Skillsoft Corp (NYSE:SKIL) stock rose 6.28% (As on April 8, 11:31:25 AM UTC-4, Source: Google Finance) after the company posts mixed result for the fourth quarter of FY 26. The company’s Talent Development Solutions (TDS) segment demonstrated resilience in Q4, with revenue of $102.6 million declining just 0.2% compared to the prior year period. Global Knowledge Revenue of $28 million compared to $31 million in the prior year. Net Loss of $37 million compared to Net Loss of $31 million in the prior year. Adjusted EBITDA of $31 million, reflecting an Adjusted EBITDA margin of 24% of Revenue, compared to $30 million and a margin of 22% of Revenue in the prior year. Free Cash Flow of $27 million compared to $13 million in the prior year. Total net debt, which includes borrowings under our term loan and accounts receivable facility, net of cash equivalents, and restricted cash, was approximately $474 million, down from approximately $477 million at the end of FY 2025.

Moreover, Skillsoft announced the general availability of its next-generation skills management platform to power enterprise workforce readiness and outcomes. Skillsoft and edX formed a strategic partnership to expand university-led learning in The Skillsoft Percipio Platform, strengthening how enterprises build workforce readiness for an AI-driven world. AI skill benchmark completions increased 994% year over year, with AI content completions up 261% year over year and AI journey completions up 222% year over year. CAISY learners increased 146% year over year, and CAISY launches or engagement increased 341% year over year.

SKIL in the fourth quarter of FY 26 has reported the adjusted earnings per share of $1.26, missing the analysts’ estimates for the adjusted earnings per share of $1.27, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue decline of 2 percent to $130.65 million in the fourth quarter of FY 26, beating the analysts’ estimates for revenue by 0.39%. Geographically, the United States represented 64% of FY2026 revenue, with EMEA contributing 26% and the rest of world accounting for 10%. The dollar retention rate declined to 98% on a last-twelve-months basis, down approximately 700 basis points from the prior year. Content and software development expenses of $12.8 million in the quarter, or 10% of revenue, were down approximately 5% year-over-year. These improvements largely reflected productivity gains from leveraging AI and sharper focus.

Looking to FY 2027 guidance for TDS, SKIL expects revenue for the full FY 2027 of between $388 million-$406 million and Adjusted EBITDA between $108 million-$116 million, or around 28% of revenue. Putting aside GK, SKIL expects free cash flow in the range of $14 million-$22 million for TDS.