Skillsoft's Strategic AI Transformation and Path to EBITDA Growth in 2026

Skillsoft's strategic pivot toward AI-driven learning is reshaping its financial trajectory, positioning the company to deliver robust EBITDA growth and long-term shareholder value in 2026. As enterprises increasingly prioritize upskilling in AI and technology, Skillsoft's investments in AI-centric solutions—most notably its Skillsoft CAISY platform—have catalyzed both operational efficiency and revenue resilience. This analysis examines how Skillsoft's AI transformation is not only stabilizing its core business but also unlocking new profit pools in a competitive talent development market.

AI-Driven Reinvestment: Fueling Margin Expansion

Skillsoft's fiscal 2026 results underscore the financial discipline underpinning its AI strategy. For Q2 2026, the company reported Adjusted EBITDA of $28 million, maintaining a 22% margin of revenue—a slight improvement from the prior year's 21% margin Skillsoft Reports Financial Results for the Second Quarter of Fiscal 2026^[1]. This margin expansion, despite a 3% year-over-year decline in total revenue to $129 million, highlights the cost-saving potential of AI automation. By reallocating cost savings from FY2025 into AI product development, Skillsoft has optimized its go-to-market operations while scaling its AI learning offerings. For instance, the company's AI-powered platform, Skillsoft CAISY, now supports over 40 languages and has driven a 74% year-over-year increase in AI learners and a 158% surge in AI learning hours Skillsoft : Earnings Supplemental Q2 2026^[2]. These metrics signal growing demand for AI-centric upskilling, which directly aligns with Skillsoft's revenue diversification goals.

The Talent Development Solutions (TDS) segment, a cornerstone of Skillsoft's enterprise offerings, has benefited disproportionately from these AI investments. TDS revenue remained flat at $101 million in Q2 2026, but the segment has now delivered four consecutive quarters of enterprise solution growth Skillsoft Reports Financial Results for the Second Quarter of Fiscal 2026^[3]. This durability contrasts sharply with the Global Knowledge (GK) segment, which saw a 10% revenue decline to $28 million, reflecting broader economic headwinds in live training markets Skillsoft Reports Financial Results for the Second Quarter of Fiscal 2026^[4]. Skillsoft's leadership has emphasized that AI-driven reinvention is mitigating such volatility, with CAISY's scalable delivery model reducing reliance on high-cost, instructor-led training.

Strategic AI Roadmap: A Catalyst for Shareholder Value

Skillsoft's AI initiatives are not merely cost-cutting measures—they are foundational to its long-term value proposition. The company's Q2 2026 earnings supplemental revealed plans to unveil a suite of AI Innovation-based products in September 2025, including enhanced personalization tools and multilingual content expansion Skillsoft Q1 FY2026 slides reveal transformation progress with margin expansion^[5]. These innovations are expected to deepen customer retention and attract new clients in high-growth markets. For example, the launch of the Percipio certification dashboard—a tool leveraging AI to track learner progress—has already improved engagement metrics, a critical factor in subscription renewals Skillsoft Gears Up to Report Q2 Earnings^[6].

Financially, Skillsoft's AI-driven reinvention is translating into stronger free cash flow and EBITDA predictability. Year-to-date free cash flow reached $4 million in Q2 2026, a direct result of reduced operational overhead from AI automation Skillsoft Reports Financial Results for the Second Quarter of Fiscal 2026^[7]. The company has reiterated its full-year 2026 guidance of $112 million to $118 million in Adjusted EBITDA, reflecting confidence in sustaining these gains Skillsoft reiterates $530M–$545M revenue guidance for FY 2026 as leadership shifts and cost^[8]. Analysts note that Skillsoft's focus on AI-centric revenue streams—such as CAISY's subscription model—reduces exposure to macroeconomic fluctuations, a key differentiator in an uncertain business environment Skillsoft : Earnings Supplemental Q2 2026^[9].

Risks and Opportunities in the AI Transition

While Skillsoft's AI strategy is gaining traction, challenges persist. The Global Knowledge segment's struggles highlight the risks of over-reliance on traditional training models. However, management has acknowledged this vulnerability, stating that AI investments will “reimagine learning as a driver of business performance” Skillsoft Reports Financial Results for the Second Quarter of Fiscal 2026^[10]. This pivot is already paying dividends: the TDS segment's resilience suggests that AI-driven solutions can offset declines in legacy offerings.

Looking ahead, Skillsoft's ability to monetize AI innovations will depend on its capacity to scale CAISY's capabilities. With 74% of learners on the platform engaging with AI content year-over-year Skillsoft Reports Financial Results for the Second Quarter of Fiscal 2026^[11], the company is well-positioned to capture a larger share of the $200 billion global e-learning market. However, competition from tech giants like Coursera and Udacity remains intense, necessitating continued R&D investment.

Conclusion: A Model for AI-Driven Resilience

Skillsoft's AI transformation exemplifies how strategic reinvention can stabilize EBITDA while creating shareholder value. By embedding AI into its core offerings, the company is not only mitigating revenue volatility but also future-proofing its business model. As enterprises increasingly demand AI literacy, Skillsoft's leadership in AI-powered learning positions it to outperform peers in both profitability and market share. For investors, the company's disciplined approach to AI investment—balancing cost savings with innovation—offers a compelling case for long-term growth.