Core Insights - Skillsoft (SKIL) and Udemy (UDMY) are direct competitors in the online learning and corporate training sector, focusing on workforce development and lifelong learning [1] Group 1: Skillsoft (SKIL) - Skillsoft experienced a turbulent growth trajectory, with a 6% year-over-year revenue decline in Q3 of fiscal 2026, primarily due to an 18% drop in the Global Knowledge (GK) segment, which constitutes 22% of total revenue [2][3] - The GK segment incurred a $20.8 million non-cash goodwill impairment loss, resulting in a $4.9 million adjusted net loss, prompting management to consider strategic alternatives for this segment [3] - The Talent Development Solutions (TDS) segment saw a 2% year-over-year decline, but management remains optimistic about its AI-native roadmap, having signed its first four large enterprise customers [3] - Cost reductions led to a $28 million adjusted EBITDA, despite a 130 basis points dip in adjusted EBITDA margin year-over-year, indicating resilience amid declining GK revenues [5] - Skillsoft is trading at a forward P/E ratio of 1.92, significantly lower than Udemy's 10.25, making it more attractive to investors [12] Group 2: Udemy (UDMY) - Udemy reported $195.7 million in revenue for Q3 of 2025, reflecting a marginal year-over-year increase, with subscription revenues growing 8% and accounting for 74% of total revenues [6] - The company achieved an 88% year-over-year increase in paid subscribers in the consumer segment, alongside a 2% rise in total enterprise customers, attributed to AI integration and a focus on high-value recurring revenue streams [7] - Udemy's adjusted EBITDA margin expanded by 600 basis points to 12%, driven by operational discipline and a shift towards high-margin subscriptions [7] - Despite these positives, Udemy faces challenges, including a 5% year-over-year increase in Udemy Business revenues and a net dollar retention rate of 93%, impacted by the downsizing of legacy contracts [8] - The consensus estimate for Udemy's 2026 sales is $806 million, reflecting a 2.2% year-over-year increase, while EPS is projected to decline by 5.5% [11] Group 3: Investment Recommendation - Skillsoft is recommended for investment due to its lower valuation and potential for long-term returns as it focuses on becoming a leaner AI-first entity [14][16] - Udemy is advised to be retained for now, pending further justification of revenue growth from customer and subscriber increases [16]

Core Viewpoint - Skillsoft Corp. (SKIL) is currently viewed as a better investment option compared to Symbotic Inc. (SYM) for those seeking undervalued stocks due to its strong earnings outlook and favorable valuation metrics [3][7]. Valuation Metrics - SKIL has a forward P/E ratio of 2.28, significantly lower than SYM's forward P/E of 154.24, indicating that SKIL is more attractively priced relative to its earnings [5]. - The PEG ratio for SKIL is 0.23, while SYM's PEG ratio is 5.14, suggesting that SKIL is expected to grow its earnings at a more favorable rate compared to SYM [5]. - SKIL's P/B ratio stands at 20.73, compared to SYM's P/B of 75.91, further highlighting SKIL's relative undervaluation [6]. Investment Ratings - SKIL holds a Zacks Rank of 1 (Strong Buy), indicating a positive earnings estimate revision trend, while SYM has a Zacks Rank of 4 (Sell), suggesting a less favorable earnings outlook [3]. - Based on the valuation figures and earnings outlook, SKIL has earned a Value grade of A, whereas SYM has received a Value grade of F, reinforcing SKIL's position as the superior value option [6].

Core Insights - Skillsoft Corp. (SKIL) experienced a 6% year-over-year decline in revenue during Q3 2026, primarily due to an 18% drop in Global Knowledge (GK) revenues, although the company maintained its margins through operational discipline [1][9] Financial Performance - The company recorded total operating expenses of $101 million, a 4.1% decrease year-over-year, achieved by reducing content, software, sales, marketing, and general and administrative expenses [2][9] - Productivity improvements from AI and a focused strategy led to a 2.4% year-over-year reduction in content and software development expenses, while selling and marketing expenses decreased by 7.1% due to headcount reductions [3][9] - General and administrative expenses saw an 11.9% year-over-year decline, contributing to an adjusted EBITDA of $28 million, with an adjusted EBITDA margin of 22%, down from 23.3% in the previous year [4][9] Segment Analysis - The Talent Development Solutions segment remained profitable, while the GK segment reported a negative EBITDA of $3.3 million, indicating a strategic shift towards higher-margin SaaS platforms to stabilize long-term margins [5][9] Market Performance - Over the past year, SKIL's stock has decreased by 71.3%, contrasting with the industry growth of 10.2%, while peers Nable (NABL) and Agora (API) saw declines of 30.3% and 8.6%, respectively [6][9] Valuation Metrics - SKIL trades at a 12-month forward price-to-earnings ratio of 1.99X, significantly lower than the industry average of 25.21X and cheaper than Nable's 12.9X and Agora's 26.81X [10] - The Zacks Consensus Estimate for EPS for 2025 is $4.17, revised up by 19.8% in the last 60 days, while the estimate for 2026 is $4.54, revised down by 9.9% [13]

Group 1: Ciena Corporation (CIEN) - Ciena Corporation is a network technology company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 22.3% over the last 60 days [1] - The company has a PEG ratio of 1.11, significantly lower than the industry average of 5.29, and possesses a Growth Score of A [1] Group 2: Skillsoft Corp. (SKIL) - Skillsoft Corp. is a digital learning solutions provider with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 19.8% over the last 60 days [2] - The company has a PEG ratio of 0.20, compared to the industry average of 0.76, and possesses a Growth Score of B [2] Group 3: Patria Investments Limited (PAX) - Patria Investments Limited is a private equity company with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.6% over the last 60 days [3] - The company has a PEG ratio of 0.81, lower than the industry average of 1.70, and possesses a Growth Score of A [3]

Core Insights - Skillsoft Corp. (SKIL) is transitioning to an AI-native platform, which is becoming essential for the company's growth strategy and market approach [1][8] - The CEO has compared Skillsoft's AI-driven model to that of Netflix, indicating strong management confidence in this strategic pivot [2] - AI integration has led to a 2.4% year-over-year reduction in content and software development expenses due to increased productivity [3][8] Financial Performance - SKIL's revenues decreased by 6% year-over-year to $129 million in Q3 of fiscal 2026, primarily due to an 18% decline in the Global Knowledge segment [4] - The Talent Development Solutions segment shows potential for growth despite overall revenue challenges [4] AI Integration and Strategy - Over 50% of content design, curation, and production utilized AI in Q3 of fiscal 2026, demonstrating the company's commitment to AI in its operations [2][8] - The integration of AI and CAISY into the next-generation Skillsoft Percipio aims to enhance learning experiences and support enterprise contracts [5][8] Market Position and Valuation - Skillsoft's stock has decreased by 73% over the past year, contrasting with a 19.4% growth in the industry [6] - The company trades at a forward price-to-sales ratio of 0.14, significantly lower than peers VerifyMe (1.04) and Agora (2.94) [10] - Skillsoft holds a Value Score of A, while its peers have lower scores, indicating a favorable valuation perspective [13]

Core Viewpoint - Investors in the Technology Services sector should consider Skillsoft Corp. (SKIL) and AppLovin (APP) as potential value opportunities, with SKIL currently presenting a stronger case for investment [1]. Group 1: Company Rankings and Outlook - Skillsoft Corp. has a Zacks Rank of 1 (Strong Buy), indicating a favorable earnings outlook, while AppLovin holds a Zacks Rank of 2 (Buy) [3]. - SKIL has likely experienced a stronger improvement in its earnings outlook compared to APP, making it more appealing to value investors [3]. Group 2: Valuation Metrics - SKIL has a forward P/E ratio of 2.13, significantly lower than APP's forward P/E of 40.72, suggesting SKIL is undervalued relative to APP [5]. - The PEG ratio for SKIL is 0.21, indicating strong expected EPS growth, while APP's PEG ratio is 2.04, suggesting less favorable growth expectations [5]. - SKIL's P/B ratio is 19.44, compared to APP's P/B of 141.61, further highlighting SKIL's relative value [6]. Group 3: Value Grades - Based on various valuation metrics, SKIL holds a Value grade of A, while APP has a Value grade of D, reinforcing SKIL's position as the superior value option [6].

Core Insights - Skillsoft Corp. (SKIL) shares have decreased by 72.2% over the past year, significantly underperforming its industry, which grew by 17.3%, and the Zacks S&P 500 Composite, which rose by 21% [1] - The company is currently reviewing strategic alternatives for its Global Knowledge (GK) business segment, which has experienced a 16% decline in revenues, leading to a potential sale [5][8] - Management is optimistic about the future of its AI-driven Percipio platform, which has already secured its first four large enterprise customers [9] Performance Comparison - Over the past six months, SKIL has declined by 47.1%, while Acuity, Inc. (AYI) and AppLovin (APP) have seen growth of 22.2% and 79.5%, respectively [4] - In the last year, Acuity and AppLovin have increased by 18.2% and 92.2%, respectively, further highlighting SKIL's underperformance [1] Financial Metrics - Skillsoft's return on equity (ROE) stands at 83.1%, significantly higher than the industry average of 15.3% [11] - The return on invested capital (ROIC) for Skillsoft is 11.6%, which is above the industry average of 7.7% [13] - SKIL is trading at 1.76 times forward 12-month price-to-earnings, well below the industry average of 26.05 times, and its trailing 12-month EV-to-EBITDA ratio is 2.55, compared to the industry average of 18.29 [14] Strategic Outlook - The management's decision to focus on the Talent Development Solutions (TDS) segment and the AI-backed Percipio platform is seen as a critical move for future growth [10][16] - The potential sale of the GK segment could positively impact the company's balance sheet and market position [6][10] - The current trading discount presents an attractive opportunity for value-oriented investors [14][17]

Core Insights - Both Skillsoft (SKIL) and Futu Holdings (FUTU) are technology-driven companies targeting niche growth markets, appealing to growth-focused investors [1] Group 1: Skillsoft (SKIL) - In Q3 fiscal 2026, SKIL experienced a 6% year-over-year decline in revenue, primarily due to an 18% drop in the Global Knowledge (GK) segment, which contributed nearly 22% to the top line [2][10] - The GK segment incurred a non-cash goodwill impairment loss of $20.8 million, leading to an adjusted net loss of $4.9 million, prompting management to consider strategic alternatives for this segment [3][6] - The Talent Development Solutions (TDS) segment saw a 2% year-over-year decline, but the company is optimistic about its AI-native roadmap, having signed its first four large enterprise customers [4] - SKIL's adjusted net income improved significantly, with an 83% sequential and 27% year-over-year growth, although the adjusted EBITDA margin decreased by 30 basis points sequentially and 160 basis points year-over-year [5] - Management's focus is shifting towards the digital subscription business, as indicated by the lack of revenue and adjusted EBITDA guidance for the GK segment [6] Group 2: Futu Holdings (FUTU) - In Q3 2025, FUTU reported an impressive 86.3% year-over-year revenue growth, driven by a 90.6% increase in brokerage commission and handling charge income, and a 79.2% rise in interest income [7][10] - The company achieved a 42.6% year-over-year growth in funded accounts and a 30.8% increase in brokerage accounts, with a total user growth of 16.8% year-over-year [8] - FUTU's client acquisition strategy has been successful, particularly in Hong Kong, contributing to a 79% year-over-year increase in total client assets and a 105% rise in trading volume [9] - The company is also experiencing significant growth in crypto trading, with a 161% sequential increase in trading volume and a 90% sequential surge in crypto assets [11] Group 3: Financial Estimates and Valuation - The Zacks Consensus Estimate for SKIL indicates year-over-year declines of 3.6% in sales and 3.7% in EPS for fiscal 2026, with one estimate increasing over the past 60 days [12] - In contrast, the Zacks Consensus Estimate for FUTU shows year-over-year surges of 60.2% in sales and 90.2% in EPS for 2025, with two estimates moving upward in the past 60 days [13] - SKIL is trading at a forward price-to-earnings ratio of 1.56, significantly lower than its 3-month median of 3.75, while FUTU's ratio is 15.46, below its 3-month median of 17.45, indicating that SKIL appears undervalued compared to FUTU [15] Group 4: Overall Verdict - Both SKIL and FUTU are emerging tech stocks with growth potential, with SKIL undergoing a structural pivot towards a lean AI-native digital subscription model, while FUTU benefits from customer base expansion and crypto market opportunities [17] - SKIL is considered a more compelling opportunity for growth-oriented investors due to its lower valuation compared to FUTU, with SKIL holding a Zacks Rank 1 (Strong Buy) and FUTU a Zacks Rank 2 (Buy) [18]

Core Insights - Skillsoft Corp. (SKIL) is reviewing strategic alternatives for its Global Knowledge (GK) business segment, considering a potential sale due to a 6% year-over-year decline in total revenues, primarily driven by an 18% drop in GK revenues, which represent 21.7% of total revenues [1][8] Group 1: Financial Performance - The decline in the GK segment is attributed to reduced demand for physical and virtual instructor-led sessions, resulting in a $20.8 million non-cash goodwill impairment loss and a $4.9 million adjusted net loss [2] - Talent Development Solutions (TDS) revenues experienced a minor decline of 2% year-over-year, mainly due to a decrease in B2C learner products, while enterprise stabilization is noted [3] - SKIL's share price has decreased by 45.5% over the past three months, contrasting with the industry's growth of 1.3% [5] Group 2: Strategic Focus - Management's decision to withhold revenue and adjusted EBITDA guidance for the GK segment indicates a strategic shift to focus on the TDS segment and its digital subscription business [4] - The company is optimistic about its AI-native roadmap, particularly the Percipio Platform, with early success shown by signing four large enterprise customers [3][8] Group 3: Valuation Metrics - SKIL trades at a 12-month forward price-to-sales ratio of 0.12, significantly lower than peers Coherent Corp. at 4.21 and Dave at 4.56 [9] - The Zacks Consensus Estimate for EPS for 2025 is $4.17, revised up by 19.8% over the past 60 days, while the estimate for 2026 is $4.54, revised down by 9.9% [11]

Core Viewpoint - Skillsoft has announced a strategic partnership with edX to integrate edX's course offerings into the Skillsoft Percipio Platform, enhancing the academic and professional learning available to organizations [1][2][3]. Group 1: Partnership Details - The partnership aims to connect academic learning with enterprise skills priorities, allowing organizations to better align their learning investments with the skills needed in an AI-driven work environment [3][5]. - edX offers a broad catalog of programs from prestigious institutions, including executive education and professional certificates in areas such as AI and cybersecurity, which will now be accessible through the Skillsoft platform [6][7]. Group 2: Workforce Skills and Learning - Organizations face challenges in understanding their current workforce skills and preparing for future needs, with only 10% of HR leaders feeling confident in their workforce's skills to meet business goals in the next 12 to 24 months [4]. - The integration of edX programs into the Skillsoft platform is designed to create a continuous learning environment, helping organizations connect learning activities directly to workforce planning and performance [5][6]. Group 3: Company Background - Skillsoft is a leader in AI-native skills management, supporting over 105 million learners globally and trusted by 60% of the Fortune 1000 [8].