Skillsoft Reports $94.5 Million Revenue Decline and $43.1 Million Net Loss for Quarter Ended April 30, 2026

Skillsoft Corp. reported a total revenue of $94.5 million for the three months ended April 30, 2026, a decrease of 4.7% from $99.1 million in the same period last year. The decline in revenue was attributed to macroeconomic uncertainties and elongated purchasing cycles, particularly in government-related markets, which led to cautious spending on learning and development initiatives. The company also experienced a significant drop in consumer revenue, which fell by 21% to $7.1 million, reflecting a moderation in demand for direct-to-consumer offerings. Despite the revenue decline, Skillsoft's adjusted EBITDA remained relatively stable at $26.6 million, compared to $26.8 million in the prior year.

In terms of profitability, Skillsoft reported a net loss of $43.1 million for the quarter, compared to a loss of $38.0 million in the same period last year. The loss from continuing operations was $18.7 million, an improvement from a loss of $29.6 million in the previous year. The company attributed the improved loss to reduced operating expenses, which decreased by 6.9% to $102.8 million, driven by cost-saving initiatives and restructuring efforts. Notably, selling and marketing expenses fell by 9.4%, while general and administrative expenses decreased by 16.6%.

Strategically, Skillsoft announced its commitment to sell its Global Knowledge (GK) segment, which has been classified as held for sale and discontinued operations. The sale agreement, entered into on May 20, 2026, is expected to close in the fiscal quarter ending July 31, 2026, subject to customary closing conditions. This strategic shift aims to streamline operations and focus on the Talent Development Solutions (TDS) segment, which is now the company's sole operating segment. The decision to divest the GK business is part of a broader effort to enhance operational efficiency and align resources with higher-growth areas.

Operationally, Skillsoft reported a decrease in customer engagement, with total revenues from its enterprise segment declining to $81.4 million from $84.7 million year-over-year. The company also noted a reduction in its employee headcount as part of its restructuring initiatives, which included workforce reductions and facility consolidations. As of April 30, 2026, Skillsoft had $115.6 million in cash and cash equivalents, an increase from $94.1 million at the end of the previous fiscal period, providing a buffer for ongoing operations and strategic investments.

Looking ahead, Skillsoft anticipates that the sale of the GK segment will positively impact its financial position and operational focus. The company expects to continue facing challenges related to macroeconomic conditions and market demand but remains committed to executing its strategic initiatives aimed at enhancing profitability and market share. The management expressed confidence in its ability to navigate these challenges and achieve its long-term objectives, although it cautioned that actual results may differ from forward-looking statements due to various risks and uncertainties.