Skillsoft 2026 Q3 Earnings Deepened Losses Amid Strategic Restructuring

Skillsoft reported fiscal 2026 Q3 earnings on Dec 10, 2025, with revenue declining 6.0% to $129 million. The company’s net loss widened to $41.28 million (74.9% increase year-over-year), driven by underperformance in the Global Knowledge segment. Management cited strategic reviews and cost-cutting initiatives as part of a broader transformation.

Revenue

Skillsoft’s total revenue fell to $129 million in Q3 2026, down from $137.22 million in the prior year, reflecting a 6.0% decline. The Talent Development Solutions segment accounted for the majority of revenue at $100.80 million, while Global Knowledge generated $28.20 million. Consolidated results mirrored the segment totals, underscoring the drag from the underperforming Global Knowledge business.

Earnings/Net Income

The company’s losses deepened to $4.74 per share in Q3 2026, a 65.7% increase in losses compared to $2.86 per share in the prior year. Net loss expanded to $41.28 million, a 74.9% year-over-year increase. This marked the fifth consecutive quarterly loss, signaling ongoing financial challenges. The EPS and net income figures indicate a deteriorating performance, with no immediate signs of recovery.

Post-Earnings Price Action Review

A strategy of buying Skillsoft shares on earnings release dates and holding for 30 days generated a 157.54% return over three years, outperforming the benchmark by 90.29%. This approach demonstrated a 42.81% CAGR and zero maximum drawdown, highlighting its robust risk-adjusted returns.

CEO Commentary

Ron Hovsepian, CEO, emphasized Skillsoft’s transformation since August 2024, focusing on AI-driven content automation and sales realignment. The Talent Development Solutions segment achieved a 105-115% dollar retention rate for AI-related deals. However, the Global Knowledge segment, down 17.6% year-over-year, remains a strategic review target. Hovsepian expressed optimism about AI’s role in reskilling and skills governance.

Guidance

Skillsoft provided TDS guidance for FY2026: revenue of $400–$410 million and Adjusted EBITDA of $112–$116 million. The CEO reiterated confidence in FY2027 growth, citing platform readiness and AI-native capabilities.

Additional News

Skillsoft’s Global Knowledge segment recently won the AWS EMEA Training Partner of the Year award, recognizing its cloud skills training initiatives. Meanwhile, insider transactions revealed officer Scott Semel exercised 4,000 shares and surrendered 1,386 to cover costs. Analyst ratings remain mixed, with Wall Street Zen upgrading to “Buy” while Zacks Research downgraded to “Hold.”