Skillsoft 2026 Q3 Earnings Revenue Falls 6% as Net Loss Widens 74.9%

Skillsoft (SKIL) reported Q3 2026 earnings on Dec 10, 2025, with revenue declining 6% to $129 million and a net loss of $41.28 million, missing expectations. The company withdrew consolidated guidance due to Global Knowledge (GK) underperformance but maintained Talent Development Solutions (TDS) targets.

Revenue

Skillsoft’s total revenue fell 6.0% to $129 million in Q3 2026, with TDS generating $100.80 million and GK contributing $28.20 million. The TDS segment saw a 2.1% year-over-year decline, while GK revenue dropped 17.6% to $28.2 million, accounting for 73% of the overall revenue decrease. Consolidated revenue reflected the combined performance of both segments, underscoring GK’s drag on results.

Earnings/Net Income

The company’s losses deepened to $4.74 per share in Q3 2026, a 65.7% wider loss compared to $2.86 per share in the prior-year quarter. Net income plummeted to -$41.28 million, a 74.9% increase in losses from -$23.60 million in 2025 Q3. The sustained losses over five years highlight ongoing financial challenges.

Post-Earnings Price Action Review

A strategy of buying Skillsoft shares on earnings release and selling after 30 days delivered a 157.54% return over three years, outperforming the benchmark by 90.29%. With a CAGR of 42.81% and zero maximum drawdown, the strategy demonstrated strong risk-adjusted returns.

CEO Commentary

Ron Hovsepian emphasized Skillsoft’s transformation since August 2024, focusing on AI-driven solutions and a leaner cost structure. He acknowledged GK’s struggles but expressed cautious optimism about TDS growth and the upcoming launch of the Percipio platform.

Guidance

Skillsoft reiterated TDS revenue guidance of $400–410 million and Adjusted EBITDA of $112–116 million for FY2026 but withdrew consolidated guidance due to GK uncertainty. Free Cash Flow is now projected at $0–5 million, down from prior estimates, citing strategic evaluation costs.

Additional News

Skillsoft’s Global Knowledge segment recently won the 2025 AWS Partner Award for EMEA Training Partner of the Year, recognizing its role in advancing cloud and technical skills. Separately, insider Scott Semel acquired 2,614 shares of SKIL in a Form 4 filing, reflecting confidence in the company’s strategic direction. These developments highlight the company’s dual focus on external recognition and internal alignment as it navigates restructuring efforts.