Mon, Jun 9, 8:09 PM (13 days ago)
**Skillsoft Corp. (SKIL) Q1 2025 Financial Summary** **Financial Health and Performance:** - **Revenue:** $124.2 million, down 2.8% YoY. - **Net Loss:** $38.0 million, wider than the $27.6 million loss in Q1 2024. - **Operating Loss:** $18.2 million, improved from the $23.8 million loss in Q1 2024. - **Cash Flow from Operations:** $31.3 million, up 109.5% YoY. **Segment Performance:** - **Talent Development Solutions (TDS):** Revenue up 1.1% YoY to $99.1 million, with a contribution margin of 69.1%. - **Global Knowledge (GK):** Revenue down 15.7% YoY to $25.1 million, with a contribution margin of 34.3%. **Expenses:** - **Cost of Revenues:** $32.2 million, down 6.5% YoY. - **Content and Software Development:** $14.1 million, down 9.1% YoY. - **Selling and Marketing:** $39.6 million, down 6.3% YoY. - **General and Administrative:** $22.9 million, down 9.3% YoY. - **Amortization of Intangible Assets:** $31.6 million, relatively stable. **Cash Flow and Liquidity:** - **Cash and Cash Equivalents:** $127.8 million as of April 30, 2025. - **Debt:** $572.2 million in long-term debt, with a fixed interest rate of 8.94% on $300 million. - **Accounts Receivable Facility:** $1.0 million drawn, with an interest rate of 6.94%. **Uncertainties and Future Operations:** - **Macroeconomic Uncertainty:** Affecting GK segment enrollment. - **Strategic Initiatives:** Including a comprehensive resource reallocation plan resulting in $45 million of annualized cost savings. - **Interest Rate Risk:** Managed through interest rate swaps. **Trends:** - **Revenue Trends:** TDS segment shows growth, while GK segment faces declines. - **Expense Trends:** Cost savings initiatives are underway, with reinvestment in strategic growth areas. - **Cash Flow Trends:** Improved operational efficiency and better margins contribute to higher cash flow. **Future Outlook:** - **Liquidity:** Sufficient internal and external sources to fund operations and anticipated cash needs. - **Debt Management:** Compliance with covenants and potential refinancing of outstanding obligations. - **Growth Initiatives:** Focus on talent development and strategic investments to drive future growth. **Ticker:** SKIL