Franklin Covey ( (FC) ) has released its Q3 earnings. Here is a breakdown of the information Franklin Covey presented to its investors.
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Franklin Covey Co. is a leading organizational performance improvement company that provides content, training, and tools to drive systemic changes in human behavior across various sectors, including enterprise and education. In its third quarter fiscal 2025 earnings report, Franklin Covey announced consolidated revenue of $67.1 million, which fell within the company’s guidance range. Despite facing a net loss of $1.4 million due to restructuring costs, the company exceeded its guidance for Adjusted EBITDA, achieving $7.3 million. The company also reported strong liquidity with over $95 million available, including $33.7 million in cash.
Franklin Covey’s financial performance in Q3 FY2025 was impacted by macroeconomic uncertainties and geopolitical trade tensions, leading to a decrease in revenue across its Enterprise and Education divisions compared to the previous year. The Enterprise Division saw a decline in North America and International Direct Office revenues, while the Education Division experienced reduced materials revenue. However, the company noted an increase in training, coaching, and subscription revenues, with deferred subscription revenue rising by 7% year-over-year.
The company’s strategic initiatives, including a sales transformation in its Enterprise North America business, have begun to show positive results, with an increase in new clients and strong client retention. Multi-year subscription contracts have also grown, indicating a stable future revenue stream. Despite the challenges, Franklin Covey remains optimistic about its growth prospects, expecting to accelerate revenue growth and achieve significant increases in Adjusted EBITDA and free cash flow in fiscal 2026.
Looking ahead, Franklin Covey has updated its fiscal 2025 guidance, projecting total revenue between $265 million and $275 million and Adjusted EBITDA between $28 million and $33 million. The company is committed to creating long-term value for shareholders and customers by focusing on strategic initiatives and managing through current macroeconomic headwinds.