Skillsoft (SKIL) Q4 2025 earnings summary

Executive summary

• Delivered Q4 and FY 2025 results at or above guidance, with revenue and adjusted EBITDA at the upper end and strong free cash flow performance.

• Transformation plan execution resulted in $45 million+ annualized expense reductions, margin expansion, and reinvestment in growth initiatives.

• Strategic focus on stabilizing Global Knowledge, driving Talent Development Solutions, and leveraging AI capabilities for future growth.

• Positioned for a return to growth in FY 2026, with priorities including go-to-market transformation and free cash flow generation.

• Closely monitoring macroeconomic and regulatory uncertainties that may impact results.

Financial highlights

• Q4 revenue: $133.8M–$134M, down 2.8% year-over-year; FY 2025 revenue: $531M, down 4% year-over-year.

• Q4 adjusted EBITDA: $29.9M–$30M (22% margin); FY 2025 adjusted EBITDA: $109.1M (21% margin), up $4M year-over-year.

• Q4 GAAP net loss: $31M (vs. $245M prior year); FY 2025 GAAP net loss: $121.9M–$122M (vs. $349.3M prior year).

• Q4 adjusted net income: $17M, flat year-over-year; FY 2025 adjusted net income: $35M, up from $34M.

• FY 2025 free cash flow: $11.6M–$12M, up from negative $15M prior year; Q4 free cash flow: $13.2M.

Outlook and guidance

• FY 2026 revenue guidance: $530M–$545M; adjusted EBITDA: $112M–$118M.

• FY 2026 free cash flow expected at $13M–$18M; unlevered free cash flow: $71M–$76M.

• Management expects margin expansion, positive free cash flow, and a return to top-line growth.