Skillsoft reports Q2 2025 losses of $40M but reaffirms full-year financial outlook

Skillsoft has released its financial results for the second quarter of fiscal 2025, which ended on July 31, 2024. The company reported a total revenue of $132 million, reflecting a 6% decline compared to the same period last year. 

The decrease was largely attributed to a 20% drop in Global Knowledge (formerly Instructor-Led Training) revenue, which totalled $31 million, down from the previous year.

Skillsoft's Talent Development Solutions, formerly known as Content & Platform, generated $102 million in revenue for the quarter, representing a slight decrease of 1% year-over-year. 

Despite these declines, the company’s adjusted EBITDA from continuing operations was $28 million, an increase from $25 million the previous year. This reflects a margin of 21% of total revenue, compared to 18% in the prior year.

The company reported a net loss of $40 million for the quarter, compared to a net loss of $32 million in the same period last year. On a per-share basis, the net loss was $4.84, compared to $4.00 last year. However, Skillsoft’s adjusted net loss improved to $20 million from $30 million in the previous year, with adjusted net loss per share improving to $2.40 from $3.68.

Business highlights for Q2 

Skillsoft’s second quarter also saw notable business developments. In partnership with Microsoft, Skillsoft launched new programmes designed to help organisations upskill their workforce in Generative AI (GenAI) and Microsoft AI technologies. These programmes aim to increase productivity and innovation through interactive virtual environments and personalised assessments.

The company also launched a reimagined user experience on its learning platform, incorporating AI-driven personalised features to enhance learner engagement and effectiveness. This update introduces sequenced learning paths and an intuitive design aimed at maximising the impact of the platform.

“I am pleased with the progress we made this quarter towards our longer-term goals to grow at or above market rates in all areas of our business,” said Rich Walker, Skillsoft’s Chief Financial Officer. “Equally important, we remain laser focused on near-term operational execution and are reaffirming our outlook for FY25.”

Outlook for Full-Year Fiscal 2025

Skillsoft reaffirmed its full-year financial outlook for fiscal 2025, expecting total revenue to be between $510 million and $525 million. The company also expects adjusted EBITDA to range between $105 million and $110 million for the fiscal year ending January 31, 2025.

The company ended the second quarter with $130 million in cash, cash equivalents, and restricted cash.

“Our revenue and adjusted EBITDA performance were in line with our expectations for the quarter," said Ron Hovsepian, Skillsoft’s Executive Chair and Chief Executive Officer.

"Our progress on the ‘Fix the Basics’ strategy, including transitioning to a dual business unit structure, already shows improved outcomes. Key leaders have been added, which will further accelerate our efforts. This progress strengthens our foundation for continued profitable growth, unlock shareholder value, and customer success.”