Skillsoft reported Q1 2026 revenue of $124.2 million, modestly down year-over-year and sequentially (-2.8% YoY, -7.1% QoQ). The company delivered a robust gross margin of approximately 74%, but incurred a cumulative operating loss of about $18.2 million and a net loss of $38.0 million, reflecting elevated operating expenses and other charges that more than offset gross profit. EBITDA remained positive at $7.63 million, underscoring significant non-cash and fixed-cost headwinds. Cash flow generation remained healthy on an operating basis, with $31.3 million of operating cash flow and $26.16 million in free cash flow, supporting liquidity despite a high balance sheet leverage profile. Deferred revenue stood at $243.8 million, indicating a large backlog of subscription-based revenues that may translate into future cash generation if renewals and expansions hold. Total debt stood at $579.6 million with net debt of $451.8 million, yielding a leverage posture that warrants close monitoring as the company seeks to stabilize profitability and deleverage over time.