Skillsoft Corp.

Thank you for standing by, and welcome to Skillsoft's fourth quarter and full fiscal year 2025 results conference call. At this time, all participants are in a listen-only mode. After the speakers present, there will be a question and answer session. Please note that today's call is being recorded. I would now like to hand the conference over to your first speaker today, Stephen Poe, in best relations. Thank you. Please go ahead.

Thank you, operator. Good day, and thank you for joining us to discuss our results for the fourth quarter and full fiscal year ended January 31, 2025. Before we jump in, I want to remind you that today's call will contain forward-looking statements about the company's business outlook and our expectations, including statements concerning financial and business trends, our expected future business and financial performance, financial condition, and market outlook. These forward-looking statements and all statements that are not historical facts reflect management's current beliefs and expectations as of today, and therefore are subject to risks and uncertainties that could cause actual results to differ materially. For a discussion of the material risks and other important factors that could affect our actual results, we refer you to our most recent Form 10-K filing with the Securities and Exchange Commission. We assume no obligation to update any forward-looking statements or information which speak as of their respective dates. During the call, unless otherwise noted, all financial metrics we discuss will be non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. A reconciliation of the non-GAAP financial measures included in today's commentary to the most directly comparable GAAP financial measures, as well as how we define these metrics, is included in our earnings press release, which has been furnished to the SEC and is also available on our website at www.skillsoft.com. Following today's prepared remarks, Ron Hosepian, Skillsoft's Executive Chair and Chief Executive Officer, and Rich Walker, Skillsoft's Chief Financial Officer, will be available for Q&A. With that, it's my pleasure to turn the call over to Ron.

Thanks, Stephen. Good afternoon, and thank you for joining us. I'm happy to share that we delivered solid fourth quarter and fiscal year results. With revenue exceeding the high end of our guidance range and adjusted EBITDA at the upper end of the range. We continue to remain on track with the transformation plan we've been articulating, with our strong execution over the past six months positioning us well to return to growth in fiscal 2026. We are closely monitoring the macroeconomic environment, including the potential impacts of evolving government policies, which may be material. During our fiscal fourth quarter, we delivered dollar retention rate, or DRR, of 105%, which drove our last 12 months DRR to 100%, meeting our expectations. In our global knowledge business unit, where we deliver instructor-led training, which can be physical or virtual, we've begun moving our go-to-market resources to a more regionally-focused model. This approach is moving us in the direction of stabilization of our GK Business Unit, with the year-over-year decline in revenue improving from 20% in the first half to 11% in the second half of our fiscal 25. And our Talent Development Solutions Business Unit, TDS, which serves the organization and individual learner, we had strong execution in the quarter driven by solid bookings and DRR performance. As a reminder, 45 to 50% of our annual bookings occur in the fourth quarter. We expect this annual trend to continue and it is reflected in our revenue guidance for FY26. At our investor day, our transformation strategy focused on two key objectives, fix the basics and invest to grow. Fix the basics focuses on improved operational execution to drive growth and improving productivity and margin expansion over time. Invest to grow focuses on a reallocation of our resources with the goal of returning to or above market growth rates. In this first phase of our transformation, we are focusing our efforts on our go-to-market motions and product. The areas we believe can create the fastest business momentum. As we enter FY26, we have targeted to shift up to 20% of our go-to-market and product resources into the enterprise market segment, while driving more efficiency in other market segments. We are investing more on acquiring and retaining large enterprise customers while we invest in advanced product capabilities oriented to these customer cohorts. We will cover some examples of this in a moment. The market we serve is large and growing, currently estimated at more than $400 billion. We are targeting some of the fastest growing subsets of this market, and we believe we are well positioned to lead this market shift by focusing on the talent development lifecycle within the enterprise market segment. Skillsoft's offerings are differentiated. We are the only company that owns and offers global skills development across multiple learning modalities at scale. We deliver interactive learning experiences that enable the learner and organizations to leverage disruptive AI technologies that accelerate workforce transformation and empower talent development management. Over time, our unique capabilities, combined with the market opportunity we see, position us to return Skillsoft to growing at market, and eventually, we believe above market growth rates. Shifting gears. I'd also like to remind you of the financial commitments we made at our investor day. First, we said we would drive at least $45 million in annualized expense reduction in fiscal 2025 on a run rate basis. With 40 to 50% of these savings being invested back into the business. I'm happy to report that we delivered on that. And we are currently reinvesting in the business and we will continue to do so in fiscal 2026 with reinvestment happening predominantly in the first half of the year to provide the essential tools to grow in the back half of the year. Secondly, we communicated our intention to return the company to top line growth with continued margin expansion in FY26 and generating positive free cash flow for FY26. We remain committed to these targets And as you'll see when Rich shares our guidance in a few minutes, we're on track to deliver. Now let me share with you more detail on our progress against our transformation commitments as it relates to our product and go-to-market strategy, as well as our enhanced corporate capabilities. As it relates to our product strategy, in the last quarter, we continue to build out our enterprise features and integrations available in the Precipio platform. Our award-winning AI-powered coach, Skillsoft Casey, recently hit a major milestone with over 1 million launches. Skillsoft has a rich library of ready-made scenarios to support both tech and business markets with popular topics like agile development, business planning, managing stakeholders, performance management, and more. We limited our preview program to 100 enterprise organizations, allowing them to participate as design partners providing feedback while testing new functionality that enables our customers to author their own AI simulations with Skillsoft's KC tool. This feedback was extremely useful and positive, and this functionality will launch later this fiscal year. Precipio now allows customers to create their own certification paths and manage their own certification programs to measure their rescaling where learners can earn company credentials, complete job training, and enhance their internal career mobility. Some of our most popular Precipio enterprise features for end-to-end certifications are now available within Codecademy's new certification hub for individual learners. These high value offerings include interactive labs and test prep, which are aimed at the reskilling audience. We continue to optimize the experience with our coaching offering and recent user experience enhancements have reduced the time to schedule your first coaching session by 50% from an average of 18 days to nine days. This increases time to value for clients. In terms of integrations that drive an open ecosystem for our customers, Skillsoft released a new integration with SAP Talent Intelligence Hub to help clients manage their skills strategy and apply skills data across their talent development lifecycle. Skillsoft Precipio also added Pluralsight and Big Think Plus as new content integrations. and added Oracle and Decebo as new learning management system integrations, continuing to expand one of the industry's broadest set of enterprise integrations. Moving to our go-to-market strategy, on the commercial sales front, GK's top 10 deals during the quarter represented nearly $6 million in total contract value. These wins were primarily due to the expertise of our trainers, the relationships with key partners like Microsoft and AWS, and the use of Net Promoter Score to monitor learner satisfaction. Within our TDS segment, our top 10 deals represented $22 million in total contract value with many multi-year deals focused on skill building, skill measurement, enterprise integrations, and the ability to support our customers' need for choice. I'd like to share two enterprise examples of talent development management wins that exemplify our strategy in action. One is a current customer and one is a new customer. First, Honda is undergoing a major business transformation in both products and services with a strong focus on new electrified business segments. This significant shift is being referred to as the company's second founding. As part of the transformation, Honda is leveraging Skillsoft's content, platform, and services to deliver comprehensive digital capability enhancement programs across all of North America. This initiative is a key component of Honda's quest for a digitally enabled workforce, equipping all staff with the essential digital skills to generate new insights, reduce routine work, and create more capacity for work and new service areas. Next, Virgin Media O2 Limited, or VMO2, a UK-based media and telecommunications company, recently partnered with Skillsoft to create a market-leading learning ecosystem and align their roles in skills taxonomy to enable skill building and skill measurement. This partnership will also ensure learning content is engaging, interactive, and relevant for all roles within the organization. This program has been made available to VMO2's 16,000 employees and focuses on increasing learning adoption and engagement across the company's diverse archetypes, including retail, knowledge workers, field sales, technicians, engineers, call centers, digital pioneers, and future careers. Skillsoft's innovative technologies are leveraged to address upskilling and reskilling challenges, fostering new opportunities for VMO2 people in maintaining their market-leading position. While we still have more work to do, we've made meaningful progress in the last six months to realign our organization and drive improved financial results. Let me recap some of the key areas where we've made progress, which positions us well for the future. First, we shifted and focused our resources on the higher end of the market. This includes targeted investments in boosting our enterprise learning subject matter expertise and the continued build-out of our digital strategy. Second, we remain focused on driving product innovation. Our transformation is allowing us to reallocate our resources to drive technical advancements, including the acceleration of our AI roadmap. Looking ahead to fiscal 2026, we have three key priorities, transforming our go-to-market approach, pivoting the company to growth, and generating free cash flow for the full year. We look forward to updating you on our progress through the year. With that, let me now hand the call over to Rich to cover our financial results in more detail. Rich?