FC

In the past six months, Franklin Covey Co. reported its Q1 and Q2 fiscal year 2026 financial results. For Q1 FY2026, revenue was $64.05 million, missing estimates, with an 8% decline in the Enterprise division and a 2% decrease in the Education Division, though overall subscription and committed services grew by 5%. The company's Q2 FY2026 results showed consolidated revenue of $59.6 million, which was flat year-over-year but exceeded analyst expectations by 1.6%. However, the company posted a net loss of $(2.0) million, or $(0.17) per share, missing the forecasted gain. Despite the earnings miss, adjusted EBITDA increased by 99% to $4.1 million in Q2 FY2026, and operating cash flow significantly improved to $16.3 million in the first half of fiscal 2026 from a negative $1.4 million in the prior-year period. Deferred revenue also increased by 7% to $101.5 million. The Enterprise North America segment saw invoiced amounts grow by 7% for the second consecutive quarter, and the Education Division's revenue increased by 16%. The company also purchased $17.0 million of common stock during Q2 FY2026 and reaffirmed its annual guidance for fiscal 2026.