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1. Company Snapshot

1.a. Company Description

Skillsoft Corp.provides corporate digital learning services in the United States and internationally.The company operates through Content, Global Knowledge, and SumTotal segments.


It offers enterprise learning solutions to prepare organizations for the future of work, as well as enable them to overcome critical skill gaps, drive demonstrable behavior-change, and unlock the potential in their greatest assets.In addition, it provides various platform capabilities, such as open platform, custom channels and journeys, administrator-promoted content, and flexible assignments, tracking and in-depth reporting, training groups, and records management.Further, the company offers learning management systems and talent management software.


The company is based in Nashua, New Hampshire.

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1.b. Last Insights on SKIL

Here is a 90-word analysis of the positive drivers behind Skillsoft Corp.'s recent stock performance: Skillsoft Corp.'s Q3 results showed signs of progress in its turnaround efforts, driven by cost savings programs that improved margins despite a slight revenue decline. Talent Development Solutions revenue increased 2% year-over-year, and the company generated strong free cash flow during the quarter. The market has reacted favorably to these results, and the company's cheap valuation is attractive to investors. However, the heavy debt load remains a concern.

1.c. Company Highlights

2. Skillsoft's Q2 FY2026 Earnings: Navigating Macroeconomic Challenges

Skillsoft reported Q2 FY2026 revenue of $128.8 million, a 2.6% decline year-over-year, with adjusted EBITDA of $28.3 million, maintaining a 22% margin. Earnings per share (EPS) came in at $0.92, significantly beating estimates of -$2.1. The company's financial performance was impacted by economic uncertainty, affecting customer discretionary spending, particularly in live learning and Global Knowledge (GK) segments. The revenue decline was partly offset by a 99% TDS dollar retention rate, indicating strong customer loyalty.

Publication Date: Sep -10

📋 Highlights
  • Revenue Decline:: Q2 FY2026 revenue fell to $128.8M (-2.6% YoY), with TDS at $101.2M (-6.1%) and GK at $276M (-9.6%) due to macroeconomic pressures.
  • Profitability Maintenance:: Adjusted EBITDA of $28.3M (22% margin) remained flat YoY, supported by 3.2% operating expense reductions and fixed-cost discipline.
  • Guidance Adjustments:: Full-year revenue guidance narrowed to $510–530M (-$17M from prior), while EBITDA ($112–118M) and free cash flow ($13–18M) targets were reconfirmed.
  • Strategic Growth Focus:: 99% TDS dollar retention rate and 74% YoY AI learning growth in Precipio, plus recent customer wins in North America and Europe.

Segment Performance

TDS revenue stood at $101.2 million, with enterprise growth being a positive note, as it grew consistently (90% of TDS segment). However, the B2C segment faced double-digit declines. The GK business faced headwinds, with revenue falling 9.6% to $27.6 million due to weaker demand in North America and geopolitical instability in the Middle East.

Guidance Adjustments and Macroeconomic Outlook

The company adjusted its full-year revenue guidance to $510-530 million, driven by a $7 million first-half decline and conservative back-half assumptions. Management expects macroeconomic uncertainty to last 3-6 months but remains confident in recovery over 12-18 months. According to Ron Hovsepian, "we are confident in reversing U.S. live learning declines, citing strong European recovery trends."

Valuation and Financial Metrics

Skillsoft's current valuation metrics indicate a 'P/E Ratio' of -0.81, 'P/B Ratio' of 1.15, 'P/S Ratio' of 0.21, and 'EV/EBITDA' of 10.96. The 'Net Debt / EBITDA' ratio stands at 8.93, highlighting a significant debt burden. The 'Free Cash Flow Yield' is 10.45%, suggesting potential for future growth. These metrics suggest that the market is pricing in a challenging period for the company, but there are indications of underlying strength.

Strategic Priorities

The company remains focused on strategic priorities, including AI-native product development, skills intelligence, and immersive learning. Recent customer wins, such as partnerships with a global athletic apparel brand and a semiconductor manufacturer, demonstrate the effectiveness of Skillsoft's scalable AI-powered training solutions. Management is balancing macroeconomic challenges with strategic execution, targeting growth in AI-driven markets.

3. NewsRoom

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SKIL vs. DOCU: Which Tech Stock Holds More Promise for Investors?

Nov -28

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Skillsoft (SKIL) Surges 17.9%: Is This an Indication of Further Gains?

Nov -24

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Best Growth Stocks to Buy for Nov. 24

Nov -24

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Nov -21

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SKIL or CLMB: Which Is the Better Value Stock Right Now?

Nov -19

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Is Percipio the Key to Reshaping Skillsoft's Market Positioning?

Nov -19

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Best Growth Stocks to Buy for Nov. 19th

Nov -19

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SKIL Plummets 53% in 6 Months: Should Investors Buy the Dip Now?

Nov -13

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (2.23%)

6. Segments

Content & Platform

Expected Growth: 2.5%

Content & Platform from Skillsoft Corp. growth driven by increasing demand for online learning, expansion into new markets, and strategic partnerships. The 2.5% growth rate is fueled by the need for continuous skill development, rising adoption of digital learning platforms, and the company's ability to provide high-quality, engaging content.

Instructor-Led Training

Expected Growth: 1.5%

Instructor-Led Training from Skillsoft Corp. growth driven by increasing demand for upskilling and reskilling, adoption of digital learning platforms, and growing need for customized training solutions. Additionally, expansion into new markets, strategic partnerships, and investments in AI-powered learning tools contribute to 1.5% growth.

7. Detailed Products

Percipio

A cloud-based learning platform that offers a wide range of courses, books, and videos on various topics such as business, technology, and creative skills.

SumTotal Systems

A human capital management (HCM) software that provides a suite of tools for talent management, learning management, and workforce management.

Content Anytime

A subscription-based service that provides access to a vast library of e-learning content, including videos, courses, and books.

Skillsoft Leadership Development

A suite of leadership development programs and resources designed to help leaders develop critical skills and competencies.

Skillsoft Compliance

A suite of compliance training solutions that provide regulatory compliance training, policy management, and risk management.

8. Skillsoft Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Skillsoft Corp. is medium due to the presence of alternative e-learning platforms and traditional educational institutions.

Bargaining Power Of Customers

The bargaining power of customers is low due to the specialized nature of Skillsoft's products and services, making it difficult for customers to switch to alternative providers.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium due to the presence of multiple suppliers of digital content and technology, but the company's dependence on a few key suppliers.

Threat Of New Entrants

The threat of new entrants is high due to the relatively low barriers to entry in the e-learning industry and the increasing demand for online education.

Intensity Of Rivalry

The intensity of rivalry is high due to the presence of several established players in the e-learning industry, leading to intense competition for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 75.45%
Debt Cost 9.80%
Equity Weight 24.55%
Equity Cost 9.80%
WACC 9.80%
Leverage 307.37%

11. Quality Control: Skillsoft Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 3.1/10

Value: 6.7

Growth: 6.1

Quality: 2.0

Yield: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7.25$

Current Price

7.25$

Potential

-0.00%

Expected Cash-Flows