Franklin Covey Co. (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.

Franklin Covey Co. experiences normal demand seasonality for its products and services, with approximately 45% to 50% of its fiscal year revenue typically recognized in the first half of the fiscal year. This seasonality is particularly notable within the Education Division.

Franklin Covey Co. is a global performance improvement company specializing in organizational performance improvement, leadership development, and individual effectiveness, operating within the business consulting, talent development, and education and training services sectors. The company provides training and assessment services to organizations and individuals, offering individual-effectiveness and leadership-development training programs such as "The 7 Habits of Highly Effective People" and "The Speed of Trust". Franklin Covey has transitioned to a subscription-based model, with its "All Access Pass" providing unlimited access to its content, training, processes, and tools.

Franklin Covey Co. has a broad international presence, serving clients in over 150 countries and territories with solutions translated into 24 languages. The company operates through various segments, including North America, International Direct Offices, International Licensees, and an Education Division. Their global offices and sales channels extend across the Americas, Africa/Middle East, Europe, and Asia Pacific.

Franklin Covey Co. maintains a strong brand reputation, particularly in leadership development and organizational performance improvement. The company has been recognized multiple times by Training Industry, being named to their Top 20 Training Companies list for its best-in-class leadership solutions. In the past year, Franklin Covey has continued to focus on strategic initiatives to enhance its offerings and reputation, including providing customized solutions for healthcare organizations and leveraging AI to enhance its offerings.

Franklin Covey Co.'s ownership is a blend of institutional investors, individual shareholders, and insider holdings. Institutional investors collectively hold the largest portion of the stock, with approximately 78% of outstanding shares. Key institutional holders include BlackRock, Inc., The Vanguard Group, Inc., and Royce & Associates LP. Insider ownership is also substantial, with individuals like Donald J. McNamara being the largest individual shareholder. Retail investors hold approximately 45.84% of the company's stock according to some data.