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].

Core Viewpoint - Skillsoft Corp. (SKIL) has experienced significant selling pressure, resulting in a 37.1% decline in stock price over the past four weeks, but analysts anticipate improved earnings in the near future [1] Group 1: Technical Analysis - The Relative Strength Index (RSI) is utilized to determine if SKIL is oversold, with a current reading of 27.72 indicating potential for a price reversal [2][5] - Stocks oscillate between overbought and oversold conditions, and the RSI helps identify when a stock may be undervalued due to excessive selling [3] Group 2: Fundamental Analysis - Analysts have raised earnings estimates for SKIL by 70.8% over the last 30 days, suggesting a positive outlook for the company's earnings [7] - SKIL holds a Zacks Rank 1 (Strong Buy), placing it in the top 5% of over 4,000 ranked stocks, indicating strong potential for a turnaround [8]

Core Viewpoint - Skillsoft Corp. (SKIL) is currently viewed as a more attractive investment option compared to AppLovin (APP) for value investors, based on various financial metrics and earnings outlook [1][3][6]. Valuation Metrics - Skillsoft Corp. has a forward P/E ratio of 1.36, significantly lower than AppLovin's forward P/E of 72.43, indicating that SKIL is undervalued relative to APP [5]. - The PEG ratio for Skillsoft is 0.14, while AppLovin's PEG ratio stands at 3.62, suggesting that SKIL has a better growth outlook relative to its valuation [5]. - Skillsoft's P/B ratio is 12.38, compared to AppLovin's P/B of 155.07, further highlighting the valuation disparity between the two companies [6]. Earnings Outlook - Skillsoft holds a Zacks Rank of 1 (Strong Buy), indicating a stronger improvement in its earnings outlook compared to AppLovin, which has a Zacks Rank of 3 (Hold) [3][6]. - The overall valuation figures and solid earnings outlook contribute to Skillsoft earning a Value grade of A, while AppLovin has a Value grade of D [6].

Core Insights - Skillsoft Corp. reported an earnings per share (EPS) of $1.65, exceeding the estimated $1.26, and showing a significant improvement from the previous year's loss of $1.82 per share [1][6] - The company has consistently surpassed consensus EPS estimates over the past four quarters, indicating strong performance [2][6] Financial Performance - The earnings surprise for the latest quarter was +30.95%, and the previous quarter saw a remarkable surprise of +143.81% with earnings of $0.92 against an expected loss of $2.1 per share [2] - Revenue for the quarter was $129 million, slightly below the estimated $131.6 million, representing a 6% decrease from the previous year's revenue of $137.23 million [3] - Revenue from Talent Development Solutions (TDS) was $101 million, reflecting a 2% decline from the prior year [3] - The company has surpassed consensus revenue estimates twice in the last four quarters [3][6] Valuation Metrics - The price-to-sales ratio is 0.13, indicating that the stock may be undervalued compared to sales [4] - The enterprise value to operating cash flow ratio is high at 46.16, suggesting potential overvaluation based on cash flow [4] Leverage and Liquidity - The debt-to-equity ratio is high at 144.58, indicating significant leverage [5] - The current ratio is 0.84, which is below the standard threshold of 1, suggesting potential liquidity concerns [5] - Despite these challenges, the company's consistent earnings surprises highlight its potential for future growth [5]

分组1 - Skillsoft Corp. reported quarterly earnings of $1.65 per share, exceeding the Zacks Consensus Estimate of $1.26 per share, and showing a significant improvement from a loss of $1.82 per share a year ago, resulting in an earnings surprise of +30.95% [1] - The company posted revenues of $129 million for the quarter ended October 2025, which was 1.95% below the Zacks Consensus Estimate and a decrease from $137.23 million in the same quarter last year [2] - Skillsoft has surpassed consensus EPS estimates in all four of the last quarters, while it has topped consensus revenue estimates two times during the same period [2] 分组2 - The stock has underperformed significantly, losing about 68.5% since the beginning of the year, compared to a 16.3% gain in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.99 on revenues of $131.36 million, and for the current fiscal year, it is $3.48 on revenues of $515.94 million [7] - The Technology Services industry, to which Skillsoft belongs, is currently ranked in the top 32% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $129 million, down $8.2 million or 6% year over year [13] - Adjusted EBITDA was $28 million, down about 12% compared to $31.9 million last year, with an adjusted EBITDA margin of 21.7% compared to 23.3% last year [15] - GAAP net loss was $41.3 million, compared to a GAAP net loss of $23.6 million in the prior year period, primarily due to a non-cash Goodwill Impairment loss of $20.8 million related to the GK segment [16] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $100.8 million for the third quarter, down 2.1% year over year, with around 70% of the decline coming from the B2C learner product [12][11] - Global Knowledge (GK) revenue was $28.2 million, down approximately $6 million or 17.6% year over year, impacted by a shift in customer purchasing preferences and spending reductions from the U.S. government shutdown [13][9] - TDS's dollar retention rate (DRR) improved to 99% from 98% year over year, reflecting higher customer upgrades [14] Market Data and Key Metrics Changes - The enterprise portion of TDS, which represents around 91% of TDS, was down slightly due to customer churn from earlier in the year [11] - The public sector business showed signs of recovery with a DRR of 103-104, indicating stabilization after the government shutdown [34] Company Strategy and Development Direction - The company is focused on the talent development market, aiming to reach revenue inflection and return to growth while maintaining strong profitability and cash flow [5] - A strategic review of the GK segment has been initiated, with a shift towards a partnership-driven model rather than continued ownership [9][20] - The company is investing in AI capabilities to enhance its platform and address skills management needs, positioning itself for sustained growth [6][10] Management's Comments on Operating Environment and Future Outlook - Management highlighted the urgency of improving cash flow and the importance of the transformation strategy to align with market demands [23] - The company is optimistic about growth opportunities in FY27, with plans to roll out new branding and sales models [29][55] - Management emphasized the need for organizations to adapt to AI-driven skills management, viewing it as a generational reskilling opportunity [9][10] Other Important Information - Free Cash Flow for the quarter was negative $23.6 million, compared to a positive $4.1 million in the prior year period, with expectations of positive free cash flow of between $0 and $5 million for fiscal 2026 [17][18] - The company has restructured its cost structure, resulting in lower operating expenses year over year [15] Q&A Session Summary Question: What is the timeline for the strategic review of the GK segment? - Management indicated that it is inappropriate to speculate on the exact timing but emphasized the urgency of improving cash flow for the company overall [23] Question: How does the underperformance of GK affect TDS margins? - Management stated that TDS is the flagship for growth and profitability, and they are focused on maintaining profitability while investing in growth [26] Question: How is the public sector business shaping up post-government shutdown? - The public sector business is showing signs of recovery, with a healthy DRR and positive wins in Q3 [34] Question: What is the approach to investment cadence moving forward? - The focus will be on creating a track record in hitting TDS EBITDA while looking for ways to drive productivity before shifting to growth investments [51]

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $129 million, down $8.2 million or 6% year-over-year [13] - Adjusted EBITDA was $28 million, down about 12% compared to $31.9 million last year, with an adjusted EBITDA margin of 21.7% compared to 23.3% last year [15] - GAAP net loss was $41.3 million, compared to a GAAP net loss of $23.6 million in the prior year period, primarily due to a non-cash goodwill impairment loss of $20.8 million related to the GK segment [16] - Free cash flow for the quarter was -$23.6 million, compared to a positive $4.1 million in the prior year period [17] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $100.8 million, down 2.1% year-over-year, with around 70% of the decline coming from the B2C learner product [12] - Global Knowledge (GK) revenue was $28.2 million, down approximately $6 million or 17.6% year-over-year, impacted by a shift in customer purchasing preferences and spending reductions from the U.S. government shutdown [13][14] - TDS dollar retention rate (DRR) improved to 99% from 98% year-over-year, while GK accounted for 73% of the revenue decline despite representing only 22% of total revenue [14][9] Market Data and Key Metrics Changes - The public sector business showed signs of recovery post-government shutdown, with DRR related to federal business around 103-104, indicating stabilization [34] - The company is focusing on large enterprise customers who have shown deeper adoption of advanced features, achieving a 115% dollar retention rate in Q3 [7][36] Company Strategy and Development Direction - The company is transforming its strategy to focus on the talent development market, aiming for revenue inflection and growth while maintaining strong profitability and cash flow [5] - A strategic review of the GK segment is underway, with a shift towards a partnership-driven model rather than continued ownership [9][20] - The company is investing in AI capabilities to enhance its platform, aiming to capture opportunities in the evolving skills management market [6][45] Management's Comments on Operating Environment and Future Outlook - Management highlighted the urgency of improving cash flow and the importance of aligning with customer needs for multimodal learning [23][24] - The company is optimistic about future growth, with plans to roll out new branding and a revamped sales model in FY 2027 [29][55] - Management emphasized the importance of AI in redefining content and platform offerings, positioning the company well for future growth [45][46] Other Important Information - The company expects positive free cash flow of between $0 and $5 million for fiscal 2026, with guidance for TDS revenue for the full fiscal year projected between $400 million and $410 million [21][18] - Total gross debt was $578 million at the end of Q3, down slightly from the previous year, while total net debt increased to approximately $500 million [19][20] Q&A Session Summary Question: Timeline for strategic review of GK segment - Management indicated that it is inappropriate to speculate on the exact timing but emphasized the urgency of improving cash flow [23] Question: Margin profile of core TDS and growth potential - Management noted that TDS has strong profitability and will focus on maintaining profitability while investing for growth [25][27] Question: Stability of public sector business post-shutdown - Management reported positive signs of recovery in the public sector business, with healthy performance expected to continue into Q4 [34] Question: Sales cycles and deal momentum in Q4 - Management stated that sales cycles are within normal boundaries and highlighted the positive performance of larger customers [35][36] Question: Approach to investment cadence moving forward - Management plans to continue driving productivity improvements and will shift focus to growth investments as the TDS model proves successful [50]

Financial Data and Key Metrics Changes - Total revenue for the third quarter was $129 million, down $8.2 million or 6% year over year [15] - Adjusted EBITDA was $28 million, down about 12% compared to $31.9 million last year, with an adjusted EBITDA margin of 21.7% compared to 23.3% last year [17] - GAAP net loss was $41.3 million, compared to a GAAP net loss of $23.6 million in the prior year period, primarily due to a non-cash Goodwill Impairment loss of $20.8 million related to GK [18] - Free Cash Flow for the quarter was negative $23.6 million, compared to a positive $4.1 million in the prior year period [19] Business Line Data and Key Metrics Changes - Revenue for Talent Development Solutions (TDS) was $100.8 million, down 2.1% year over year, with around 70% of the decline coming from the B2C learner product [14] - Global Knowledge (GK) revenue was $28.2 million, down approximately $6 million or 17.6% year over year, impacted by a shift in customer purchasing preferences and spending reductions from the U.S. government shutdown [15][16] - TDS's dollar retention rate (DRR) improved to 99% from 98% year over year, while GK accounted for 73% of the revenue decline despite representing only 22% of total revenue [16][10] Market Data and Key Metrics Changes - The enterprise portion of TDS, which represents around 91% of TDS, was down slightly due to customer churn from earlier in the year [12] - The public sector business showed signs of recovery with a DRR of around 103-104, indicating stabilization after the government shutdown [36] Company Strategy and Development Direction - The company is focusing on the talent development market, aiming to reach revenue inflection and return to growth while maintaining strong profitability and cash flow [5] - A strategic review of the GK segment has been initiated, with a shift towards a partnership-driven model rather than continued ownership [10] - The company is investing in AI-driven skills management solutions, anticipating a market shift towards AI-powered skills solutions [7][11] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of skills visibility as a top investment priority for organizations, with over 70% of CHROs citing it as critical [5] - The company is optimistic about its positioning for growth in FY27, with a focus on product innovation and a leaner cost structure [8][9] - Management acknowledged the challenges faced in the GK segment but expressed confidence in the overall transformation and future growth potential [11][22] Other Important Information - The company expects full fiscal 2026 year revenue for TDS to be between $400-$410 million and adjusted EBITDA of between $112-$116 million [22] - GAAP cash, cash equivalents, and restricted cash were $77.5 million at quarter end, with total gross debt at $578 million [20][21] Q&A Session Summary Question: What is the timeline for the strategic review of GK? - Management indicated that it is inappropriate to speculate on the exact timing but emphasized the urgency to improve cash flow for the company overall [24] Question: How does GK's underperformance affect TDS margins? - Management noted that TDS is currently the flagship for growth and profitability, and they are focused on maintaining profitability while investing in growth [26][29] Question: How is the public sector business shaping up post-government shutdown? - Management reported that the public sector business is stabilizing, with positive signs in the federal business and a healthy DRR [36] Question: What is the approach to investment cadence moving forward? - Management stated that they will continue to drive productivity improvements and shift economic benefits into growth investments as they prove their model [52][53]