Skillsoft (SKIL) Q4 2026 earnings summary

Executive summary

• Completed a strategic transformation, repositioning as an AI-native skills platform for enterprises, streamlining operations, and improving capital allocation, with strong market traction for AI-driven learning solutions like the CAISY simulator.

• TDS Segment delivered revenue in line with guidance and exceeded top-end guidance for Adjusted EBITDA and consolidated free cash flow, while maintaining operational discipline despite macro and geopolitical headwinds.

• Transformation efforts over the past 18 months have led to cost reductions, reinvestment in AI-driven product innovation, and robust engagement metrics for new platform launches.

• Strategic review of the Global Knowledge (GK) segment is ongoing to focus on higher-growth, higher-margin areas.

• Demand for AI-driven learning solutions is accelerating as organizations adapt to workforce changes.

Financial highlights

• Fiscal 2026 revenue was $513 million, down from $531 million year-over-year, with Q4 revenue at $131 million and TDS Q4 revenue at $102.6 million.

• Adjusted EBITDA for Q4 was $31.2 million (24% margin), up from $30 million prior year; full-year Adjusted EBITDA was $110 million (21% margin), nearly flat year-over-year.

• Free cash flow for Q4 was $26.5 million, up from $13.2 million prior year; full-year free cash flow was $6 million, down from $12 million.

• GAAP net loss was $36.7 million in Q4 and $140 million for the year, both wider than prior periods, primarily due to intangible impairment and restructuring.

• Global Knowledge revenue was $28 million in Q4 and $109 million for the year, both down year-over-year.

Outlook and guidance

• FY2027 TDS revenue guidance: $388 million to $406 million; Adjusted EBITDA: $108 million to $116 million (approx. 28% margin); free cash flow: $14 million to $22 million.

• Guidance reflects conservatism due to macro/geopolitical risks, especially in the Middle East and consumer business decline.

• Excluding the impact of the Global Knowledge segment is expected to improve growth, operating results, and free cash flow.