-- Anticipated sale of Global Knowledge segment intended to center
business around Skillsoft's AI-native skills management platform
-- New Percipio$(R)$ platform customers grew 67% quarter over quarter
-- Reaffirmed financial outlook for the full fiscal year
BOSTON--(BUSINESS WIRE)--June 09, 2026--
Skillsoft Corp. (NYSE: SKIL) ("Skillsoft", "we", "us", "our" or the "Company"), a leading AI-native skills management platform, today announced its financial results for the first quarter of fiscal 2027 ended April 30, 2026, and provided financial outlook for full fiscal 2027 year. Skillsoft previously had two operating and reportable segments: Talent Development Solutions ("TDS") and Global Knowledge ("GK"). On April 30, 2026, we determined that the business of our GK segment met the criteria to be classified as held for sale and as discontinued operations. As a result, our TDS segment is our only remaining operating and reportable segment as of such date. Accordingly, the historical results of our former GK segment are presented as discontinued operations and, as such, have been excluded from continuing operations and segment results for all periods presented herein. Therefore, except for free cash flow(1) , which includes both continuing and discontinued operations, all financial measures discussed below relate only to continuing operations. Free cash flow(1) guidance, however, is provided on a continuing operations basis.
Fiscal 2027 First Quarter Select Metrics and Financial Measures
-- Revenue of $94.5 million, down 5% from the prior year.
-- Net Loss improved by 37% to $18.7 million compared to Net Loss of $29.6
million the prior year. Net Loss per share improved by 40% to $2.12
compared to net loss per share of $3.56 the prior year.
-- Adjusted EBITDA(1) of $27 million, reflecting margin of 28% of Revenue,
compared to $27 million and a margin of 27% of Revenue in the prior
year.
-- Free Cash Flow(1) of $25 million compared to $26 million in the prior
year.
"We continued to make meaningful strategic and operational progress in the first quarter, highlighted by our execution of an agreement to divest our Global Knowledge business, which once consummated, will represent an important step in simplifying Skillsoft's operations and focusing the Company on its core enterprise platform opportunity," said Ron Hovsepian, Skillsoft Executive Chair and CEO. "As we move forward, Skillsoft will be centered on the business where we see the greatest opportunity to help organizations build workforce readiness, close critical skills gaps and connect learning activity to measurable business outcomes."
Hovsepian continued, "We are seeing encouraging signs across the business, including customer growth in the new AI-native Skillsoft platform , strong customer retention and continued engagement from enterprises that are preparing their workforces for an AI-driven future. AI is widening the skills gap faster than many organizations can address it, and customers are looking for trusted partners that can help them measure readiness, validate capability and build skills at scale. We believe Skillsoft is well positioned to meet that need through our AI-native skills management platform, and we remain focused on disciplined execution, improving free cash flow visibility and creating long-term value for our stakeholders."
Fiscal 2027 First Quarter Business Highlights
-- In May 2026, Skillsoft announced an agreement to sell its GK business
to an affiliate of Enduring Ventures.
-- Skillsoft grew new customer agreements for its next-generation
Skillsoft Percipio(R) Platform by 67% quarter-over-quarter.
-- DRR(2) of 105% in the first quarter of 2027, up significantly from 91%
in the year ago period; LTM DRR(2) of 98%, one percentage point lower
than the year ago period.
"I am excited to have joined Skillsoft at such a strategic moment for the Company," said Ron Kisling, Skillsoft Chief Financial Officer. "While I am still early in my tenure, I have been impressed by the strength of the team, the clarity of the strategic priorities and the opportunity ahead as we continue to focus on execution, operational discipline and long-term value creation."
Full-Year Fiscal 2027 Financial Outlook
The following table reflects Skillsoft's reiterated financial outlook for fiscal 2027, based on current market conditions, expectations, and assumptions:
Revenue $388 million -- $406 million
Adjusted EBITDA (1) $108 million -- $116 million
TDS Free Cash Flow (1) $14 million -- $22 million
(1) Denotes a non-GAAP financial measure. See "Non-GAAP Financial Measures"
below for the definitions of these and other non-GAAP financial measures
included in this press release, how they are calculated, and the
rationale for their use. A reconciliation of historical non-GAAP
financial measures to the most directly comparable GAAP financial
measures is provided in the tables at the back of this press release. We
do not provide quantitative 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. See "Non-GAAP Financial Measures"
below for further detail.
(2) See "Key Performance Metric" below for the definition of DRR, how it is
calculated, and the rationale for its use.
Webcast and Conference Call Information
Skillsoft will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss its financial results. To access the call, dial (877) 407--3088 from the United States and Canada or (201) 389--0927 from international locations. The live event can be accessed from the Investor Relations section of Skillsoft's website at investor.skillsoft.com. A replay will be available for twelve months.
About Skillsoft
Skillsoft (NYSE: SKIL) is a leading AI-native skills management platform. The AI-native Skillsoft platform gives a clear view of workforce capability, closes critical skill gaps, and proves the impact of skills on business outcomes. With Skillsoft, organizations can build AI-ready teams, lower the cost and time of workforce development, and reduce execution risk as work continues to change. Thousands of organizations worldwide trust Skillsoft to power workforce readiness. Learn more at skillsoft.com.
Skillsoft Public Relations
PR@skillsoft.com
Non-GAAP Financial Measures
In addition to disclosing detailed operating results in accordance with U.S. GAAP, Skillsoft provides supplementary non-GAAP financial measures to consider in evaluating our operating performance. We track the non-GAAP financial measures that we believe are key financial measures of our success. Non-GAAP measures are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of U.S. GAAP financial disclosures. In addition, management uses these non-GAAP financial measures to assess operating performance, financial leverage and the effective use and allocation of resources; to provide more normalized period-to-period comparisons of operating results; to enhance investors' understanding of the core operating results of our business; and to set management incentive targets. We believe investors use both U.S. GAAP and non-GAAP financial measures to assess management's decisions associated with our priorities and capital allocation, as well as to analyze how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. We disclose the non-GAAP financial measures included in this press release because we believe that they provide meaningful supplemental information. However, non-GAAP financial measures have limitations as analytical tools. Because not all companies use identical calculations, our presentation of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. They are not presentations made in accordance with U.S. GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with U.S. GAAP or operating cash flows determined in accordance with U.S. GAAP. As a result, these non-GAAP financial measures should not be considered in isolation from, or as a substitute analysis for, results of operations as determined in accordance with U.S. GAAP.
Prior to the first quarter of fiscal 2027, Skillsoft reconciled both adjusted net income (loss) and adjusted EBITDA to net income (loss). However, as of April 30, 2026, we classified our GK segment as discontinued operations. As a result, commencing with the quarter ended April 30, 2026, we reconcile these non-GAAP measures to income (loss) from continuing operations, as the most directly comparable financial measure calculated in accordance with U.S. GAAP. This change reflects the fact that adjusted net income (loss) and adjusted EBITDA are intended to measure continuing operations only, and therefore exclude the operating results of our former GK segment, such that net income (loss) from continuing operations is the most directly-comparable GAAP measure. Note that all financial measures included below (other than free cash flow and adjusted free cash flow (levered), which each include both continuing and discontinued operations, relate only to continuing operations. Prior-period amounts have been recast to conform to the current presentation. In addition, commencing with the quarter ended April 30, 2026, we have: (i) added "litigation
and regulatory matter expenses" as an exclusion to specified non-GAAP financial measures (as described below) as new non-ordinary course expenses that are not reflective of ongoing operations and that were not relevant to prior periods; and (ii) removed references to system migration costs as no longer applicable to the periods presented.
The non-GAAP financial measures included in this press release are: adjusted net income (loss); adjusted net income (loss) per share; adjusted net income (loss) margin % (i.e., adjusted net income (loss) as a percentage of revenue); adjusted EBITDA; adjusted EBITDA margin % (i.e., adjusted EBITDA as a percentage of revenue); adjusted total operating expenses; adjusted costs of revenues; adjusted content and software development expenses; adjusted selling and marketing expenses; adjusted general and administrative expenses; free cash flow, and adjusted free cash flow (levered).
We have provided at the back of this press release reconciliations of these non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures for the three month periods ended April 30, 2026 and 2025. We do not reconcile our forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information. We provide non-GAAP financial measures that we believe will be achieved, however we cannot accurately predict all of the components of the adjusted calculations, and the U.S. GAAP financial measures may be materially different than the non-GAAP financial measures.
The non-GAAP measures included in this press release are defined as follows:
-- Adjusted net income (loss) is defined as net income (loss) excluding
non-cash items, discrete and event-specific costs that do not represent
normal cash operating expenses necessary for our business operations, and
certain accounting income and/or expenses. Management believes these
exclusions enhance the comparability of our results from period to period,
and as compared to peers, and are useful in assessing our operating
performance, and consist of the following (including the related tax
effects), when applicable to the periods presented:
-- Impairment charges -- Non-cash goodwill and intangible asset
impairment charges.
-- Amortization of acquired intangible assets -- Non-cash
amortization expense of finite-lived intangible assets recognized
as a part of business combination accounting.
-- Acquisition and integration related costs -- Costs incurred to
effectuate an acquisition, including contingent compensation
expenses, and integration-related costs.
-- Restructuring charges -- Charges related to strategic cost
saving initiatives, including severance costs, losses associated
with the abandonment of right-of-use assets, and contract
termination costs.
-- Long-term incentive compensation expenses -- Charges associated
with long-term incentive compensation programs, including
stock-based compensation, cash awards tied to stock performance,
and awards granted in-lieu of stock that are intended to be
settled in cash.
-- Litigation and regulatory matter expenses -- Charges associated
with certain litigation, regulatory, compliance and investigative
matters and related costs including legal settlements, fines,
penalties, remediation costs, professional fees and other directly
attributable expenses arising from specific proceedings, inquiries,
investigations or notices, including those from regulatory bodies
or listing authorities. These matters are evaluated periodically,
and excluded where they are determined to be outside of the
ordinary course of business and not reflective of ongoing
operations, based on factors such as frequency, complexity, nature
of relief sought, and counterparty.
-- Executive exit costs -- Costs associated with the departure of
executives.
-- Transformation costs -- Costs incurred to transform our
operations through significant strategic non-ordinary course
transactions.
-- Fair value adjustments -- Mark-to-market adjustments of interest
rate swap agreements.
-- Other (income) expense, net -- Unrealized and realized gains or
losses primarily resulting from fluctuations of U.S. dollar
appreciating or depreciating against other currencies, and
impairments associated with property and equipment and other
tangible assets when their carrying values are not recoverable.
-- Adjusted net income (loss) per share is defined as adjusted net income
(loss) divided by the number of diluted weighted average shares
outstanding.
-- Adjusted net income (loss) margin % is defined as adjusted net income
(loss) as a percentage of revenue.
-- Adjusted EBITDA is defined as net income (loss) excluding (when
applicable to the periods presented) the same exclusions set forth above
for the determination of adjusted net income (loss) plus the additional
exclusions set forth below. Management believes these exclusions enhance
the comparability of our results from period to period, and as compared
to peers, and are useful in assessing our operating performance. The
additional exclusions are:
-- Amortization of capitalized internally developed software --
Non-cash amortization expense for finite-lived intangible assets
other than those recognized as a part of business combination
accounting.
-- Interest expense, net -- Gross interest expense offset by
interest income.
-- Depreciation expense -- Non-cash depreciation expense for
property and equipment assets.
-- Provision for (benefit from) income taxes -- Current and
deferred federal, state and foreign income tax expense (benefit).
-- Adjusted EBITDA margin %* is defined as adjusted EBITDA as a percentage
of revenue.
-- Adjusted costs of revenues is defined as costs of revenues excluding
(where applicable) depreciation expense, long-term incentive compensation
expense and transformation costs.
-- Adjusted content and software development expenses is defined as
content and software development expenses excluding (where applicable)
depreciation expense, long-term incentive compensation expense and
transformation costs.
-- Adjusted selling and marketing expenses is defined as selling and
marketing expenses excluding (where applicable) depreciation expense,
long-term incentive compensation expense and transformation costs.
-- Adjusted general and administrative expenses is defined as general and
administrative expense excluding (where applicable) depreciation expense,
long-term incentive compensation expense, litigation and regulatory
expense, executive exit costs and transformation costs.
-- Adjusted total operating expenses is defined as costs of revenues,
content and software development expenses, selling and marketing expenses,
and general and administrative expenses, in each case excluding (where
applicable) depreciation expense, long-term incentive compensation
expense, litigation and regulatory expense, executive exit costs and
transformation costs.
-- Free cash flow is defined as net cash provided by (used in) operating
activities, less net purchases of property and equipment and internally
developed software. Note that free cash flow does not represent residual
cash flow available to Skillsoft for discretionary expenditures.
-- Adjusted free cash flow (levered) is defined as free cash flow plus the
cash impact of the charges excluded in the determination of adjusted
EBITDA (as set forth above). Note that adjusted free cash flow (levered)
does not represent residual cash flow available to Skillsoft for
discretionary expenditures.
Key Performance Metric
Skillsoft also uses a supplementary key performance metric (dollar retention rate) that we believe is a key financial measure of our success. Key performance metrics are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present key performance metrics when reporting their results. In addition, management uses dollar retention rate to assess operating performance, and to enhance investors' understanding of the core operating results of our business. We believe investors use dollar retention rate to assess how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. We use dollar retention rate because we believe that it provides meaningful supplemental information. However, this metric may not be comparable to other similarly titled measures of other companies. It is not a measure of financial condition or liquidity, and should not be considered in isolation from, or as a substitute analysis for, results of
operations as determined in accordance with U.S. GAAP.
-- Dollar retention rate ("DRR") - For existing customers at the beginning
of a given period, DRR represents subscription renewals, upgrades, churn
and downgrades in such period divided by the beginning total renewable
base of such customers for such period. Renewals reflect customers who
renew their subscription, inclusive of auto-renewals for multi-year
contracts, while churn reflects customers who choose not to renew their
subscription. Upgrades include orders from customers that purchase
additional licenses or content (e.g., a new Leadership and Business
module), while downgrades reflect customers electing to decrease the
number of licenses or reduce the size of their content package. Upgrades
and downgrades also reflect changes in pricing. We use our DRR to measure
the long-term value of customer contracts as well as our ability to
retain and expand the revenue generated from our existing customers.
Cautionary Notes Regarding Forward Looking Statements
This press release includes statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For all such statements, we claim the protection of the safe harbor for forward-looking statements provided by such sections and the Private Securities Litigation Reform Act of 1995, where applicable. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements include, but are not limited to, statements that address activities, events or developments that we expect or anticipate may occur in the future, including statements with respect to our guidance and outlook (including our Full Year Fiscal 2027 Financial Outlook), our product development and planning, our pipeline, future capital expenditures and capital allocation, future share repurchases, anticipated financial results, the impact of regulatory changes, our current and evolving business strategies and their anticipated impact, including with respect to our GK business, demand for our services, our competitive position, the benefits of new initiatives, growth of our business and operations, the effectiveness of our products, the outcomes of litigation proceedings and claims, the state and future of skilling in the workplace, our ability to successfully implement our plans, strategies, and objectives, our ability to regain and/or maintain compliance with New York Stock Exchange listing standards, and our expectations and intentions. Forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "may," "will," "would, " "anticipate," "believe," "estimate," "expect," "intend," "plan," "contemplate," "continue," "project," "forecast," "seek," "outlook," "target," "goal," "objective," "potential," "possible," "probable," or similar expressions, employ such future or conditional verbs as "may," "might," "will," "could," "should," or "would," or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. Such statements are based upon the current beliefs and expectations of Skillsoft's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. All forward-looking disclosures are speculative by their nature, and we caution you against unduly relying on these forward-looking statements.
Factors, many of which are beyond our control, that could cause or contribute to such differences include those described under "Part I - Item 1A. Risk Factors" and "Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations ("MD&A")" in our Annual Report on Form 10--K for the fiscal year ended January 31, 2026 ("2026 Form 10-K"), as well as "Part II -- Item 1A. Risk Factors and Item 7. MD&A" in our Quarterly Report on Form 10-Q for the quarter ended April 30, 2026. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included in the 2026 Form 10-K, in this document and in our other filings with the Securities and Exchange Commission ("SEC"). The forward-looking statements contained in this document represent our estimates only as of the date of this press release and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements, or otherwise, except as required by law. You are advised, however, to review any further factors and risks we describe in reports we file from time to time with the SEC after the date hereof.
Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this press release, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved. Annualized, pro forma, projected and estimated numbers are not guarantees or assurances of future performance and may not reflect (and may be materially different from) actual results.
All forward-looking statements contained herein are expressly qualified in their entirety by the foregoing cautionary statements.
Industry and Market Data
Within this document, we reference information and statistics regarding market share, industry data and our market position. Certain of this information has been obtained from various independent third-party sources, including independent industry publications, news reports, reports by market research firms and other independent sources. We believe that these external sources and estimates are reliable but have not independently verified them. In addition, certain of this information and statistics are based on our own internal surveys and assessments, which are developed in good faith using reasonable estimates. The information is based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above.
SKILLSOFT CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares and per share amounts)
April 30, 2026 January 31, 2026
---------------- --------------------
ASSETS
Current assets:
Cash and cash equivalents $ 115,562 $ 94,123
Restricted cash 2,811 2,805
Accounts receivable, net of
allowance for credit losses of
approximately $366 and $382 as
of April 30, 2026 and January
31, 2026, respectively 77,313 154,811
Prepaid expenses and other
current assets 38,176 34,876
Assets held for sale 53,148 81,279
----------- -------------
Total current assets 287,010 367,894
Goodwill 287,650 287,650
Intangible assets, net 258,654 285,138
Other assets 19,697 22,436
----------- -------------
Total assets $ 853,011 $ 963,118
=========== =============
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term
debt $ 6,404 $ 6,404
Borrowings under accounts
receivable facility 1,000 1,000
Accounts payable 9,056 15,170
Accrued compensation 22,336 37,280
Accrued expenses and other
current liabilities 14,587 17,934
Deferred revenue 221,299 257,331
Liabilities associated with
assets held for sale 39,229 41,822
----------- -------------
Total current liabilities 313,911 376,941
Long-term debt 568,163 570,769
Deferred tax liabilities 34,712 33,849
Deferred revenue - non-current 1,117 1,117
Other long-term liabilities 7,923 10,669
----------- -------------
Total long-term liabilities 611,915 616,404
Commitments and contingencies
Shareholders' equity (deficit):
Shareholders' common stock -
Class A common shares, $0.0001
par value per share:
18,750,000 shares authorized
and 9,135,428 shares issued
and 8,835,651 shares
outstanding as of April 30,
2026, and 9,095,922 shares
issued and 8,796,145 shares
outstanding as of January 31,
2026 1 1
Additional paid-in capital 1,578,986 1,576,794
Accumulated (deficit) (1,626,324) (1,583,210)
Treasury stock, at cost -
299,777 shares as of April 30,
2026 and January 31, 2026 (10,891) (10,891)
Accumulated other comprehensive
income (loss) (14,587) (12,921)
----------- -------------
Total shareholders' equity
(deficit) (72,815) (30,227)
----------- -------------
Total liabilities and
shareholders' equity
(deficit) $ 853,011 $ 963,118
=========== =============
SKILLSOFT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except number of shares and per share amounts)
Three Months Ended April 30,
----------------------------------
2026 2025
----------------- ---------------
Revenues:
Total revenues $ 94,498 $ 99,148
Operating expenses:
Costs of revenues 15,889 16,516
Content and software development
expenses 13,052 13,324
Selling and marketing expenses 26,960 29,748
General and administrative
expenses 15,994 19,182
Amortization of intangible assets 29,561 30,106
Acquisition and integration
related costs -- 523
Restructuring charges 1,341 1,016
------------ -----------
Total operating expenses 102,797 110,415
------------ -----------
Operating income (loss) (8,299) (11,267)
Other income (expense), net 2,606 (917)
Fair value adjustment of interest
rate swaps 1,245 (4,256)
Interest income 545 468
Interest expense (13,748) (14,396)
------------ -----------
Income (loss) before
provision for (benefit
from) income taxes (17,651) (30,368)
Provision for (benefit from) income
taxes 1,044 (741)
------------ -----------
Income (loss) from
continuing operations (18,695) (29,627)
Income (loss) from discontinued
operations, net of income taxes (24,419) (8,422)
------------ -----------
Net income (loss) $ (43,114) $ (38,049)
============ ===========
Per basic and diluted share:
Income (loss) from continued
operations $ (2.12) $ (3.56)
Income (loss) from discontinued
operations (2.77) (1.01)
------------ -----------
Net income (loss) $ (4.89) $ (4.57)
============ ===========
Weighted average common share
outstanding:
Basic and diluted 8,811,277 8,324,864
============ ===========
SKILLSOFT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended April 30,
--------------------------------------
2026 2025
------------------- -----------------
Cash flows from operating
activities:
Net income (loss) $ (43,114) $ (38,049)
Adjustments to reconcile net
income (loss) to net cash
provided by (used in) operating
activities:
Amortization expense for
intangible assets 30,866 31,608
Stock-based compensation
expense 2,842 4,081
Depreciation expense 452 447
Loss on disposal and
impairment of goodwill related
to disposal group 15,603 --
Non-cash interest expense 596 566
Non-cash operating lease
right-of-use asset expense 404 408
Provision for credit loss
expense (recovery) (16) (232)
Fair value adjustment of
interest rate swaps (1,245) 4,256
Unrealized foreign currency
(gain) loss (179) --
Provision for (benefit from)
deferred income taxes --
non-cash 1,385 (1,225)
Changes in assets and
liabilities:
Accounts receivable 80,875 86,559
Prepaid expenses and other
assets, including
long-term 4,641 1,243
Accounts payable (6,107) 6,992
Accrued expenses and other
liabilities, including
long-term (21,289) (21,780)
Deferred revenue (36,774) (43,576)
----------- ----------
Net cash provided by
(used in) operating
activities 28,940 31,298
Cash flows from investing
activities:
Purchase of property and
equipment (425) (515)
Internally developed software -
capitalized costs (3,076) (4,619)
----------- ----------
Net cash provided by (used in)
investing activities (3,501) (5,134)
Cash flows from financing
activities:
Shares repurchased for tax
withholding upon vesting of
restricted stock-based awards (114) (352)
Principal payments on term loans (3,202) (1,601)
----------- ----------
Net cash provided by (used in)
financing activities (3,316) (1,953)
Effect of exchange rate changes on
cash and cash equivalents (356) 3,384
----------- ----------
Net increase (decrease) in
cash, cash equivalents and
restricted cash 21,767 27,595
Cash, cash equivalents and
restricted cash, beginning of
period 104,478 103,337
----------- ----------
Cash, cash equivalents
and restricted cash,
end of period $ 126,245 $ 130,932
=========== ==========
Supplemental disclosure of cash flow
information:
Cash and cash equivalents:
Continuing operations $ 115,562 $ 121,880
Held for sale 7,015 5,961
----------- ----------
122,577 127,841
--------------- --------------
Restricted cash:
Continuing operations 2,811 2,091
Held for sale 857 1,000
----------- ----------
3,668 3,091
--------------- --------------
Cash, cash equivalents and
restricted cash, end of
period $ 126,245 $ 130,932
=========== ==========
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages, number of shares and per share amounts,
unaudited)
Three Months Ended April 30,
------------------------------------
2026 2025
------------------- ---------------
Total revenues, as reported $ 94,498 $ 99,148
=========== ==========
Income (loss) from continuing
operations $ (18,695) $ (29,627)
Amortization of acquired
intangible assets (1) 26,093 27,290
Acquisition and integration
related costs -- 523
Restructuring charges 1,341 1,016
Long-term incentive compensation
expenses 2,950 4,539
Litigation and regulatory
expenses 373 --
Transformation costs 371 1,602
Other (income) expense, net (2,606) 917
Fair value adjustment of interest
rate swaps (1,245) 4,256
Tax impact of adjustments 1,613 (980)
----------- ----------
Adjusted net income (loss) 10,195 9,536
----------- ----------
Interest expense, net 13,203 13,928
Expense (benefit from) income
taxes, excluding tax impacts
above (569) 239
Depreciation 343 320
Amortization of capitalized
internally developed software
(1) 3,468 2,816
----------- ----------
Adjusted EBITDA $ 26,640 $ 26,839
=========== ==========
Weighted average common shares
outstanding:
Basic and diluted 8,811,277 8,324,864
=========== ==========
Basic and diluted per share
information:
Income (loss) from continuing
operations per share $ (2.12) $ (3.56)
=========== ==========
Adjusted net income (loss) per
share (2) $ 1.16 $ 1.15
=========== ==========
Income (loss) from continuing
operations margin % (19.8)% (29.9)%
Amortization of acquired
intangible assets (1) 27.6% 27.5%
Acquisition and integration
related costs 0.0% 0.5%
Restructuring charges 1.4% 1.0%
Long-term incentive compensation
expenses 3.1% 4.6%
Litigation and regulatory
expenses 0.4% 0.0%
Executive exit costs 0.0% 0.0%
Transformation costs 0.4% 1.6%
Fair value adjustment of interest
rate swaps (2.8)% 0.9%
Other (income) expense, net (1.2)% 4.4%
Tax impact of adjustments 1.7% (1.0)%
----------- ----------
Adjusted net income (loss)
margin % 10.8% 9.6%
Interest expense, net 13.9% 14.2%
Expense (benefit from) income
taxes, excluding tax impacts
above (0.6)% 0.2%
Depreciation 0.4% 0.3%
Amortization of capitalized
internally developed software
(1) 3.7% 2.8%
----------- ----------
Adjusted EBITDA margin % 28.2% 27.1%
=========== ==========
(1) All amortization (not only amortization pertaining to finite-lived
intangible assets recognized as part of business combination accounting)
is excluded in the determination of Adjusted EBITDA.
(2) Because the Company reported a GAAP net loss, diluted shares were
anti-dilutive and therefore excluded from both "income (loss) from
continuing operations" and "Adjusted net income (loss)" per share.
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued
(in thousands, unaudited)
Three Months Ended April 30,
--------------------------------------
2026 2025
------------------- -----------------
Operating expenses:
GAAP costs of revenues $ 15,889 $ 16,516
Depreciation (59) (66)
Long-term incentive compensation
expenses (91) (179)
----------- ----------
Adjusted costs of revenues 15,739 16,271
GAAP content and software
development expenses 13,052 13,324
Depreciation (90) (81)
Long-term incentive compensation
expenses (288) (1,146)
----------- ----------
Adjusted content and software
development expenses 12,674 12,097
GAAP selling and marketing
expenses 26,960 29,748
Depreciation (150) (133)
Long-term incentive compensation
expenses (540) (949)
----------- ----------
Adjusted selling and marketing
expenses 26,270 28,666
GAAP general and administrative
expenses 15,994 19,182
Depreciation (44) (40)
Long-term incentive compensation
expenses (2,031) (2,265)
Litigation and regulatory
expenses (373) --
Transformation costs (371) (1,602)
----------- ----------
Adjusted general and
administrative expenses 13,175 15,275
Total GAAP operating expenses 71,895 78,770
Depreciation (343) (320)
Long-term incentive compensation
expenses (2,950) (4,539)
Litigation and regulatory
expenses (373) --
Transformation costs (371) (1,602)
----------- ----------
Adjusted total operating
expenses $ 67,858 $ 72,309
=========== ==========
SKILLSOFT CORP.
FREE CASH FLOW and ADJUSTED FREE CASH FLOW (LEVERED) RECONCILIATION
(in thousands, unaudited)
Three Months Ended April 30,
--------------------------------------
2026 2025
------------------- -----------------
Free cash flow reconciliation
Net cash provided by (used in)
operating activities $ 28,940 $ 31,298
Purchase of property and equipment,
net (425) (515)
Internally developed software -
capitalized costs (3,076) (4,619)
----------- ----------
Free cash flow 25,439 26,164
Cash impact for adjusted EBITDA
excluded charges 7,226 4,980
----------- ----------
Adjusted free cash flow
(levered) $ 32,665 $ 31,144
=========== ==========
View source version on businesswire.com: https://www.businesswire.com/news/home/20260609652799/en/
CONTACT: Investors:
Ross Collins
SKIL@alpha-ir.com
Media:
PR@skillsoft.com
(END) Dow Jones Newswires
June 09, 2026 16:05 ET (20:05 GMT)
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