Skillsoft Corp. said its fiscal second-quarter revenue fell short of Wall Street forecasts as weakness in its consumer segment offset gains in enterprise offerings, and it reduced its full-year revenue outlook while maintaining its profitability guide.
Shares of Skillsoft fell 4.5% in regular trading to $6.37 and then dropped a further 11.77% after hours to $5.62. The stock was trading near $6.37 on September 9, 2026, compared with a 52-week high of $18.45.
For the quarter ended July 31, 2026, Skillsoft reported revenue of $98.2 million, a 3% decline from $101.2 million in the year-earlier period. Analysts had expected $125.4 million, meaning the result missed the consensus by roughly 22%.
On a non-GAAP basis, adjusted EBITDA came in at $33.4 million, up 7% from $31.2 million a year earlier. The adjusted EBITDA margin expanded by approximately 320 basis points to 34%, from 31% in the prior-year quarter, as the company pushed cost cuts and operating-lease simplification measures. Adjusted total operating expenses declined to $64.8 million, with selling and marketing spending falling about 12% year-over-year to $25.4 million.
Free cash flow was negative $20.5 million for the quarter, though that represented an improvement of $2.1 million versus the same period last year. Skillsoft's trailing twelve-month dollar retention rate stood at 98%, down one percentage point year over year.
Revenue geography was 75% from the United States, 15% from Europe, the Middle East and Africa, and 10% from the rest of the world.
In the quarter, Skillsoft completed the sale of Global Knowledge to Enduring Ventures in July 2026, a divestiture the company said was intended to streamline operations and refocus on enterprise learning.
On the product side, the company reached general availability of its LX Design Studio, which converts user-submitted expertise into custom courses, assessments and interactive practice experiences in three to five days — down from the previous two-to-three-week production cycle. Usage of its AI-enabled practice tool, CAISY, grew 23% year over year among learners, while the share of organizations using it rose 9%. Skillsoft also launched its AI Coach in early access for personalized coaching at scale.
Skillsoft revised its full-year fiscal 2027 revenue outlook downward to $380 million–$390 million from its prior range of $388 million–$406 million. It maintained its adjusted EBITDA guide at $108 million–$116 million and kept its full-year free-cash-flow outlook of $14 million–$22 million from continuing operations.
"Our enterprise business continues to perform as planned, while accelerating pressure in the consumer business is reflected in our revised fiscal 2027 revenue outlook," Chief Financial Officer Ron Kisling said.
Chief Executive Officer Ron Hovsepian characterized the quarter as "another important step in Skillsoft's transformation," describing the company as "simpler, more focused" and pointing to "encouraging progress in customer engagement, early platform adoption and pipeline expansion." He noted that addressing the company's debt structure remains the "top financial priority" and that management is "approaching that work with discipline while continuing to focus on profitability, free cash flow, and long-term value creation for all stakeholders."
