Skillsoft Stock Earnings Reports

Key points for investors: 1) Revenue pressure driven by softer discretionary spending in Global Knowledge (GK), especially live learning in North America and the Middle East; total Q2 revenue was $128.8M, down 2.6% YoY. 2) Management updated full-year revenue guidance to $510M–$530M to reflect continued GK softness, but reiterated adjusted EBITDA guidance of $112M–$118M and free cash flow guidance of $13M–$18M. 3) Profitability and margins improved: Q2 adjusted EBITDA was $28.3M (22% margin), essentially flat YoY, due to $45M of expense reductions and operational improvements. 4) TDS (Talent Development Solutions) remains the healthiest area—enterprise TDS is showing four consecutive quarters of revenue growth and a TDS LTM dollar retention rate of ~99%; the small B2C/learner product within TDS is down double-digits. 5) Cash and leverage: cash balance ~$103.4M; gross debt ~$579M; net debt ~$475M. 6) Free cash flow was negative $22.6M in Q2 (seasonal), but YTD free cash flow is positive ~$3.5M. 7) Company is mid-transformation: new dual business unit structure, go-to-market changes, leadership hires, and an AI-focused product roadmap (including an imminent AI authoring experience and enhancements to the "Casey" product). Management expects these investments and product launches to drive longer-term growth and believes much of the near-term revenue weakness is macro-driven and/or timing-related (with some green shoots in Europe).