Skillsoft Reports Q2 Earnings: Revenue Decline and Revised Guidance
Skillsoft (NYSE:SKIL) reported second-quarter fiscal year 2027 revenue of $98.2 million, a 2.9% decline from the prior-year period due to continued weakness in its consumer coding business. Enterprise revenue fell approximately 1%, while dollar retention improved slightly to 95%. Despite lower overall revenue, adjusted EBITDA increased by 7% year over year to $33.4 million as cost reductions helped expand margins to 34%. However, free cash flow remained negative due to seasonal patterns in collections. The company revised its full-year fiscal 2027 revenue guidance downward to a range of $380–$390 million but maintained its EBITDA and free-cash-flow outlook. Management is focusing on rolling out an AI-native skills management platform for enterprise customers while addressing approximately $575 million in gross debt with upcoming maturities. CFO Ron Kisling noted that the consumer business, which has been affected by broader market weakness and increased adoption of AI tools reducing demand for coding training, continues to be operated profitably. CEO Ron Hovsepian highlighted how divesting Global Knowledge simplifies operations and allows more focus on enterprise growth opportunities.
Tickers: $SKIL
Topics: adjusted_ebitda_growth debt_management guidance_reduction revenue_decline