What caused SKIL's EPS surprise in Q3 2025?

Skillsoft Corp. (SKIL) did not experience an EPS surprise in Q3 2025. The company's financial results for Q3 2025 were as follows:

1. **Revenue Performance**: Skillsoft reported total revenue of $137 million for Q3 2025, which was a slight 1% year-over-year decline. Talent Development Solutions revenue increased by 2% year-over-year, reaching $103 million, while Global Knowledge revenue declined by 10% year-over-year, amounting to $34 million.
2. **Expense Management**: The company made significant progress in expense management, which contributed to improved cash flow and profitability. Skillsoft achieved a positive free cash flow of $4 million in Q3, driven by disciplined collections management.
3. **Adjusted EBITDA**: Skillsoft reported an adjusted EBITDA of $32 million for Q3 2025, reflecting a margin of 23% of revenue. This marked a 6% increase and a 150 basis point improvement in margin compared to the previous year.
4. **Net Loss Improvement**: The company narrowed its net loss to $24 million in Q3 2025, down from $28 million in the prior year. Adjusted net loss also improved to $15 million, compared to $23 million in the previous year.

In conclusion, Skillsoft's EPS did not experience a surprise in Q3 2025. The company's financial performance was marked by a slight revenue decline, but improvements in expense management, adjusted EBITDA, and net loss reduction contributed to better financial health and operational efficiency.