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Franklin Covey Company
(NYSE:FC)
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Rating:57Neutral
Price Target:
$19.50
▼(-4.18% Downside)
Action:Reiterated
Date:09/06/26
The score is held back primarily by sharply weaker TTM profitability and clearly bearish price momentum, with additional drag from a very high P/E and no dividend support. Offsetting these are a debt-free balance sheet and solid absolute cash generation, plus an earnings call that maintained EBITDA guidance and pointed to improving profitability and strong bookings/deferred revenue momentum despite a modest revenue guidance cut and near-term international/education funding headwinds.
Positive Factors
Recurring revenue visibility
Growing deferred revenue and committed subscription billings provide visibility beyond the current quarter and support a more predictable revenue base. The increase in services bookings and contracted fiscal 2027 work also indicates customer demand can translate into sustained future revenue.
Negative Factors
Profitability compression
The sharp decline in operating and net margins shows that strong gross profit is currently converting inefficiently into earnings. If elevated operating costs or weaker mix persist, modest revenue growth may produce limited bottom-line improvement and constrain internal capital generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring revenue visibility
Growing deferred revenue and committed subscription billings provide visibility beyond the current quarter and support a more predictable revenue base. The increase in services bookings and contracted fiscal 2027 work also indicates customer demand can translate into sustained future revenue.
Read all positive factors
Franklin Covey Company (FC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$214.81M
Dividend YieldN/A
Average Volume (3M)72.78K
Price to Earnings (P/E)105.7
Beta (1Y)1.46
Revenue Growth-6.14%
EPS Growth-78.29%
CountryUS
Employees1,120
SectorGeneral
Sector StrengthN/A
IndustryEducation & Training Services
Share Statistics
EPS (TTM)0.18
Shares Outstanding11,293,873
10 Day Avg. Volume62,071
30 Day Avg. Volume72,783
Financial Highlights & Ratios
PEG Ratio-0.94
Price to Book (P/B)3.78
Price to Sales (P/S)0.95
P/FCF Ratio20.92
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$31.00Price Target Upside52.33% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.99
Revenue Forecast (FY)$278.66M
Franklin Covey Company Business Overview & Revenue Model
Company Description
Franklin Covey Co. provides specialized training and advisory services across the globe, assisting both businesses and individuals. The company's expertise lies in critical areas like operational efficiency, improving sales results, enhancing over...
How the Company Makes Money
Franklin Covey primarily makes money by selling learning and development solutions that combine proprietary content with delivery and advisory services. Its key revenue streams include: (1) Subscription and license revenue: recurring fees from org...
Franklin Covey Company Earnings Call Summary
Earnings Call Date:Jul 01, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Positive
The call communicated clear underlying momentum in recurring subscription and services bookings (subscription/committed invoiced +17%, services bookings +25% YTD, deferred revenue +7% company / +18% NA billed), improved adjusted EBITDA and net income, and maintained EBITDA guidance despite a modest revenue guidance reduction driven by timing and geopolitical items. Key short-term challenges include China and international headwinds, a delayed statewide education funding (~$2M immediate impact, larger FY effect), a YoY gross margin decline, and negative free cash flow in the quarter. Management emphasized operational resilience, go-to-market transformation payoff in Enterprise North America, and positioning for accelerated growth in fiscal 2027. Overall, the positives around bookings, deferred revenue runway, profitability improvements, and liquidity outweigh the transitory challenges discussed.Positive Updates
Maintained Adjusted EBITDA Guidance Despite Revenue Revision
Company revised fiscal 2026 revenue guidance down to $260M–$267M due to timing and geopolitical shifts but maintained prior adjusted EBITDA guidance of $28M–$31M, signaling cost discipline and margin management.
Negative Updates
Revenue Guidance Reduced Due to Timing and Geopolitics
Revenue guidance cut to $260M–$267M primarily from a $2M timing shift of a contracted enterprise services delivery, a ~$2M education statewide funding delay, and roughly $2M headwind from a challenging international environment.
Read all updates
Q3-2026 Updates
Positive
Negative
Maintained Adjusted EBITDA Guidance Despite Revenue Revision
Company revised fiscal 2026 revenue guidance down to $260M–$267M due to timing and geopolitical shifts but maintained prior adjusted EBITDA guidance of $28M–$31M, signaling cost discipline and margin management.
Read all positive updates
Company Guidance
Management revised fiscal 2026 revenue guidance to $260–$267 million while maintaining adjusted EBITDA guidance at $28–$31 million (in a narrower range), citing a ~$2M timing shift of previously invoiced Enterprise North America services, up to $2M of delayed statewide education funding and roughly $2M of international/geopolitical headwinds. They pointed to supporting momentum: consolidated deferred revenue up 7% YoY to $96M, Enterprise North America billed deferred revenue up 18% to $58M, consolidated subscription and contractually committed invoiced amounts up 17% in Q3 to $37M, services booking pace up >25% YTD and materially more services already contracted for fiscal 2027. Quarter highlights included Q3 reported revenue $67.8M (+1% YoY), Q3 adjusted EBITDA $8.3M (+14% YoY), gross margin 73.9% (vs. 76.5% prior year), enterprise = 71% of revenue, education = $19M (+2%) with education subscription revenue +11% in Q3 (+14% YTD), liquidity >$74M (including $12M cash and a $62.5M credit facility), ~1.6M shares repurchased for $28.1M YTD ($50M authorization; $20M remaining), operating cash flow YTD $17.5M (‑8%) and Q3 free cash flow of ‑$1M.Franklin Covey Company Financial Statement Overview
Summary
Income Statement
55
Neutral
Balance Sheet
72
Positive
Cash Flow
63
Positive
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 262.75M | 267.07M | 287.23M | 280.52M | 262.84M | 224.17M |
| Gross Profit | 192.14M | 203.57M | 221.07M | 213.49M | 201.91M | 172.90M |
| EBITDA | 14.83M | 14.43M | 46.25M | 39.98M | 38.17M | 23.82M |
| Net Income | 2.19M | 3.07M | 23.40M | 17.78M | 18.43M | 13.62M |
Balance Sheet | ||||||
| Total Assets | 198.01M | 242.91M | 261.54M | 245.92M | 259.15M | 249.65M |
| Cash, Cash Equivalents and Short-Term Investments | 11.97M | 31.70M | 48.66M | 38.23M | 60.52M | 47.42M |
| Total Debt | 0.00 | 7.82M | 6.03M | 15.33M | 24.26M | 32.86M |
| Total Liabilities | 155.07M | 176.00M | 178.40M | 167.26M | 176.34M | 169.79M |
| Stockholders Equity | 42.94M | 66.91M | 83.14M | 78.65M | 82.81M | 79.86M |
Cash Flow | ||||||
| Free Cash Flow | 17.23M | 12.09M | 56.56M | 22.19M | 46.92M | 42.07M |
| Operating Cash Flow | 27.41M | 28.98M | 60.26M | 35.74M | 52.25M | 46.18M |
| Investing Cash Flow | -17.42M | -16.89M | -11.31M | -13.55M | -5.33M | -14.31M |
| Financing Cash Flow | -41.90M | -28.78M | -38.66M | -44.18M | -32.67M | -11.48M |
Franklin Covey Company Technical Analysis
Negative
20.35
Price Trends
21.01
Negative
21.93
Negative
19.38
Negative
Market Momentum
-0.55
Positive
39.09
Neutral
21.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FC, the sentiment is Negative. The current price of 20.35 is above the 20-day moving average (MA) of 20.02, below the 50-day MA of 21.01, and above the 200-day MA of 19.38, indicating a bearish trend. The MACD of -0.55 indicates Positive momentum. The RSI at 39.09 is Neutral, neither overbought nor oversold. The STOCH value of 21.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FC.
Franklin Covey Company Risk Analysis
Franklin Covey Company disclosed 29 risk factors in its most recent earnings report. Franklin Covey Company reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Franklin Covey Company Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $2.47B | 22.77 | 25.53% | ― | 13.60% | 14.77% | |
68 Neutral | $1.58B | 18.11 | 8.57% | 0.64% | -7.89% | -16.13% | |
67 Neutral | $1.07B | 22.49 | 24.76% | 1.33% | 11.46% | -9.16% | |
57 Neutral | $214.81M | 105.67 | 4.33% | ― | -6.14% | -78.29% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
53 Neutral | $240.84M | -5.65 | -33.27% | 1.84% | -7.54% | 52.04% | |
48 Neutral | $138.98M | -3.35 | -21.44% | 6.94% | -18.02% | 79.32% |
* General Sector Average
FC
Franklin Covey Company
19.02
-0.17
-0.89%
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170.91
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FORR
Forrester Research
12.65
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27.26%
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Huron Consulting
155.27
15.96
11.46%
ICFI
Icf International
88.00
-6.80
-7.17%
RGP
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4.04
-0.79
-16.37%
Franklin Covey Company Corporate Events
Business Operations and StrategyExecutive/Board Changes
FranklinCovey Announces Key Leadership Changes and Succession Plans
Positive
Sep 1, 2026
On September 1, 2026, FranklinCovey announced a series of leadership changes, including the appointment of longtime executive and author M. Sean Covey as Chief Product Officer, shifting him from his role as President of the Education Division. The...
Business Operations and StrategyFinancial Disclosures
Franklin Covey Reports Q3 Results, Lowers 2026 Guidance
Neutral
Jul 1, 2026
Franklin Covey Co. reported its fiscal third-quarter 2026 results, for the period ended May 31, 2026, with consolidated revenue edging up 1% year over year to $67.8 million, driven by growth in both the Enterprise and Education divisions and a 4% ...
Financial Disclosures
Franklin Covey Schedules Q3 2026 Results Conference Call
Neutral
Jun 17, 2026
Franklin Covey Co. announced it will hold a conference call to review its third-quarter 2026 financial results on Wednesday, July 1, 2026, at 5:00 p.m. ET, with results scheduled for release after the market close that same day. Investors and othe...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.