Skillsoft posts Q1 revenue decline, announces Global Knowledge divestiture
First-quarter revenue fell 4.7% to $94.5 million, driven by soft government bookings and a drop in consumer demand, while the company moves to sell its GK segment to Enduring Ventures.
Skillsoft reported first-quarter 2027 revenue of $94.5 million, a 4.7 per cent decline year-on-year, as the company navigated headwinds in government bookings and a 21 per cent drop in its consumer business. The results for the period ended 30 April 2026 reflected the lingering impact of contract losses from the first half of the prior fiscal year, alongside anticipated reductions in consumer demand. Despite the top-line contraction, the firm maintained its full-year fiscal 2027 revenue guidance, projecting earnings between $388 million and $406 million.
The company announced a definitive agreement to divest its Global Knowledge (GK) segment to an affiliate of Enduring Ventures, with the transaction expected to close in fiscal Q2. Management indicated that the sale would simplify the corporate structure, allowing the remaining Talent Development Solutions business to be referred to simply as Skillsoft. The firm stated that the divestiture is expected to be accretive to growth rates and earnings, while strengthening its recurring revenue profile and improving free cash flow visibility once the deal is finalised.
Financially, Skillsoft reported a GAAP net loss of $18.7 million from continuing operations, an improvement from the $29.6 million loss in the prior year period. Adjusted EBITDA from continuing operations stood at $26.6 million, with a margin of 28.2 per cent, up from 27.1 per cent in the previous year. The company also highlighted strong retention metrics, with dollar retention rates reaching 105 per cent in the quarter and new platform customer agreements growing 67 per cent quarter-on-quarter.
Leadership changes accompanied the financial release, with Ronald W. Kisling joining as Chief Financial Officer, replacing John Wilbert Frederick. Kisling, who brings experience from roles at Fastly and Fitbit, stated he was drawn to the clarity of the company’s mission and the opportunity to advance its capabilities in an AI-driven market. Executive Chair and CEO Ronald W. Hovsepian welcomed Kisling, noting that his discipline would be valuable as the company enters the next phase of its transformation.
Looking ahead, management identified debt refinancing as a top priority following the closure of the GK divestiture. The firm reported total gross debt of $576 million at the end of the quarter, down slightly from the prior year. While the company expects the GK transaction to have a near-neutral financial impact overall, it noted that the divestiture will eliminate the annualised adjusted EBITDA loss previously associated with the GK segment, providing a favourable impact on profitability beginning in fiscal 2028.
