Skillsoft Narrows Losses, Divests Global Knowledge Segment — Skillsoft Corp.

Event summary

Skillsoft reported a 5% revenue decline to $94.5 million for Q1 FY2027, with net loss improving 37% to $18.7 million.
The company divested its Global Knowledge (GK) segment, classifying it as discontinued operations.
Talent Development Solutions (TDS) remains the sole operating segment, with adjusted EBITDA margin holding steady at 28%.
New customer agreements for the AI-native Skillsoft Percipio® Platform grew 67% quarter-over-quarter.
Dollar Retention Rate (DRR) improved to 105% from 91% year-over-year.

The big picture

Skillsoft's divestiture of its Global Knowledge segment marks a strategic pivot toward its core AI-native skills management platform. The move aligns with broader industry trends of digital transformation and the growing demand for AI-ready workforce solutions. With a 67% increase in new customer agreements for its Percipio® Platform, Skillsoft aims to capitalize on the widening skills gap driven by AI advancements. The company's ability to execute this transition will be critical in determining its long-term market positioning.

What we're watching

Strategic Focus: Whether Skillsoft can sustain growth in its AI-native platform post-GK divestiture.
Financial Performance: The pace at which Skillsoft improves free cash flow visibility amid revenue challenges.
Market Positioning: How Skillsoft competes in the AI-driven workforce readiness market.