Skillsoft 2026 Q2 Earnings Losses Narrow But Revenue Falls

Skillsoft (SKIL) reported its fiscal 2026 Q2 earnings on Sep 09th, 2025. The results indicate a mixed performance, with the company narrowing its net loss by 39.9% compared to the previous year, but reporting a decline in total revenue. Skillsoft also revised its full-year revenue guidance downward, reflecting ongoing challenges in key segments and external demand.

Skillsoft’s total revenue for fiscal 2026 Q2 decreased by 2.6% to $128.82 million, compared to $132.22 million in the same quarter of the prior year. The decline was attributed to reduced discretionary spending in North America and the Middle East, particularly impacting the Global Knowledge segment.

Skillsoft narrowed losses to $2,780.00 per share in 2026 Q2, an improvement of 42.6% from a loss of $4,840.00 per share in 2025 Q2. The company also reduced its net loss to $-23.79 million, compared to $-39.57 million in the previous year. Despite this improvement, Skillsoft has posted losses for five consecutive years in the same quarter, underscoring persistent financial challenges.

The stock price of Skillsoft has edged down 0.33% during the latest trading day, dropped 3.16% over the most recent full trading week, and gained 3.81% month-to-date.

Post-earnings, Skillsoft’s management provided insights into the performance and future outlook. Ronald Hovsepian, Executive Chairman & CEO, highlighted that macroeconomic and geopolitical headwinds, particularly in the Global Knowledge segment, impacted revenue. However, the company has maintained profitability and margin expansion through cost reductions and operational improvements. Hovsepian emphasized progress in the TDS Enterprise Solutions segment, which has seen four consecutive quarters of growth. He cited transformative efforts such as AI-native product development and leadership changes as key drivers of future momentum. Hovsepian expressed confidence in the company's ability to return to growth through strategic investments, enhanced product roadmaps, and a focus on AI-driven learning solutions. Despite near-term challenges, he remains optimistic about the long-term potential of AI to drive business expansion and the success of transformational initiatives.

Skillsoft revised its full-year 2026 revenue guidance to a range of $510 million to $530 million, down from prior expectations, primarily due to ongoing softness in federal spending and the Global Knowledge segment. However, the company maintained its adjusted EBITDA guidance of $112 million to $118 million and its free cash flow guidance of $13 million to $18 million for the year. These expectations reflect confidence in operational execution, cost optimization, and continued growth in the TDS Enterprise Solutions segment, which represents over 90% of the TDS business.

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