Skillsoft delivered a solid QQ4 2025 performance with a pivot toward growth under way, translating into a revenue beat relative to guidance but with a mixed margin backdrop driven by segment mix and ongoing transformation investments. Total quarterly revenue was $133.8 million, down 2.8% year over year, as Talent Development Solutions (TDS) grew 1% YoY to $102.8 million while Global Knowledge (GK) declined about 13% YoY to $30.9 million. For the full year, revenue totaled about $531 million, down roughly 4% YoY. The company achieved positive free cash flow in FY25 (adjusted) and ended the year with a healthier liquidity position, while debt remained elevated but trending toward a more favorable leverage profile.
Management underscored a deliberate pivot to enterprise growth, guided by a two-pronged strategy: fix the basics (operational execution, productivity, margin expansion) and invest to grow (reallocate resources toward enterprise go-to-market and products). They highlighted several catalysts, including AI-enabled capabilities (CAISY), Percipio platform enhancements, and broader enterprise content integrations (SAP, Pluralsight, Big Think+, Oracle, Docebo). The company also flagged ongoing macro headwinds and policy uncertainty, notably in the tariff environment, which management intends to monitor and manage while maintaining an execution focus. The FY26 guidance envisions revenue of $530–545 million and adjusted EBITDA of $112–118 million, with positive free cash flow of $13–18 million, signaling a return to topline growth and modest margin expansion as the year unfolds.”}