Financial Data and Key Metrics Changes - Total revenue for Q1 was $124.2 million, down approximately $3.6 million or 2.8% year over year [19] - Adjusted EBITDA was $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year [21] - GAAP net loss was $38 million compared to $27.6 million in the prior year, with GAAP net loss per share at $4.57 compared to $3.42 [22] - Free cash flow was $26.2 million, an improvement of $15.8 million from $10.4 million in the prior year [23] Business Line Data and Key Metrics Changes - Talent Development Solutions (TDS) revenue was $99.1 million, up 1% year over year [18] - Global Knowledge (GK) revenue was $25.1 million, down approximately $4.7 million or 15.7% year over year, impacted by softer demand in the public sector [18][19] - TDS dollar retention rate for Q1 was 99%, compared to 100% last quarter and 99% one year ago [19] Market Data and Key Metrics Changes - There was a decline in U.S. public sector discretionary live learning spending, while large-scale non-U.S. public sector deals increased [10] - The company is investing in international growth, particularly in sectors like AI, cloud computing, and cybersecurity [11] Company Strategy and Development Direction - The company is focused on executing its transformation plan and driving success for customers and learners [5][8] - A renewed focus on go-to-market strategy is emphasized, with new leadership additions aimed at enhancing brand awareness and demand [6][7] - The company aims to return to top-line growth and deliver continued margin expansion while generating positive free cash flow [16] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making processes [8][16] - Confidence in the business strategy was reinforced by positive feedback from customer events and a strong deal pipeline [15][38] - The outlook for the full fiscal year remains unchanged, with expectations for revenue between $530 million and $545 million [26] Other Important Information - The company is closely monitoring macroeconomic conditions and potential impacts on business [26] - The first quarter is typically the highest seasonal free cash flow quarter, with expectations of cash usage in the second quarter [23][24] Q&A Session Summary Question: What are the underlying KPIs that give confidence in the full-year target? - Management highlighted the growth in TDS and a strong deal pipeline in GK, suggesting potential for improvement if the market stabilizes [30][32] Question: How should we think about the government business and its recent softness? - Management noted that discretionary spending in the U.S. federal sector impacted revenue, but there is positive activity in European public sectors [48][50] Question: What changes or improvements can be expected under the new CFO? - The focus will be on integrating finance into every decision and aligning it with go-to-market strategies to drive growth [54]

Financial Data and Key Metrics Changes - Total revenue for the first quarter was $124.2 million, down approximately $3.6 million or 2.8% year over year [18] - Adjusted EBITDA was $22.1 million or 17.8% of revenue, up from $18.9 million or 14.8% of revenue in the prior year [20] - GAAP net loss was $38 million compared to $27.6 million in the prior year, with GAAP net loss per share at $4.57 compared to $3.42 [21] - Free cash flow improved to $26.2 million compared to $10.4 million in the prior year, reflecting an increase of $15.8 million [22] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $99.1 million, up 1% year over year [17] - Global Knowledge revenue was $25.1 million, down approximately $4.7 million or 15.7% year over year, impacted by softer demand in the public sector [17][18] - TDS dollar retention rate for the first quarter was 99%, compared to 100% last quarter and 99% one year ago [18] Market Data and Key Metrics Changes - There was a decline in U.S. Public sector discretionary live learning spending, while large scale non-U.S. Public sector deals increased [9][10] - The company is investing in international growth, particularly in sectors like AI, cloud computing, and cybersecurity [10] Company Strategy and Development Direction - The company is focused on executing its transformation plan and driving success for customers and learners [5][8] - A renewed focus on go-to-market strategy is emphasized, with new leadership additions aimed at enhancing brand awareness and demand [6][8] - The company aims to return to top-line growth and deliver continued margin expansion while generating positive free cash flow [15][24] Management's Comments on Operating Environment and Future Outlook - Management noted macroeconomic uncertainty leading to lower discretionary spending and elongated decision-making processes [7][15] - Confidence in the business strategy was reinforced by positive feedback from customer events and a strong deal pipeline [14][36] - The company expects to see most growth in the back half of the fiscal year, contingent on market stabilization [8][24] Other Important Information - The company is closely monitoring macroeconomic conditions and potential impacts on business [24] - The leadership team has been expanded with the addition of a new Chief Marketing Officer to enhance marketing efforts [6] Q&A Session Summary Question: What are you seeing in the underlying KPI or deals that give you confidence in reiterating the full year target? - Management expressed confidence in TDS growth and noted a positive deal pipeline in GK, contingent on market stabilization [30] Question: Is there a component of GK being worse and TDS better in your underlying assumptions? - Management acknowledged that discretionary spending was impacted in Q1, particularly in live learning, but noted improvements in the last month of the quarter [32][33] Question: What is the next phase of the business transformation process? - Management indicated that the focus will shift towards increasing growth rates and enhancing go-to-market strategies [35][36] Question: Can you provide context on the government business and its performance? - Management noted softness in U.S. Federal discretionary spending but observed good activity in European public sectors [47][48] Question: What specific changes or improvements can we expect with the new CFO? - The new CFO emphasized the importance of integrating finance into all business decisions to support go-to-market strategies [52]

Earnings Supplement Q1 FY2026 June 9, 2025 1 Cautionary Notes Regarding Forward Looking Statements This document includes statements that are, or may be deemed to be, "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. For all such statements, we claim the protection of the safe harbor for forward-looking statements provided by such sections and the Private Securities Litigation Reform A ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38960 Skillsoft Corp. (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporati ...

Exhibit 99.1 Skillsoft Reports Financial Results for the First Quarter of Fiscal 2026 BOSTON – June 9, 2025 – Skillsoft Corp. (NYSE: SKIL) ("Skillsoft", "we", "us", or "our"), the platform that empowers organizations and learners to unlock their full potential, today announced its financial results for the first quarter of fiscal 2026 ended April 30, 2025. Fiscal 2026 First Quarter Select Metrics and Financial Measures (1) * "We are pleased to have delivered first quarter results in line with expectations d ...

The market expects Skillsoft Corp. (SKIL) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended April 2025. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on June 9, 2025, might help the stock move higher if these key numbers are ...

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $133.8 million, down approximately 2.8% year-over-year, while total revenue for the full year was $531 million, down approximately 4% year-over-year [35][51] - Adjusted EBITDA for the fourth quarter was $29.9 million, representing 22% of revenue, up from $28.3 million or 21% of revenue in the prior year [41] - The company reported a gap net loss of $31.1 million in the fourth quarter, compared to a gap net loss of $245.3 million in the prior year [42] Business Line Data and Key Metrics Changes - Talent Development Solutions (TDS) revenue was $102.8 million in the fourth quarter, up 1% year-over-year, and $405.5 million for the full year, essentially flat to FY24 [31] - Global Knowledge revenue was $30.9 million in the fourth quarter, down approximately 13% year-over-year, with full-year revenue of $125.4 million, down approximately 15% year-over-year [34] Market Data and Key Metrics Changes - The company reported a dollar retention rate (DRR) of 105% for the fourth quarter, leading to a full-year DRR of 100%, a 200 basis point improvement from the previous quarters [8][33] - The market served by the company is estimated to be over $400 billion, with a focus on the talent development lifecycle within the enterprise market segment [12][13] Company Strategy and Development Direction - The transformation strategy focuses on two key objectives: fixing the basics and investing to grow, with a targeted shift of up to 20% of resources into the enterprise market segment [10][11] - The company aims to return to growth in FY26 while generating positive free cash flow, with a commitment to drive at least $45 million in annualized expense reduction [15][16] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the macroeconomic environment and potential impacts of evolving government policies, but has not seen any material impact on business so far [7][62] - The company expects revenue for FY26 to be between $530 million and $545 million, with adjusted EBITDA of $112 million to $118 million [51][52] Other Important Information - The company generated $17.7 million in cash flow from operations in Q4, resulting in free cash flow of $13.2 million, compared to $5.4 million in the prior year [46] - Total gross debt was $581 million at the end of Q4, down from approximately $591 million at the end of Q3, with a reduction in gross debt leverage from six times to 5.3 times [50] Q&A Session Summary Question: Impact of recent tariff news on customer base - Management noted that as a federal contractor, they have not seen any material impact due to their preparedness and collaboration with federal agencies [62][63] Question: Guidance for growth in FY26 - The outlook reflects current business operations, acknowledging a fluid environment that may impact future performance [71][72] Question: Margin improvement in EBITDA guidance - Management indicated that while revenue is expected to grow, margin expansion may not be significant in the near term due to various factors affecting profitability [74][75] Question: Dynamics of large deal activity - The company reported strong performance in securing large deals, with significant contributions from top customers [88][109] Question: Global Knowledge margin contribution decline - Management attributed the decline to a mix issue and indicated plans to improve the margin profile in FY26 [110][112] Question: Durability of dollar retention rate improvements - Management expressed confidence in the durability of the DRR improvements, supported by long-term contracts and ongoing resource shifts [116][121] Question: Seasonality of the business - Management confirmed that Q1 is typically the smallest quarter, and this seasonality is expected to continue in FY26 [124][125]

Group 1: Earnings Performance - Skillsoft Corp. reported quarterly earnings of $2.11 per share, exceeding the Zacks Consensus Estimate of a loss of $2.05 per share, and showing improvement from a loss of $3.09 per share a year ago, resulting in an earnings surprise of 202.93% [1] - The company has surpassed consensus EPS estimates in all four of the last quarters [2] - Skillsoft's revenues for the quarter ended January 2025 were $133.75 million, surpassing the Zacks Consensus Estimate by 4.22%, although this represents a decline from year-ago revenues of $137.54 million [2] Group 2: Stock Performance and Outlook - Skillsoft shares have declined approximately 28.7% since the beginning of the year, compared to a decline of 8.8% for the S&P 500 [3] - The future performance of Skillsoft's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4][6] - The current consensus EPS estimate for the upcoming quarter is -$2.48 on revenues of $132.23 million, and for the current fiscal year, it is -$7.11 on revenues of $539.99 million [7] Group 3: Industry Context - The Technology Services industry, to which Skillsoft belongs, is currently ranked in the top 27% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Data and Key Metrics Changes - Revenue for the fourth quarter was $133.8 million, down approximately 2.8% year-over-year, while total revenue for the full year was $531 million, down approximately 4% year-over-year [35][51] - Adjusted EBITDA for the fourth quarter was $29.9 million, representing 22% of revenue, up from $28.3 million or 21% of revenue one year ago [41] - The company reported a gap net loss of $31.1 million in the fourth quarter, compared to a gap net loss of $245.3 million in the prior year [42] Business Line Data and Key Metrics Changes - Talent Development Solutions (TDS) revenue was $102.8 million in the fourth quarter, up 1% year-over-year, and $405.5 million for the full year, essentially flat to FY24 [31] - Global Knowledge revenue was $30.9 million in the fourth quarter, down approximately 13% year-over-year, with full-year revenue of $125.4 million, down approximately 15% year-over-year [34] Market Data and Key Metrics Changes - The company reported a dollar retention rate (DRR) of 105% for the fourth quarter, bringing the last 12 months DRR to 100% [8][33] - The market served by the company is estimated to be over $400 billion, with a focus on the talent development lifecycle within the enterprise market segment [12][13] Company Strategy and Development Direction - The transformation strategy focuses on two key objectives: fixing the basics and investing to grow, with a targeted shift of up to 20% of resources into the enterprise market segment [10][11] - The company aims to return to growth in FY26 while generating positive free cash flow [16][52] Management's Comments on Operating Environment and Future Outlook - Management is closely monitoring the macroeconomic environment and potential impacts of evolving government policies [7] - The company remains committed to its targets of returning to top-line growth and margin expansion in FY26 [16][52] Other Important Information - The company achieved $45 million in annualized expense reduction in FY25, with 40% to 50% of these savings reinvested back into the business [15][16] - The company generated $17.7 million in cash flow from operations in Q4, resulting in free cash flow of $13.2 million, compared to $5.4 million in the prior year [46] Q&A Session Summary Question: Impact of recent tariff news on customer base - Management noted no material impact from recent tariff news, as they are well-prepared and have been working closely with federal agencies [62][63] Question: Growth outlook for FY26 - The outlook reflects current business operations, acknowledging a fluid environment that may impact future performance [71][72] Question: Margin improvement in EBITDA guidance - Management indicated that while revenue is expected to grow, margin improvement will be modest, with a focus on leveraging earnings growth [74][76] Question: Go-to-market transformation progress - Management reported positive feedback from large deals and ongoing adjustments in sales strategy, with a focus on deploying resources effectively [88][91] Question: Engagement with AI-driven tools - Early indicators show strong customer engagement with AI-driven tools, with a notable percentage hiring professional services for implementation [99][100] Question: Global Knowledge margin contribution decline - Management attributed margin decline to a mix issue and expects improvements as the business stabilizes and product offerings expand [110][112] Question: Durability of dollar retention rate improvements - Management expressed confidence in the durability of the DRR improvements, supported by long-term contracts and ongoing resource shifts [116][121] Question: Seasonality of business and future guidance - Management confirmed that Q1 is typically the smallest quarter, and seasonality patterns are expected to continue into FY26 [124][126]

Company Overview - Skillsoft serves over 95 million learners globally, including 60% of the Fortune 100, through its personalized learning experiences and enterprise solutions [21]. - The Talent Development Solutions (TDS) segment serves more than 3,000 customers and 38 million employees worldwide, while the Learner Platform caters to over 58 million learners [24]. - Skillsoft's platform offers more than 300,000 learning assets and over 225,000 hours of learning experiences, focusing on critical technology, leadership, business, and compliance skills [29]. - Skillsoft has 2,261 employees as of January 31, 2025, reflecting a diverse workforce that supports innovation and institutional knowledge [67]. - The company has 40 million registered learners on its Learner platform, which offers courses in 14 programming languages [193]. Market Opportunities - The company identified a potential market opportunity of $400 billion, driven by a shift towards holistic talent development lifecycle approaches [52]. - 1.1 billion jobs are expected to be transformed by technology in the next decade, indicating significant market potential for Skillsoft [53]. - 60% of organizations identify skills gaps as the primary factor limiting business transformation, highlighting the demand for Skillsoft's solutions [53]. - 85% of employers plan to prioritize upskilling their workforce, with AI and big data being among the top five fastest-growing skills [53]. - The corporate digital learning market is large and fragmented, with significant whitespace opportunities due to increasing demand for high-quality digital content solutions [54]. Product Development and Features - In fiscal 2025, Skillsoft introduced new features such as Interactive Skill Benchmarks and AI Learning Assistants to enhance skill development and customer engagement [30]. - Skillsoft's AI-powered Role Advisor tool has shown that learners who select a job role are 14% more likely to make learning a recurring habit [36]. - The Compliance Suite addresses the need for flexible, risk-based training, with features tailored to individual roles and responsibilities [35]. - The integration of generative AI into the TDS Learner platform enhances interactivity and immersion, helping learners build critical technology skills [45]. - The company is focused on developing new learning content and enhancing platform features, but there is no assurance of commercial success for these new products [84]. Financial Performance - Total revenues for the twelve months ended January 31, 2025, were $530,994,000, a decrease of 4.0% compared to $553,237,000 for the previous year [205]. - TDS segment revenues were $405,530,000, reflecting a slight increase of 0.2% from $404,850,000 in the prior year, while GK segment revenues decreased by 15.4% to $125,464,000 from $148,387,000 [199]. - The company incurred net losses of $121.9 million in fiscal 2025 and $349.3 million in fiscal 2024, with an accumulated deficit of $1.4 billion as of January 31, 2025 [77]. - The company reported a net loss of (23.0)% for the twelve months ended January 31, 2025, an improvement from (63.1)% in the previous year, indicating a positive trend in financial performance [196]. Cost Management and Efficiency - The company announced a comprehensive resource reallocation plan expected to yield approximately $45 million in annualized cost savings, with plans to reinvest half of the savings into strategic growth initiatives [207]. - Total operating expenses decreased significantly to 113.1% of total revenues for the twelve months ended January 31, 2025, down from 155.7% in the previous year [196]. - Total operating expenses decreased by $261,236, or 30.3%, from $861,851 in fiscal 2024 to $600,615 in fiscal 2025 [210]. - Cost savings from the consolidation of facilities contributed to the overall decline in G&A expenses [219]. Risks and Challenges - Economic conditions, including high inflation rates in key markets like the United States, could negatively impact demand for the company's products and services [82]. - The company's revenue growth is influenced by customer employment patterns, which may decline during economic downturns, affecting demand for its offerings [83]. - Cybersecurity threats pose significant risks, as breaches could harm the company's reputation and lead to substantial liabilities [97]. - The company anticipates ongoing service interruptions and outages, which could affect customer satisfaction and retention [96]. - The company may face penalties of up to 35 million euros or 7% of total worldwide annual turnover for non-compliance with the EU's Artificial Intelligence Act, which is expected to take full effect in 2026 [125]. Strategic Partnerships - Skillsoft's partnerships with leading HCM software companies like Workday and SAP SuccessFactors aim to deliver impactful talent development programs [30]. - The company relies on its status as an authorized training provider for key technology vendors, which significantly impacts its revenue [106]. - Skillsoft's strategic partnerships provide comprehensive global coverage, broadening market reach and driving revenue growth [62]. Shareholder Information - The company has authorized a share repurchase program of up to $10 million, which will terminate on July 11, 2028 [190]. - The company has never declared or paid cash dividends on its common stock and does not anticipate doing so in the foreseeable future [191]. - The NYSE has provided notice of potential delisting of the company's warrants due to "abnormally low" price levels, which could impact stockholder value [167]. Acquisitions and Divestitures - The company completed the acquisition of Codecademy for approximately $386.0 million, which included the issuance of 1,518,721 shares of common stock and a net cash payment of $203.4 million [193]. - The company sold its SumTotal business for net proceeds of $174.9 million after final working capital adjustments [194]. Regulatory and Compliance - The company is subject to the U.S. Foreign Corrupt Practices Act and the UK Bribery Act, which could result in severe penalties and reputational damage if violated [138]. - The company may incur significant costs to comply with evolving privacy and data security laws, which could limit product adoption and increase operational complexity [132]. - The number of U.S. states with privacy laws has rapidly increased, potentially exposing the company to significant fines and reputational harm [131].