Skillsoft 2026 Q3 Earnings Significant Net Loss Widening Amid Revenue Decline

Skillsoft (SKIL) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with results showing a 6.0% revenue decline and a 74.9% wider net loss compared to the prior year. The company withdrew consolidated guidance due to uncertainty in the Global Knowledge segment but maintained TDS-specific targets.

Revenue

Talent Development Solutions led the revenue with $100.80 million, while Global Knowledge contributed $28.20 million. The consolidated revenue for the quarter stood at $129 million, reflecting a 6.0% year-over-year decline driven by underperformance in the B2C learner product and macroeconomic headwinds in the Global Knowledge segment.

Earnings/Net Income

Skillsoft’s losses deepened to $4.74 per share in Q3 2026, a 65.7% wider loss than $2.86 in Q3 2025. The net loss expanded to $41.28 million, a 74.9% increase from $23.60 million in the prior year. The sustained losses over five consecutive quarters highlight persistent financial challenges. The significant increase in per-share losses and the wider net loss underscore the company’s ongoing financial struggles.

Post-Earnings Price Action Review

The strategy of buying SKIL shares on earnings release and selling after 30 days delivered a 157.54% return over three years, outperforming the 67.26% benchmark by 90.29%. This approach achieved a 42.81% CAGR with no maximum drawdown, demonstrating strong risk-adjusted returns.

CEO Commentary

Ron Hovsepian, CEO, emphasized progress in AI-driven talent development but acknowledged challenges in the Global Knowledge segment, which contributed 73% of the revenue decline. Strategic priorities include launching the Skillsoft Principio platform, AI-powered content creation, and partnerships for GK. The CEO expressed optimism about FY27 growth, citing early platform adoption and improved enterprise retention rates.

Guidance

Skillsoft provided TDS-specific guidance for fiscal 2026: revenue of $400–410 million and Adjusted EBITDA of $112–116 million (28% margin). The company withdrew consolidated guidance due to GK’s uncertainty but reiterated confidence in TDS as the core growth engine.

Additional News

1. CEO Share Purchase: Ronald Hovsepian exercised 4,000 stock options, with 1,386 shares surrendered to cover costs.

2. AWS Partner Award: Skillsoft Global Knowledge won the EMEA Training Partner of the Year for 2025, recognizing its role in advancing cloud and technical skills.

3. Press Release Clarification: A post-earnings release clarified that non-GAAP EPS of $1.65 beat estimates by $0.39, though revenue missed by $2.6 million.

Skillsoft’s Q3 results highlight a mixed performance, with TDS showing resilience amid broader challenges. The company’s focus on AI and strategic repositioning may drive long-term growth, but near-term execution risks remain. Investors are advised to monitor progress in the Global Knowledge segment and the adoption of the Skillsoft Principio platform.