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Franklin Covey Posts Q1 Loss But Reaffirms 2026 Outlook

Story Highlights
  • Franklin Covey’s Q1 FY2026 revenue and earnings declined, turning a profit into a net loss amid weaker Enterprise and Education division sales.
  • Despite lower cash flow, Franklin Covey maintained strong liquidity, aggressively repurchased stock, and reaffirmed 2026 guidance tied to its go-to-market transformation.
  • Looking for the best stocks to buy? Follow the recommendations of top-performing analysts.
Franklin Covey Posts Q1 Loss But Reaffirms 2026 Outlook

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Franklin Covey Company ( (FC) ) has provided an announcement.

On December 22, 2025, Franklin Covey reported its fiscal first-quarter 2026 results for the period ended November 30, 2025, posting consolidated revenue of $64.0 million, down from $69.1 million a year earlier, and shifting from net income of $1.2 million to a net loss of $3.3 million, as Adjusted EBITDA fell to $3.7 million from $7.7 million. Enterprise Division revenue declined to $47.5 million amid macroeconomic uncertainty, geopolitical trade tensions and canceled U.S. federal contracts, although invoiced amounts in Enterprise North America rose 7% (13% excluding government business) and deferred subscription revenue in that division climbed 7%, while Education Division revenue dipped slightly to $16.1 million as higher training, coaching and subscription sales were offset by lower materials revenue. Despite weaker cash generation—free cash flow swung to negative $3.7 million and cash balances fell to $17.5 million—liquidity remained above $80 million with no credit facility drawdowns, and the company repurchased about 624,000 shares for $11.1 million and reaffirmed its fiscal 2026 guidance of $265 million–$275 million in revenue and $28 million–$33 million in Adjusted EBITDA, signaling management’s confidence that its completed go-to-market transition and cost actions will drive stronger invoiced growth and improved results from the back half of 2026 into 2027.

The most recent analyst rating on (FC) stock is a Buy with a $38.00 price target. To see the full list of analyst forecasts on Franklin Covey Company stock, see the FC Stock Forecast page.

Spark’s Take on FC Stock

According to Spark, TipRanks’ AI Analyst, FC is a Neutral.

Franklin Covey’s overall stock score reflects a challenging financial performance with bearish technical indicators. While the earnings call provided a positive outlook for future growth, current valuation concerns and liquidity risks weigh on the score. Strategic investments and AI integration are promising but need to translate into tangible financial improvements.

To see Spark’s full report on FC stock, click here.

More about Franklin Covey Company

Franklin Covey Co. (NYSE: FC), based in Salt Lake City, is a leader in organizational performance improvement, providing content, training, processes and tools designed to drive systemic changes in human behavior for enterprises and educational institutions worldwide. The company operates primarily through its Enterprise and Education divisions, with a subscription-driven model that emphasizes multi-year contracts and recurring revenue from training, coaching and membership services.

Average Trading Volume: 125,343

Technical Sentiment Signal: Sell

Current Market Cap: $206.2M

See more data about FC stock on TipRanks’ Stock Analysis page.

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