What EPA's new coolant requirement means for your AC unit
HOUSTON - This year, the U.S. Environmental Protection Agency began requiring the use of new, more environmentally friendly refrigerants in new HVAC units, R-454B and R-32.
A shortage of R-454B is already being reported.
This means current refrigerants, like R-410A, will be phased out. While technicians say there is still a supply of R-410A, and they can still install units that use it through this year, over time it will become harder to find parts to repair older units that work with this refrigerant.
What you can do
Technicians recommend having your unit serviced to repair any problems before they can become worse, and owners of older units may want to consider replacing them.
We talked with Joe Bany with John Moore Services about how to navigate the refrigerant change to ensure you stay cool through the summer.
The Source
Information in this article is from our interview with John Moore Services and the U.S. EPA.
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Skillsoft Reports Financial Results for the First Quarter of Fiscal 2026
Solid financial results and strategy execution despite macroeconomic uncertainty Third consecutive quarter of growth for our TDS segment Continued strong growth in Adjusted EBITDA* and margin expansion Strong free cash flow performance for the quarter Reaffirmed financial outlook for the full fiscal year BOSTON, June 09, 2025--(BUSINESS WIRE)--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) * Total Revenue of $124 million down 3% from the prior year. Talent Development Solutions ("TDS") Revenue of $99 million up 1% from the prior year. Global Knowledge ("GK") Revenue of $25 million down 16% from the prior year. GAAP Net Loss of $38 million compared to GAAP Net Loss of $28 million in the prior year. GAAP Net Loss per share of $4.57 compared to GAAP Net Loss per share of $3.42 in the prior year. Adjusted EBITDA of $22 million, reflecting a margin of 18% of Revenue, compared to $19 million and 15%, respectively, in the prior year. Free Cash Flow of $26 million compared to $10 million in the prior year. "We are pleased to have delivered first quarter results in line with expectations despite a challenging economic environment, particularly a softening of discretionary spending which disproportionately impacts our Global Knowledge business segment," said Ron Hovsepian, Skillsoft's Executive Chair and Chief Executive Officer. "This performance reflects the strength of our strategy, which is designed to return the company to at or above market growth rates. The multi-quarter growth we are seeing in TDS, our largest business segment, reinforces our confidence in our ability to achieve top line growth this year." Fiscal 2026 First Quarter Business Highlights (1) * Our TDS segment has now achieved three consecutive quarters of revenue growth. GK has seen growth in the non-U.S. public sector and also has a strong pipeline. Skillsoft CAISY™, our award-winning AI-powered coach, is now available for learners in over 40 languages. Recognized as "Most Dedicated to Employee Growth" in this year's Digiday WorkLife Awards, highlighting Skillsoft's commitment to employee development and career growth, with a particular focus on helping its workforce build artificial intelligence (AI) literacy to better understand, evaluate, and use AI technologies. "We delivered continued improvement in profitability and free cash flow despite heightened macroeconomic volatility," said John Frederick, Skillsoft's Chief Financial Officer. "Based on our current view of the market, we are reaffirming our fiscal 2026 outlook which calls for both revenue and Adjusted EBITDA growth. We are pleased by our strong free cash flow in the quarter which was largely driven by seasonal changes in working capital. Conversely, we anticipate the second quarter to be our lowest free cash flow quarter as working capital normalizes. We remain on track to meet our prior free cash flow expectations for the full year." Full-Year Fiscal 2026 Financial Outlook * The following table reflects Skillsoft's financial outlook for the fiscal year ending January 31, 2026, based on current market conditions, expectations, and assumptions: GAAP Revenue $530 million – $545 million Adjusted EBITDA $112 million – $118 million * Denotes a non-GAAP financial measure. See "Non-GAAP Financial Measures and Key Performance Metric" below for the definitions of these and other non-GAAP financial measures included in this press release, how they are calculated, and the rationale for their use. A reconciliation of historical non-GAAP financial measures to the most directly-comparable GAAP financial measures is provided in the tables at the back of this press release. We do not provide quantitative reconciliations for forward-looking non-GAAP financial measures, as we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. See "Non-GAAP Financial Measures and Key Performance Metrics" below for further detail. (1) Skillsoft has two operating and reportable segments: TDS (formerly referred to as Content & Platform) and GK (formerly referred to as Instructor-Led Training). Segment performance is evaluated based on segment revenue, segment ("business unit") contribution profit and segment ("business unit") contribution margin (segment contribution profit as a percentage of segment revenue). In the fourth quarter of the fiscal year ended January 31, 2025, the Company made changes to the components used to determine segment results to increase transparency and improve segment comparability to peers. All prior period comparatives have been recast to conform to the current presentation. See note 20 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025, and "Non-GAAP Financial Measures and Key Performance Metric" below for further detail. Webcast and Conference Call Information Skillsoft will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss its financial results. To access the call, dial (877) 413‑9278 from the United States and Canada or (215) 268‑9914 from international locations. The live event and presentation materials can be accessed from the Investor Relations section of Skillsoft's website at A replay will be available on the same site for six months. The information contained on or accessible through our website is not incorporated by reference into, and does not form part of, this release. About Skillsoft Skillsoft (NYSE: SKIL) empowers organizations and learners to unlock their full potential by delivering personalized, interactive learning experiences and enterprise-ready solutions. Powered by AI and strengthened by a broad ecosystem of partners, the Skillsoft platform helps customers solve some of today's most complex business challenges including bridging skill gaps, improving talent retention, driving digital transformation, and future-proofing the workforce. Skillsoft is the talent development partner of choice for thousands of organizations – including 60% of the Fortune 1000 – and serves a global community of more than 95 million learners. For more information, visit Non-GAAP Financial Measures And Key Performance Metrics We track the non-GAAP financial measures and key performance metrics that we believe are key financial measures of our success. Non-GAAP measures and key performance metrics are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures and key performance metrics when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of U.S. GAAP financial disclosures. For example, a company with higher U.S. GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, excluding the effects of interest income and expense moderates the impact of a company's capital structure on its performance. In addition, management uses these non-GAAP financial measures and key performance metrics to assess operating performance, financial leverage and the effective use and allocation of resources; to provide more normalized period-to-period comparisons of operating results; to enhance investors' understanding of the core operating results of our business; and to set management incentive targets. We believe investors use both U.S. GAAP and non-GAAP financial measures, as well as key performance metrics to assess management's decisions associated with our priorities and capital allocation, as well as to analyze how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. We disclose the non-GAAP financial measures and key performance metrics included in this press release because we believe that they provide meaningful supplemental information. However, non-GAAP measures and key performance metrics have limitations as analytical tools. Because not all companies use identical calculations, our presentation of non-GAAP financial measures and key performance metrics may not be comparable to other similarly titled measures of other companies. They are not presentations made in accordance with U.S. GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with U.S. GAAP or operating cash flows determined in accordance with U.S. GAAP. As a result, these performance measures should not be considered in isolation from, or as a substitute analysis for, results of operations as determined in accordance with U.S. GAAP. The non-GAAP financial measures included in this press release are: adjusted net income (loss); adjusted net income (loss) per share; adjusted net income (loss) margin % (i.e., adjusted net income (loss) as a percentage of revenue); adjusted EBITDA; adjusted EBITDA margin % (i.e., adjusted EBITDA as a percentage of revenue); adjusted total operating expenses; adjusted contribution margin; business unit contribution profit; business unit contribution margin (i.e., business unit contribution profit as a percentage of business unit revenue); adjusted costs of revenues; adjusted content and software development expenses; adjusted selling and marketing expenses; adjusted general and administrative expenses; business unit costs of revenues, business unit content and software development expenses; free cash flow, adjusted free cash flow (levered), and adjusted net leverage. We have provided at the back of this press release reconciliations of these historical non-GAAP financial measures to the most directly comparable GAAP financial measures for the first quarters of fiscal years 2026 and 2025. We do not reconcile our forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information. We provide non-GAAP financial measures that we believe will be achieved, however we cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures. Key Performance Metric Dollar retention rate ("DRR") - For existing customers at the beginning of a given period, DRR represents subscription renewals, upgrades, churn, and downgrades in such period divided by the beginning total renewable base for such customers for such period. Renewals reflect customers who renew their subscription, inclusive of auto-renewals for multi-year contracts, while churn reflects customers who choose to not renew their subscription. Upgrades include orders from customers that purchase additional licenses or content (e.g., a new Leadership and Business module), while downgrades reflect customers electing to decrease the number of licenses or reduce the size of their content package. Upgrades and downgrades also reflect changes in pricing. We use our DRR to measure the long-term value of customer contracts as well as our ability to retain and expand the revenue generated from our existing customers. Non-GAAP Financial Measures The non-GAAP measures included in this press release are defined as follows: Adjusted net income (loss) is defined as net income (loss) excluding non-cash items, discrete and event-specific costs that do not represent normal cash operating expenses necessary for our business operations, and certain accounting income and/or expenses. Management believes these exclusions enhance the comparability of our results from period to period, and as compared to peers, and are useful in assessing our operating performance, and consist of the following (including the related tax effects), when applicable to the periods presented: Impairment charges – Non-cash goodwill and intangible impairment charges. Amortization of acquired intangible assets – Non-cash amortization expense of finite-lived intangible assets recognized as a part of business combination accounting. Acquisition and integration related costs – Costs incurred to effectuate an acquisition, including contingent compensation expenses, and integration related costs. Restructuring charges – Charges related to strategic cost saving initiatives, including severance costs, losses associated with the abandonment of right-of-use assets, and contract termination costs. Transformation costs – Costs incurred to transform our operations through significant strategic non-ordinary course transactions. System migration costs – Costs of temporary resources needed for the migration of content and customers from our legacy system to a global platform. Long-term incentive compensation expenses – Charges associated with long-term incentive compensation programs, including stock-based compensation, cash awards tied to stock performance, and awards granted in-lieu of stock that are intended to be settled in cash. Executive exit costs – Costs associated with the departure of executives. Fair value adjustments – Mark-to-market adjustments of warrants and hedge instruments. Other (income) expense, net – Unrealized and realized gains or losses primarily resulting from fluctuations of U.S. dollar appreciating or depreciating against other currencies, and impairments associated with property and equipment and other assets when their carrying values are not recoverable. Adjusted EBITDA is defined as net income (loss) excluding (when applicable to the periods presented) the same exclusions set forth above for the determination of adjusted net income (loss) plus the additional exclusions set forth below. Management believes these exclusions enhance the comparability of our results from period to period, and as compared to peers, and are useful in assessing our operating performance. The additional exclusions are: Amortization of intangible assets – Non-cash amortization expense for finite-lived intangible assets other than those recognized as a part of business combination accounting. Depreciation expense – Non-cash depreciation expense for property and equipment assets. Provision for (benefit from) income taxes – Current and deferred federal, state and foreign income tax expense (benefit). Adjusted total operating expenses are defined as costs of revenues, content and software development expenses, selling and marketing expenses, and general and administrative expenses, in each case excluding (where applicable) depreciation expense, long-term incentive compensation expense, system migration costs and transformation costs, as applicable. Adjusted contribution margin is defined as revenue less adjusted total operating expenses, divided by revenue for the same period. Business unit contribution profit - Segment ("business unit") contribution profit is defined as business unit revenue, less business unit cost of revenues, business unit content and software development expenses, and business unit product research and management expenses. Business unit contribution margin is defined as business unit contribution profit divided by business unit revenue for the same period. Business unit cost of revenues is defined as cost of revenues attributable to the business unit, excluding, where applicable, depreciation expense, long-term incentive compensation expense, system migration costs, and transformation expenses. Business unit content and software development expenses are defined as content and software development expenses attributable to the business unit, excluding, where applicable, depreciation, long-term incentive compensation, system migration costs, and transformation expenses. Business unit product research and management expenses are defined as certain selling and marketing costs attributable to the business unit reflected in the business unit contribution profit. Free cash flow is defined as net cash provided by (used in) operating activities less net purchases of property and equipment and internally developed software. Note that free cash flow does not represent residual cash flow available to Skillsoft for discretionary expenditures. Adjusted free cash flow (levered) is defined as free cash flow plus the cash impact of the charges excluded in the determination of adjusted EBITDA. Note that adjusted free cash flow (levered) does not represent residual cash flow available to Skillsoft for discretionary expenditures. Free cash flow conversion is defined as free cash flow divided by adjusted EBITDA for the same period. Adjusted net leverage is defined as current maturities of long-term debt, plus borrowings under accounts receivable facility, plus long-term debt, less cash and equivalents and restricted cash, divided by adjusted EBITDA for the preceding twelve-month period. 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 Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements include, but are not limited to, statements that address activities, events or developments that we expect or anticipate may occur in the future, including such things as our outlook (including our Full Year Fiscal 2026 Financial Outlook), our product development and planning, our pipeline, future capital expenditures, future share repurchases, anticipated financial results, the impact of regulatory changes, our current and evolving business strategies, including with respect to acquisitions and dispositions, demand for our services, our competitive position, the benefits of new initiatives, growth of our business and operations, the effectiveness of our products, the outcomes of litigation proceedings and claims, the state and future of skilling in the workplace, our ability to successfully implement our plans, strategies, objectives, and our expectations and intentions. Forward-looking statements may, without limitation, be preceded by, followed by, or include words such as "may," "will," "would," "anticipate," "believe," "estimate," "expect," "intend," "plan," "contemplate," "continue," "project," "forecast," "seek," "outlook," "target," "goal," "objective," "potential," "possible," "probably," or similar expressions, or employ such future or conditional verbs as "may," "might," "will," "could," "should," or "would," or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. Such statements are based upon the current beliefs and expectations of Skillsoft's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature, and we caution you against unduly relying on these forward-looking statements. Factors that could cause or contribute to such differences include those described under "Part I - Item 1A. Risk Factors" and Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10‑K for the fiscal year ended January 31, 2025 ("2025 Form 10-K"). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included in the 2025 Form 10-K, in this document and in our other periodic filings with the Securities and Exchange Commission. The forward-looking statements contained in this document represent our estimates only as of the date of this filing and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements, or otherwise, except as required by law. Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results. Additionally, statements as to market share, industry data and our market position are based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above. Industry and Market Data Within this document, we may reference information and statistics regarding market share, industry data and our market position. Certain of this information has been obtained from various independent third-party sources, including independent industry publications, news reports, reports by market research firms and other independent sources. We believe that these external sources and estimates are reliable but have not independently verified them. In addition, certain of this information and statistics are based on our own internal surveys and assessments, which are developed in good faith using reasonable estimates. The information is based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above. SKILLSOFT CORP. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except number of shares and per share amounts) April 30, 2025 January 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 127,841 $ 100,766 Restricted cash 3,091 2,571 Accounts receivable, net of allowance for credit losses of approximately $269 and $501 as of April 30, 2025 and January 31, 2025, respectively 95,988 178,989 Prepaid expenses and other current assets 50,917 50,527 Total current assets 277,837 332,853 Goodwill 317,071 317,071 Intangible assets, net 401,967 427,221 Other assets 25,611 28,924 Total assets $ 1,022,486 $ 1,106,069 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Current maturities of long-term debt $ 6,404 $ 6,404 Borrowings under accounts receivable facility 1,000 1,000 Accounts payable 20,789 13,458 Accrued compensation 29,144 47,803 Accrued expenses and other current liabilities 23,790 26,022 Deferred revenue 243,788 282,295 Total current liabilities 324,915 376,982 Long-term debt 572,232 573,267 Deferred tax liabilities 41,042 42,039 Deferred revenue - non-current 1,170 1,656 Other long-term liabilities 20,478 18,279 Total long-term liabilities 634,922 635,241 Commitments and contingencies Shareholders' equity (deficit): Shareholders' common stock - Class A common shares, $0.0001 par value: 18,750,000 shares authorized and 8,651,941 shares issued and 8,352,164 shares outstanding as of April 30, 2025, and 8,616,633 shares issued and 8,316,856 shares outstanding as of January 31, 2025 1 1 Additional paid-in capital 1,568,919 1,565,040 Accumulated (deficit) (1,481,435 ) (1,443,386 ) Treasury stock, at cost - 299,777 as of April 30, 2025 and January 31, 2025 (10,891 ) (10,891 ) Accumulated other comprehensive income (loss) (13,945 ) (16,918 ) Total shareholders' equity (deficit) 62,649 93,846 Total liabilities and shareholders' equity (deficit) $ 1,022,486 $ 1,106,069 SKILLSOFT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except number of shares and per share amounts) Three Months Ended April 30, 2025 2024 Revenues: Total revenues $ 124,201 $ 127,793 Operating expenses: Costs of revenues 32,247 34,471 Content and software development 14,102 15,506 Selling and marketing 39,609 42,292 General and administrative 22,952 25,309 Amortization of intangible assets 31,608 31,583 Acquisition and integration related costs 523 1,497 Restructuring 1,346 967 Total operating expenses 142,387 151,625 Operating income (loss) (18,186 ) (23,832 ) Other income (expense), net (2,446 ) 2,217 Fair value adjustment of interest rate swaps (4,256 ) 7,746 Interest income 463 928 Interest expense (14,396 ) (16,278 ) Income (loss) before provision for (benefit from) income taxes (38,821 ) (29,219 ) Provision for (benefit from) income taxes (772 ) (1,583 ) Net income (loss) $ (38,049 ) $ (27,636 ) Net income (loss) per share: Basic and diluted $ (4.57 ) $ (3.42 ) Weighted average common share outstanding: Basic and diluted 8,324,864 8,089,331 SKILLSOFT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended April 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ (38,049 ) $ (27,636 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Amortization expense of intangible assets 31,608 31,583 Stock-based compensation expense 4,081 7,153 Depreciation expense 447 760 Non-cash interest expense 566 536 Non-cash operating lease right-of-use asset expense 408 904 Provision for credit loss expense (recovery) (232 ) 41 Provision for (benefit from) deferred income taxes – non-cash (1,225 ) (2,932 ) Fair value adjustment of interest rate swaps 4,256 (7,746 ) Changes in current assets and liabilities, net of effects from acquisitions: Accounts receivable 86,559 74,826 Prepaid expenses and other assets, including long-term 1,243 (840 ) Accounts payable 6,992 (1,107 ) Accrued expenses and other liabilities, including long-term (21,780 ) (21,514 ) Deferred revenue (43,576 ) (39,091 ) Net cash provided by (used in) operating activities 31,298 14,937 Cash flows from investing activities: Purchase of property and equipment (515 ) (153 ) Internally developed software - capitalized costs (4,619 ) (4,364 ) Net cash provided by (used in) investing activities (5,134 ) (4,517 ) Cash flows from financing activities: Shares repurchased for tax withholding upon vesting of restricted stock-based awards (352 ) (82 ) Proceeds from (payments on) accounts receivable facility — (2,569 ) Principal payments on term loans (1,601 ) (1,601 ) Net cash provided by (used in) financing activities (1,953 ) (4,252 ) Effect of exchange rate changes on cash and cash equivalents 3,384 (3,087 ) Net increase (decrease) in cash, cash equivalents and restricted cash 27,595 3,081 Cash, cash equivalents and restricted cash, beginning of period 103,337 146,523 Cash, cash equivalents and restricted cash, end of period $ 130,932 $ 149,604 Supplemental disclosure of cash flow information: Cash and cash equivalents $ 127,841 $ 142,020 Restricted cash 3,091 7,584 Cash, cash equivalents and restricted cash, end of period $ 130,932 $ 149,604 SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, number of shares and per share amounts, unaudited) Three Months Ended April 30, 2025 2024 Revenues Talent Development Solutions $ 99,148 $ 98,075 Global Knowledge 25,053 29,718 Total revenues, as reported $ 124,201 $ 127,793 Net income (loss), as reported $ (38,049 ) $ (27,636 ) Amortization of acquired intangible assets (1) 28,792 29,868 Acquisition and integration related costs 523 1,497 Restructuring 1,346 967 Transformation costs 1,604 657 System migration costs — 117 Long-term incentive compensation expenses 4,790 7,148 Fair value adjustment of interest rate swaps 4,256 (7,746 ) Other (income) expense, net 2,446 (2,217 ) Tax impact of adjustments (3,229 ) (3,042 ) Adjusted net income (loss) 2,479 (387 ) Interest expense, net 13,933 15,350 Expense (benefit from) income taxes, excluding tax impacts above 2,457 1,459 Depreciation 446 761 Amortization of capitalized internally developed software (1) 2,816 1,715 Adjusted EBITDA $ 22,131 $ 18,898 Weighted average common shares outstanding: Basic and diluted 8,324,864 8,089,331 Basic and diluted per share information: Net income (loss) per share, as reported $ (4.57 ) $ (3.42 ) Adjusted net income (loss) per share $ 0.30 $ (0.05 ) Net income (loss) margin % (30.6 )% (21.6 )% Amortization of acquired intangible assets (1) 23.1 % 23.3 % Acquisition and integration related costs 0.4 % 1.2 % Restructuring 1.1 % 0.8 % Transformation costs 1.3 % 0.5 % System migration costs 0.0 % 0.1 % Long-term incentive compensation expenses 3.9 % 5.6 % Fair value adjustment of interest rate swaps 3.4 % (6.1 )% Other (income) expense, net 2.0 % (1.7 )% Tax impact of adjustments (2.6 )% (2.4 )% Adjusted net income (loss) margin % 2.0 % (0.3 )% Interest expense, net 11.1 % 12.1 % Expense (benefit from) income taxes, excluding tax impacts above 2.0 % 1.1 % Depreciation 0.4 % 0.6 % Amortization of capitalized internally developed software (1) 2.3 % 1.3 % Adjusted EBITDA margin % 17.8 % 14.8 % (1) All amortization (not only amortization pertaining to finite-lived intangible assets recognized as part of business combination accounting) is excluded in the determination of Adjusted EBITDA. SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued (in thousands, except percentages, unaudited) Three Months Ended April 30, 2025 2024 Talent Development Solutions Revenue $ 99,148 $ 98,075 Business unit cost of revenues 16,272 16,185 Business unit content and software development expenses 12,098 13,463 Business unit product research and management expenses 2,299 1,969 Business unit contribution profit $ 68,479 $ 66,458 Business unit contribution margin 69.1 % 67.8 % Global Knowledge Revenue $ 25,053 $ 29,718 Business unit cost of revenues 15,706 18,003 Business unit content and software development expenses 744 562 Business unit contribution profit $ 8,603 $ 11,153 Business unit contribution margin 34.3 % 37.5 % SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued (in thousands, unaudited) Three Months Ended April 30, 2025 2024 Operating expenses: GAAP costs of revenues $ 32,247 $ 34,471 Depreciation (68 ) (117 ) Long-term incentive compensation expenses (201 ) (166 ) Adjusted costs of revenues 31,978 34,188 GAAP content and software development expenses 14,102 15,506 Depreciation (82 ) (74 ) Long-term incentive compensation expenses (1,178 ) (1,290 ) System migration costs — (117 ) Adjusted content and software development expenses 12,842 14,025 GAAP selling and marketing expenses 39,609 42,292 Depreciation (138 ) (208 ) Long-term incentive compensation expenses (1,041 ) (1,256 ) Transformation costs — (177 ) Adjusted selling and marketing expenses 38,430 40,651 GAAP general and administrative expenses 22,952 25,309 Depreciation (158 ) (362 ) Long-term incentive compensation expenses (2,370 ) (4,436 ) Transformation costs (1,604 ) (480 ) Adjusted general and administrative expenses 18,820 20,031 Total GAAP operating expenses 108,910 117,578 Depreciation (446 ) (761 ) Long-term incentive compensation expenses (4,790 ) (7,148 ) System migration costs — (117 ) Transformation costs (1,604 ) (657 ) Adjusted total operating expenses $ 102,070 $ 108,895 SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued (in thousands, unaudited) Three Months Ended April 30, 2025 2024 Talent Development Solutions Cost of revenues and content and software development expenses: GAAP costs of revenues $ 16,518 $ 16,425 Depreciation (66 ) (94 ) Long-term incentive compensation expenses (180 ) (146 ) Business unit costs of revenues 16,272 16,185 GAAP content and software development expenses 13,324 14,941 Depreciation (81 ) (71 ) Long-term incentive compensation expenses (1,145 ) (1,290 ) System migration costs — (117 ) Business unit content and software development 12,098 13,463 GAAP cost of revenues and content and software development expenses 29,842 31,366 Depreciation (147 ) (165 ) Long-term incentive compensation expenses (1,325 ) (1,436 ) System migration costs — (117 ) Business unit total cost of revenues and content and software development expenses $ 28,370 $ 29,648 Global Knowledge Cost of revenues and content and software development expenses: GAAP costs of revenues $ 15,729 $ 18,046 Depreciation (2 ) (23 ) Long-term incentive compensation expenses (21 ) (20 ) Business unit costs of revenues 15,706 18,003 GAAP content and software development expenses 778 565 Depreciation (1 ) (3 ) Long-term incentive compensation expenses (33 ) — Business unit content and software development expenses 744 562 GAAP cost of revenues and content and software development expenses 16,507 18,611 Depreciation (3 ) (26 ) Long-term incentive compensation expenses (54 ) (20 ) Business unit total cost of revenues and content and software development expenses $ 16,450 $ 18,565 SKILLSOFT CORP. FREE CASH FLOW RECONCILIATION (in thousands, unaudited) Three Months Ended April 30, 2025 2024 Free cash flow reconciliation Net cash provided by (used in) operating activities $ 31,298 $ 14,937 Purchase of property and equipment, net (515 ) (153 ) Internally developed software - capitalized costs (4,619 ) (4,364 ) Free cash flow 26,164 10,420 Cash impact for adjusted EBITDA excluded charges 4,980 3,082 Adjusted free cash flow (levered) $ 31,144 $ 13,502 View source version on Contacts Investors: Ross Collins or Stephen PoeSKIL@ Media: Cameron Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
43 minutes ago
- Business Wire
Skillsoft Reports Financial Results for the First Quarter of Fiscal 2026
BOSTON--(BUSINESS WIRE)--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) * Total Revenue of $124 million down 3% from the prior year. Talent Development Solutions ("TDS") Revenue of $99 million up 1% from the prior year. Global Knowledge ("GK") Revenue of $25 million down 16% from the prior year. GAAP Net Loss of $38 million compared to GAAP Net Loss of $28 million in the prior year. GAAP Net Loss per share of $4.57 compared to GAAP Net Loss per share of $3.42 in the prior year. Adjusted EBITDA of $22 million, reflecting a margin of 18% of Revenue, compared to $19 million and 15%, respectively, in the prior year. Free Cash Flow of $26 million compared to $10 million in the prior year. 'We are pleased to have delivered first quarter results in line with expectations despite a challenging economic environment, particularly a softening of discretionary spending which disproportionately impacts our Global Knowledge business segment,' said Ron Hovsepian, Skillsoft's Executive Chair and Chief Executive Officer. 'This performance reflects the strength of our strategy, which is designed to return the company to at or above market growth rates. The multi-quarter growth we are seeing in TDS, our largest business segment, reinforces our confidence in our ability to achieve top line growth this year.' Fiscal 2026 First Quarter Business Highlights (1) * Our TDS segment has now achieved three consecutive quarters of revenue growth. GK has seen growth in the non-U.S. public sector and also has a strong pipeline. Skillsoft CAISY™, our award-winning AI-powered coach, is now available for learners in over 40 languages. Recognized as 'Most Dedicated to Employee Growth' in this year's Digiday WorkLife Awards, highlighting Skillsoft's commitment to employee development and career growth, with a particular focus on helping its workforce build artificial intelligence (AI) literacy to better understand, evaluate, and use AI technologies. 'We delivered continued improvement in profitability and free cash flow despite heightened macroeconomic volatility,' said John Frederick, Skillsoft's Chief Financial Officer. 'Based on our current view of the market, we are reaffirming our fiscal 2026 outlook which calls for both revenue and Adjusted EBITDA growth. We are pleased by our strong free cash flow in the quarter which was largely driven by seasonal changes in working capital. Conversely, we anticipate the second quarter to be our lowest free cash flow quarter as working capital normalizes. We remain on track to meet our prior free cash flow expectations for the full year.' Full-Year Fiscal 2026 Financial Outlook * The following table reflects Skillsoft's financial outlook for the fiscal year ending January 31, 2026, based on current market conditions, expectations, and assumptions: * Denotes a non-GAAP financial measure. See 'Non-GAAP Financial Measures and Key Performance Metric' below for the definitions of these and other non-GAAP financial measures included in this press release, how they are calculated, and the rationale for their use. A reconciliation of historical non-GAAP financial measures to the most directly-comparable GAAP financial measures is provided in the tables at the back of this press release. We do not provide quantitative reconciliations for forward-looking non-GAAP financial measures, as we are unable to provide a meaningful or accurate calculation or estimation of reconciling items and the information is not available without unreasonable effort. See 'Non-GAAP Financial Measures and Key Performance Metrics' below for further detail. (1) Skillsoft has two operating and reportable segments: TDS (formerly referred to as Content & Platform) and GK (formerly referred to as Instructor-Led Training). Segment performance is evaluated based on segment revenue, segment ('business unit') contribution profit and segment ('business unit') contribution margin (segment contribution profit as a percentage of segment revenue). In the fourth quarter of the fiscal year ended January 31, 2025, the Company made changes to the components used to determine segment results to increase transparency and improve segment comparability to peers. All prior period comparatives have been recast to conform to the current presentation. See note 20 to the Consolidated Financial Statements included in our Annual Report on Form 10-K for the fiscal year ended January 31, 2025, and 'Non-GAAP Financial Measures and Key Performance Metric' below for further detail. Expand Webcast and Conference Call Information Skillsoft will host a conference call and webcast today at 5:00 p.m. Eastern Time to discuss its financial results. To access the call, dial (877) 413‑9278 from the United States and Canada or (215) 268‑9914 from international locations. The live event and presentation materials can be accessed from the Investor Relations section of Skillsoft's website at A replay will be available on the same site for six months. The information contained on or accessible through our website is not incorporated by reference into, and does not form part of, this release. About Skillsoft Skillsoft (NYSE: SKIL) empowers organizations and learners to unlock their full potential by delivering personalized, interactive learning experiences and enterprise-ready solutions. Powered by AI and strengthened by a broad ecosystem of partners, the Skillsoft platform helps customers solve some of today's most complex business challenges including bridging skill gaps, improving talent retention, driving digital transformation, and future-proofing the workforce. Skillsoft is the talent development partner of choice for thousands of organizations – including 60% of the Fortune 1000 – and serves a global community of more than 95 million learners. For more information, visit Non-GAAP Financial Measures And Key Performance Metrics We track the non-GAAP financial measures and key performance metrics that we believe are key financial measures of our success. Non-GAAP measures and key performance metrics are frequently used by securities analysts, investors, and other interested parties in their evaluation of companies comparable to us, many of which present non-GAAP measures and key performance metrics when reporting their results. These measures can be useful in evaluating our performance against our peer companies because we believe the measures provide users with valuable insight into key components of U.S. GAAP financial disclosures. For example, a company with higher U.S. GAAP net income may not be as appealing to investors if its net income is more heavily comprised of gains on asset sales. Likewise, excluding the effects of interest income and expense moderates the impact of a company's capital structure on its performance. In addition, management uses these non-GAAP financial measures and key performance metrics to assess operating performance, financial leverage and the effective use and allocation of resources; to provide more normalized period-to-period comparisons of operating results; to enhance investors' understanding of the core operating results of our business; and to set management incentive targets. We believe investors use both U.S. GAAP and non-GAAP financial measures, as well as key performance metrics to assess management's decisions associated with our priorities and capital allocation, as well as to analyze how our business operates in, or responds to, macroeconomic trends or other events that impact our core operations. We disclose the non-GAAP financial measures and key performance metrics included in this press release because we believe that they provide meaningful supplemental information. However, non-GAAP measures and key performance metrics have limitations as analytical tools. Because not all companies use identical calculations, our presentation of non-GAAP financial measures and key performance metrics may not be comparable to other similarly titled measures of other companies. They are not presentations made in accordance with U.S. GAAP, are not measures of financial condition or liquidity, and should not be considered as an alternative to profit or loss for the period determined in accordance with U.S. GAAP or operating cash flows determined in accordance with U.S. GAAP. As a result, these performance measures should not be considered in isolation from, or as a substitute analysis for, results of operations as determined in accordance with U.S. GAAP. The non-GAAP financial measures included in this press release are: adjusted net income (loss); adjusted net income (loss) per share; adjusted net income (loss) margin % (i.e., adjusted net income (loss) as a percentage of revenue); adjusted EBITDA; adjusted EBITDA margin % (i.e., adjusted EBITDA as a percentage of revenue); adjusted total operating expenses; adjusted contribution margin; business unit contribution profit; business unit contribution margin (i.e., business unit contribution profit as a percentage of business unit revenue); adjusted costs of revenues; adjusted content and software development expenses; adjusted selling and marketing expenses; adjusted general and administrative expenses; business unit costs of revenues, business unit content and software development expenses; free cash flow, adjusted free cash flow (levered), and adjusted net leverage. We have provided at the back of this press release reconciliations of these historical non-GAAP financial measures to the most directly comparable GAAP financial measures for the first quarters of fiscal years 2026 and 2025. We do not reconcile our forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures, due to variability and difficulty in making accurate forecasts and projections and/or certain information not being ascertainable or accessible; and because not all of the information necessary for a quantitative reconciliation of these forward-looking non-GAAP financial measures to the most directly comparable U.S. GAAP financial measures is available to us without unreasonable efforts. For the same reasons, we are unable to address the probable significance of the unavailable information. We provide non-GAAP financial measures that we believe will be achieved, however we cannot accurately predict all of the components of the adjusted calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures. Key Performance Metric Dollar retention rate (' DRR ') - For existing customers at the beginning of a given period, DRR represents subscription renewals, upgrades, churn, and downgrades in such period divided by the beginning total renewable base for such customers for such period. Renewals reflect customers who renew their subscription, inclusive of auto-renewals for multi-year contracts, while churn reflects customers who choose to not renew their subscription. Upgrades include orders from customers that purchase additional licenses or content (e.g., a new Leadership and Business module), while downgrades reflect customers electing to decrease the number of licenses or reduce the size of their content package. Upgrades and downgrades also reflect changes in pricing. We use our DRR to measure the long-term value of customer contracts as well as our ability to retain and expand the revenue generated from our existing customers. Non-GAAP Financial Measures The non-GAAP measures included in this press release are defined as follows: Adjusted net income (loss) is defined as net income (loss) excluding non-cash items, discrete and event-specific costs that do not represent normal cash operating expenses necessary for our business operations, and certain accounting income and/or expenses. Management believes these exclusions enhance the comparability of our results from period to period, and as compared to peers, and are useful in assessing our operating performance, and consist of the following (including the related tax effects), when applicable to the periods presented: Impairment charges – Non-cash goodwill and intangible impairment charges. Amortization of acquired intangible assets – Non-cash amortization expense of finite-lived intangible assets recognized as a part of business combination accounting. Acquisition and integration related costs – Costs incurred to effectuate an acquisition, including contingent compensation expenses, and integration related costs. Restructuring charges – Charges related to strategic cost saving initiatives, including severance costs, losses associated with the abandonment of right-of-use assets, and contract termination costs. Transformation costs – Costs incurred to transform our operations through significant strategic non-ordinary course transactions. System migration costs – Costs of temporary resources needed for the migration of content and customers from our legacy system to a global platform. Long-term incentive compensation expenses – Charges associated with long-term incentive compensation programs, including stock-based compensation, cash awards tied to stock performance, and awards granted in-lieu of stock that are intended to be settled in cash. Executive exit costs – Costs associated with the departure of executives. Fair value adjustments – Mark-to-market adjustments of warrants and hedge instruments. Other (income) expense, net – Unrealized and realized gains or losses primarily resulting from fluctuations of U.S. dollar appreciating or depreciating against other currencies, and impairments associated with property and equipment and other assets when their carrying values are not recoverable. Adjusted EBITDA is defined as net income (loss) excluding (when applicable to the periods presented) the same exclusions set forth above for the determination of adjusted net income (loss) plus the additional exclusions set forth below. Management believes these exclusions enhance the comparability of our results from period to period, and as compared to peers, and are useful in assessing our operating performance. The additional exclusions are: Amortization of intangible assets – Non-cash amortization expense for finite-lived intangible assets other than those recognized as a part of business combination accounting. Depreciation expense – Non-cash depreciation expense for property and equipment assets. Provision for (benefit from) income taxes – Current and deferred federal, state and foreign income tax expense (benefit). Adjusted total operating expenses are defined as costs of revenues, content and software development expenses, selling and marketing expenses, and general and administrative expenses, in each case excluding (where applicable) depreciation expense, long-term incentive compensation expense, system migration costs and transformation costs, as applicable. Adjusted contribution margin is defined as revenue less adjusted total operating expenses, divided by revenue for the same period. Business unit contribution profit - Segment ("business unit") contribution profit is defined as business unit revenue, less business unit cost of revenues, business unit content and software development expenses, and business unit product research and management expenses. Business unit contribution margin is defined as business unit contribution profit divided by business unit revenue for the same period. Business unit cost of revenues is defined as cost of revenues attributable to the business unit, excluding, where applicable, depreciation expense, long-term incentive compensation expense, system migration costs, and transformation expenses. Business unit content and software development expenses are defined as content and software development expenses attributable to the business unit, excluding, where applicable, depreciation, long-term incentive compensation, system migration costs, and transformation expenses. Business unit product research and management expenses are defined as certain selling and marketing costs attributable to the business unit reflected in the business unit contribution profit. Free cash flow is defined as net cash provided by (used in) operating activities less net purchases of property and equipment and internally developed software. Note that free cash flow does not represent residual cash flow available to Skillsoft for discretionary expenditures. Adjusted free cash flow (levered) is defined as free cash flow plus the cash impact of the charges excluded in the determination of adjusted EBITDA. Note that adjusted free cash flow (levered) does not represent residual cash flow available to Skillsoft for discretionary expenditures. Free cash flow conversion is defined as free cash flow divided by adjusted EBITDA for the same period. Adjusted net leverage is defined as current maturities of long-term debt, plus borrowings under accounts receivable facility, plus long-term debt, less cash and equivalents and restricted cash, divided by adjusted EBITDA for the preceding twelve-month period. 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 Act of 1995. All statements, other than statements of historical facts, are forward-looking statements. These forward-looking statements include, but are not limited to, statements that address activities, events or developments that we expect or anticipate may occur in the future, including such things as our outlook (including our Full Year Fiscal 2026 Financial Outlook), our product development and planning, our pipeline, future capital expenditures, future share repurchases, anticipated financial results, the impact of regulatory changes, our current and evolving business strategies, including with respect to acquisitions and dispositions, demand for our services, our competitive position, the benefits of new initiatives, growth of our business and operations, the effectiveness of our products, the outcomes of litigation proceedings and claims, the state and future of skilling in the workplace, our ability to successfully implement our plans, strategies, objectives, and our expectations and intentions. Forward-looking statements may, without limitation, be preceded by, followed by, or include words such as 'may,' 'will,' 'would,' 'anticipate,' 'believe,' 'estimate,' 'expect,' 'intend,' 'plan,' 'contemplate,' 'continue,' 'project,' 'forecast,' 'seek,' 'outlook,' 'target,' 'goal,' 'objective,' 'potential,' 'possible,' 'probably,' or similar expressions, or employ such future or conditional verbs as 'may,' 'might,' 'will,' 'could,' 'should,' or 'would,' or may otherwise be indicated as forward-looking statements by grammatical construction, phrasing or context. Such statements are based upon the current beliefs and expectations of Skillsoft's management and are subject to significant risks and uncertainties. Actual results may differ materially from those set forth in the forward-looking statements. All forward-looking disclosure is speculative by its nature, and we caution you against unduly relying on these forward-looking statements. Factors that could cause or contribute to such differences include those described under 'Part I - Item 1A. Risk Factors' and Part II, Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations in our Form 10‑K for the fiscal year ended January 31, 2025 ('2025 Form 10-K'). These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements included in the 2025 Form 10-K, in this document and in our other periodic filings with the Securities and Exchange Commission. The forward-looking statements contained in this document represent our estimates only as of the date of this filing and should not be relied upon as representing our estimates as of any subsequent date. While we may elect to update these forward-looking statements in the future, we specifically disclaim any obligation to do so, whether to reflect actual results, changes in assumptions, changes in other factors affecting such forward-looking statements, or otherwise, except as required by law. Although we believe that the assumptions underlying our forward-looking statements are reasonable, any of these assumptions, and therefore also the forward-looking statements based on these assumptions, could themselves prove to be inaccurate. Given the significant uncertainties inherent in the forward-looking statements included in this document, our inclusion of this information is not a representation or guarantee by us that our objectives and plans will be achieved. Annualized, pro forma, projected and estimated numbers are used for illustrative purposes only, are not forecasts and may not reflect actual results. Additionally, statements as to market share, industry data and our market position are based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above. Industry and Market Data Within this document, we may reference information and statistics regarding market share, industry data and our market position. Certain of this information has been obtained from various independent third-party sources, including independent industry publications, news reports, reports by market research firms and other independent sources. We believe that these external sources and estimates are reliable but have not independently verified them. In addition, certain of this information and statistics are based on our own internal surveys and assessments, which are developed in good faith using reasonable estimates. The information is based on the most current data available to us and our estimates regarding market position or other industry statistics included in this document or otherwise discussed by us involve risks and uncertainties and are subject to change based on various factors, including as set forth above. SKILLSOFT CORP. (in thousands, except number of shares and per share amounts) January 31, 2025 ASSETS Current assets: Cash and cash equivalents $ 127,841 $ 100,766 Restricted cash 3,091 2,571 Accounts receivable, net of allowance for credit losses of approximately $269 and $501 as of April 30, 2025 and January 31, 2025, respectively 95,988 178,989 Prepaid expenses and other current assets 50,917 50,527 Total current assets 277,837 332,853 Goodwill 317,071 317,071 Intangible assets, net 401,967 427,221 Other assets 25,611 28,924 Total assets $ 1,022,486 $ 1,106,069 LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) Current liabilities: Current maturities of long-term debt $ 6,404 $ 6,404 Borrowings under accounts receivable facility 1,000 1,000 Accounts payable 20,789 13,458 Accrued compensation 29,144 47,803 Accrued expenses and other current liabilities 23,790 26,022 Deferred revenue 243,788 282,295 Total current liabilities 324,915 376,982 Long-term debt 572,232 573,267 Deferred tax liabilities 41,042 42,039 Deferred revenue - non-current 1,170 1,656 Other long-term liabilities 20,478 18,279 Total long-term liabilities 634,922 635,241 Commitments and contingencies Shareholders' equity (deficit): Shareholders' common stock - Class A common shares, $0.0001 par value: 18,750,000 shares authorized and 8,651,941 shares issued and 8,352,164 shares outstanding as of April 30, 2025, and 8,616,633 shares issued and 8,316,856 shares outstanding as of January 31, 2025 1 1 Additional paid-in capital 1,568,919 1,565,040 Accumulated (deficit) (1,481,435 ) (1,443,386 ) Treasury stock, at cost - 299,777 as of April 30, 2025 and January 31, 2025 (10,891 ) (10,891 ) Accumulated other comprehensive income (loss) (13,945 ) (16,918 ) Total shareholders' equity (deficit) 62,649 93,846 Total liabilities and shareholders' equity (deficit) $ 1,022,486 $ 1,106,069 Expand SKILLSOFT CORP. (in thousands, except number of shares and per share amounts) Three Months Ended April 30, 2025 2024 Revenues: Total revenues $ 124,201 $ 127,793 Operating expenses: Costs of revenues 32,247 34,471 Content and software development 14,102 15,506 Selling and marketing 39,609 42,292 General and administrative 22,952 25,309 Amortization of intangible assets 31,608 31,583 Acquisition and integration related costs 523 1,497 Restructuring 1,346 967 Total operating expenses 142,387 151,625 Operating income (loss) (18,186 ) (23,832 ) Other income (expense), net (2,446 ) 2,217 Fair value adjustment of interest rate swaps (4,256 ) 7,746 Interest income 463 928 Interest expense (14,396 ) (16,278 ) Income (loss) before provision for (benefit from) income taxes (38,821 ) (29,219 ) Provision for (benefit from) income taxes (772 ) (1,583 ) Net income (loss) $ (38,049 ) $ (27,636 ) Net income (loss) per share: Basic and diluted $ (4.57 ) $ (3.42 ) Weighted average common share outstanding: Basic and diluted 8,324,864 8,089,331 Expand SKILLSOFT CORP. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) Three Months Ended April 30, 2025 2024 Cash flows from operating activities: Net income (loss) $ (38,049 ) $ (27,636 ) Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: Amortization expense of intangible assets 31,608 31,583 Stock-based compensation expense 4,081 7,153 Depreciation expense 447 760 Non-cash interest expense 566 536 Non-cash operating lease right-of-use asset expense 408 904 Provision for credit loss expense (recovery) (232 ) 41 Provision for (benefit from) deferred income taxes – non-cash (1,225 ) (2,932 ) Fair value adjustment of interest rate swaps 4,256 (7,746 ) Changes in current assets and liabilities, net of effects from acquisitions: Accounts receivable 86,559 74,826 Prepaid expenses and other assets, including long-term 1,243 (840 ) Accounts payable 6,992 (1,107 ) Accrued expenses and other liabilities, including long-term (21,780 ) (21,514 ) Deferred revenue (43,576 ) (39,091 ) Net cash provided by (used in) operating activities 31,298 14,937 Cash flows from investing activities: Purchase of property and equipment (515 ) (153 ) Internally developed software - capitalized costs (4,619 ) (4,364 ) Net cash provided by (used in) investing activities (5,134 ) (4,517 ) Cash flows from financing activities: Shares repurchased for tax withholding upon vesting of restricted stock-based awards (352 ) (82 ) Proceeds from (payments on) accounts receivable facility — (2,569 ) Principal payments on term loans (1,601 ) (1,601 ) Net cash provided by (used in) financing activities (1,953 ) (4,252 ) Effect of exchange rate changes on cash and cash equivalents 3,384 (3,087 ) Net increase (decrease) in cash, cash equivalents and restricted cash 27,595 3,081 Cash, cash equivalents and restricted cash, beginning of period 103,337 146,523 Cash, cash equivalents and restricted cash, end of period $ 130,932 $ 149,604 Supplemental disclosure of cash flow information: Cash and cash equivalents $ 127,841 $ 142,020 Restricted cash 3,091 7,584 Cash, cash equivalents and restricted cash, end of period $ 130,932 $ 149,604 Expand SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands, except percentages, number of shares and per share amounts, unaudited) Three Months Ended April 30, 2025 2024 Revenues Talent Development Solutions $ 99,148 $ 98,075 Global Knowledge 25,053 29,718 Total revenues, as reported $ 124,201 $ 127,793 Net income (loss), as reported $ (38,049 ) $ (27,636 ) Amortization of acquired intangible assets (1) 28,792 29,868 Acquisition and integration related costs 523 1,497 Restructuring 1,346 967 Transformation costs 1,604 657 System migration costs — 117 Long-term incentive compensation expenses 4,790 7,148 Fair value adjustment of interest rate swaps 4,256 (7,746 ) Other (income) expense, net 2,446 (2,217 ) Tax impact of adjustments (3,229 ) (3,042 ) Adjusted net income (loss) 2,479 (387 ) Interest expense, net 13,933 15,350 Expense (benefit from) income taxes, excluding tax impacts above 2,457 1,459 Depreciation 446 761 Amortization of capitalized internally developed software (1) 2,816 1,715 Adjusted EBITDA $ 22,131 $ 18,898 Weighted average common shares outstanding: Basic and diluted 8,324,864 8,089,331 Basic and diluted per share information: Net income (loss) per share, as reported $ (4.57 ) $ (3.42 ) Adjusted net income (loss) per share $ 0.30 $ (0.05 ) Net income (loss) margin % (30.6 )% (21.6 )% Amortization of acquired intangible assets (1) 23.1 % 23.3 % Acquisition and integration related costs 0.4 % 1.2 % Restructuring 1.1 % 0.8 % Transformation costs 1.3 % 0.5 % System migration costs 0.0 % 0.1 % Long-term incentive compensation expenses 3.9 % 5.6 % Fair value adjustment of interest rate swaps 3.4 % (6.1 )% Other (income) expense, net 2.0 % (1.7 )% Tax impact of adjustments (2.6 )% (2.4 )% Adjusted net income (loss) margin % 2.0 % (0.3 )% Interest expense, net 11.1 % 12.1 % Expense (benefit from) income taxes, excluding tax impacts above 2.0 % 1.1 % Depreciation 0.4 % 0.6 % Amortization of capitalized internally developed software (1) 2.3 % 1.3 % Adjusted EBITDA margin % 17.8 % 14.8 % Expand (1) All amortization (not only amortization pertaining to finite-lived intangible assets recognized as part of business combination accounting) is excluded in the determination of Adjusted EBITDA. Expand SKILLSOFT CORP. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES - continued (in thousands, unaudited) Three Months Ended April 30, 2025 2024 Operating expenses: GAAP costs of revenues $ 32,247 $ 34,471 Depreciation (68 ) (117 ) Long-term incentive compensation expenses (201 ) (166 ) Adjusted costs of revenues 31,978 34,188 GAAP content and software development expenses 14,102 15,506 Depreciation (82 ) (74 ) Long-term incentive compensation expenses (1,178 ) (1,290 ) System migration costs — (117 ) Adjusted content and software development expenses 12,842 14,025 GAAP selling and marketing expenses 39,609 42,292 Depreciation (138 ) (208 ) Long-term incentive compensation expenses (1,041 ) (1,256 ) Transformation costs — (177 ) Adjusted selling and marketing expenses 38,430 40,651 GAAP general and administrative expenses 22,952 25,309 Depreciation (158 ) (362 ) Long-term incentive compensation expenses (2,370 ) (4,436 ) Transformation costs (1,604 ) (480 ) Adjusted general and administrative expenses 18,820 20,031 Total GAAP operating expenses 108,910 117,578 Depreciation (446 ) (761 ) Long-term incentive compensation expenses (4,790 ) (7,148 ) System migration costs — (117 ) Transformation costs (1,604 ) (657 ) Adjusted total operating expenses $ 102,070 $ 108,895 Expand SKILLSOFT CORP. (in thousands, unaudited) Three Months Ended April 30, Talent Development Solutions Cost of revenues and content and software development expenses: GAAP costs of revenues $ 16,518 $ 16,425 Depreciation (66 ) (94 ) Long-term incentive compensation expenses (180 ) (146 ) Business unit costs of revenues 16,272 16,185 GAAP content and software development expenses 13,324 14,941 Depreciation (81 ) (71 ) Long-term incentive compensation expenses (1,145 ) (1,290 ) System migration costs — (117 ) Business unit content and software development 12,098 13,463 GAAP cost of revenues and content and software development expenses 29,842 31,366 Depreciation (147 ) (165 ) Long-term incentive compensation expenses (1,325 ) (1,436 ) System migration costs — (117 ) Business unit total cost of revenues and content and software development expenses $ 28,370 $ 29,648 Global Knowledge Cost of revenues and content and software development expenses: GAAP costs of revenues $ 15,729 $ 18,046 Depreciation (2 ) (23 ) Long-term incentive compensation expenses (21 ) (20 ) Business unit costs of revenues 15,706 18,003 GAAP content and software development expenses 778 565 Depreciation (1 ) (3 ) Long-term incentive compensation expenses (33 ) — Business unit content and software development expenses 744 562 GAAP cost of revenues and content and software development expenses 16,507 18,611 Depreciation (3 ) (26 ) Long-term incentive compensation expenses (54 ) (20 ) Business unit total cost of revenues and content and software development expenses $ 16,450 $ 18,565 Expand SKILLSOFT CORP. FREE CASH FLOW RECONCILIATION (in thousands, unaudited) Three Months Ended April 30, 2025 2024 Free cash flow reconciliation Net cash provided by (used in) operating activities $ 31,298 $ 14,937 Purchase of property and equipment, net (515 ) (153 ) Internally developed software - capitalized costs (4,619 ) (4,364 ) Free cash flow 26,164 10,420 Cash impact for adjusted EBITDA excluded charges 4,980 3,082 Adjusted free cash flow (levered) $ 31,144 $ 13,502 Expand
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THYME&TABLE™ LAUNCHES PREMIER LINE OF KITCHEN APPLIANCES, MADE EXCLUSIVELY FOR WALMART
Pushing boundaries of aesthetics and function with kitchen electronics, Thyme&Table™ achieves unprecedented price points with innovative design and efficient manufacturing. NEW YORK, June 9, 2025 /PRNewswire/ -- Thyme&Table™, a family-owned leader in stylish, high-performance homewares at affordable prices, today announced the launch of its first line of premier kitchen appliances – the perfect balance between functionality and home aesthetic. Designed and manufactured exclusively for Walmart, the new coffee, blender and heating kitchen electronics are easy to use and priced for amazing value, like the two-mode Single-Serve Blender for $59, a 6QT Air Fryer for $79 or a Mini Espresso Machine for $128. And the sleek, modern designs will enhance any kitchen's look and elevate everyday culinary moments. 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We've reimagined what luxury can look like in the kitchen — accessible, refined, and always reliable." Said Danielle Lyman, VP Cooking & Dining Merchandising, Walmart U.S., "At Walmart, we're proud to offer customers quality, on-trend home products at incredible prices so creating the space of their dreams is always within reach. Our new Walmart-exclusive Thyme&Table™ appliances were thoughtfully designed with performance and style in mind, and our customers will be delighted by what they'll discover, at prices we know they'll love." INTRODUCING THE KITCHEN APPLIANCESIn select U.S.-based Walmart stores and Supercenters and online at Thyme&Table™ is expanding its brand showcase with: Blenders Countertop Blender Duo, $79. The Thyme&Table™ Blender Duo offers extraordinary versatility for every recipe. This dynamic set includes a powerhouse duo of blending options for large-batch or single-serve prep compatible with a single base. Trust our Smart Crush™ technology to efficiently slice, dice & crush, while the vortex blending pulls down ingredients for continuous & consistent blending. Single-Serve Blender, $59. The Thyme&Table™ Single-Serve Blender offers seamless precision & powerful vortex blending for masterfully crafted smoothies, milkshakes, salsas, nut butters & more. With two simple & straightforward modes, this compact blender makes meal prep & healthy habits easier than ever. Easily flip & switch from the 6-point stainless steel blade system to the Smart Seal™ lid with a reusable straw for sipping on the go. Coffee Barista Grade Espresso Machine, $368. Craft barista-quality brews at home with the Thyme&Table™ all-in-1 Grind & Brew Espresso Machine. This efficient machine allows optimum customization & control for coffee lovers with 30 grind dial settings from coarse to fine, solo & doppio brewing options, & adjustable grind & shot times. Use the built-in steam wand to froth milk for homemade lattes, cappuccinos & more. Barista Mini Espresso Machine, $128. Craft rich, full-bodied espresso with the Thyme&Table™ Mini Espresso Machine, featuring a 15-bar pressure system and 52mm portafilter. The 1-hole steam wand effortlessly creates silky micro-foam, perfect for lattes & cappuccinos. Tailor each shot with solo and doppio filter baskets, & enjoy a preheated cup in just 60 seconds for a seamless brewing experience. Drip Coffee Maker, $79. Elevate your coffee experience with the Thyme&Table™ 12-cup programmable Drip Coffee Maker featuring an XL shower head spout that fully extracts flavor from your grounds. Enjoy programmable brewing options, an Over Ice mode & adjustable cup sizes for a personalized brew. Conical Burr Coffee Grinder, $59. Achieve barista-quality coffee grounds with the Thyme&Table™ Conical Burr Coffee Grinder, offering 32 grind settings to create your ideal batch. Choose between pre-programmed volume or manual options via the intuitive one-touch panel while the large 772g capacity hopper allows for less refilling, more grinding. To dispense, select either the included 100g grounds container with lid to store or the attachable portafilter bracket to brew. Multi-Capsule Machine, $109. Experience seamless brewing with the Thyme&Table™ Multi-Capsule Machine, featuring intelligent capsule matching. Simply insert your desired drawer & the machine will detect the right way to brew with corresponding presets. Customize your brewing by selecting the volume & moving the adjustable drip tray. The compact, versatile design is ideal for efficient brewing, especially in small spaces. Heating 6QT Air Fryer, $79. The Thyme&Table™ 6 QT Air Fryer is ideal for creating equally guilt-free & delicious meals or snacks in minutes. Its unique design features a CrispFlow™ basket, with a vortex design for enhanced air circulation & ThymeCrisp™ heating for the perfect golden crisp. Choose from 5 heating modes, 5 presets, or adjustable time & temperature settings to craft customized recipes. 6QT Slow Cooker, $59. Discover endless cooking possibilities with the Thyme&Table™ 6 QT Slow Cooker. Its intuitive, user-forward design features a non-stick ceramic serving pot, tempered glass lid with silicone rim, & lid holder to prevent kitchen messes. 2-Slice Toaster, $39. The Thyme&Table™ 2-slice, self-adjusting Toaster is engineered with precise ThymeToast technology for stream-lined, intuitive use. Turn the dial to select your ideal shade, from 1-7. Select the Bagel preset & turn your slices cut-side out to toast. The removable slide-out crumb tray ensures quick cleaning & the extra-lift lever makes it easy to access smaller slices. About Thyme&Table™ Thyme&Table™ is part of New York City-based Core Home, a leading manufacturer of innovative and trend-forward home products. With a commitment to creating functional, stylish, and accessible solutions, Core Home has become a trusted name in the industry, collaborating with top brands to deliver exceptional collections. View original content to download multimedia: SOURCE Core Home
