Skillsoft Corp. (SKIL) Q3 2025 Earnings Call Transcript
TDS Revenue $103 million, up 2% year-over-year, primarily due to efforts to capitalize on the market shift from learning and skills to talent development.
Global Knowledge Revenue $34 million, down approximately $4 million or 10% year-over-year, but improved sequentially from a 20% drop in the previous two quarters.
Total Revenue $137 million, down approximately $2 million or 1% year-over-year.
Cost of Revenue $34 million or 25% of revenue, down 6% year-over-year due to cost savings from resource reallocation actions.
Content and Software Development Expenses $14 million or 10% of revenue, down 4% year-over-year due to resource reallocation actions.
Selling and Marketing Expenses $38 million or 28% of revenue, down 9% year-over-year due to resource reallocation actions.
General and Administrative Expenses $19 million or 14% of revenue, increased by $3 million or 17% year-over-year due to one-time costs related to the CEO employment agreement and targeted retention awards.
Total Operating Expenses $105 million or 77% of revenue, down $4 million or 4% year-over-year.
Adjusted EBITDA $32 million or 23% of revenue, up $2 million compared to the $30 million or 22% margin profile one year ago.
GAAP Net Loss $24 million, improved from a GAAP net loss of $28 million in the prior year.
Adjusted Net Loss $15 million, improved from adjusted net loss of $23 million in the prior year.
Free Cash Flow Positive free cash flow of $4 million, driven primarily by disciplined collections management.
Cash Flow from Operations (9 months) $12.2 million, with capital expenditures of $13.8 million resulting in negative free cash flow of $1.6 million, an improvement of $18.9 million from the prior year.
Adjusted Free Cash Flow (9 months) Positive adjusted free cash flow of $15.6 million, an improvement of $26 million compared to the prior year.
Cash, Cash Equivalents and Restricted Cash $102 million at the end of Q3.
Total Gross Debt $591 million at the end of Q3, down from approximately $622 million at the end of Q2.
Total Net Debt Approximately $489 million, down from approximately $492 million at the end of the fiscal second quarter.
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