What's the outlook for SKIL's Q4 2025 EPS?

Skillsoft's Q4 2025 EPS outlook appears challenging. Here's a detailed analysis:

1. Current Expectations: Analysts anticipate that Skillsoft will report earnings of approximately ($3.06) per share for the quarter ending Q4 2025. This is a significant negative figure, indicating a potential for substantial losses.
2. Historical Performance: The company's historical performance has been volatile, with a significant decline in revenue and earnings. For instance, in Q4 2024, Skillsoft reported a non-GAAP EPS of -$3.09, which missed the mark by $0.05. This trend suggests that the company may continue to struggle with profitability in the near term.

3. Financial Guidance: Skillsoft has set its FY 2025 guidance at EPS, which implies that the company expects earnings to be negative for the fiscal year. This guidance is in line with the analyst expectations for Q4 2025, suggesting that the company sees limited improvement in profitability in the immediate future.
4. Market Sentiment: The market sentiment around Skillsoft has been cautious, with a price-to-earnings ratio of -0.37, which indicates that investors are currently valuing the company's earnings at a negative level. This sentiment is consistent with the expectation of significant losses in Q4 2025.
5. Operational Challenges: Skillsoft has faced operational challenges, including a negative net margin of 60.99% and a negative return on equity of 34.02%. These indicators suggest that the company is struggling to generate profit from its operations, which is a red flag for its ability to meet earnings expectations in Q4 2025.

In conclusion, while there is no definitive evidence of a deterioration in Skillsoft's financial outlook, the current expectations, historical performance, and market sentiment all point to a challenging outlook for the company's Q4 2025 EPS. Investors should remain cautious and monitor the company's performance closely.