI-enabled practice in skills development. Our work with a global professional services firm shows the enterprise value behind that growth. The customer used CAISY to scale its cybersecurity expertise through personalized hands-on practice that prepares consultants for client conversations. This work was recognized last month with a silver award for the best use of AI for learning in the 2026 Brandon Hall Group HCM Excellence Award. Our enterprise-first strategy is paying off in demand and competitive displacement. We're winning against competitors while we stay disciplined in our focus on the enterprise. Most recently, a global reinsurance company became a new customer, selecting Skillsoft over a content-focused competitor through a 3-year agreement. The customer is working to become a skills-based organization with technical capability and AI fluency at the center of its strategy. The decision to choose Skillsoft followed a 6-month evaluation that extended beyond content to include skills, AI-enabled learning, enterprise integration, and the requirements of a highly regulated organization. This win illustrates where our strategy is resonating. Customers continue to need high-quality content, but they increasingly want that content connected to a broader skills strategy. Our combination of trusted content, custom content creation through LX Design Studio, and enterprise platform capabilities differentiate Skillsoft from providers primarily focused on content access. Trusted content remains a key driver in our growth strategy. In June, Skillsoft received 6 Telly Awards, including 3 gold awards for scenario-based training developed as part of our compliance solution. This recognition reinforces the quality of our content and the expertise we bring to critical workforce needs. Looking ahead, we believe the opportunity to connect content and development more directly to how organizations plan and execute their work. That is why we developed the skills supply chain, a framework that begins with a business outcome and connects it to the human and AI work, skills, and workforce readiness required to deliver it. Skills intelligence will be an important next step in bringing that framework to life. New capabilities coming to our platform will turn learning and assessment activity into skills evidence, giving customers a more current view of workforce proficiency and readiness. This will help leaders embedded in the business identify skills gaps earlier, prioritize development investments, and make better-informed execution decisions. We expect to share more soon. What differentiates Skillsoft is our ability to not only identify skills gaps, but also help customers close them. By connecting skills intelligence with trusted content, AI-powered content creation, and the learning experiences required to build capability, we help organizations move from understanding workforce needs to preparing the workforce to meet them. With strong customer momentum, we are seeing early acceptance of our new AI platform capabilities, combined with improvement in our go-to-market motions and pipeline expansion opportunities with large existing customer base, gives us confidence that we are approaching growth in our enterprise business. That brings me to our up-and-coming debt maturities, which remain management's top financial priority. The completion of the Global Knowledge divestiture is an important milestone that further simplifies the company and enhances the stability, predictability, and visibility of our cash flow profile. It allows us to engage with our lenders from a position that more clearly reflects the business we are today and the business we are building. We have put the appropriate governance and advisory framework in place to support this effort, including the formation of a special committee of our board and the engagement of experienced advisors. We are ready to approach this process with discipline. While we're not going to speculate on the timing or potential outcomes today, our objective is clear: to establish a capital structure that better supports Skillsoft's long-term strategy, strengthens financial flexibility, and provides the foundation to continue investing in the growth of our skills management platform. Before I turn it over to Ron, I want to give a quick update on our guidance. As a result of the accelerating dynamics in our consumer business, we are reducing our fiscal 2027 revenue guidance to a range of $380 million to $390 million. Most importantly, we are maintaining our full fiscal year adjusted EBITDA and free cash flow from continuing operations guidance, reflecting the continued focus on profitability and disciplined management of the business. Ron will provide additional detail on our updated outlook in a moment. To close, there is still work ahead, but the direction is clear. We're building a simpler, stronger Skillsoft for the platform increasingly relevant to the enterprise needs created by AI disruption. We are addressing our capital structure with discipline, and we believe product innovation, improved retention, early strong customer indications of platform adoption, and better go-to-market execution position the business for a more durable growth trajectory. We believe that position helps us create value for our customers, employees, lenders, and shareholders over time. With that, let me turn the call over to Ron Kisling to cover our financial results in more detail. Ron? Ronald Kisling: Thank you, Ron, and good afternoon, everyone. Before I move into the financials, as a reminder, and as noted at the beginning of the call, consistent with prior quarters, our discussion will focus on non-GAAP financial measures, unless otherwise stated. But as we pointed out last quarter, the former Global Knowledge business is classified as discontinued operations. As a result, except for consolidated free cash flow and unless otherwise stated, the financials discussed today relate to our continuing operations, which are comprised of our Talent Development Solutions business, which is more simply referred to as Skillsoft. Now turning to the results for the second quarter. Total revenue was $98.2 million, down 2.9% compared to Q2 '26, while our dollar retention rate, or DRR, improved to 95% from 94% in the prior year quarter. LTM DRR was 98% compared to 99% in the prior year period. The decline in our GAAP revenue was largely attributable to our consumer business and, excluding consumer revenue, our core enterprise business was roughly flat year-over-year with a decline of approximately 1%. With respect to expenses, we continue to see year-over-year improvements. The cost of revenue was $15.1 million in the second quarter, or 15.4% of revenue, compared to $15.8 million or 15.6% of revenue in the prior year period. Cost of revenue is largely variable and generally moves with revenue, volume, and product mix, as different offerings get a very different margin profile. The year-over-year decline primarily reflected lower revenue, partially offset by a greater mix of lower-margin labor-based offerings. Overall, adjusted total operating expenses of $64.8 million in the second quarter, or 60% of revenue, were down $5.1 million, or 7% year-over-year. Looking at operating expenses by functional area, content and software development expenses were $11.5 million in the quarter, down approximately 8% year-over-year at 11.7% of revenue. Our selling and marketing expenses were $25.4 million in the second quarter, down approximately 12% year-over-year, or 25.9% of revenue, reflecting the benefit of lower spending due to a redesign of our go-to-market. General and administrative expenses were $12.8 million in the second quarter, flat year-over-year at 13.1% of revenue. Our adjusted EBITDA from continuing operations was $33.4 million, up 7% compared to $31.2 million in the prior year's comparable quarter, with adjusted EBITDA margin as a percentage of revenue for the quarter improving to 34% from 31% in the prior fiscal year period. Our GAAP net loss from continuing operations was $15 million in the second quarter compared to a GAAP net loss from continuing operations of $18 million in the prior year period. GAAP net loss per share from continuing operations was $1.67 compared to a $2.10 net loss per share in the prior period. Our adjusted net income was $10.5 million, or $1.17 per share in the second quarter, compared to an adjusted net income of $13.6 million, or $1.59 per share in the prior year fiscal period. I will now discuss our cash flow and balance sheet highlights. Cash equivalents and restricted cash were $93.1 million at the end of Q2, and our consolidated free cash flow for the second quarter was negative $20.5 million compared to negative $22.6 million in the prior year period. As a reminder, due to the seasonality in our cash collections, we typically consume cash in our fiscal second and third quarters and generate positive cash flow in our first and fourth quarters. Total gross debt on a GAAP basis, which includes borrowings on our term loan and accounts receivable facility, was $575 million at the end of Q2, down from approximately $579 million at the end of the prior year period. Total net debt, which includes borrowing on our term loan and the accounts receivable facility, net of cash, cash equivalents, and restricted cash, was approximately $481 million up from approximately $475 million at the end of the prior year period. And lastly, as Ron mentioned, we've seen an acceleration of negative impacts in the consumer market, as well as an increasing impact from AI on our consumer business, which is primarily focused on coding. As a result, we are revising our full year fiscal 2027 revenue guidance to a range of $380 million to $390 million from our previous range of $388 million to $406 million. We continue to be very focused on running our business with a strong operating discipline. As a result, we are maintaining our adjusted EBITDA and free cash flow for continuing operations guidance. With adjusted EBITDA from continuing operations expected to be between $108 million and $116 million or approximately 28% of revenue. And we expect free cash flow from continuing business operations to be in the range of $14 million to $22 million. As we discussed in prior quarters, we expect to generate free cash flow from continuing operations in the fourth quarter of the year, all of which is reflected in the guidance range we have provided. As a reminder, when we originally issued our free cash flow guidance for fiscal year 2027, it was for the go-forward Skillsoft business since, at that time, we were unable to estimate when and if Global Knowledge would be sold. Completion of our sale of Global Knowledge during Q2, we are now able to estimate the impact of Global Knowledge on our cash flow and liquidity. For our fiscal year '27 free cash flow, we estimate the impact of Global Knowledge disposal will consume about $15 million of cash attributable to cash burned from operations, transaction-related costs, and stranded costs, $12 million of which was incurred through July 31, 2026. Our Q3 cash from investing activities will also include approximately $4 million of cash used for third-party advisors attributable to the sales process. Outside of cash flow, the structure of the Global Knowledge transaction included approximately $13 million of deferred proceeds subject to customary closing adjustments, including $4 million due this fiscal year, $6 million due in fiscal year 2028, and the remainder due in fiscal year 2029. We received the payment during Q3 and continue to work closely with the buyer to ensure all remaining payments are collected in accordance with the sale agreement. That concludes our prepared remarks. Operator, please open the line for questions. Operator: We will now be conducting a question and answer session. [Operator Instructions] Your first question comes from Ken Wong with Oppenheimer & Co. Please proceed with your question. Hoi-Fung Wong: Ron, I wanted to dive into the consumer segment first. Acknowledge that business remains weak. It looks like it de-celled from the Q1 softness. Can you maybe just kind of elaborate again in terms of what's happening there? Do you see a potential, potential, you know, stabilization in sight? Do we just need a burn off specific kind of, you know, product lines? What, you know, kind of what's the, what's the path to hopefully get that business back on track? Ronald Kisling: Yes, this is Ron Kisling. I think what we've started to see is, you know, what we've, which we just described on the call as kind of an acceleration in the decline. What we're seeing is an impact in the consumer segment overall. We're also seeing an accelerated impact of AI on the consumer business. Our consumer business was focused around code development, which is an area that's been transitioned a lot of that work to AI and AI agents to create that. You know, our strategy on that business from the beginning of the year is to really run that business with a focus on profitability. You know, we continue to do that. But the acceleration has accelerated. We do think that acceleration is going to continue. But we do expect that business to continue to be unlike the Global Knowledge business, you know, a profitable business to continue to contribute to the bottom line. And so while we see dislocation in the top line of the consumer business, you know, the profitability remains intact and allows us to maintain our, you know, total company outlooks on profitability, adjusted EBITDA, and cash. Hoi-Fung Wong: Understood. Appreciate the color there. And then perhaps on the enterprise side, you know, while that did improve slightly from as far as the decrease year-over-year, you know, again, business still downtick year-over-year. I guess what are some of the puts and takes there? I mean, do you feel that business is in a good, sorry, good place from a stabilization perspective? I recall last quarter you guys touched on how at least bookings were a source of strength, so something that might not be obvious in the revenue. Can you comment on Q2 whether or not we're seeing maybe a similar dynamic as far as leading indicators of the enterprise side? Ronald Kisling: Yes, I mean, I think there's a couple of dynamics. I think, you know, first and foremost, I think we are seeing, you know, a real stabilization in the enterprise business. You know, it was down, you know, a little less than it was before, less than 1% actually. And a lot of the impact we were seeing, even through Q2, we talked about on the Q1 '26 call, stems, we have an annual business from our contracts, from some bookings impact we saw in the first half of 2026, due to some federal cost cutting, and you're seeing that sort of play out. So that's still impacting Q2. That pretty much goes away as we exit this. So we're starting to see that stability and the impact of that kind of go away, and that's, that sort of headwind should be behind us as we move into Q3. Ronald Hovsepian: Yes, this is Ron. I'll add one thing on top of that. We are seeing a good early acceptance of our, of our AI products that we brought to market on the platform side. We're in the early acceptance phase, as I mentioned in my prepared remarks. So that, that to me is where my, where myself and Ron are focused. So we're seeing those pieces bridge together with the content and telling a much stronger story in those examples we gave you. Hoi-Fung Wong: Got it. Maybe diving into that piece of it, seeing some initial adoption. You know, when we think about where we are today, early acceptance phase to what I'm sure a lot of investors are hoping to see down the line, which is improved monetization, hopefully better attach, better customer wallet. Any rough sense for when we might start to see some of that trickle through? Ronald Hovsepian: I think part of us sharing with you that we set a target as we deliver these products for the $5 million of that AI-native platform. That is all new stuff built on the foundational models. So that's all new technology. And as we deliver that to the market, we wanted to set a target so you could see that separate recognition of value in the platform, separate from everything else we're doing. And we thought we'd give that as a startup, a starter that we're able to get value in the market for what we're doing. And we thought that was just a good spot to start. As we roll out these things, then obviously as we get predictability behind that, we can then layer that in there. We'll give you the right update as we head into next year on what we see that being, and we'll try to be, you know, as forward-leaning as we can on sharing those growth vectors with you. We're not ready to share any of those pieces just now, but I thought it was important that you understood we are getting value. We're getting value for new AI-based products incrementally is the key takeaway. And we set that target and we have a good pipeline behind it as I mentioned. So I have good confidence we're going to be able to be able to deliver that number. Hoi-Fung Wong: Okay, perfect. And then, I think we all can see the pressures of AI on the consumer business. At least from the outside, it looks like it hasn't had as much of an impact on enterprise. Although in the software ecosystem, we have heard of some peers where customer sales cycles have lengthened, whether it's customers trying to figure out what their AI strategy is, whether or not that roadmap makes sense. Have you guys encountered any impact to sales cycles or any changes in customer conversations on the enterprise side of the business when thinking through some of these AI initiatives? Ronald Hovsepian: Yes, we've seen it a significant impact, actually, and that's why I'm excited about what I see. And that's why I put in the comments around the pipeline expansion that we're seeing in that, in the enterprise side. Those are very good indicators of what that is. Now, we have to convert those, but you got to have the pipe first before you can convert them and just taking it one step at a time. The conversations absolutely changed, Ken, to your point. For us, we're seeing ourselves elevated in those conversations to have a discussion along the skills supply chain that we mapped out last September as we introduced that, that approach to the market around skills, intelligence, and what we're doing inside of that space. We really thought that has allowed us to have a bigger conversation and the bigger conversation is really tied around how content and how the management system operates within HR, its skills across the company. And that's what's exciting. That's what's changing our role in the market. So these customers that we're doing these things with, as we've shared with you, these are the ones that are now taking us into a different level. And I'll share one of them with you, again, this is now going into the pipeline, but just recently over in India, as an example, a very large company, they explained what their strategy was right from the very top of the company, is all I'll say, the very top of the company. Very large, very large global player. I can't go in the industry because you'll guess it quickly. The conversation, when we put up what we were doing with our skills supply chain. Person's like, just looked at us and said, you're a mind reader. That's exactly what I need across my company. That's the kind of messaging that we're seeing and reaction we're getting. Now, we have to take that through and communicate that much more loudly as we get it validated further and further these next 6 months and really get those references and then bring them back into the market as proof points and really crank up the selling engine right behind that. We're selling hard, but right now you're in that very initial phase. Everyone's trying to figure out what does AI really mean? How does it play a role? And we explain how we see it unfolding in learning, because learning is in our core DNA as a company, tying together the workflows of how skills run across everything, is going to be the big key in the market from our perspective. And we've taken that very measured approach. We began on it some 18 months ago and we're really focused on it. Now you've seen the products get delivered and now with customers acknowledging it, a little bit of revenue on the bookings. Now we're seeing that piece of it. So I like what I see so far. Hoi-Fung Wong: Early at the moment, but I like where we are. And then maybe following up on that, and look, I don't know the answer to this, and maybe you guys have a perspective, but is there a certain sequencing of events that must happen before it gets down to kind of refreshing or adding on to the skills platform? Do you need to see customers maybe refresh, reimagine their HCM systems and their LMS systems? Like we hear that in broader enterprise where people are sorting out either, you know, moving to cloud or getting their data ready and then maybe upgrading their, you know, an ERP system first before maybe getting on to some of the other application layers. And anything that we should be thinking about as far as, you know, bottlenecks before customers get to kind of refreshing their Skillsoft? Ronald Hovsepian: Yes, it's a really great question and it's a loaded question, so I'm going to pick my words very carefully here on a recorded call. First and foremost, most importantly, those conversations are happening, as you highlighted. To your point is, what systems actually have to be sunset or moved before we can go through a replacement cycle. This is one of the big call-outs we've made with the skills supply chain. The skills supply chain represents a missing management system. So those pieces aren't all glued together in most companies. That means there isn't a classic platform replacement. We've identified 3 points of entry at the customer where we can come through any one of these 3 doors, so to speak, where the customer could have a problem in this area, this area, or this area. And we've taken those and we've matched those to our selling and that's what we're building as products right now into the market. Those are the things that I'm referring to that we're very satisfied with what we're seeing in the reaction from the customers. And they're telling us what's missing and what else we gotta improve, but we feel really good about it. So I don't see a massive weight to your question having to do that. Now, different players are going to try to come at it from different angles, and they're going to try to tell a story there around that. And one of our key things is going to be making sure that we maintain our historical view of interoperability and operation and integration of those point solutions coming together are going to play a role. And why I think that wind is with us, and this is the awkward part of the conversation, I as a CEO, in a learning company, in somebody, in a place that really cares about employees, really cares about their growth. One of the challenges you always have as a CEO or on any board is you put your money behind your go-to-market and your products. So when I'm doing my capital allocation, certain functions, I won't pick on HR, I'll pick on finance or other functions, IT, may not get as much money, right? I put, yeah, yeah. I put more of my money behind those other pieces. That bodes well for the need to buy a good valued system that lets me go on an incremental journey on that building out that supply chain. I don't have to do it all at once. It's not a big bang theory, which was at the essence of your question. Do I have to replace someone else or is it? Or is it something we can do incrementally? We can do it incrementally for our customers. Hoi-Fung Wong: And it's an open format. Super helpful, Ron. And Ron Kisling, maybe kind of diving into one of your top priorities which is sorting out the debt, any additional roadblocks that you guys need to clear before you guys can make serious progress there? I know Global Knowledge was the first big roadblock. But are you guys pretty much in the clear, or you guys still have to sort through some other dynamics that we on the outside might not be aware of? Ronald Kisling: Yes, no, that's a good question. And I think what I'd say is, you know, we've had a plan in place, you know, as you mentioned, Global Knowledge was one step in that plan. You know, as Ron mentioned on the call, you know, we have set up, you know, the advisors, you know, the board committee in preparation for that. You know, we expect that where we'll be engaging very soon. We don't have a public timeline, but we expect to engage very soon. I'd say from sort of that corporate debt piece, the precedents are behind us with the close of Global Knowledge, and we're prepared to engage very soon. Hoi-Fung Wong: Okay, perfect. And then on the expense side, again, another really good quarter as far as managing that spend. Looks like at least on the GAAP OpEx side, you guys trimmed another $8 million. I feel like I ask this every quarter, but, you know, do you still feel there's capacity to trim there? Like typically the easiest path to margin expansion obviously is to kind of get the revenue to kind of flow through and let that trickle to the bottom line. You guys are doing it from a slightly disadvantaged position but doing it very well. But yes, any thoughts on kind of whether or not there's still fat remaining should revenue continue to trend in this direction. Ronald Kisling: You know, I think, you know, from my perspective, you know, being fairly new and really focusing on it from an operational perspective, I do think there are, you know, meaningful opportunities, particularly around, you know, the operations in the company, if you want to think about some of the core processes, to leverage AI, streamline some of our processes and leverage other systems that would drive meaningful efficiencies, you know, economies and allow us to, you know, scale and drive growth without having to add, but actually seeing some economies there. And I think that's probably one of the bigger areas that's left to opportunities. I think the other thing that I would say that's going to allow us to move forward very quickly on that is, you know, Global Knowledge, while, you know, a smaller piece of the business was enormously complex, both from an operational perspective, and a geographic footprint. So we now have a substantially less complex business, much more straightforward business focused around enterprise product that's really going to enable us to deploy these systems, AI, and process simplifications. Ronald Hovsepian: Yes, and I think, Ken, the only part I'd add here is, listen, you know, we're, as Ron said in his comments, we've got good financial stability occurring in the company now. That stabilization is here. And as you pointed out, he pointed out, we're right on the edge of that inflection for growth at a point off, less than a point. So we're right at the right spot here. Having the capital the way Ron described it appropriately to be able to put back in the business through those AI catalytic moments is allowing us to do those things now. And I'm right with him. I think Ron's close around simplification of the company, simplification of the business models. Those are going to be big. Things that will have a continued impact on simplifying the company, allowing us to run this place much more efficiently from my perspective. So I think there's still room to go there. I wouldn't say there's any fat at this point. That's pretty true. But what I would say is there's huge opportunities for us to be more effective and efficient through that simplification process that Ron had highlighted. Hoi-Fung Wong: Got it. And not to put you on the spot, Ron, and look, you are new, so I guess you could say we're early in the process. But yes, where are we on that process to try to be more efficient, be more effective with the existing resources? Ronald Kisling: I would say on the operations side. That I was speaking to, I'd say it's very, very early days. I'd say, you know, Global Knowledge was a bit of an unlock in terms of simplifying the business. You know, it didn't make sense to build a lot of processes around that business, given that it was held for sale. And so I would say we're very early in the process of, you know, identifying exactly what processes deploying AI and systems to drive that efficiency across operations. But I would say that those are one of the highest internal priorities that I have. And we have engaged cross-functionally across the organization, and specifically identified a number of initiatives that are underway that cross the product organization, go-to-market, back office. I mean, a lot of these operational processes are very cross-functional, and we've already identified those processes, engaged where those processes intersect with other operational teams and have those teams engaged in these initiatives. Ronald Hovsepian: And a good example would be a SKU rationalization as an example. We've begun all that work. We've done a ton of work around that. Now that we're rolling out the new capabilities on the platform, we can take that a step further. And literally we're looking at like, you know, a 95% SKU reduction/simplification of that in the business as we enter into next year when we really get going. Well, now imagine the systems implications, the contractual implications, all these pieces tied together, Ken. And that's what we say simplification, the business. I wanted you to get a little feel for what's underneath that and the investors to understand that's why we see the headroom that we see in front of us by just simplifying the place further. Hoi-Fung Wong: Understood. Super helpful. That's it for me on my questions. I'll pass the mic. Operator: This now concludes our question and answer session. I would like to turn the floor back over to Ron Hovsepian for closing comments. Ronald Hovsepian: Thank you, operator. I greatly appreciate it. Thank you for the continued support to all of our shareholders and other stakeholders. We are seeing strong momentum in that enterprise platform space as well as the overall enterprise business space on that value proposition that we had highlighted to you. We're focusing on the core operations of the company. Continued platform innovation is going to be where we are focused and that AI-driven and transformation we just wrapped up on is giving us much more confidence in the road ahead as we think about our ability to deliver that long-term value, as we look at that pipeline and what we can drive for our shareholders, as well as our customers, most importantly. So with that, thank you all for attending and we'll talk soon. Operator: Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. Please disconnect your lines and have a wonderful day. 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 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 $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!* Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of September 10, 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) Q2 2027 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Total Revenue: $98.2 million, down 2.9% year-over-year in Q2 fiscal 2027. Enterprise Revenue: Core enterprise business roughly flat year-over-year, down approximately 1% excluding consumer revenue. Dollar Retention Rate (DRR): Improved to 95% from 94% in the prior year quarter; LTM DRR was 98% vs. 99% prior year. Cost of Revenue: $15.1 million, or 15.4% of revenue, vs. $15.8 million or 15.6% of revenue prior year. Adjusted Total Operating Expenses: $64.8 million, or 60% of revenue, down $5.1 million or 7% year-over-year. Content and Software Development Expenses: $11.5 million, down approximately 8% year-over-year, or 11.7% of revenue. Selling and Marketing Expenses: $25.4 million, down approximately 12% year-over-year, or 25.9% of revenue. General and Administrative Expenses: $12.8 million, flat year-over-year, or 13.1% of revenue. Adjusted EBITDA: $33.4 million, up 7% year-over-year; adjusted EBITDA margin improved to 34% from 31%. GAAP Net Loss: $15 million from continuing operations, vs. $18 million prior year period. GAAP Net Loss Per Share: $1.67 from continuing operations, vs. $2.10 prior year period. Adjusted Net Income: $10.5 million, or $1.17 per share, vs. $13.6 million or $1.59 per share prior year. Cash and Equivalents: $93.1 million in cash equivalents and restricted cash at end of Q2. Free Cash Flow: Consolidated free cash flow of negative $20.5 million in Q2, vs. negative $22.6 million prior year period. Total Gross Debt: $575 million at end of Q2, down from approximately $579 million prior year period. Total Net Debt: Approximately $481 million, up from approximately $475 million prior year period. KC Learners: Increased 23% year-over-year by end of Q2. KC Organizations: Number of organizations using KC grew 9% year-over-year. Platform Bookings Goal: On track to reach $5 million in platform bookings by end of fiscal year. FY2027 Revenue Guidance: Revised to $380 million$390 million from previous $388 million$406 million. FY2027 Adjusted EBITDA Guidance: Maintained at $108 million$116 million, approximately 28% of revenue. FY2027 Free Cash Flow Guidance: Maintained at $14 million$22 million from continuing operations. Warning! GuruFocus has detected 3 Warning Signs with SKIL. Is SKIL fairly valued? Test your thesis with our free DCF calculator. Release Date: September 09, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Skillsoft Corp (NYSE:SKIL) completed the divestiture of Global Knowledge, simplifying operations and sharpening focus on its core AI-native skills management platform. Adjusted EBITDA from continuing operations increased 7% year-over-year to $33.4 million, with margin expanding to 34% from 31%. Dollar retention rate (DRR) improved to 95% from 94% in the prior year quarter, indicating better customer retention. New AI-powered products like LX Design Studio and AI Coach are gaining early customer traction, with LX Design Studio reducing course production time from weeks to days. The enterprise business showed stabilization, declining only about 1% year-over-year, and the company maintains its full-year adjusted EBITDA and free cash flow guidance. Total revenue declined 2.9% year-over-year to $98.2 million, with consumer business weakness accelerating due to AI impact on coding-related learning demand. Full-year fiscal 2027 revenue guidance was reduced to $380-$390 million from the previous range of $388-$406 million. Consolidated free cash flow for the second quarter was negative $20.5 million, reflecting seasonal cash consumption. The company faces upcoming debt maturities, with total net debt of approximately $481 million, and is still in the early stages of addressing its capital structure. The consumer business continues to face significant headwinds from AI disruption, and the decline is expected to continue, pressuring overall top-line growth. Q: Ken Wong of Oppenheimer asked about the consumer segment, which decelerated from Q1 softness, and whether stabilization is in sight or if specific product lines need to be burned off.A: CFO Ron Kisling explained that the decline has accelerated, driven by broad consumer weakness and AI's growing impact on the coding-focused consumer business, where AI and AI agents are increasingly performing that work. He noted the strategy remains to run the business for profitability, and while top-line dislocation is expected to continue, the segment remains profitable and contributes to the bottom line, allowing the company to maintain total profitability, adjusted EBITDA, and cash guidance. Q: Ken Wong asked about the enterprise side, which still declined year-over-year, and whether the business is stabilizing, including any leading indicators such as bookings.A: CFO Ron Kisling said the enterprise business is showing real stabilization, down just under 1%, with much of the impact stemming from annual contract bookings affected by federal cost cutting in the first half of 2026. He noted that headwind largely goes away as the company exits the period and should be behind it entering Q3. CEO Ron Hovsepian added that early acceptance of new AI platform products is bridging with content to tell a stronger story. Q: Ken Wong asked when investors might see improved monetization, attach, and customer wallet from the early AI product adoption.A: CEO Ron Hovsepian pointed to the $5 million AI-native platform bookings target as a way to show separate recognition of value for new technology built on foundational models. He said the company is getting incremental value for new AI-based products, has a good pipeline behind the target, and expressed confidence in delivering that number, with more updates expected as predictability builds heading into next year. Q: Ken Wong asked whether AI-related customer uncertainty has lengthened enterprise sales cycles or changed customer conversations.A: CEO Ron Hovsepian said conversations have changed significantly and pipeline expansion in the enterprise is a good indicator. He noted Skillsoft is being elevated in discussions around the "skills supply chain" and skills intelligence, citing a recent example with a very large global company in India whose leadership said Skillsoft's approach matched exactly what they needed. He said the company is in an early phase, building references and proof points to ramp the selling engine. Q: Ken Wong asked whether customers must first refresh or reimagine HCM and LMS systems before adopting Skillsoft's skills platform, and whether there are bottlenecks.A: CEO Ron Hovsepian said the skills supply chain represents a missing management system, so there isn't a classic platform replacement. He identified three points of entry at the customer, matched to selling motions and being built into products. He emphasized an incremental, open, interoperable approach rather than a big-bang replacement, which he believes works in Skillsoft's favor. Q: Ken Wong asked about the debt situation and whether any roadblocks remain before serious progress can be made.A: CFO Ron Kisling said a plan has been in place, with the Global Knowledge divestiture as one step, and that advisors and a board committee are set up in preparation. He said the company expects to engage with lenders very soon, though no public timeline was given, and that the corporate divestiture precedents are behind them with the close of GK. Q: Ken Wong asked whether there is still capacity to trim expenses after another strong quarter of spend management, with GAAP OpEx down about $8 million.A: CFO Ron Kisling said there are meaningful opportunities, particularly around operations, by leveraging AI and other systems to streamline core processes and drive efficiencies that allow scaling without adding cost. He noted GK, while smaller, was enormously complex operationally and geographically, and its divestiture leaves a substantially less complex enterprise-focused business better positioned to deploy these simplifications. Q: Ken Wong asked where the company stands on its process to be more efficient and effective with existing resources.A: CFO Ron Kisling said it is very early days, with GK serving as an unlock for simplification since it made little sense to build processes around a held-for-sale business. He said identifying processes and deploying AI and systems is a top internal priority, with cross-functional initiatives already underway across product, go-to-market, and back office. CEO Ron Hovsepian cited SKU rationalization as an example, noting the company is looking at roughly a 95% SKU reduction/simplification entering next year. Q: Ken Wong asked about the path to getting the consumer business back on track and whether it needs to burn off specific product lines.A: CFO Ron Kisling reiterated that the consumer business, focused on code development, faces an accelerated AI impact as that work transitions to AI and AI agents. He said the strategy since the start of the year has been to run the business for profitability, which remains intact despite top-line dislocation, and that this profitability allows the company to maintain its total company outlooks on adjusted EBITDA and cash. Q: Ken Wong asked about the puts and takes in the enterprise business and whether leading indicators like bookings show strength not obvious in revenue figures.A: CFO Ron Kisling said the enterprise business is stabilizing, down a little less than 1%, with the federal cost-cutting-driven bookings impact from the first half of 2026 still affecting Q2 but largely going away as the company exits the period. CEO Ron Hovsepian added that early acceptance of AI products on the platform side is a key focus area where the company sees momentum bridging with content. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Interested in Skillsoft Corp.? Here are five stocks we like better. Revenue fell 2.9% year over year to $98.2 million, primarily because of continued weakness in Skillsoft’s consumer coding business; enterprise revenue declined approximately 1%, while dollar retention improved to 95%. Profitability improved as cost reductions lifted adjusted EBITDA 7% to $33.4 million and expanded the margin to 34%, although adjusted net income declined and free cash flow remained negative due to seasonal cash collection patterns. Skillsoft lowered fiscal 2027 revenue guidance to $380 million–$390 million but maintained its EBITDA and free-cash-flow outlook. Management is advancing its AI platform rollout while prioritizing discussions around the company’s approximately $575 million in gross debt and upcoming maturities. Skillsoft Stock is a Labor and Talent Development Play Skillsoft (NYSE:SKIL) reported second-quarter fiscal 2027 revenue of $98.2 million, down 2.9% from the prior-year period, as continued weakness in its consumer business offset relative stability in its enterprise operations. The company, which completed the divestiture of its Global Knowledge business, said it is now focused on its Talent Development Solutions operation and an AI-native skills management platform for enterprise customers. Management also reduced its full-year revenue outlook while maintaining its adjusted EBITDA and free-cash-flow guidance. → 3 Under-the-Radar Defense Stocks With Record Backlogs Chief Financial Officer Ron Kisling said the revenue decline was largely attributable to the consumer segment. Excluding consumer revenue, the core enterprise business declined by approximately 1% year over year. Dollar retention rate improved to 95% from 94% in the year-earlier quarter, while last-12-month dollar retention was 98%, compared with 99% a year earlier. → Ride-Share Reckoning: Tesla Drives Into Uber's Lane Kisling said the consumer business, which has been focused on coding-related learning, is facing broader consumer-market weakness as well as an increasing effect from AI and AI agents on demand for code-development training. “We’re seeing an accelerated impact of AI on the consumer business,” Kisling said in response to an analyst question. He added that the company continues to operate the business with an emphasis on profitability and expects it to remain a contributor to the bottom line despite top-line dislocation. → High Gas Prices Aren't Budging—Here Are 3 Stocks That Benefit Chief Executive Officer Ron Hovsepian said the Global Knowledge sale simplifies the company and allows management to direct more capital and attention toward its enterprise platform opportunity. The former Global Knowledge business will remain an important partner for customers seeking instructor-led training, he said. Adjusted EBITDA from continuing operations rose 7% year over year to $33.4 million. Adjusted EBITDA margin improved to 34% of revenue from 31% in the prior-year quarter. Adjusted total operating expenses declined $5.1 million, or 7%, to $64.8 million. Selling and marketing expense fell approximately 12% year over year to $25.4 million, which Kisling attributed to lower spending following a redesign of the company’s go-to-market approach. Content and software development expense declined about 8% to $11.5 million, while general and administrative expense was flat at $12.8 million. The company reported a GAAP net loss from continuing operations of $15 million, compared with a $18 million loss in the previous year’s second quarter. GAAP loss per share from continuing operations was $1.67, compared with a $2.10 loss per share a year earlier. Adjusted net income was $10.5 million, or $1.17 per share, down from $13.6 million, or $1.59 per share, in the prior-year period. Consolidated free cash flow was negative $20.5 million, improving from negative $22.6 million a year earlier. Kisling noted that the company typically consumes cash during its fiscal second and third quarters because of the seasonality of cash collections, then generates positive cash flow in the first and fourth quarters. Hovsepian said the company is seeing early customer interest in its broader enterprise platform offering, which combines learning content, skills management and AI-enabled development tools. The company remains on track to reach $5 million in platform bookings by the end of fiscal 2027, he said. During the quarter, Skillsoft made its AI-based LX Design Studio generally available. The feature is intended to allow customers to create custom courses, assessments and interactive practice experiences using their own expertise. In early adopter testing from February through June, the company said the tool reduced the production time for comparable interactive courses from two to three weeks to three to five days. The company also launched early access for AI Coach in July. More than 30 customers were identified for early access, with seven organizations already piloting the offering, including global technology, telecommunications and financial-services companies, Hovsepian said. Usage of CAISY, Skillsoft’s AI conversation simulator, also expanded. The number of CAISY learners rose 23% year over year at the end of the second quarter, while the number of organizations using the product increased 9%. Hovsepian said customer conversations have shifted toward workforce skills, skills intelligence and how AI affects work across an organization. He added that Skillsoft’s platform can be adopted incrementally and is designed to integrate with customers’ existing systems rather than requiring a large-scale replacement cycle. Skillsoft reduced fiscal 2027 revenue guidance to a range of $380 million to $390 million, from a previous range of $388 million to $406 million, citing the accelerated negative dynamics in its consumer business. However, the company maintained adjusted EBITDA guidance from continuing operations of $108 million to $116 million, or approximately 28% of revenue. It also maintained its outlook for free cash flow from continuing operations of $14 million to $22 million. At the end of the quarter, cash equivalents and restricted cash totaled $93.1 million. Gross debt was $575 million, while net debt was approximately $481 million. Management said addressing upcoming debt maturities remains its top financial priority. Following the Global Knowledge sale, the company has formed a special board committee and engaged advisers in preparation for discussions with lenders. Kisling said the company expects to engage “very soon,” though management did not provide a public timetable or discuss potential outcomes. The Global Knowledge disposition is expected to consume about $15 million of fiscal 2027 cash flow from operations, transaction-related costs and stranded costs, including $12 million incurred through July 31. The company also expects approximately $4 million of third-party advisory cash outflows in the third quarter related to the sale process. 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 Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for September 2026.

Skillsoft Corp. (SKIL) came out with quarterly earnings of $1.17 per share, beating the Zacks Consensus Estimate of $0.83 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +40.96%. A quarter ago, it was expected that this company would post earnings of $0.05 per share when it actually produced earnings of $1.16, delivering a surprise of +2220%. 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 $98.25 million for the quarter ended July 2026, missing the Zacks Consensus Estimate by 0.4%. This compares to year-ago revenues of $128.82 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 28.3% since the beginning of the year versus the S&P 500's gain of 12.1%. 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 $1.28 on $100.3 million in revenues for the coming quarter and $4.19 on $397.53 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 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. Another stock from the same industry, ZenaTech, Inc. (ZENA), has yet to report results for the quarter ended June 2026. This company is expected to post quarterly loss of $0.21 per share in its upcoming report, which represents a year-over-year change of -50%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ZenaTech, Inc.'s revenues are expected to be $6.97 million, up 330.3% 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 ZenaTech, Inc. (ZENA) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Successfully completed the sale of Global Knowledge, centering the business around Skillsoft’s AI-native skills management platform Enterprise business continues to perform as planned, supported by healthy retention, growing platform adoption and an expanding pipeline Updated fiscal 2027 Revenue guidance while maintaining Adjusted EBITDA(1) and Free Cash Flow(1) guidance BOSTON, September 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 second quarter of fiscal 2027 (the three months ended July 31, 2026), and provided financial outlook for the 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, Skillsoft operates as a single 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 (through the sale of the GK disposal group on July 6, 2026), all financial measures discussed below relate only to continuing operations. Fiscal 2027 Second Quarter Select Metrics and Financial Measures Revenue of $98.2 million, down 3% from the prior year. Net Loss improved by 17% to $15.0 million compared to Net Loss of $18.0 million the prior year. Net Loss per share improved by 20% to $1.67 compared to net loss per share of $2.10 the prior year. Adjusted EBITDA (1) of $33 million, reflecting margin of 34% of Revenue, compared to $31 million and a margin of 31% of Revenue in the prior year. Free Cash Flow (1) of ($20.5) million compared to ($22.6) million in the prior year. "The second quarter marked another important step in Skillsoft’s transformation. With the Global Knowledge divestiture complete, we are now a simpler, more focused company centered on our core enterprise opportunity and the continued development of our AI-native skills management platform," said Ron Hovsepian, Skillsoft Executive Chair and CEO. "We are seeing encouraging progress in customer engagement, early platform adoption and pipeline expansion, while the general availability of LX Design Studio capability is an important example of how we are bringing differentiated, AI-enabled capabilities to customers." Hovsepian continued, "As AI continues to reshape workforce requirements, organizations increasingly need better ways to identify skills gaps, close those gaps with targeted development, and measure workforce readiness. We believe Skillsoft is well positioned to address that need through the combination of trusted content and our AI-native technology platform. At the same time, addressing our debt structure is our top financial priority and we are approaching that work with discipline while continuing to focus on profitability, free cash flow, and long-term value creation for all stakeholders." Fiscal 2027 Second Quarter Business Highlights In July 2026, Skillsoft completed the sale of its Global Knowledge business to Enduring Ventures. The AI-based LX Design Studio capability reached general availability, enabling customers to turn their own expertise into custom courses, assessments, and interactive practice experiences within the Skillsoft Platform. By the end of the second quarter, the number of CAISY learners increased 23% year over year, while the number of organizations using CAISY grew 9% reflecting growing demand for AI-enabled practice and skills development. Launched early access to Skillsoft AI Coach, a new personalized coaching experience that helps employees sharpen the skills the business needs to execute and drive outcomes at scale. "I am encouraged by the progress we made on profitability during the quarter," said Ron Kisling, Skillsoft Chief Financial Officer. "Our enterprise business continues to perform as planned, while accelerating pressure in the consumer business is reflected in our revised fiscal 2027 revenue outlook. We remain focused on disciplined execution and actively managing our cost structure, which allows us to maintain our Adjusted EBITDA(1) and Free Cash Flow(1) guidance." Full-Year Fiscal 2027 Financial Outlook The following table reflects Skillsoft’s updated 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 global leader in skills management for the human + AI era. 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. As of April 30, 2026, we classified our GK segment as discontinued operations. As a result, commencing with the quarter ended April 30, 2026, 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. Accordingly, as of April 30, 2026, these non-GAAP financial measures are reconciled to income (loss) from continuing operations, which is the most directly comparable financial measure calculated in accordance with U.S. GAAP. 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; adjusted net income per share; adjusted net income margin % (i.e., adjusted net income 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 and six month periods ended July 31, 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 is defined as net income (loss) from continuing operations 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 per share is defined as adjusted net income divided by the number of diluted weighted average shares outstanding. Adjusted net income margin % is defined as adjusted net income as a percentage of revenue. Adjusted EBITDA is defined as net income (loss) from continuing operations excluding (when applicable to the periods presented) the same exclusions set forth above for the determination of adjusted net income 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 from continuing operations 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 from continuing operations 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 from continuing operations 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 from continuing operations excluding (where applicable) depreciation expense, long-term incentive compensation expense, litigation and regulatory matters expenses, 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 from continuing operations and excluding (where applicable) depreciation expense, long-term incentive compensation expense, litigation and regulatory matters expenses, 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 the disposition of 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 Part I - Item 2. MD&A" of our Quarterly Report on Form 10-Q for the quarter ended July 31, 2026 ("Q2 2027 Form 10-Q"). 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, the Q2 2027 Form 10-Q 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. Any 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/20260909940749/en/ Contacts Investors: Ross [email protected] Media: [email protected]

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.