SKIL earnings analysis
What we found in SKIL's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they said about what is next.
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.
The filing reads about the same as the one before it.
What came before.
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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