Q1 2025 Financial Results for Skillsoft Corp.

Date: June 11, 2024

Exchange: NYSE

Sector: Consumer Defensive

Industry: Education & Training Services

1. Introduction

Skillsoft Corp. (NYSE: SKIL) released its Q1 2025 financial results. This report highlights the financial standings and performance of the company for the specified period, presenting key metrics and comparative analysis. The report was filed on June 10, 2024, and published on April 30, 2024.

2. Revenue and Profitability

The company reported a total revenue of $127.79M with a cost of revenue amounting to $34.47M, resulting in a gross profit of $93.32M. The gross profit margin stood at 73.03%. The operating expenses totaled $117.15M, which included $25.31M in general and administrative expenses and $42.29M in selling and marketing expenses.

EBITDA was reported at ($23.83M) resulting in an EBITDA ratio of (18.65%). The operating income also stood at ($23.83M), translating to an operating income ratio of (18.65%).

The net income for the period remained negative at ($27.64M) with an EPS of ($3.42).

3. Cash Flow

The net cash provided by operating activities was reported at $14.94M. Capital expenditure amounted to ($153K), resulting in a free cash flow of $14.78M. The net change in cash for the quarter was $3.08M.

Cash at the end of the period was $149.60M, showing a stable liquidity position.

4. Balance Sheet

Skillsoft Corp.'s total assets were valued at $1.18B with total liabilities amounting to $998.73M. Cash and cash equivalents stood at $142.02M, with net receivables at $110.64M.

Total current liabilities were reported at $350.79M, while long-term debt was $583.78M. The company had total stockholders' equity of $182.14M.

5. Key Financial Ratios

The company's debt to equity ratio was high at 307.37%, indicating a significant portion of debt in the company's capital structure. The current ratio stood at 87.63% and the quick ratio was 80.93%.

The return on equity and return on assets for the trailing twelve months were (87.45%) and (26.71%) respectively. The interest coverage ratio was notably low at (13,279%).

The company’s gross profit margin was 58.75%, reflecting strong profitability from its core operations despite a negative net profit margin of (63.13%).

6. Comparison with Industry Peers

Skillsoft's gross profit margin (TTM) of 58.75% was higher than the industry average of 52.94%. However, the company underperformed in terms of operating profit margin (TTM) and net profit margin (TTM), which were (22.87%) and (63.13%) respectively.

The debt-equity ratio of 307.37% was significantly higher than the industry average of 51.28%, indicating a higher reliance on debt. Additionally, the price-to-sales ratio (TTM) was 13.52%, lower than the industry average of 175.26%.

For additional details, please refer to the SEC filing or the final report.