Slide 1: Earnings Supplement Q4 FY2025
Earnings Supplement Q4 FY2025 April 14, 2025 1
Slide 2: Cautionary Notes Regarding Forward Looking Statements
Cautionary Notes Regarding Forward Looking Statements This document includes statements that are, or may be deemed to be, “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, whic
Slide 3: Today's Call
Today’s Ron Hovsepian EXECUTIVE CHAIRMAN Call AND CHIEF EXECUTIVE OFFICER • Opening Remarks Rich Walker CFO • Business Update • Q4 and Full Year FY2025 Financial Results Stephen Poe • FY2026 Outlook INVESTOR RELATIONS • Q&A • Closing Remarks Webcast Details Webcast Link: https://event.choruscall.com
Slide 4: Ron Hovsepian Executive Chairman and Chief Executive Officer
“ We continue to deliver strong execution of our Investor Day transformation plan, which is demonstrated in our fourth quarter and full year results. We delivered on our previously communicated fiscal 2025 commitments, driven by strong execution in the second half, and we are well positioned for ” c
Slide 5: Recent Business Highlights
Recent Business Highlights • Within our TDS segment, our top ten deals during the fourth quarter represented $22 million in total contract value with many multi-year deals focused on skill building, skill measurement, ecosystem integrations, and ability to deliver custom content and content from oth
Slide 6: Executing Our Transformation Plan
Executing Our Transformation Plan FY25-FY26 FY27+ FINANCIAL TARGET OUTCOMES FINANCIAL TARGET OUTCOMES $45M1+ annualized expense reduction in FY25 At or above-market growth Margin expansion in FY25 & FY26 Industry-leading financial profile Return to topline growth in FY26 FCF generation in FY26 KEY A
Slide 7: Talent Development Lifecycle Approach Creating A $400B Market Opportunity
Customers Are Shifting Towards A Talent Development Lifecycle Approach Creating A $400B Market Opportunity Lifecycle Talent Champions Talent Development Approach Discrete, Silo’d Buyers of Online Learning Video-based, Interactive, Workforce Transformation Utilization Metrics Outcomes Learning Style
Slide 8: Investment Thesis
Investment Thesis Leveraging a unique and powerful Making immediate changes to “Fix The Executing a compelling “Invest To asset portfolio Basics” Grow” strategy positioned to win in the talent development and achieve profitable growth to capitalize on a significant and growing market industry opport
Slide 9: Q4 FY2025 Financial Highlights
Q4 FY2025 Financial Highlights Continued strong revenue execution and improved profitability Q4 FY25 Talent Q4 FY25 Adjusted Q4 FY25 Dollar EBITDA1 Development Retention Rate1 Solutions Revenue % of Revenue $102.8M ~105% $29.9M 22% ▲1% vs. Prior Year1 ▲~400bps vs. Prior Year1 ▲~190bps vs. Prior Year
Slide 10: Full Year FY2025 Financial Highlights
Full Year FY2025 Financial Highlights Transformation strategy gaining momentum and helped bolster 2H FY2025 financial results FY25 Talent FY25 Adjusted FY25 Dollar EBITDA1 Development Retention Rate1 Solutions Revenue % of Revenue $405.5M ~100% $109.1M 21% ~Flat vs. Prior Year1 ▼~100bps vs. Prior Ye
Slide 11: Revenue
Revenue Revenue performed in line with our expectations; Solid Talent Development Solutions execution and Global Knowledge realignment is driving stabilization • Talent Development Solutions $141.2 $137.2 $139.0 $137.5 $132.2 ▼1% YoY $133.8 Revenue grew 1% in Q4 ‘25 and $135.6 $38.0 $127.8 ▼6% YoY ▼
Slide 12: Profitability and Cash Flow
Profitability Transformation initiatives and continued disciplined expense management helps drive YoY profitability and Cash improvement and positive free cash flow generation Flow 1 Adjusted EBITDA ($Ms) Free Cash Flow ($Ms) • Q4 ‘25 Adjusted EBITDA of $29.9M was up $2M, or 6%, YoY $109.1 • Q4 ‘24
Slide 13: Appendix
skillsoft® Appendix
Slide 14: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures The Company has organized its business into two segments (or Business Units): Talent Development Solutions (formerly referred to as Content & Platform) and Global Knowledge (formerly referred to as Instructor-Led Training). We track the non-GAAP financia
Slide 15: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures • Adjusted EBITDA - Adjusted EBITDA is defined as net income (loss) is defined as net income (loss) excluding non-cash items, benefit from or provision for income taxes, discrete and event-specific costs that do not represent normal, recurring, cash oper
Slide 16: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 16
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures 17