Skillsoft Reports Decline in Revenue and Increased Net Loss for Q2 Fiscal 2026

Skillsoft Corp. reported a decline in financial performance for the second quarter of fiscal 2026, with total revenues of $98.2 million, down 2.9% from $101.2 million in the same period last year. For the six months ended July 31, 2026, revenues also decreased by 3.8% to $192.7 million compared to $200.3 million in the prior year. The company experienced a net loss of $42.4 million for the quarter, which included a loss from discontinued operations of $27.4 million. This contrasts with a net loss of $23.8 million in the same quarter of the previous year. The loss per share for the quarter was $4.71, compared to $2.78 in the prior year.

The decline in revenue was attributed primarily to a decrease in consumer subscriptions, which fell by 25.9% year-over-year, reflecting reduced demand for direct-to-consumer offerings. The enterprise segment also saw a slight decline due to cautious discretionary spending from public-sector customers. In response to these challenges, Skillsoft has implemented cost-saving measures, resulting in a reduction of total operating expenses by 11.6% to $94.9 million for the quarter. Notably, selling and marketing expenses decreased by 12.0%, while general and administrative expenses increased slightly by 1.6%.

Strategically, Skillsoft completed the sale of its Global Knowledge (GK) business on July 6, 2026, which has been classified as discontinued operations. The sale was part of a broader effort to streamline operations and focus on its core skills management platform. The initial consideration for the sale was $5.4 million, with additional deferred payments expected. The company continues to engage with the purchaser regarding the timing of repayment for the seller note associated with the transaction.

Operationally, Skillsoft reported a decrease in customer engagement metrics, with total deferred revenue as of July 31, 2026, amounting to $191.6 million, down from $258.4 million at the beginning of the fiscal year. The company’s cash and cash equivalents stood at $90.3 million, a slight decrease from $94.1 million at the start of the fiscal year. Skillsoft's employee headcount has also been adjusted as part of its restructuring efforts, aimed at aligning operational costs with current market conditions.

Looking ahead, Skillsoft anticipates continued challenges in its consumer segment, with expectations of further declines influenced by broader market conditions. However, the company remains focused on enhancing its enterprise offerings and improving operational efficiency. Management expressed confidence in its ability to navigate these challenges and maintain sufficient liquidity to support ongoing operations and strategic initiatives.