-- 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--(BUSINESS WIRE)--September 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 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."
(1) Denotes a non-GAAP financial measure. See "Non-GAAP Financial Measures"
below for the definitions of this 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.
See "Non-GAAP Financial Measures" below for further detail.
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:
Current Guidance Prior Guidance
Revenue $380 million -- $390 $388 million -- $406
million million
Adjusted EBITDA (1) $108 million -- $116 $108 million -- $116
million million
Free Cash Flow (1) $14 million -- $22 million $14 million -- $22 million
(1) Denotes a non-GAAP financial measure. See "Non-GAAP Financial Measures"
below for the definitions of this 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.
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 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.
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