Skillsoft Corporation reported a net loss of $18.7 million for the first quarter of fiscal 2027 ended April 30, 2026, an improvement of 37% compared to a net loss of $29.6 million in the prior year. The company's revenue for the quarter declined 5% to $94.5 million from $99.1 million year-over-year. Adjusted EBITDA remained flat at $26.6 million, while adjusted earnings per share rose to $1.16 from $1.15 in the same period last year. The decline in sales was primarily attributed to softness in government bookings and anticipated declines in the consumer business.

Financial Performance

The company's top-line performance contracted during the quarter, while profitability metrics showed signs of improvement. The following table details the key financial metrics for the reported period compared to the prior year.

The reduction in net loss and slight uptick in adjusted EPS suggest improvements in operational efficiency or cost management during the quarter. Adjusted total operating expenses were $67.9 million, down $4.5 million or 6.2% year over year.

Business Highlights

Skillsoft announced an agreement in May 2026 to sell its Global Knowledge business to an affiliate of Enduring Ventures, a move intended to center the company around its AI-native skills management platform. The company reported that new customer agreements for its next-generation Skillsoft Percipio Platform grew 67% quarter-over-quarter. Additionally, the Dollar Retention Rate (DRR) for the first quarter of 2027 was 105%, up significantly from 91% in the year-ago period.

Outlook

Skillsoft reaffirmed its financial outlook for the full fiscal year 2027. The company projects revenue to be between $388 million and $406 million, with Adjusted EBITDA expected to range from $108 million to $116 million. TDS Free Cash Flow is anticipated to be between $14 million and $22 million.

Skillsoft (NYSE: SKIL) has issued its sales outlook for FY2027, projecting revenue between $388.000 million and $406.000 million. This forecast falls short of the analyst estimate of $503.198 million, highlighting a significant gap between company expectations and market projections.

The projected range suggests a challenging period ahead for the enterprise learning solutions provider. Analysts had anticipated a higher revenue figure, making the announced guidance a critical metric for investors to monitor.

FY2027 Sales Outlook vs Analyst Estimates

The discrepancy between the company's guidance and the analyst estimate underscores the importance of upcoming performance reports. Shareholders will likely focus on management's commentary regarding the factors influencing this conservative outlook.