Skillsoft Reports $124.2 Million Revenue and $38 Million Net Loss for Q1 2025

Skillsoft Corp. reported a total revenue of $124.2 million for the three months ended April 30, 2025, a decrease of 2.8% from $127.8 million in the same period last year. The company experienced a net loss of $38.0 million, or $(4.57) per share, compared to a net loss of $27.6 million, or $(3.42) per share, in the prior year. The decline in revenue was attributed to a decrease in the Global Knowledge (GK) segment, which saw revenues drop by 15.7% to $25.1 million, while the Talent Development Solutions (TDS) segment reported a slight increase of 1.1% to $99.1 million.

In terms of operational metrics, Skillsoft's total operating expenses decreased by 6.1% to $142.4 million, down from $151.6 million in the previous year. The reduction in expenses was primarily driven by cost-saving initiatives, including a comprehensive resource reallocation plan that is expected to yield approximately $45 million in annualized savings. The company also reported a significant improvement in cash flow from operating activities, which increased by 109.5% to $31.3 million, compared to $14.9 million in the same quarter of 2024.

Skillsoft's customer base remains substantial, with over 95 million learners globally, including 60% of the Fortune 1000 companies. The company continues to focus on enhancing its product offerings, particularly through its AI-driven Percipio platform, which aims to improve learner engagement and retention. The TDS segment's revenue growth reflects the company's strategic shift towards talent development, capitalizing on market trends that emphasize skill enhancement and workforce preparedness.

The company’s balance sheet as of April 30, 2025, showed total assets of $1.02 billion, down from $1.11 billion at the end of January 2025. Cash and cash equivalents increased to $127.8 million from $100.8 million, while total liabilities decreased slightly to $959.8 million. Skillsoft's long-term debt remained stable at approximately $572.2 million. The company has also initiated restructuring efforts, incurring $1.3 million in related charges during the quarter, primarily for employee termination costs.

Looking ahead, Skillsoft's management expressed optimism about future growth, citing ongoing investments in strategic initiatives and the potential for improved market conditions. The company anticipates that its focus on AI-driven learning solutions and cost management will position it favorably in the competitive landscape. However, management also acknowledged the uncertainties in the macroeconomic environment that could impact future performance.