revenue
380–390 $million
FY 2027
official guidance
SKILLSOFT CORP.
Last · —$5.67-0.28 (-4.71%)live · yahoo · 0s ago
Market cap$51.60M—
P/E · TTM—fwd — · eps —
Beta—vs S&P 500
Div yield—annual · TTM
52w range
——
Volume—session
| Revenue | $452.4M |
|---|---|
| Operating income | $-4.9M |
| Net income | $-85.5M |
| Free cash flow | $11.2M |
| Operating margin | -1.1% |
| Net margin | -18.9% |
| Period | TTM 2026-07-31 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Promising enterprise repositioning is offset by declining revenue and material balance-sheet risk.
Hold: Q2 revenue fell 3% to $98.2 million and FY2027 revenue guidance was cut to $380-$390 million, while adjusted EBITDA guidance stayed at $108-$116 million and free cash flow at $14-$22 million.
The enterprise business is stabilizing and AI products are gaining early traction, but accelerating consumer erosion, $481 million of net debt, and unresolved maturities prevent a clean buy.
Themes
- Consumer Coding Decline
- Enterprise Stabilization
- Ai Platform
- Debt Maturities
- Global Knowledge Divestiture
- Free Cash Flow
Near term
Debt restructuring engagement and any terms that emerge are the clearest near-term catalyst or risk.
Consumer coding weakness is expected to continue, testing whether profitability can remain intact despite further revenue decline.
Enterprise revenue must turn positive after the federal cost-cutting headwind fades; current AI platform bookings remain an early-stage $5 million target.
Longer term
The investment case depends on converting early AI Coach, CAISY, and LX Design Studio adoption into recurring enterprise platform revenue.
A simpler post-divestiture operating model and targeted SKU reduction could improve efficiency, but the growth trajectory remains unproven.
AI is both a product opportunity in enterprise and a structural threat to the consumer coding business.
Red flags
Management said the consumer decline is accelerating and expects that acceleration to continue.
Net debt rose to approximately $481 million, and upcoming debt maturities remain management's top financial priority without a public timeline or outcome.
Free cash flow was negative $20.5 million in Q2, while the Global Knowledge disposal is expected to consume about $15 million of cash.
AI platform traction is described as early acceptance; management provided no quantified recurring revenue, attach rate, or conversion evidence beyond the bookings target.
Forward outlook
ebitda
108–116 $million
FY 2027
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-04-07
- Revenue Decline
- Gk Weakness
- Persistent Losses
- High Leverage
- Dilution Risk
- Ai Competition
- Impairment
Red flags
- Fiscal 2026 net loss widened to $139.8 million from $121.9 million, and operating expenses were 117.5% of revenue, producing a 17.5% operating loss margin.
- Gross term debt was $577.2 million versus $100.8 million of cash and cash equivalents, implying approximately $476.4 million of net debt before restricted cash and other adjustments.
- Revenue declined approximately 3.5% year over year, while GK revenue fell 13.2% and GK contribution profit fell 23.7%.
- Potential dilution is material: 2.848 million shares underlying warrants, 1.556 million RSUs, and 19,000 stock options, compared with 8.796 million shares outstanding.
- The company had an accumulated deficit of $1.6 billion as of January 31, 2026.
- No customer exceeded 10% of revenue, so customer concentration is not the primary risk; execution, profitability, leverage, and competitive pressure are more concerning.
Upcoming earnings
9:00 PM UTC+1
Period
Oct 2026
Est. EPS
$1.34
Est. revenue
95.9M