Skillsoft Corp. (SKIL) Q3 2025 Earnings Call Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 11 2024
0mins
Should l Buy SKIL?
Source: SeekingAlpha
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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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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