Skip to content
Optionomics Free · No account needed

Earnings analysis · 10-Q

SKIL earnings analysis

Filed September 9, 2026 · Our reading of the company's report

The latest report

Skillsoft delivered a mixed quarter: revenue of $98.248 million was slightly below the $98.928 million consensus, but adjusted EPS of $1.17 exceeded expectations by $0.40 and adjusted EBITDA margin reached 34.0%. Free…

Read full summary

Skillsoft delivered a mixed quarter: revenue of $98.248 million was slightly below the $98.928 million consensus, but adjusted EPS of $1.17 exceeded expectations by $0.40 and adjusted EBITDA margin reached 34.0%. Free cash flow was negative $20.5 million, and fiscal 2027 revenue guidance was lowered to $380 million-$390 million, although adjusted EBITDA and free cash flow targets were maintained. The GK divestiture adds execution and liquidity risk, including a delayed $3.4 million installment and approximately $4 million of transaction-related costs.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

75% Gross margin Operating margin Jun 2023 Apr 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Apr 2023 Sep 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

What stood out

  • Revenue modestly beat prior quarter

    Revenue was $98.248 million, approximately 0.7% below the $98.928 million consensus estimate. Revenue was approximately 4.5% above the $94 million reported in the prior quarter, but below the $129 million comparable-quarter figure in the supplied history.

  • Adjusted EPS materially beat estimate

    Adjusted EPS was $1.17 versus the $0.77 consensus estimate, a $0.40 or approximately 52% beat. GAAP EPS was not disclosed in the supplied filing text.

  • Adjusted EBITDA margin expanded

    Adjusted EBITDA margin expanded to 34.0%, indicating improved profitability on an adjusted basis despite the revenue shortfall.

  • Cash generation remained negative

    Free cash flow was negative $20.5 million, while fiscal 2027 free cash flow guidance remained $14 million-$22 million.

What to watch

  • GK sale proceeds are at collection risk

    The purchaser did not make an approximately $3.4 million Seller Note installment when due on July 31, 2026, and management said payment of the remaining balance by October 31, 2026 cannot be assured.

  • Disposition benefits may be delayed or diluted

    Skillsoft currently expects net proceeds of $12 million over approximately two years from the GK disposition, but also expects to incur approximately $4 million of transaction-related third-party advisor costs and additional restructuring charges during the remainder of fiscal 2027.

  • Debt and interest-rate exposure remain material

    The company has $300.0 million of variable-rate debt subject to interest-rate exposure; a hypothetical 100-basis-point rate move would change annual pre-tax interest expense by approximately $2.8 million, after considering swaps.

Management's outlook

Fiscal 2027 revenue outlook was reduced to $380 million-$390 million from $388 million-$406 million. Adjusted EBITDA guidance was maintained at $108 million-$116 million and free cash flow guidance at $14 million-$22 million; no numeric GAAP EPS guidance was provided.

Earlier filings 4

10-Q · June 9, 2026

Skillsoft's Q1 fiscal 2027 results showed a significant revenue decline, with reported revenues of $94.5 million, falling short of expectations of $121.1 million and down 4.7% year-over-year. The company reported a…

10-K · April 7, 2026

Skillsoft describes a strategic pivot in fiscal 2026 from a content-centric business to an AI-native, integrated skills management platform (Percipio) that combines content, skills benchmarking, AI-assisted learning,…

10-K · April 14, 2025

Skillsoft positions itself as an AI‑centric, enterprise‑scale learning platform with two reportable segments (Talent Development Solutions and Global Knowledge) and emphasizes scale ("more than 95 million learners",…

10-Q · September 9, 2024

Skillsoft reported Q2 2024 results with revenues of $132.2 million, beating consensus estimates of $131.4 million, showing a slight decrease of 6.8% from $141.2 million in Q2 2023. The company posted a diluted EPS of…

This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.