Skillsoft Corp. (NYSE:SKIL) is a company that provides digital learning, training, and talent management solutions. It operates in a competitive industry with players like LinkedIn Learning and Coursera. On December 10, 2025, SKIL reported earnings per share (EPS) of $1.65, surpassing the estimated $1.26. This marks a significant improvement from the previous year's loss of $1.82 per share.
The earnings surprise for this quarter is +30.95%, as highlighted by Zacks. In the previous quarter, SKIL was expected to post a loss of $2.1 per share but instead delivered earnings of $0.92, resulting in a remarkable surprise of +143.81%. Over the past four quarters, SKIL has consistently exceeded consensus EPS estimates, showcasing its ability to outperform expectations.
Despite the impressive EPS, SKIL's revenue for the quarter was $129 million, slightly below the estimated $131.6 million. This represents a 6% decrease compared to the previous year's $137.23 million. Revenue from Talent Development Solutions (TDS) was $101 million, reflecting a 2% decline from the prior year. SKIL has managed to surpass consensus revenue estimates twice in the last four quarters.
The price-to-sales ratio is 0.13, suggesting the stock is undervalued compared to sales. However, the enterprise value to operating cash flow ratio is high at 46.16, indicating potential overvaluation based on cash flow.
The company's debt-to-equity ratio is high at 144.58, suggesting heavy leverage. The current ratio is 0.84, indicating potential liquidity concerns as it is below the standard threshold of 1. Despite these challenges, SKIL's consistent earnings surprises and ability to exceed EPS estimates highlight its potential for future growth.
