--
Solid financial results and strategy execution despite macroeconomic
uncertainty
--
Third consecutive quarter of growth for our TDS segment
--
Continued strong growth in Adjusted EBITDA* and margin expansion
--
Strong free cash flow performance for the quarter
--
Reaffirmed financial outlook for the full fiscal year
BOSTON--(BUSINESS WIRE)--June 09, 2025--
Skillsoft Corp. (NYSE: SKIL) ("Skillsoft", "we", "us", or "our"), the platform that empowers organizations and learners to unlock their full potential, today announced its financial results for the first quarter of fiscal 2026 ended April 30, 2025.
Fiscal 2026 First Quarter Select Metrics and Financial Measures (1) *
--
Total Revenue of $124 million down 3% from the prior year.
--
Talent Development Solutions ("TDS") Revenue of $99 million up 1% from
the prior year.
--
Global Knowledge ("GK") Revenue of $25 million down 16% from the prior
year.
--
GAAP Net Loss of $38 million compared to GAAP Net Loss of $28 million
in the prior year. GAAP Net Loss per share of $4.57 compared to GAAP Net
Loss per share of $3.42 in the prior year.
--
Adjusted EBITDA of $22 million, reflecting a margin of 18% of Revenue,
compared to $19 million and 15%, respectively, in the prior year.
--
Free Cash Flow of $26 million compared to $10 million in the prior
year.
"We are pleased to have delivered first quarter results in line with expectations despite a challenging economic environment, particularly a softening of discretionary spending which disproportionately impacts our Global Knowledge business segment," said Ron Hovsepian, Skillsoft's Executive Chair and Chief Executive Officer. "This performance reflects the strength of our strategy, which is designed to return the company to at or above market growth rates. The multi-quarter growth we are seeing in TDS, our largest business segment, reinforces our confidence in our ability to achieve top line growth this year."
Fiscal 2026 First Quarter Business Highlights (1) *
--
Our TDS segment has now achieved three consecutive quarters of revenue
growth.
--
GK has seen growth in the non-U.S. public sector and also has a strong
pipeline.
--
Skillsoft CAISY$(TM)$, our award-winning AI-powered coach, is now
available for learners in over 40 languages.
--
Recognized as "Most Dedicated to Employee Growth" in this year's
Digiday WorkLife Awards, highlighting Skillsoft's commitment to employee
development and career growth, with a particular focus on helping its
workforce build artificial intelligence $(AI)$ literacy to better
understand, evaluate, and use AI technologies.
"We delivered continued improvement in profitability and free cash flow despite heightened macroeconomic volatility," said John Frederick, Skillsoft's Chief Financial Officer. "Based on our current view of the market, we are reaffirming our fiscal 2026 outlook which calls for both revenue and Adjusted EBITDA growth. We are pleased by our strong free cash flow in the quarter which was largely driven by seasonal changes in working capital. Conversely, we anticipate the second quarter to be our lowest free cash flow quarter as working capital normalizes. We remain on track to meet our prior free cash flow expectations for the full year."
Full-Year Fiscal 2026 Financial Outlook *
The following table reflects Skillsoft's financial outlook for the fiscal year ending January 31, 2026, based on current market conditions, expectations, and assumptions:
GAAP Revenue $530 million -- $545 million
Adjusted EBITDA $112 million -- $118 million
* Denotes a non-GAAP financial measure. See "Non-GAAP Financial Measures
and Key Performance Metric" below for the definitions of these and
other non-GAAP financial measures included in this press release, how
they are calculated, and the rationale for their use. A reconciliation
of historical non-GAAP financial measures to the most
directly-comparable GAAP financial measures is provided in the tables
at the back of this press release. We do not provide quantitative
reconciliations for forward-looking non-GAAP financial measures, as we
are unable to provide a meaningful or accurate calculation or
estimation of reconciling items and the information is not available
without unreasonable effort. See "Non-GAAP Financial Measures and Key
Performance Metrics" below for further detail.
(1) Skillsoft has two operating and reportable segments: TDS (formerly
referred to as Content & Platform) and GK (formerly referred to as
Instructor-Led Training). Segment performance is evaluated based on
segment revenue, segment ("business unit") contribution profit and
segment ("business unit") contribution margin (segment contribution
profit as a percentage of segment revenue). In the fourth quarter of
the fiscal year ended January 31, 2025, the Company made changes to the
components used to determine segment results to increase transparency
and improve segment comparability to peers. All prior period
comparatives have been recast to conform to the current presentation.
See note 20 to the Consolidated Financial Statements included in our
Annual Report on Form 10-K for the fiscal year ended January 31, 2025,
and "Non-GAAP Financial Measures and Key Performance Metric" below for
further detail.
Webcast and Conference Call Information
Skillsoft will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss its financial results. To access the call, dial (877) 413--9278 from the United States and Canada or (215) 268--9914 from international locations. The live event and presentation materials can be accessed from the Investor Relations section of Skillsoft's website at investor.skillsoft.com. A replay will be available on the same site for six months. The information contained on or accessible through our website is not incorporated by reference into, and does not form part of, this release.
About Skillsoft
Skillsoft (NYSE: SKIL) empowers organizations and learners to unlock their full potential by delivering personalized, interactive learning experiences and enterprise-ready solutions. Powered by AI and strengthened by a broad ecosystem of partners, the Skillsoft platform helps customers solve some of today's most complex business challenges including bridging skill gaps, improving talent retention, driving digital transformation, and future-proofing the workforce. Skillsoft is the talent development partner of choice for thousands of organizations -- including 60% of the Fortune 1000 -- and serves a global community of more than 95 million learners. For more information, visit skillsoft.com.
Non-GAAP Financial Measures And Key Performance Metrics
We track the non-GAAP financial measures and key performance metrics that we believe are key financial measures of our success. Non-GAAP measures and key performance metrics are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures and key performance metrics when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of U.S. GAAP financial disclosures. For example, a company with higher U.S. GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, excluding the effects of interest income and expense moderates the impact of a company's capital structure on its performance. In addition, management uses these non-GAAP financial measures and key performance metrics to assess operating performance, financial leverage and the effective use and allocation of resources; to provide more normalized period-to-period comparisons of operating results; to enhance investors' understanding of the core operating results of our business; and to set management incentive targets. We believe investors use both U.S. GAAP and non-GAAP financial measures, as well as key performance metrics to assess management's decisions associated with our priorities and capital allocation, as well as to analyze how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. We disclose the non-GAAP financial measures and key performance metrics included in this press release because we believe that they provide meaningful supplemental information. However, non-GAAP measures and key performance metrics have limitations as analytical tools. Because not all companies use identical calculations, our presentation of non-GAAP financial measures and key performance metrics may not be comparable to other similarly titled measures of other companies. They are not presentations made in accordance with U.S. GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with U.S. GAAP or operating cash flows determined in accordance with U.S. GAAP. As a result, these performance measures should not be considered in isolation from, or as a substitute analysis for, results of operations as determined in accordance with U.S. GAAP.
The non-GAAP financial measures included in this press release are: adjusted net income (loss); adjusted net income (loss) per share; adjusted net income (loss) margin % (i.e., adjusted net income (loss) as a percentage of revenue); adjusted EBITDA; adjusted EBITDA margin % (i.e., adjusted EBITDA as a percentage of revenue); adjusted total operating expenses; adjusted contribution margin; business unit contribution profit; business unit contribution margin (i.e., business unit contribution profit as a percentage of business unit revenue); adjusted costs of revenues; adjusted content and software development expenses; adjusted selling and marketing expenses; adjusted general and administrative expenses; business unit costs of revenues, business unit content and software development expenses; free cash flow, adjusted free cash flow (levered), and adjusted net leverage.
We have provided at the back of this press release reconciliations of these historical non-GAAP financial measures to the most directly comparable GAAP financial measures for the first quarters of fiscal years 2026 and 2025. We do not reconcile our forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information. We provide non-GAAP financial measures that we believe will be achieved, however we cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures.
Key Performance Metric
--
Dollar retention rate ("DRR") - For existing customers at the beginning
of a given period, DRR represents subscription renewals, upgrades, churn,
and downgrades in such period divided by the beginning total renewable
base for such customers for such period. Renewals reflect customers who
renew their subscription, inclusive of auto-renewals for multi-year
contracts, while churn reflects customers who choose to not renew their
subscription. Upgrades include orders from customers that purchase
additional licenses or content (e.g., a new Leadership and Business
module), while downgrades reflect customers electing to decrease the
number of licenses or reduce the size of their content package. Upgrades
and downgrades also reflect changes in pricing. We use our DRR to measure
the long-term value of customer contracts as well as our ability to
retain and expand the revenue generated from our existing customers.
Non-GAAP Financial Measures
The non-GAAP measures included in this press release are defined as follows:
--
Adjusted net income (loss) is defined as net income (loss) excluding
non-cash items, discrete and event-specific costs that do not represent
normal cash operating expenses necessary for our business operations, and
certain accounting income and/or expenses. Management believes these
exclusions enhance the comparability of our results from period to period,
and as compared to peers, and are useful in assessing our operating
performance, and consist of the following (including the related tax
effects), when applicable to the periods presented:
--
Impairment charges -- Non-cash goodwill and intangible
impairment charges.
--
Amortization of acquired intangible assets -- Non-cash
amortization expense of finite-lived intangible assets recognized
as a part of business combination accounting.
--
Acquisition and integration related costs -- Costs incurred to
effectuate an acquisition, including contingent compensation
expenses, and integration related costs.
--
Restructuring charges -- Charges related to strategic cost
saving initiatives, including severance costs, losses associated
with the abandonment of right-of-use assets, and contract
termination costs.
--
Transformation costs -- Costs incurred to transform our
operations through significant strategic non-ordinary course
transactions.
--
System migration costs -- Costs of temporary resources needed
for the migration of content and customers from our legacy system
to a global platform.
--
Long-term incentive compensation expenses -- Charges associated
with long-term incentive compensation programs, including
stock-based compensation, cash awards tied to stock performance,
and awards granted in-lieu of stock that are intended to be
settled in cash.
--
Executive exit costs -- Costs associated with the departure of
executives.
--
Fair value adjustments -- Mark-to-market adjustments of warrants
and hedge instruments.
--
Other (income) expense, net -- Unrealized and realized gains or
losses primarily resulting from fluctuations of U.S. dollar
appreciating or depreciating against other currencies, and
impairments associated with property and equipment and other
assets when their carrying values are not recoverable.
--
Adjusted EBITDA is defined as net income (loss) excluding (when
applicable to the periods presented) the same exclusions set forth above
for the determination of adjusted net income (loss) plus the additional
exclusions set forth below. Management believes these exclusions enhance
the comparability of our results from period to period, and as compared
to peers, and are useful in assessing our operating performance. The
additional exclusions are:
--
Amortization of intangible assets -- Non-cash amortization
expense for finite-lived intangible assets other than those
recognized as a part of business combination accounting.
--
Depreciation expense -- Non-cash depreciation expense for
property and equipment assets.
--
Provision for (benefit from) income taxes -- Current and
deferred federal, state and foreign income tax expense (benefit).
--
Adjusted total operating expenses are defined as costs of revenues,
content and software development expenses, selling and marketing expenses,
and general and administrative expenses, in each case excluding (where
applicable) depreciation expense, long-term incentive compensation
expense, system migration costs and transformation costs, as applicable.
--
Adjusted contribution margin is defined as revenue less adjusted total
operating expenses, divided by revenue for the same period.
--
Business unit contribution profit - Segment ("business unit")
contribution profit is defined as business unit revenue, less business
unit cost of revenues, business unit content and software development
expenses, and business unit product research and management expenses.
--
Business unit contribution margin is defined as business unit
contribution profit divided by business unit revenue for the same
period.
--
Business unit cost of revenues is defined as cost of revenues
attributable to the business unit, excluding, where applicable,
depreciation expense, long-term incentive compensation expense, system
migration costs, and transformation expenses.
--
Business unit content and software development expenses are defined as
content and software development expenses attributable to the business
unit, excluding, where applicable, depreciation, long-term incentive
compensation, system migration costs, and transformation expenses.
--
Business unit product research and management expenses are defined as
certain selling and marketing costs attributable to the business unit
reflected in the business unit contribution profit.
--
Free cash flow is defined as net cash provided by (used in) operating
activities less net purchases of property and equipment and internally
developed software. Note that free cash flow does not represent residual
cash flow available to Skillsoft for discretionary expenditures.
--
Adjusted free cash flow (levered) is defined as free cash flow plus the
cash impact of the charges excluded in the determination of adjusted
EBITDA. Note that adjusted free cash flow (levered) does not represent
residual cash flow available to Skillsoft for discretionary
expenditures.
--
Free cash flow conversion is defined as free cash flow divided by
adjusted EBITDA for the same period.
--
Adjusted net leverage is defined as current maturities of long-term
debt, plus borrowings under accounts receivable facility, plus long-term
debt, less cash and equivalents and restricted cash, divided by adjusted
EBITDA for the preceding twelve-month period.
Cautionary Notes Regarding Forward Looking Statements
This document includes statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For all such statements, we claim the protection of the safe harbor for forward-looking statements provided by such sections and the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements include, but are not limited to, statements that address activities, events or developments that we expect or anticipate may occur in the future, including such things as our outlook (including our Full Year Fiscal 2026 Financial Outlook), our product development and planning, our pipeline, future capital expenditures, future share repurchases, anticipated financial results, the impact of regulatory changes, our current and evolving business strategies, including with respect to acquisitions and dispositions, demand for our services, our competitive position, the benefits of new initiatives, growth of our business and operations, the effectiveness of our products, the outcomes of litigation proceedings and claims, the state and future of skilling in the workplace, our ability to successfully implement our plans, strategies, objectives, and our expectations and intentions. Forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "may," "will," "would," "anticipate," "believe," "estimate," "expect," "intend," "plan," "contemplate," "continue," "project," "forecast," "seek," "outlook," "target," "goal," "objective," "potential," "possible," "probably," or similar expressions, or employ such future or conditional verbs as "may, " "might," "will," "could," "should," or "would," or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. Such statements are based upon the current beliefs and expectations of Skillsoft's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature, and we caution you against unduly relying on these forward-looking statements.
Factors that could cause or contribute to such differences include those described under "Part I - Item 1A. Risk Factors" and Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10--K for the fiscal year ended January 31, 2025 ("2025 Form 10-K"). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included in the 2025 Form 10-K, in this document and in our other periodic filings with the Securities and Exchange Commission. The forward-looking statements contained in this document represent our estimates only as of the date of this filing and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements, or otherwise, except as required by law.
Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results. Additionally, statements as to market share, industry data and our market position are based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above.
Industry and Market Data
Within this document, we may reference information and statistics regarding market share, industry data and our market position. Certain of this information has been obtained from various independent third-party sources, including independent industry publications, news reports, reports by market research firms and other independent sources. We believe that these external sources and estimates are reliable but have not independently verified them. In addition, certain of this information and statistics are based on our own internal surveys and assessments, which are developed in good faith using reasonable estimates. The information is based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above.
SKILLSOFT CORP.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except number of shares and per share amounts)
January 31,
April 30, 2025 2025
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 127,841 $ 100,766
Restricted cash 3,091 2,571
Accounts receivable, net of
allowance for credit losses of
approximately $269 and $501 as
of April 30, 2025 and January
31, 2025, respectively 95,988 178,989
Prepaid expenses and other
current assets 50,917 50,527
---------- ----------
Total current assets 277,837 332,853
Goodwill 317,071 317,071
Intangible assets, net 401,967 427,221
Other assets 25,611 28,924
---------- ----------
Total assets $ 1,022,486 $ 1,106,069
========== ==========
LIABILITIES AND SHAREHOLDERS'
EQUITY (DEFICIT)
Current liabilities:
Current maturities of long-term
debt $ 6,404 $ 6,404
Borrowings under accounts
receivable facility 1,000 1,000
Accounts payable 20,789 13,458
Accrued compensation 29,144 47,803
Accrued expenses and other
current liabilities 23,790 26,022
Deferred revenue 243,788 282,295
---------- ----------
Total current liabilities 324,915 376,982
---------- ----------
Long-term debt 572,232 573,267
Deferred tax liabilities 41,042 42,039
Deferred revenue - non-current 1,170 1,656
Other long-term liabilities 20,478 18,279
---------- ----------
Total long-term liabilities 634,922 635,241
---------- ----------
Commitments and contingencies
Shareholders' equity (deficit):
Shareholders' common stock -
Class A common shares, $0.0001
par value: 18,750,000 shares
authorized and 8,651,941 shares
issued and 8,352,164 shares
outstanding as of April 30,
2025, and 8,616,633 shares
issued and 8,316,856 shares
outstanding as of January 31,
2025 1 1
Additional paid-in capital 1,568,919 1,565,040
Accumulated (deficit) (1,481,435) (1,443,386)
Treasury stock, at cost -
299,777 as of April 30, 2025
and January 31, 2025 (10,891) (10,891)
Accumulated other comprehensive
income (loss) (13,945) (16,918)
---------- ----------
Total shareholders' equity
(deficit) 62,649 93,846
---------- ----------
Total liabilities and
shareholders' equity
(deficit) $ 1,022,486 $ 1,106,069
========== ==========
SKILLSOFT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except number of shares and per share amounts)
Three Months Ended April 30,
--------------------------------
2025 2024
---------------- -------------
Revenues:
Total revenues $ 124,201 $ 127,793
Operating expenses:
Costs of revenues 32,247 34,471
Content and software
development 14,102 15,506
Selling and marketing 39,609 42,292
General and administrative 22,952 25,309
Amortization of intangible
assets 31,608 31,583
Acquisition and integration
related costs 523 1,497
Restructuring 1,346 967
------------ ------------
Total operating expenses 142,387 151,625
------------ ------------
Operating income
(loss) (18,186) (23,832)
Other income (expense), net (2,446) 2,217
Fair value adjustment of interest
rate swaps (4,256) 7,746
Interest income 463 928
Interest expense (14,396) (16,278)
------------ ------------
Income (loss)
before provision
for (benefit
from) income
taxes (38,821) (29,219)
Provision for (benefit from)
income taxes (772) (1,583)
------------ ------------
Net income
(loss) $ (38,049) $ (27,636)
============ ============
Net income (loss) per share:
Basic and diluted $ (4.57) $ (3.42)
============ ============
Weighted average common share
outstanding:
Basic and diluted 8,324,864 8,089,331
============ ============
SKILLSOFT CORP.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Three Months Ended April 30,
----------------------------------
2025 2024
---------------- ------------
Cash flows from operating
activities:
Net income (loss) $ (38,049) $ (27,636)
Adjustments to reconcile net
income (loss) to net cash
provided by (used in)
operating activities:
Amortization expense of
intangible assets 31,608 31,583
Stock-based compensation
expense 4,081 7,153
Depreciation expense 447 760
Non-cash interest expense 566 536
Non-cash operating lease
right-of-use asset
expense 408 904
Provision for credit loss
expense (recovery) (232) 41
Provision for (benefit
from) deferred income
taxes -- non-cash (1,225) (2,932)
Fair value adjustment of
interest rate swaps 4,256 (7,746)
Changes in current assets and
liabilities, net of effects from
acquisitions:
Accounts receivable 86,559 74,826
Prepaid expenses and
other assets, including
long-term 1,243 (840)
Accounts payable 6,992 (1,107)
Accrued expenses and
other liabilities,
including long-term (21,780) (21,514)
Deferred revenue (43,576) (39,091)
------------ -----------
Net cash provided by
(used in) operating
activities 31,298 14,937
Cash flows from investing
activities:
Purchase of property and
equipment (515) (153)
Internally developed software
- capitalized costs (4,619) (4,364)
------------ -----------
Net cash provided by
(used in) investing
activities (5,134) (4,517)
Cash flows from financing
activities:
Shares repurchased for tax
withholding upon vesting of
restricted stock-based
awards (352) (82)
Proceeds from (payments on)
accounts receivable
facility -- (2,569)
Principal payments on term
loans (1,601) (1,601)
------------ -----------
Net cash provided by
(used in) financing
activities (1,953) (4,252)
Effect of exchange rate changes
on cash and cash equivalents 3,384 (3,087)
------------ -----------
Net increase
(decrease) in cash,
cash equivalents and
restricted cash 27,595 3,081
Cash, cash equivalents and
restricted cash, beginning of
period 103,337 146,523
------------ -----------
Cash, cash
equivalents and
restricted cash,
end of period $ 130,932 $ 149,604
============ ===========
Supplemental disclosure of cash
flow information:
Cash and cash equivalents $ 127,841 $ 142,020
Restricted cash 3,091 7,584
------------ -----------
Cash, cash equivalents
and restricted cash, end
of period $ 130,932 $ 149,604
============ ===========
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(in thousands, except percentages, number of shares and per share
amounts, unaudited)
Three Months Ended April 30,
----------------------------------
2025 2024
---------------- ------------
Revenues
Talent Development Solutions $ 99,148 $ 98,075
Global Knowledge 25,053 29,718
------------ -----------
Total revenues, as reported $ 124,201 $ 127,793
============ ===========
Net income (loss), as reported $ (38,049) $ (27,636)
Amortization of acquired
intangible assets (1) 28,792 29,868
Acquisition and integration
related costs 523 1,497
Restructuring 1,346 967
Transformation costs 1,604 657
System migration costs -- 117
Long-term incentive
compensation expenses 4,790 7,148
Fair value adjustment of
interest rate swaps 4,256 (7,746)
Other (income) expense, net 2,446 (2,217)
Tax impact of adjustments (3,229) (3,042)
------------ -----------
Adjusted net income (loss) 2,479 (387)
Interest expense, net 13,933 15,350
Expense (benefit from)
income taxes, excluding tax
impacts above 2,457 1,459
Depreciation 446 761
Amortization of capitalized
internally developed
software (1) 2,816 1,715
------------ -----------
Adjusted EBITDA $ 22,131 $ 18,898
============ ===========
Weighted average common shares
outstanding:
Basic and diluted 8,324,864 8,089,331
============ ===========
Basic and diluted per share
information:
Net income (loss) per share,
as reported $ (4.57) $ (3.42)
============ ===========
Adjusted net income (loss)
per share $ 0.30 $ (0.05)
============ ===========
Net income (loss) margin % (30.6)% (21.6)%
Amortization of acquired
intangible assets (1) 23.1% 23.3%
Acquisition and integration
related costs 0.4% 1.2%
Restructuring 1.1% 0.8%
Transformation costs 1.3% 0.5%
System migration costs 0.0% 0.1%
Long-term incentive
compensation expenses 3.9% 5.6%
Fair value adjustment of
interest rate swaps 3.4% (6.1)%
Other (income) expense, net 2.0% (1.7)%
Tax impact of adjustments (2.6)% (2.4)%
------------ -----------
Adjusted net income (loss)
margin % 2.0% (0.3)%
Interest expense, net 11.1% 12.1%
Expense (benefit from)
income taxes, excluding tax
impacts above 2.0% 1.1%
Depreciation 0.4% 0.6%
Amortization of capitalized
internally developed
software (1) 2.3% 1.3%
------------ -----------
Adjusted EBITDA margin % 17.8% 14.8%
============ ===========
(1) All amortization (not only amortization pertaining to finite-lived
intangible assets recognized as part of business combination
accounting) is excluded in the determination of Adjusted EBITDA.
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued
(in thousands, except percentages, unaudited)
Three Months Ended April 30,
----------------------------------
2025 2024
--------------- -----------
Talent Development Solutions
Revenue $ 99,148 $ 98,075
Business unit cost of revenues 16,272 16,185
Business unit content and
software development expenses 12,098 13,463
Business unit product research
and management expenses 2,299 1,969
----------- ----------
Business unit contribution
profit $ 68,479 $ 66,458
=========== ==========
Business unit
contribution margin 69.1% 67.8%
Global Knowledge
Revenue $ 25,053 $ 29,718
Business unit cost of revenues 15,706 18,003
Business unit content and
software development expenses 744 562
----------- ----------
Business unit contribution
profit $ 8,603 $ 11,153
=========== ==========
Business unit
contribution margin 34.3% 37.5%
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued
(in thousands, unaudited)
Three Months Ended April 30,
----------------------------------
2025 2024
---------------- ------------
Operating expenses:
GAAP costs of revenues $ 32,247 $ 34,471
Depreciation (68) (117)
Long-term incentive
compensation expenses (201) (166)
------------ -----------
Adjusted costs of revenues 31,978 34,188
GAAP content and software
development expenses 14,102 15,506
Depreciation (82) (74)
Long-term incentive
compensation expenses (1,178) (1,290)
System migration costs -- (117)
------------ -----------
Adjusted content and software
development expenses 12,842 14,025
GAAP selling and marketing
expenses 39,609 42,292
Depreciation (138) (208)
Long-term incentive
compensation expenses (1,041) (1,256)
Transformation costs -- (177)
------------ -----------
Adjusted selling and marketing
expenses 38,430 40,651
GAAP general and
administrative expenses 22,952 25,309
Depreciation (158) (362)
Long-term incentive
compensation expenses (2,370) (4,436)
Transformation costs (1,604) (480)
------------ -----------
Adjusted general and
administrative expenses 18,820 20,031
Total GAAP operating expenses 108,910 117,578
Depreciation (446) (761)
Long-term incentive
compensation expenses (4,790) (7,148)
System migration costs -- (117)
Transformation costs (1,604) (657)
------------ -----------
Adjusted total operating expenses $ 102,070 $ 108,895
============ ===========
SKILLSOFT CORP.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued
(in thousands, unaudited)
Three Months Ended April 30,
----------------------------------
2025 2024
---------------- ------------
Talent Development Solutions
Cost of revenues and content and
software development expenses:
GAAP costs of revenues $ 16,518 $ 16,425
Depreciation (66) (94)
Long-term incentive
compensation expenses (180) (146)
------------ -----------
Business unit costs of
revenues 16,272 16,185
GAAP content and software
development expenses 13,324 14,941
Depreciation (81) (71)
Long-term incentive
compensation expenses (1,145) (1,290)
System migration costs -- (117)
------------ -----------
Business unit content and
software development 12,098 13,463
GAAP cost of revenues and
content and software
development expenses 29,842 31,366
Depreciation (147) (165)
Long-term incentive
compensation expenses (1,325) (1,436)
System migration costs -- (117)
------------ -----------
Business unit total cost
of revenues and content
and software development
expenses $ 28,370 $ 29,648
============ ===========
Global Knowledge
Cost of revenues and content and
software development expenses:
GAAP costs of revenues $ 15,729 $ 18,046
Depreciation (2) (23)
Long-term incentive
compensation expenses (21) (20)
------------ -----------
Business unit costs of
revenues 15,706 18,003
GAAP content and software
development expenses 778 565
Depreciation (1) (3)
Long-term incentive
compensation expenses (33) --
------------ -----------
Business unit content and
software development
expenses 744 562
GAAP cost of revenues and
content and software
development expenses 16,507 18,611
Depreciation (3) (26)
Long-term incentive
compensation expenses (54) (20)
------------ -----------
Business unit total cost
of revenues and content
and software development
expenses $ 16,450 $ 18,565
============ ===========
SKILLSOFT CORP.
FREE CASH FLOW RECONCILIATION
(in thousands, unaudited)
Three Months Ended April 30,
----------------------------------
2025 2024
---------------- ------------
Free cash flow reconciliation
Net cash provided by (used in)
operating activities $ 31,298 $ 14,937
Purchase of property and
equipment, net (515) (153)
Internally developed software -
capitalized costs (4,619) (4,364)
------------ -----------
Free cash flow 26,164 10,420
Cash impact for adjusted EBITDA
excluded charges 4,980 3,082
------------ -----------
Adjusted free cash flow
(levered) $ 31,144 $ 13,502
============ ===========
View source version on businesswire.com: https://www.businesswire.com/news/home/20250606803439/en/
CONTACT: Investors:
Ross Collins or Stephen Poe
SKIL@alpha-ir.com
Media:
Cameron Martin
cameron.martin@skillsoft.com
(END) Dow Jones Newswires
June 09, 2025 16:05 ET (20:05 GMT)