Skillsoft reported a second quarter (quarter ended July 31, 2025) that reflected a continuation of macro-driven headwinds in discretionary spend, particularly impacting the Global Knowledge (GK) live-learning variant. Revenue declined 2.6% year over year to $128.8 million, driven by softer GK demand and a drag from the consumer/B2C segment within TDS, even as the enterprise portion of TDS continued to show resilience with four straight quarters of revenue growth and a high-dollar retention rate. Notably, Skillsoft delivered profitability and margin expansion through aggressive cost reductions and productivity gains, with adjusted EBITDA of $28.3 million and a 22% adjusted EBITDA margin, despite the revenue base dip. Management anchored long-term confidence in the transformation program (dual business units, resource realignment, leadership additions) and highlighted the AI-native design, skills intelligence, and immersive learning roadmap as the core driver of future value. The company reaffirmed or updated full-year guidance, guiding to revenue of $510â$530 million, adjusted EBITDA of $112â$118 million, and positive free cash flow of $13â$18 million for fiscal 2026, while acknowledging GK softness and ongoing macro uncertainty. The quarter also featured notable customer wins demonstrating scale and impact (e.g., 43,000 employees under a large global semiconductor learning ecosystem) and momentum in Skillsoft Precipio with strong AI adoption metrics. While near-term operating performance remains pressured by GK and macro factors, the TDS enterprise franchise is the primary growth engine with a favorable 99% LTM DRR and meaningful margin contribution, underpinning an attractive longer-term AI-enabled, enterprise-grade learning platform strategy.