Form: 8-K

Current report

July 10, 2026

 

Exhibit 99.1

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED FINANCIAL INFORMATION

 

On July 6, 2026, Skillsoft Corp. (together with its consolidated subsidiaries, “Skillsoft,” “we,” “us,” or “our”) completed the sale of all of the issued and outstanding limited liability company interests of Global Knowledge Training LLC, a Delaware limited liability company (the “Company,” and together with the Company’s direct and indirect subsidiaries, the “Transferred Companies”), pursuant to a Sale and Purchase Agreement, dated May 20, 2026 (the “SPA”), between GK Holdings, Inc., a Delaware corporation and wholly-owned subsidiary of Skillsoft (the “Seller”), and EHJob GP LLC, a Delaware limited liability company and affiliate of Enduring Ventures (the “Buyer”). The Transferred Companies operate Skillsoft’s former Global Knowledge (“GK”) business, which provides instructor-led training delivered both in-person and virtually.

 

Under the terms of the SPA, the Seller received initial consideration of approximately $5.4 million at closing (after estimated closing adjustments), paid via promissory note (secured by the Company’s cash and accounts receivable). The Seller is also entitled to deferred consideration of $10.0 million, less approximately $2.0 million related to long-term employee liabilities, payable in five equal quarterly installments commencing nine months after the closing date, as well as contingent consideration for post-closing transactions specified in the SPA. The initial consideration is subject to customary final post-closing adjustments, including for working capital, cash and indebtedness. The Buyer’s obligation to pay the deferred consideration is guaranteed by the Company and secured by the Transferred Companies’ intellectual property rights.

 

The unaudited pro forma condensed consolidated financial information has been prepared in accordance with Article 11 of Regulation S-X and is derived from Skillsoft's historical consolidated financial statements. The unaudited pro forma condensed consolidated balance sheet as of April 30, 2026, gives effect to the sale as if it had occurred on April 30, 2026. The unaudited pro forma condensed consolidated statements of operations for the three months ended April 30, 2026, and for the fiscal years ended January 31, 2026, 2025 and 2024 and reflect the reclassification as discontinued operations for all periods presented. The adjustments in the "Transaction Accounting Adjustments" column in the unaudited pro forma condensed consolidated statements of operations for the three months ended April 30, 2026, and for the fiscal year ended January 31, 2026, give effect to other aspects of the sale, including transaction-related expenses and impacts of the promissory note receivable, as if it had occurred on February 1, 2025.

 

The GK business was reflected as discontinued operations in our historical condensed consolidated statements of operations for the three months ended April 30, 2026. Accordingly, the related pro forma adjustments primarily reflect transaction accounting adjustments associated with the completed disposition. For the fiscal years ended January 31, 2026, 2025 and 2024, the pro forma condensed consolidated statements of operations reflect the removal of the historical operating results of the GK business and other transaction accounting adjustments directly attributable to the disposition as described above. The unaudited pro forma condensed consolidated statements of operations are only presented through continuing operations.

 

The unaudited pro forma condensed consolidated financial information does not give effect to restructuring activities or other management actions that may be undertaken in connection with or following the sale of the GK business.

 

The unaudited pro forma condensed consolidated financial information is presented for informational purposes only and does not purport to represent what Skillsoft's financial position or results of operations would have been had the transaction occurred on the dates assumed, nor does it purport to project Skillsoft's future financial position or results of operations.

 

 

1

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET

As of April 30, 2026

 

           

Discontinued

   

Continuing

   

Transaction

   

Pro

 
   

Historical

   

Operations (a)

   

Operations

   

Adjustments (b)

   

Forma (1)

 

ASSETS

                                       

Current assets:

                                       

Cash and cash equivalents

  $ 115,562     $ -     $ 115,562     $ 966     $ 116,528  

Restricted cash

    2,811       -       2,811       -       2,811  

Accounts receivable, net of allowance for credit losses of approximately $382

    77,313       -       77,313       -       77,313  

Prepaid expenses and other current assets

    38,176       -       38,176       -       38,176  

Note receivable

    -       -       -       5,243       5,243  

Assets held for sale

    53,148       (53,148 )     -       -       -  

Total current assets

    287,010       (53,148 )     233,862       6,209       240,071  

Goodwill

    287,650       -       287,650       -       287,650  

Intangible assets, net

    258,654       -       258,654       -       258,654  

Note receivable

    -       -       -       7,284       7,284  

Other assets

    19,697       -       19,697       426       20,123  

Total assets

  $ 853,011     $ (53,148 )   $ 799,863     $ 13,919     $ 813,782  

LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)

                                       

Current liabilities:

                                       

Current maturities of long-term debt

  $ 6,404     $ -     $ 6,404     $ -     $ 6,404  

Borrowings under accounts receivable facility

    1,000       -       1,000       -       1,000  

Accounts payable

    9,056       -       9,056       -       9,056  

Accrued compensation

    22,336       -       22,336       -       22,336  

Accrued expenses and other current liabilities

    14,587       -       14,587       -       14,587  

Deferred revenue

    221,299       -       221,299       -       221,299  

Liabilities associated with assets held for sale

    39,229       (39,229 )     -       -       -  

Total current liabilities

    313,911       (39,229 )     274,682       -       274,682  
                                         

Long-term debt

    568,163       -       568,163       -       568,163  

Deferred tax liabilities

    34,712       -       34,712       -       34,712  

Deferred revenue - non-current

    1,117       -       1,117       -       1,117  

Other long-term liabilities

    7,923       -       7,923       -       7,923  

Total long-term liabilities

    611,915       -       611,915       -       611,915  

Commitments and contingencies

                                       

Shareholders’ equity (deficit):

                                       

Shareholders’ common stock - Class A common shares, $0.0001 par value:

                                 

18,750,000 shares authorized and 9,095,922 shares issued and 8,796,145 shares outstanding

    1       -       1       -       1  

Additional paid-in capital

    1,578,986       -       1,578,986       -       1,578,986  

Accumulated (deficit)

    (1,626,324 )     (33,551 )     (1,659,875 )     13,919       (1,645,956 )

Treasury stock, at cost - 299,777 shares

    (10,891 )     -       (10,891 )     -       (10,891 )

Accumulated other comprehensive income (loss)

    (14,587 )     19,632       5,045       -       5,045  

Total shareholders’ equity (deficit)

    (72,815 )     (13,919 )     (86,734 )     13,919       (72,815 )

Total liabilities and shareholders’ equity (deficit)

  $ 853,011     $ (53,148 )   $ 799,863     $ 13,919     $ 813,782  

 

1 Represents Skillsoft's current best estimate of its unaudited pro forma consolidated balance sheet, reflecting the discontinued operations. Actual results could differ from these estimates.

The accompanying notes are an integral part of these unaudited pro forma consolidated financial statements.

 

2

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the three months ended April 30, 2026

 

   

Continuing

   

Transaction

   

Pro

 
   

Operations

   

Adjustments (b)

   

Forma (1)

 

Revenues:

                       

Total revenues

  $ 94,498     $ -     $ 94,498  

Operating expenses:

                       

Costs of revenues

    15,889       -       15,889  

Content and software development

    13,052       -       13,052  

Selling and marketing

    26,960       -       26,960  

General and administrative

    15,994       -       15,994  

Amortization of intangible assets

    29,561       -       29,561  

Impairment of goodwill and intangible assets

    -       -       -  

Acquisition and integration related costs

    -       -       -  

Restructuring

    1,341       -       1,341  

Total operating expenses

    102,797       -       102,797  

Operating income (loss)

    (8,299 )     -       (8,299 )

Other income (expense), net

    2,606       -       2,606  

Fair value adjustment of interest rate swaps

    1,245       -       1,245  

Interest income

    545       190       735  

Interest expense

    (13,748 )     -       (13,748 )

Income (loss) before provision for (benefit from) income taxes

    (17,651 )     190       (17,461 )

Provision for (benefit from) income taxes

    1,044       (11)       1,033  

Net income (loss) from continuing operations

  $ (18,695 )   $ 201     $ (18,494 )
                         

Net income (loss) per share:

                       

Basic and diluted - continuing operations

  $ (2.12 )           $ (2.10 )

Weighted average common share outstanding:

                       

Basic and diluted

    8,811,277               8,811,277  

 

1 Represents Skillsoft's current best estimate of its unaudited pro forma consolidated balance sheet, reflecting the discontinued operations. Actual results could differ from these estimates.

The accompanying notes are an integral part of these unaudited pro forma consolidated financial statements.

 

3

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the year ended January 31, 2026

 

           

Discontinued

   

Continuing

   

Transaction

   

Pro

 
   

Historical

   

Operations (a)

   

Operations

   

Adjustments (b)

   

Forma (1)

 

Revenues:

                                       

Total revenues

  $ 512,674     $ (108,929 )   $ 403,745     $ -     $ 403,745  

Operating expenses:

                                       

Costs of revenues

    134,638       (68,003 )     66,635       -       66,635  

Content and software development

    55,626       (2,644 )     52,982       -       52,982  

Selling and marketing

    153,495       (39,895 )     113,600       -       113,600  

General and administrative

    80,649       (12,900 )     67,749       -       67,749  

Amortization of intangible assets

    127,346       (6,203 )     121,143       -       121,143  

Impairment of goodwill and intangible assets

    31,716       (20,771 )     10,945       -       10,945  

Acquisition and integration related costs

    1,379       (18 )     1,361       -       1,361  

Restructuring

    17,318       (1,776 )     15,542       -       15,542  

Total operating expenses

    602,167       (152,210 )     449,957       -       449,957  

Operating income (loss)

    (89,493 )     43,281       (46,212 )     -       (46,212 )

Other income (expense), net

    (3,696 )     14,392       10,696       -       10,696  

Fair value adjustment of interest rate swaps

    (3,733 )     -       (3,733 )     -       (3,733 )

Interest income

    1,859       (83 )     1,776       1,230       3,006  

Interest expense

    (58,470 )     -       (58,470 )     -       (58,470 )

Income (loss) before provision for (benefit from) income taxes

    (153,533 )     57,590       (95,943 )     1,230       (94,713 )

Provision for (benefit from) income taxes

    (13,709 )     3,276       (10,433 )     134       (10,299 )

Net income (loss) from continuing operations

  $ (139,824 )   $ 54,314     $ (85,510 )   $ 1,096     $ (84,414 )
                                         

Net income (loss) per share:

                                       

Basic and diluted - continuing operations

  $ (16.27 )                           $ (9.82 )

Weighted average common share outstanding:

                                       

Basic and diluted

    8,594,008                               8,594,008  

 

1 Represents Skillsoft's current best estimate of its unaudited pro forma consolidated balance sheet, reflecting the discontinued operations. Actual results could differ from these estimates.

The accompanying notes are an integral part of these unaudited pro forma consolidated financial statements.

 

4

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the year ended January 31, 2025

 

           

Discontinued

   

Continuing

   

Transaction

   

Pro

 
   

Historical

   

Operations (a)

   

Operations

   

Adjustments (b)

   

Forma (1)

 

Revenues:

                                       

Total revenues

  $ 530,994     $ (125,464 )   $ 405,530     $ -     $ 405,530  

Operating expenses:

                                       

Costs of revenues

    134,879       (72,714 )     62,165       -       62,165  

Content and software development

    60,757       (2,746 )     58,011       -       58,011  

Selling and marketing

    162,879       (38,886 )     123,993       -       123,993  

General and administrative

    92,364       (13,671 )     78,693       -       78,693  

Amortization of intangible assets

    127,216       (6,624 )     120,592       -       120,592  

Impairment of goodwill and intangible assets

    -       -       -       -       -  

Acquisition and integration related costs

    4,247       (6 )     4,241       -       4,241  

Restructuring

    18,273       (5,010 )     13,263       -       13,263  

Total operating expenses

    600,615       (139,657 )     460,958       -       460,958  

Operating income (loss)

    (69,621 )     14,193       (55,428 )     -       (55,428 )

Other income (expense), net

    677       10,810       11,487       -       11,487  

Fair value adjustment of interest rate swaps

    1,287       -       1,287       -       1,287  

Interest income

    3,526       (102 )     3,424       -       3,424  

Interest expense

    (63,516 )     -       (63,516 )     -       (63,516 )

Income (loss) before provision for (benefit from) income taxes

    (127,647 )     24,901       (102,746 )     -       (102,746 )

Provision for (benefit from) income taxes

    (5,739 )     1,547       (4,192 )     -       (4,192 )

Net income (loss) from continuing operations

  $ (121,908 )   $ 23,354     $ (98,554 )   $ -     $ (98,554 )
                                         

Net income (loss) per share:

                                       

Basic and diluted - continuing operations

  $ (14.87 )                           $ (12.02 )

Weighted average common share outstanding:

                                       

Basic and diluted

    8,200,077                               8,200,077  

 

1 Represents Skillsoft's current best estimate of its unaudited pro forma consolidated balance sheet, reflecting the discontinued operations. Actual results could differ from these estimates.

The accompanying notes are an integral part of these unaudited pro forma consolidated financial statements.

 

5

 

UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

For the year ended January 31, 2024

 

           

Discontinued

   

Continuing

   

Transaction

   

Pro

 
   

Historical

   

Operations (a)

   

Operations

   

Adjustments (b)

   

Forma (1)

 

Revenues:

                                       

Total revenues

  $ 553,237     $ (148,387 )   $ 404,850     $ -     $ 404,850  

Operating expenses:

                                       

Costs of revenues

    153,157       (86,987 )     66,170       -       66,170  

Content and software development

    68,031       (2,815 )     65,216       -       65,216  

Selling and marketing

    170,982       (46,406 )     124,576       -       124,576  

General and administrative

    95,896       (16,071 )     79,825       -       79,825  

Amortization of intangible assets

    152,511       (21,329 )     131,182       -       131,182  

Impairment of goodwill and intangible assets

    202,233       (64,929 )     137,304       -       137,304  

Acquisition and integration related costs

    5,063       (390 )     4,673       -       4,673  

Restructuring

    13,978       (5,631 )     8,347       -       8,347  

Total operating expenses

    861,851       (244,558 )     617,293       -       617,293  

Operating income (loss)

    (308,614 )     96,171       (212,443 )     -       (212,443 )

Other income (expense), net

    (1,986 )     17,194       15,208       -       15,208  

Fair value adjustments of warrants

    4,754       -       4,754       -       4,754  

Fair value adjustment of interest rate swaps

    2,756       -       2,756       -       2,756  

Interest income

    3,557       (321 )     3,236       -       3,236  

Interest expense

    (65,335 )     -       (65,335 )     -       (65,335 )

Income (loss) before provision for (benefit from) income taxes

    (364,868 )     113,044       (251,824 )     -       (251,824 )

Provision for (benefit from) income taxes

    (16,265 )     14,140       (2,125 )     -       (2,125 )

Net income (loss) from continuing operations

  $ (348,603 )   $ 98,904     $ (249,699 )   $ -     $ (249,699 )
                                         

Net income (loss) per share:

                                       

Basic and diluted - continuing operations

  $ (43.29 )                           $ (31.01 )

Weighted average common share outstanding:

                                       

Basic and diluted

    8,051,593                               8,051,593  

 

1 Represents Skillsoft's current best estimate of its unaudited pro forma consolidated balance sheet, reflecting the discontinued operations. Actual results could differ from these estimates.

The accompanying notes are an integral part of these unaudited pro forma consolidated financial statements.

 

6

 

NOTES TO UNAUDITED PRO FORMA CONSOLIDATED FINANCIAL STATEMENTS

 

(a) Discontinued Operations

 

For the fiscal years ended January 31, 2026, 2025 and 2024, reflects the removal of the historical operating results of the GK business in order to present the effects of the disposition as if it had occurred on February 1, 2023. For the three months ended April 30, 2026, the historical statements of operations already reflected the GK business as discontinued operations and therefore no adjustment was required to remove GK operating results from continuing operations. For the balance sheet as of April 30, 2026, reflects the removal of assets, liabilities and accumulated other comprehensive income attributable to the GK business in connection with the completed disposition.

 

(b) Transaction Adjustments

 

Reflects the estimated effects of the completed sale, including the consideration expected to be received under the SPA and transaction costs directly attributable to the disposition. For the unaudited pro forma condensed consolidated balance sheet, the adjustments reflect the recognition of the seller-financed note receivable, deferred consideration receivable and contingent consideration, the receipt of cash reflecting the effects of the working capital adjustments contemplated by the SPA, and the payment of investment banking fees. The seller-financed consideration and deferred consideration receivable are presented as current and long-term note receivables based on their respective contractual payment terms and are reflected net of applicable discounts. The contingent consideration represents the estimated fair value of Skillsoft's contractual right to receive a specified percentage of the proceeds from a subsequent sale of the GK business by the Buyer and was determined using a probability-weighted present value approach. Contingent consideration is included within other assets. Cash and cash equivalents reflects the net effect of cash proceeds received at closing and the payment of transaction-related costs.

 

For the unaudited pro forma condensed consolidated statements of operations, the adjustments reflect the estimated interest income associated with the seller-financed note receivable, including the accretion of applicable discounts. The transaction accounting adjustments are based on information available as of the date of these unaudited pro forma condensed consolidated financial statements and are subject to change as additional information becomes available.

 

7