Skillsoft (NYSE:SKIL) Releases Quarterly Earnings Results, Beats Estimates By $1.11 EPS

Skillsoft (NYSE:SKIL) issued its quarterly earnings results on Tuesday. The company reported $1.16 EPS for the quarter, topping the consensus estimate of $0.05 by $1.11, FiscalAI reports. Skillsoft had a negative net margin of 30.00% and a positive return on equity of 579.26%. The business had revenue of $94.50 million for the quarter, compared to analysts’ expectations of $121.10 million.

Here are the key takeaways from Skillsoft’s conference call:

• Skillsoft said the Global Knowledge divestiture is expected to close in fiscal Q2, which should simplify the company, sharpen focus on its core platform, and improve free cash flow visibility.
• The company highlighted improving sales momentum, including a 67% quarter-over-quarter increase in new platform customer agreements and a quarter DRR of 105%, which management said reflects stronger customer engagement and retention.
• First-quarter revenue fell 4.7% to $94.5 million, mainly due to prior-year government booking softness and continued consumer declines, while some expected revenue from professional services and coaching was pushed into later periods.
• Skillsoft reported better cost discipline, with selling and marketing and G&A expenses both down year over year, and adjusted EBITDA from continuing operations held roughly flat at $26.6 million with margin improving to 28.2%.
• Management kept full-year fiscal 2027 guidance unchanged, but said debt refinancing becomes the top priority after the GK transaction closes, underscoring ongoing balance sheet risk despite expected simplification benefits.

Skillsoft Price Performance

Shares of NYSE:SKIL opened at $5.20 on Thursday. The firm’s 50 day moving average is $6.55 and its two-hundred day moving average is $6.84. Skillsoft has a 52 week low of $3.43 and a 52 week high of $18.51. The firm has a market capitalization of $46.55 million, a P/E ratio of -0.31, a PEG ratio of 0.18 and a beta of 2.23. The company has a current ratio of 0.89, a quick ratio of 0.89 and a debt-to-equity ratio of 142.97.

Wall Street Analyst Weigh In

Separately, Weiss Ratings reiterated a “sell (e+)” rating on shares of Skillsoft in a research note on Friday, March 27th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Skillsoft has a consensus rating of “Reduce”.

Institutional Investors Weigh In On Skillsoft

Several large investors have recently made changes to their positions in SKIL. Goldman Sachs Group Inc. increased its stake in shares of Skillsoft by 133.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 304,966 shares of the company’s stock valued at $2,836,000 after purchasing an additional 174,429 shares during the period. Geode Capital Management LLC increased its stake in shares of Skillsoft by 114.6% in the second quarter. Geode Capital Management LLC now owns 102,715 shares of the company’s stock valued at $1,641,000 after purchasing an additional 54,853 shares during the period. Cruiser Capital Advisors LLC increased its stake in shares of Skillsoft by 177.7% in the fourth quarter. Cruiser Capital Advisors LLC now owns 57,794 shares of the company’s stock valued at $537,000 after purchasing an additional 36,981 shares during the period. Acadian Asset Management LLC increased its stake in shares of Skillsoft by 286.0% during the first quarter. Acadian Asset Management LLC now owns 40,374 shares of the company’s stock valued at $774,000 after acquiring an additional 29,914 shares during the period. Finally, Nuveen LLC acquired a new position in shares of Skillsoft during the fourth quarter valued at approximately $171,000. Institutional investors and hedge funds own 87.00% of the company’s stock.

Key Headlines Impacting Skillsoft

Here are the key news stories impacting Skillsoft this week:

• Positive Sentiment: Skillsoft’s Q1 fiscal 2027 EPS of $1.16 far exceeded the consensus estimate of $0.05, showing stronger-than-expected profitability in the quarter. Skillsoft Reports Financial Results for the First Quarter and Full Year of Fiscal 2027
• Positive Sentiment: The company’s new AI-focused research report found that 86% of employees already use AI tools at work, but only 24% feel fully equipped to use them effectively, reinforcing demand for Skillsoft’s workforce training products. Only 1 in 4 Employees Feel Equipped for AI, Skillsoft Research Finds
• Neutral Sentiment: Management outlined FY 2027 revenue guidance of $388 million to $406 million and emphasized a Global Knowledge divestiture, suggesting a strategic reset that could improve focus but also reflects near-term uncertainty. Skillsoft outlines FY 2027 revenue of $388M-$406M with focus on Global Knowledge divestiture and debt refinancing
• Negative Sentiment: Revenue for the quarter came in at $94.5 million, below analysts’ estimate of $121.1 million, which may outweigh the earnings beat in investors’ minds. Skillsoft Reports Financial Results for the First Quarter and Full Year of Fiscal 2027
• Negative Sentiment: The company’s revenue outlook also fell short of consensus, raising concerns that growth may remain weak despite improving AI-driven demand. Skillsoft Corp. (SKIL) Q1 Earnings Beat Estimates

Skillsoft Company Profile

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.