Why is Skillsoft stock down over 8% today?

Shares of Skillsoft slid 8.6% in extended trading to $5.82 after the education-technology company published its fiscal Q2 2027 results following the bell. The steep decline was driven by a significant revenue shortfall and a cut to the full-year forecast, which sparked an immediate sell-off.

On an adjusted basis, Skillsoft earned $1.17 per share, beating the consensus estimate of $1.03. However, revenue came in at $98.2 million versus the anticipated $125.4 million, marking a 3% drop compared to the year-earlier quarter.

The revised outlook compounded the negative sentiment. Skillsoft reduced its fiscal 2027 revenue projection to $380-$390 million, tightening from the previous $388-$406 million range. That updated target also came in beneath Wall Street's expectation of roughly $398 million.

Chief Financial Officer Ron Kisling attributed the downgraded guidance primarily to 'accelerating pressure in the consumer business,' noting that the enterprise arm continued to perform as expected throughout the quarter.

Despite the top-line weakness, adjusted EBITDA rose to $33 million, translating to a 34% margin. The net loss from continuing operations also improved, narrowing by 17% on a year-over-year basis.

There was no market-wide support to offset the share decline. U.S. benchmark indices ended the regular session near the flatline, with the S&P 500 up a negligible 0.1% and the Nasdaq unchanged. The after-hours drop in Skillsoft was therefore attributable solely to company-specific issues, not broader macroeconomic or sector pressures.

Skillsoft shares had been weak in regular trading as investors braced for the earnings release. The actual report validated those worries, raising fresh questions about how quickly the company can rebuild revenue after the sale of its Global Knowledge unit.

In sum, the triple blow of a sizable revenue miss, a downward adjustment to annual guidance, and persistent uncertainty about growth in the company's streamlined, post-divestiture structure overwhelmed investor confidence. The shares fell toward the bottom half of their 52-week band—$3.43 to $18.45—wiping out much of the stock's recent upward progress.

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