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Note 10 - Revenue
 9 Months Ended
Oct. 31, 2025
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

(10)    Revenue

 

Revenue Components and Performance Obligations

 

Subscription Services

 

Skillsoft offers subscriptions that provide customers access to a broad spectrum of learning options including access to cloud-based Software as a Service (“SaaS”) learning content and individualized coaching. Our cloud-based subscription solutions normally do not provide customers with the right to take possession of the software supporting the platform or to download course content without continuing to incur fees for hosting services and, as a result, are accounted for as service arrangements. Access to the platform and course content represents a series of distinct services as we continually provide access to, and fulfill our obligation to, the customer over the subscription term. The series of distinct services represents a single performance obligation that is satisfied over time. Accordingly, the fixed consideration related to subscription revenue is usually recognized on a straight-line basis over the contract term, beginning on the date that the service is made available to the customer. Our subscription contracts typically vary from one year to three years. Our cloud-based solutions arrangements are mostly non-cancellable, non-refundable, and are invoiced in advance of the subscription services being provided. Revenue from individualized coaching for time-based access to unlimited sessions is recognized on a straight-line basis over the period these services are available to the customers.

 

Virtual, On-Demand and Classroom

 

Revenue from classroom training is recognized in the period in which the services are rendered. Revenue from virtual and on-demand training for time-based access to unlimited sessions is recognized on a straight-line basis over the period these services are available to the customers. Billing is in advance of the services being provided or immediately after the services have been provided.

 

Professional Services

 

Skillsoft also sells professional services related to its cloud solutions which are typically considered distinct performance obligations and are recognized over time as services are performed. For fixed-price contracts, revenue is recognized based on the actual service provided at the end of the reporting period as a proportion of the total services to be provided (proportional performance method). These services usually consist of implementation, integration, and general consulting. Skillsoft’s professional service engagements are mostly short in duration. Billing is commonly in advance of the services being provided.

 

Disaggregated Revenue and Geography Information

 

The following is a summary of revenues by segment and type for the periods presented (in thousands):

 

  

Three Months Ended October 31,

  

Nine Months Ended October 31,

 
  

2025

  

2024

  

2025

  

2024

 

TDS:

                

SaaS and subscription services

 $93,532  $97,123  $282,483  $285,927 

Professional services

  7,266   5,875   18,648   16,798 
  100,798  102,998  301,131  302,725 

GK:

                

Virtual, on-demand and classroom

  28,200   34,227   80,890   94,516 

Total net revenues

 $128,998  $137,225  $382,021  $397,241 

  

Generally, SaaS and subscription services revenues are recognized over the service period, while virtual, on demand, classroom and professional services revenues are recognized at the point they are delivered.

 

The following sets forth our revenues by geographic region for the periods presented (in thousands):

 

  

Three Months Ended October 31,

  

Nine Months Ended October 31,

 
  

2025

  

2024

  

2025

  

2024

 

Revenue:

                

United States

 $83,537  $88,960  $249,072  $262,292 

Europe, Middle East and Africa

  33,808   35,335   98,048   99,137 

Other Americas

  6,406   7,234   18,828   19,130 

Asia-Pacific

  5,247   5,696   16,073   16,682 

Total net revenues

 $128,998  $137,225  $382,021  $397,241 

 

Other than the United States, no single country accounted for more than 10% of revenue for all periods presented.

 

Deferred Revenue

 

Deferred revenue activity for the nine months ended October 31, 2025 was as follows (in thousands):

 

Deferred revenue as of January 31, 2025

 $283,951 

Billings deferred

  295,245 

Recognition of deferred revenue attributable:

    

Prior year deferred revenue

  (236,397)

Current year deferred revenue

  (145,624)

Deferred revenue as of October 31, 2025

 $197,175 

 

Deferred revenue performance obligations relate predominantly to time-based SaaS and subscription services that are billed in advance of services being rendered.

 

Deferred Contract Acquisition Costs

 

Deferred contract acquisition cost activity for the nine months ended October 31, 2025 was as follows (in thousands):

 

Deferred contract acquisition costs as of January 31, 2025

 $38,338 

Contract acquisition costs

  14,988 

Recognition of contract acquisition costs

  (21,309)

Deferred contract acquisition costs as of October 31, 2025

 $32,017