Skillsoft Corp. (SKIL) Q3 2026 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 10 2025
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Should l Buy SKIL?
Source: SeekingAlpha
Revenue for TDS $100.8 million for the third quarter, down 2.1% year-over-year. Around 70% of the decline came from our B2C learner product, which represents around 9% of TDS revenue. The learner business struggles with changes in organic search algorithms, hampering lead generation and customer acquisition. The larger portion of our business, Enterprise Solutions, was down approximately 1%, reflecting customer churn earlier in the year.
Global Knowledge (GK) revenue $28.2 million in the quarter, down approximately $6 million or 17.6% year-over-year. The decline is due to softening demand, a shift in customer preferences towards blended learning, and spending reductions from the U.S. government shutdown.
Total revenue $129 million in the third quarter, down $8.2 million or 6% year-over-year. The decline is attributed to the performance of GK and the B2C learner product.
Cost of revenue $35.1 million in the third quarter or 27% of revenue, up 3.1% year-over-year. The increase is due to higher labs and certification spending and cloud-related costs resulting from higher customer utilization.
Content and software development expenses $13.7 million in the quarter or 11% of revenue, down approximately 2.4% year-over-year. The decrease is due to productivity gains from leveraging AI and sharper focus.
Selling and marketing expenses $35.2 million for the third quarter or 27% of revenue, down approximately 7.1% year-over-year. The reduction is due to lower headcount and improved productivity from transformation efforts.
General and administrative expenses $17.1 million in the third quarter or 13% of revenue, down approximately 11.9% year-over-year. The decrease is due to lower headcount and vendor spending, demonstrating improved productivity.
Total operating expenses $101 million in the third quarter or 78% of revenue, down $4.3 million or 4.1% year-over-year. The reduction reflects overall cost management and productivity improvements.
Adjusted EBITDA $28 million, down about 12% compared to $31.9 million last year. Adjusted EBITDA margin as a percentage of revenue for the quarter was 21.7% compared to 23.3% last year. GK contributed negative $3.3 million to EBITDA, driving most of the reduction.
GAAP net loss $41.3 million in the third quarter compared to $23.6 million in the prior year period. The increase is primarily due to a noncash goodwill impairment loss of $20.8 million related to GK.
Adjusted net income $14.3 million in the third quarter compared to $11.3 million in the prior year. Adjusted net income per share was $1.65 compared to $1.37 in the prior year.
Free cash flow Negative $23.6 million compared to a positive $4.1 million in the prior year period. About 3/4 of the cash utilization represented timing and reverses in Q4, with the remaining balance related to GK performance.
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Analyst Views on SKIL
About SKIL
Skillsoft Corp. provides personalized, interactive learning experiences and enterprise-ready solutions. The Company operates through two segments: Talent Development Solutions (TDS), and Global Knowledge (GK). Its TDS segment is comprised of both its organization platform and learner platform. GK segment includes its instructor-led training (ILT) platform. The Company provides more than 300,000 learning assets and more than 225,000 hours of learning experiences designed to help organizations and learners build critical technology, leadership, business, and compliance skills. Powered by artificial intelligence (AI) and strengthened by a broad ecosystem of partners, the Company’s platform helps customers solve some of business challenges including bridging skill gaps, improving talent retention, driving digital transformation, and future-proofing the workforce.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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