Skillsoft (SKIL) - 2025 Q4 - Annual Results

Revenue Performance - Total revenue for fiscal 2025 was $531 million, a decrease of 4% compared to $553 million in the prior year[8]. - Talent Development Solutions revenue was $406 million, flat compared to the prior year, while Global Knowledge revenue decreased by 15% to $125 million from $148 million[8]. - Total revenues for the three months ended January 31, 2025, were $133.8 million, a decrease of 2% from $137.5 million in the same period of 2024[26]. - For the twelve months ended January 31, 2025, the total revenues reported were $530,994, a decrease of 4% from $553,237 in 2024[30]. Profitability and Loss - GAAP net loss for fiscal 2025 was $122 million, significantly improved from a net loss of $349 million in the prior year, resulting in a GAAP net loss per share of $14.87 compared to $43.38[8]. - Operating loss for the twelve months ended January 31, 2025, was $69.6 million, compared to a loss of $308.6 million for the twelve months ended January 31, 2024[26]. - Net loss for the three months ended January 31, 2025, was $31.1 million, compared to a net loss of $245.3 million for the same period in 2024[26]. - The net loss for the twelve months ended January 31, 2025, was $121,908, significantly improved from a net loss of $349,285 in 2024[30]. Cash Flow and Liquidity - Free cash flow for fiscal 2025 was positive at $12 million, compared to negative free cash flow of $15 million in the prior year[8]. - Cash flows from operating activities for the twelve months ended January 31, 2025, provided $29,965, a significant increase from $2,818 in 2024[28]. - Free cash flow for the three months ended January 31, 2025, was $13,221, compared to $5,404 in the same period of 2024, reflecting an increase of approximately 144.5%[35]. - Adjusted free cash flow (levered) for the twelve months ended January 31, 2025, was $33,135, a significant increase from $2,668 in 2024[35]. Expenses and Cost Management - Adjusted EBITDA for fiscal 2025 was $109 million, reflecting a margin of 21% of revenue, up from $105 million and a margin of 19% in the prior year[8]. - Operating expenses for the three months ended January 31, 2025, totaled $151.0 million, significantly lower than $365.6 million for the same period in 2024[26]. - The total costs of revenues and content and software development expenses for the Talent Development Solutions segment were $29,662 for the three months ended January 31, 2025, down from $33,729 in 2024, a decrease of about 12.3%[33]. - The total GAAP costs of revenues for the twelve months ended January 31, 2025, were $134,879, a decrease from $153,157 in 2024, reflecting a reduction of approximately 11.9%[32]. Assets and Equity - Total current assets decreased to $332.9 million as of January 31, 2025, from $385.3 million as of January 31, 2024, representing a decline of approximately 13.6%[24]. - Total assets decreased to $1.1 billion as of January 31, 2025, down from $1.3 billion as of January 31, 2024, reflecting a reduction of about 13.1%[24]. - Shareholders' equity decreased to $93.8 million as of January 31, 2025, compared to $205.6 million as of January 31, 2024, indicating a decline of approximately 54.5%[24]. - Cash and cash equivalents were $100.8 million as of January 31, 2025, down from $136.3 million as of January 31, 2024, a decrease of about 26%[24]. Future Projections - The company expects fiscal 2026 GAAP revenue to be between $530 million and $545 million, with adjusted EBITDA projected between $112 million and $118 million[9]. - The company reported nearly 1 million launches of its AI simulator, Skillsoft CAISY™, indicating strong early interest from customers[8].