Franklin Covey Company (FC)
NYSE:FC
Earnings Data
Report Date
Jul 01, 2026After Close (Confirmed)
Period Ending
2026 (Q3)Consensus EPS Forecast
0.27Last Year’s EPS
-0.11Same Quarter Last Year
Strong Buy
Based on 3 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call conveyed clear operational momentum—strength in invoiced amounts, deferred revenue, adjusted EBITDA, cash flow, contract signings, and Education momentum—while also acknowledging conversion timing from invoiced to reported revenue, some segment-level revenue declines, one-time costs and margin/mix pressures. Management reaffirmed FY26 guidance and emphasized structural opportunities (multiyear contracts, AI-related demand and cross-sell expansion), supporting confidence in stronger reported revenue and EBITDA in fiscal 2027.Company Guidance
Invoiced Amounts Growth
Consolidated invoiced amounts grew 5% year-over-year; Enterprise division invoiced amounts grew 7% to $52.0M, with Enterprise North America up 7% (10% excluding government) and Enterprise International invoiced amounts up 7% (International Direct Offices +14%).
Deferred Revenue Expansion
Consolidated deferred revenue balance increased 7% year-over-year to $101.5M; North America billed deferred subscription revenue grew 16% year-over-year to approximately $59M and the percentage of revenue under multiyear contracts increased to 62%.
Adjusted EBITDA and Profitability Progress
Adjusted EBITDA for Q2 was $4.1M, up 99% (an increase of $2.0M) compared with prior-year quarter; North America segment adjusted EBITDA rose $1.1M to $5.9M; International adjusted EBITDA improved to $1.0M from $0.5M.
Strong Free Cash Flow and Operating Cash Flow Turnaround
Q2 free cash flow was $13.2M versus negative $3.6M prior year; cash flow from operating activities for first two quarters increased 28% to $16.4M, driven by improved receivables collections and higher invoiced amounts.
Subscription & Contract Momentum
Consolidated subscription and subscription services revenue recognized increased 3% to $50.9M; consolidated subscription and committed services invoiced amounts rose 16% to $39.3M; total value of contracts signed grew 8% to $53.7M (Enterprise +12%).
Education Division Strength
Education reported revenue grew 16% in the quarter to $17.5M; Education subscription-related revenue increased 19% to $12.0M and Education adjusted EBITDA turned positive to $0.4M from a loss of $0.3M.
Cost Discipline and SG&A Reduction
Operating SG&A expenses declined 6% year-over-year to $41.2M, reflecting cost-reduction measures and restructuring actions that improved adjusted EBITDA and operating leverage.
Strong Liquidity and Capital Returns
Total liquidity over $76M (including $13.7M cash and a $62.5M undrawn credit facility). The company repurchased ~922k shares (~$16.5M) in Q2 and ~1.6M shares YTD (~$28.1M) under a $50M authorization, signaling confidence and shareholder returns.
Strategic Positioning Around AI and Client Expansion
Management emphasized increased demand for leadership and change-management services in AI transformations; reported one of the strongest expansion quarters and noted that current solutions typically reach only 5%–10% of employee populations, implying substantial internal growth opportunity.
FC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
FC Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 01, 2026 | $16.15 | $23.32 | +44.40% |
Jan 07, 2026 | $17.82 | $17.91 | +0.51% |
Nov 05, 2025 | $17.68 | $15.90 | -10.07% |
Jul 02, 2025 | $24.17 | $22.10 | -8.56% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Franklin Covey Company (FC) report earnings?
Franklin Covey Company (FC) is schdueled to report earning on Jul 01, 2026, After Close (Confirmed).
What is Franklin Covey Company (FC) earnings time?
Franklin Covey Company (FC) earnings time is at Jul 01, 2026, After Close (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is FC EPS forecast?
FC EPS forecast for the fiscal quarter 2026 (Q3) is 0.27.