Revenue growth remains in a contractionary phase, evidenced by a 23.9% year-over-year decline in 2027Q1, while operating margins remain persistently negative despite high gross margins of 83.2%.
Skillsoft Corp. (SKIL) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Jan'26 | Jan'25 | Jan'24 | Jan'23 | Jan'22 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 452.4M | 512.67M | 530.99M | 553.24M | 555.12M | 527.76M | 0 | 514.02M |
| Revenue Growth % | -13.66% | -3.45% | -4.02% | -0.34% | 5.18% | - | -100% | - |
| Cost of Goods Sold | 100.54M | 134.64M | 134.88M | 153.16M | 152.01M | 151.09M | 0 | 96.04M |
| COGS % of Revenue | - | 26.26% | 25.4% | 27.68% | 27.38% | 28.63% | - | 18.68% |
| Gross Profit | 351.86M | 378.04M | 396.12M | 400.08M | 403.11M | 376.68M | 0 | 417.98M |
| Gross Margin % | 77.78% | 73.74% | 74.6% | 72.32% | 72.62% | 71.37% | - | 81.32% |
| Gross Profit Growth % | - | -4.56% | -0.99% | -0.75% | 7.02% | - | -100% | - |
| Operating Expenses | 366.3M | 417.12M | 443.22M | 487.42M | 522.91M | 459.92M | 906.9K | 821.19M |
| OpEx % of Revenue | - | 81.36% | 83.47% | 88.1% | 94.2% | 87.14% | - | 159.76% |
| Selling, General & Admin | 189.14M | 216.76M | 234.27M | 249.15M | 269.8M | 244.86M | 906.9K | 198.14M |
| SG&A % of Revenue | - | 42.28% | 44.12% | 45.03% | 48.6% | 46.4% | - | 38.55% |
| Research & Development | 27.21M | 55.63M | 60.76M | 68.03M | 69.8M | 4.88M | 0 | 67.95M |
| R&D % of Revenue | - | 10.85% | 11.44% | 12.3% | 12.57% | 0.93% | - | 13.22% |
| Other Operating Expenses | 4M | 144.73M | 148.19M | 170.24M | 183.31M | 210.17M | 0 | 555.1M |
| Operating Income | -14.44M | -39.08M | -47.1M | -87.34M | -119.8M | -83.24M | -906.9K | -403.22M |
| Operating Margin % | -3.19% | -7.62% | -8.87% | -15.79% | -21.58% | -15.77% | - | -78.44% |
| Operating Income Growth % | - | 17.03% | 46.07% | 27.1% | -43.91% | -9078.93% | 99.78% | - |
| EBITDA | 72.62M | 90.08M | 83.49M | 68.5M | 63.4M | 59.86M | -2.91M | -297.14M |
| EBITDA Margin % | 16.05% | 17.57% | 15.72% | 12.38% | 11.42% | 11.34% | - | -57.81% |
| EBITDA Growth % | -15.51% | 7.9% | 21.88% | 8.05% | 5.9% | 2159.36% | 99.02% | - |
| D&A (Non-Cash Add-back) | 87.06M | 129.16M | 130.59M | 155.84M | 183.2M | 143.11M | 0 | 106.08M |
| EBIT | -53.66M | -95.06M | -64.13M | -299.53M | -777.55M | -48.5M | -2.91M | -408.03M |
| Net Interest Income | -41.78M | -56.61M | -59.99M | -61.78M | -52.96M | -429.66M | 2.52M | -429.66M |
| Interest Income | 2.12M | 1.86M | 3.53M | 3.56M | 531K | 136K | 2.52M | 306K |
| Interest Expense | 29.6M | 58.47M | 63.52M | 65.33M | 53.49M | 429.96M | 0 | 429.96M |
| Other Income/Expense | -101.5M | -114.45M | -80.55M | -278.21M | -654.62M | -11.33M | -71.07M | -434.78M |
| Pretax Income | -115.94M | -153.53M | -127.65M | -365.55M | -774.42M | -94.58M | -71.97M | -837.99M |
| Pretax Margin % | -25.63% | -29.95% | -24.04% | -66.07% | -139.5% | -17.92% | - | -163.03% |
| Income Tax | -4.27M | -13.71M | -5.74M | -16.27M | -40.97M | 6.46M | 486.76K | 11.21M |
| Effective Tax Rate % | 3.68% | 8.93% | 4.5% | 4.45% | 5.29% | -6.83% | -0.68% | -1.34% |
| Net Income | -163.47M | -139.82M | -121.91M | -349.29M | -724.96M | -70.21M | -72.46M | -849.21M |
| Net Margin % | -36.13% | -27.27% | -22.96% | -63.13% | -130.59% | -13.3% | - | -165.21% |
| Net Income Growth % | -40.27% | -14.7% | 65.1% | 51.82% | -932.58% | 3.11% | 91.47% | - |
| Net Income (Continuing) | -136.09M | -139.82M | -121.91M | -349.29M | -733.45M | -88.12M | -72.46M | -849.21M |
| Discontinued Operations | -1000K | 0 | 0 | 0 | 8.48M | 17.91M | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -18.19 | -16.27 | -14.87 | -43.38 | -91.20 | -14.43 | -16.80 | -41.02 |
| EPS Growth % | -32.74% | -9.41% | 65.72% | 52.43% | -532.02% | 14.11% | 59.04% | - |
| EPS (Basic) | - | -16.27 | -14.87 | -43.38 | -91.20 | -14.43 | -16.80 | -41.02 |
| Diluted Shares Outstanding | 8.99M | 8.59M | 8.2M | 8.05M | 7.94M | 6.66M | 4.31M | 20.7M |
| Basic Shares Outstanding | 8.99M | 8.59M | 8.2M | 8.07M | 7.94M | 6.66M | 4.31M | 20.7M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying SKIL stock.
For fiscal year 2026, Skillsoft Corp. (SKIL) reported total revenue of $512.7M. This represents a 0.3% decline compared to $514.0M in 2020.
Skillsoft Corp. (SKIL) reported a net loss of $139.8M for the fiscal year ending 2026.
Skillsoft Corp. (SKIL) reported an operating income of $-39.1M, resulting in an operating profit margin of -7.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Skillsoft Corp. (SKIL) generated $378.0M in gross profit for the year, representing a gross profit margin of 73.7%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Persistent negative operating margins
Metrics are mathematically derived from official filings.
Persistent Revenue Contraction Trends
According to recent quarterly filings, Skillsoft's revenue has consistently trended downward, culminating in a sharp 23.9% year-over-year decline in 2027Q1, which suggests that the company is struggling to maintain its enterprise footprint amidst a broader shift in corporate training demand and platform migration challenges.
The consistent revenue decay indicates that the company's core subscription offerings are failing to offset the loss of legacy transactional volume. Investors should monitor whether this contraction is a deliberate shedding of low-margin business or a sign of weakening competitive positioning against more agile digital-first peers.
High Gross Margins Masking Inefficiency
As reported in financial statements, Skillsoft maintains a robust gross margin profile, peaking at 83.2% in 2027Q1, yet this high-margin capability appears insufficient to cover the company's substantial operating expenses, resulting in a persistent inability to achieve profitability at the operating income level.
While the gross margin expansion suggests a successful pivot toward higher-margin digital content, the lack of corresponding operating profitability implies that the company's cost structure remains bloated. The disparity between gross and operating performance warrants further investigation into whether the current overhead is truly scalable.
Operating Leverage Remains Elusive
Based on the provided income statement data, Skillsoft has failed to demonstrate positive operating leverage, as SG&A expenses consistently consume the majority of gross profit, leaving the company with negative operating margins that have persisted throughout the last ten quarters of reported financial performance.
The inability to scale operating income despite high gross margins suggests that the company's fixed-cost base, particularly regarding platform maintenance and corporate overhead, is misaligned with current revenue levels. This structural imbalance implies that significant cost rationalization is required to reach a break-even point.
Earnings Quality Impacted by Charges
Analysis of the company's historical filings reveals that reported net income is frequently distorted by significant non-operating items and restructuring charges, which often mask the underlying cash-generative potential of the core content business and complicate the assessment of true operational performance for equity investors.
The recurring nature of these charges suggests that the company's GAAP earnings are not reflective of its ongoing operational health. Analysts should focus on adjusted metrics to determine if the business can eventually generate sustainable cash flow once the restructuring phase concludes.