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Skillsoft (SKIL)
NYSE:SKIL
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Skillsoft
(NYSE:SKIL)
Rating:52Neutral
Price Target:
$20.50
▲( 0.29% Upside)
Skillsoft (SKIL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$165.59M
Dividend YieldN/A
Average Volume (3M)26.49K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth-4.02%
EPS Growth65.55%
CountryUS
Employees2,200
SectorTechnology
Sector Strength75
IndustryEducation & Training Services
Share Statistics
EPS (TTM)2.11
Shares Outstanding8,320,914
10 Day Avg. Volume23,558
30 Day Avg. Volume26,494
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)1.67
Price to Sales (P/S)0.00
P/FCF Ratio13.73
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Skillsoft Business Overview & Revenue Model
Company DescriptionSkillsoft (SKIL) is a global leader in corporate digital learning, focusing on transforming the workforce for the future. The company provides a comprehensive suite of online learning solutions, including corporate training, leadership development, and compliance training services. Its offerings are designed to build skills and capabilities for businesses and organizations worldwide, leveraging an extensive library of content across various domains such as technology, business, and safety.
How the Company Makes MoneySkillsoft generates revenue primarily through subscription-based models, where businesses and organizations pay for access to its extensive library of digital learning content and platforms. This includes multi-year agreements with enterprises that seek to provide skill development and training to their employees. Additionally, Skillsoft partners with various organizations to expand its reach and enhance its content delivery, contributing to revenue through strategic collaborations. Significant revenue is also derived from its Percipio platform, which offers personalized learning experiences and analytics to help organizations track and measure employee progress and engagement.
Skillsoft Financial Statement Overview
Summary
Skillsoft faces significant financial challenges, with declining revenues, persistent losses, and high leverage. While there are signs of improvement in cash flow generation, the company's financial health is under pressure due to high debt levels and continued operational losses.Income Statement
Skillsoft's income statement shows a decline in total revenue from 2024 to 2025, indicating a challenging revenue environment. Gross profit margin remains relatively high, suggesting cost management efficiency, but persistent negative EBIT and net income reflect ongoing operational challenges. The company struggles with profitability, as evident from the negative EBIT and EBITDA margins.34
Negative
Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, highlighting significant leverage that poses financial risk. Stockholders' equity has diminished over recent periods, reducing financial stability. The equity ratio is low, indicating a higher reliance on debt financing.45
Neutral
Cash Flow
Cash flow analysis indicates modest improvement in operating cash flow, which is now positive, reflecting some operational cash generation. Free cash flow also turned positive, but the growth rate is volatile. The operating cash flow to net income ratio suggests that cash flows are not yet aligned with profitability.50
Neutral
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 530.99M | 553.24M | 555.12M | 514.02M | 0.00 | Gross Profit |
| 396.12M | 400.08M | 232.85M | 401.73M | -906.90K | EBIT |
| -69.62M | -308.61M | -119.80M | -408.03M | -906.90K | EBITDA |
| -69.62M | -143.69M | -598.57M | 69.04M | -906.90K | Net Income Common Stockholders |
| -121.91M | -349.29M | -724.96M | -849.21M | -72.46M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 100.77M | 136.31M | 177.56M | 152.19M | 3.87M | Total Assets |
| 1.11B | 1.27B | 1.68B | 2.24B | 700.93M | Total Debt |
| 588.89M | 641.17M | 644.06M | 559.75M | 1.50M | Net Debt |
| 488.13M | 504.86M | 466.50M | 407.56M | -2.37M | Total Liabilities |
| 1.05B | 1.07B | 1.15B | 1.18B | 23.60M | Stockholders Equity |
| 93.85M | 205.59M | 531.76M | 1.06B | 677.32M |
| Cash Flow | Free Cash Flow | |||
| 11.60M | -15.09M | -36.20M | 49.05M | -720.66K | Operating Cash Flow |
| 29.96M | 2.82M | -20.93M | 62.03M | -720.66K | Investing Cash Flow |
| -18.36M | -23.04M | -42.18M | -574.60M | 856.25K | Financing Cash Flow |
| -51.51M | -10.81M | 77.23M | 440.35M | 1.50M |
Skillsoft Technical Analysis
Negative
20.44
Price Trends
19.91
Negative
23.68
Negative
19.33
Positive
Market Momentum
0.36
Negative
46.32
Neutral
34.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SKIL, the sentiment is Negative. The current price of 20.44 is below the 20-day moving average (MA) of 20.49, above the 50-day MA of 19.91, and above the 200-day MA of 19.33, indicating a neutral trend. The MACD of 0.36 indicates Negative momentum. The RSI at 46.32 is Neutral, neither overbought nor oversold. The STOCH value of 34.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SKIL.
Skillsoft Risk Analysis
Skillsoft disclosed 36 risk factors in its most recent earnings report. Skillsoft reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Skillsoft Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $121.20M | 9.14 | 10.27% | ― | -10.89% | -45.97% | |
73 Outperform | $1.40B | ― | -10.84% | ― | 7.26% | 39.62% | |
61 Neutral | $925.67M | ― | -36.29% | ― | 58.34% | -602.43% | |
61 Neutral | $1.04B | ― | -27.17% | ― | 5.43% | 14.22% | |
61 Neutral | $11.41B | 10.19 | -7.05% | 2.95% | 7.46% | -10.52% | |
60 Neutral | $1.08B | 52.99 | 25.15% | ― | -2.04% | ― | |
52 Neutral | $165.59M | ― | -81.43% | ― | -4.02% | 65.55% |
* Technology Sector Average
Performance Comparison
SKIL
Skillsoft
19.90
10.68
115.84%
GOTU
Gaotu Techedu
3.73
-2.61
-41.17%
DAO
Youdao
9.05
5.50
154.93%
IH
iHuman
2.30
0.39
20.42%
COUR
Coursera
8.55
0.70
8.92%
UDMY
Udemy Inc
6.83
-2.34
-25.52%
Skillsoft Earnings Call Summary
Earnings Call Date:Apr 14, 2025
(Q4-2025)
| % Change Since: 17.13%|
Next Earnings Date:Jun 04, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive outlook for Skillsoft as it exceeds revenue and EBITDA expectations and makes significant progress in its transformation plan, including achieving positive free cash flow. However, challenges remain with the decline in Global Knowledge revenue and a GAAP net loss, although there is improvement in these areas compared to the previous year.Q4-2025 Updates
Positive Updates
Revenue and EBITDA Exceed Expectations
Skillsoft delivered solid fourth quarter and fiscal year results with revenue exceeding the high end of guidance and adjusted EBITDA at the upper end of the range.
Strong Dollar Retention Rate
The company achieved a dollar retention rate (DRR) of 105% in Q4, bringing the last 12 months DRR to 100%, meeting expectations and showing a 200 basis point improvement from the previous quarters.
Transformation Plan Progress
The transformation strategy focused on 'fix the basics' and 'invest to grow' is on track, with $45 million in annualized expense reduction achieved and reinvestment underway.
Positive Free Cash Flow
Skillsoft generated positive free cash flow of $11.6 million for FY '25, an improvement of $27 million from the prior year.
Major Customer Wins
Skillsoft secured major deals with Honda and Virgin Media-O2, focusing on digital transformation and learning ecosystem creation.
Negative Updates
Global Knowledge Revenue Decline
Global Knowledge revenue was down 15% year-over-year for the full year, with a more pronounced negative impact from FX in Q4.
GAAP Net Loss
The company reported a GAAP net loss of $31.1 million in Q4 and $121.9 million for the full year, although this was an improvement from the prior year.
Continued Challenges in Revenue Growth
Total revenue for FY '25 was down approximately 4% year-over-year, reflecting ongoing challenges in achieving top-line growth.
Company Guidance
In the conference call discussing Skillsoft's fourth quarter and full fiscal year 2025 results, the company provided guidance reflecting a positive outlook. Revenue exceeded the high end of their guidance range, and adjusted EBITDA was at the upper end. The dollar retention rate (DRR) stood at 105% for the quarter and 100% for the year, indicating strong customer retention. The company expects fiscal year 2026 revenue to range between $530 million and $545 million, with adjusted EBITDA between $112 million and $118 million. Additionally, Skillsoft aims to generate positive free cash flow of $13 million to $18 million. The company is focused on growth through strategic investments, with plans to shift up to 20% of go-to-market and product resources into the enterprise market segment. They continue to emphasize operational improvements, having achieved $45 million in annualized expense reductions in fiscal 2025, with 40%-50% of savings reinvested back into the business.Skillsoft Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Skillsoft Appoints John Frederick as New CFO
Neutral
May 20, 2025
On May 15, 2025, Skillsoft appointed John Frederick as the new Chief Financial Officer, succeeding Rich Walker, who will remain as an advisor until July 4, 2025. Frederick, who has extensive experience in financial and operational leadership, has been with Skillsoft as Chief Transformation Officer since August 2024. His appointment is expected to support Skillsoft’s strategic goals of enhancing operational execution, achieving profitability, and unlocking shareholder value. The transition is not related to any financial or operational disagreements, and Walker’s departure is amicable.
The most recent analyst rating on (SKIL) stock is a Buy with a $20.00 price target. To see the full list of analyst forecasts on Skillsoft stock, see the SKIL Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Skillsoft Reports Strong Q4 2025 Financial Results
Positive
Apr 14, 2025
On April 14, 2025, Skillsoft Corp. announced its financial results for the fourth quarter and full fiscal year ending January 31, 2025, reporting revenue and adjusted EBITDA at the top end of its outlook range. The company experienced strong free cash flow performance and significant margin expansion, despite a slight decrease in total revenue compared to the previous year. Skillsoft’s strategic transformation initiatives have positioned it for continued improvement in fiscal 2026, with a financial outlook projecting GAAP revenue between $530 million and $545 million and adjusted EBITDA between $112 million and $118 million. The company’s focus on AI capabilities and ecosystem integrations has shown promising early interest, with nearly a million launches of its AI simulator, Skillsoft CAISY™, and new partnerships with technology leaders like SAP Talent Intelligence Hub.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.