Skillsoft Corp.

Thank you for standing by, and welcome to Skillsoft's third quarter fiscal 2026 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, and a replay of the call and webcast will be available shortly after the call concludes for a period of 12 months. I would now like to hand the conference over to your first speaker today, Stephen Poe, Investor Relations. Thank you. Please go ahead.

Thank you, Operator. Good day, and thank you for joining us to discuss the results for the third quarter ended October 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 that constitute forward-looking statements within the meeting of the U.S. Private Securities Litigation Reform Act of 1995, 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, expectations, and assumptions, and therefore are subject to risks and uncertainties that could cause actual results to differ materially from the conclusions, forecasts, estimates, or projections in the forward-looking statements made today. For discussion of the material risks and other important factors that can affect our actual results, we refer you to our most recent Form 10-K and other documents that we file 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 other than revenue will be non-GAAP financial measures, which are not prepared in accordance with generally accepted accounting principles. For example, listeners should be cautioned that references to phrases such as adjusted EBITDA and free cash flow denote non-GAAP financial measures. Non-GAAP financial measures should not be considered in isolation or as a substitute for GAAP financial measures. A presentation of the most directly comparable financial measures determined in accordance with GAAP as well as the definitions, uses, and reconciliations of non-GAAP financial measures included in today's commentary to the most directly comparable GAAP financial measures is included in our earnings press release, which has been furnished to the SEC on Form 8K and is available at www.sec.gov 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 John Frederick, 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. We began our transformation in August 2024 with focused goals. Reach revenue inflection, return to growth, and grow at or above the market while maintaining strong profitability and cash flow. We centered our strategy on the talent development market because it influences performance across almost every business function. This focus is delivering early results with increasing DRR for enterprise customers, strengthening account health and strong early interest in our platform. AI is accelerating change across industries and workforce readiness has become a top priority for boards and executive teams. Many organizations face delays in business transformation due to skills gaps that limit execution speed. This is why more than 70% of the CHROs cited skills visibility as a top three investment priority in a recent customer study. They need clear insight into skills and future requirements along with faster paths to close gaps supported by strong governance. Learners also expect personalized development and real-time support in the flow of work. Our next generation Skillsoft Percipio platform directly addresses these needs by unifying content, blended learning, hands-on practice, and skills intelligence into one platform. This integrated approach helps customers act faster, reduce skills gaps, and accelerate transformation efforts. Our enterprise scale, product innovation, services expertise, and learning DNA gives Skillsoft a clear advantage as organizations adopt skill supply chain models. This strategy positions Skillsoft for sustained growth and stronger customer value as the market shifts towards AI-driven skills management. In anticipation of this shift to AI-powered skill solutions, we spent FY26 reshaping our go-to-market approach to ensure we can fully capture the opportunity ahead. We anchored this work in financial discipline with a leaner, more directed cost structure and capital allocation focused on return on invested capital. On marketing, we rebuilt the team with capabilities needed to support the platform transformation. While the hiring took longer than planned, The team is now in place and we will introduce our exciting updated branding in the first quarter of FY27. On sales, we invested in skill subject matter experts so customers can connect our differentiated capabilities, particularly in AI simulations and enterprise skills management, to their workforce needs. Their engagement is already correlated to strong performance. with deals involving these specialists delivering a 105% dollar retention rate in the third quarter. We also recently realigned the sales coverage to focus on large customer enterprises who are deeper adopters of our advanced features and have demonstrated approximately 115% dollar retention rate in Q3. On product, we released the early version of our platform in September sign four large enterprise customers, and expect general availability in the first quarter of FY27. Initial customer response has been strong, and we remain confident in delivering our TDS commitments and positioning FY27 and beyond for growth. In our annual planning process, we also saw meaningful momentum in our AI efforts, with customers adopting AI-driven simulations at scale and our teams using AI for more than 50% of the design, curation, and production of content, contributing to headcount and vendor reductions reflected in the year-over-year operating expense improvement. Turning to our GK segment. our early priorities were to stabilize the business and expand our public sector presence. While we have secured meaningful new wins, including a European Public Sector Award in France worth up to $25 million over four years, the financial trajectory of GK remains negative. In Q3, GK accounted for 73% of our revenue decline while representing only 22% of total revenue. Given these dynamics, and in an effort to remain aligned with our company growth timeline and customer needs for multimodal learning, we have undertaken a full strategic review of the GK segment and concluded that a partnership-driven model is more appropriate than continued ownership. Therefore, we began pursuing a range of alternatives with the GK asset in Q3. Ideally, we want to maintain a two-way partnership where GK will continue to provide instructor-led training services to our customers, while Skillsoft provides content and platform capabilities in return. AI is not replacing learning platforms. It is increasing their strategic relevance. The World Economic Forum estimates 85 million roles will be displaced and 97 million new roles will emerge, underscoring that this shift is not only disruptive, but a generational reskilling opportunity. Organizations now need trusted systems that curate knowledge, validate accuracy, measure outcomes, and integrate directly with their talent and skills frameworks. Over the past 18 months, we have rebuilt our go-to-market model, strengthened our product roadmap, advanced our AI capabilities, reduced our operating expenses, and realigned our portfolio, including the action on GK, to match how the market now prefers to consume learning and ILT. By applying AI to elevate content creation, deliver personalized and multimodal learning experiences, and enable safe, high-impact simulations. We are confident that Skillsoft is well-positioned to help enterprises navigate workforce transformation and accelerate their move towards true governed skills management in the years ahead. With that, let me now turn the call over to John to cover our financial results in more detail. John?