Skillsoft Stock Plunges on Q2 Revenue Miss, Lowered Full-Year Outlook

Skillsoft (NYSE: SKIL) shares tumbled more than 8% in after-hours trading after the company reported fiscal second-quarter results that missed revenue estimates and lowered its financial outlook for the full year, citing weakness in its consumer-facing business.

Disappointing Q2 Results

For the second quarter of fiscal 2027, Skillsoft reported quarterly revenue of $98.2 million, a figure that fell significantly short of the analyst consensus of $125.4 million. The revenue also represented a 3% decline from the same period in the prior year.

While the top-line results disappointed investors, the company did report an adjusted earnings per share of $1.17, surpassing the consensus estimate of $1.03. According to the release, Skillsoft's adjusted EBITDA improved to $33 million, representing a 34% margin, and its net loss from continuing operations narrowed by 17% year-over-year.

Guidance Cut Signals Headwinds

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The company's revised forecast proved to be a major catalyst for the stock's decline. Skillsoft now expects full-year fiscal 2027 revenue to be in the range of $380 million to $390 million. This is a reduction from its previous guidance of $388 million to $406 million and is below the analyst consensus of approximately $398 million.

CFO Ron Kisling attributed the downward revision to "accelerating pressure in the consumer business," while noting that the company's enterprise segment continues to perform in line with expectations. The results and guidance heightened investor concerns about the company's growth trajectory following the divestiture of its Global Knowledge business.

Market Reaction

The after-hours sell-off sent Skillsoft shares down 8.6% to $5.82. The decline was driven entirely by company-specific fundamentals, as the broader market was largely flat during the regular session, with the S&P 500 ending up just 0.1%. The drop pushed the stock toward the lower end of its 52-week range of $3.43 to $18.45.