Franklin Covey Company (FC)
NYSE:FC
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Franklin Covey Company
(NYSE:FC)
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Rating:64Neutral
Price Target:
$25.00
▲(14.84% Upside)
Action:ReiteratedDate:04/03/26
The score is driven primarily by mixed fundamentals: a strong, low-leverage balance sheet and high gross margins, but weakened TTM profitability and sharply lower free cash flow versus the prior year. Technicals are a clear positive with an established uptrend, though near-term overbought signals add caution. Valuation is constrained by a negative P/E, while the latest earnings call was constructive on guidance and leading indicators, partially offset by GAAP losses and revenue recognition timing risk.
Positive Factors
High gross margins
Sustained ~76% gross margins reflect durable pricing power from proprietary content and low variable delivery costs. High gross margins create structural operating leverage: if revenue converts, incremental sales flow quickly to EBITDA, supporting long-term profitability and reinvestment capacity.
Negative Factors
Earnings compression / GAAP loss
A material step-down in trailing profitability to near-breakeven reduces internal capital availability and questions sustainability of prior returns. If persistent, compressed earnings hinder reinvestment in content, slow margin recovery, and limit ability to rebuild operating reserves across cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained ~76% gross margins reflect durable pricing power from proprietary content and low variable delivery costs. High gross margins create structural operating leverage: if revenue converts, incremental sales flow quickly to EBITDA, supporting long-term profitability and reinvestment capacity.
Read all positive factors
Franklin Covey Company (FC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$251.50M
Dividend YieldN/A
Average Volume (3M)251.53K
Price to Earnings (P/E)―
Beta (1Y)1.45
Revenue Growth-7.02%
EPS Growth-86.27%
CountryUS
Employees1,084
SectorConsumer Defensive
Sector Strength42
IndustryConsulting Services
Share Statistics
EPS (TTM)-0.17
Shares Outstanding11,552,552
10 Day Avg. Volume349,665
30 Day Avg. Volume251,532
Financial Highlights & Ratios
PEG Ratio-0.95
Price to Book (P/B)3.78
Price to Sales (P/S)0.95
P/FCF Ratio20.92
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue0.95
Enterprise Value/Gross Profit1.26
Enterprise Value/Ebitda25.94
Forecast
1Y Price Target
$28.33Price Target Upside30.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)0.54
Revenue Forecast (FY)$267.11M
Franklin Covey Company Business Overview & Revenue Model
Company Description
Franklin Covey Co. provides training and consulting services in the areas of execution, sales performance, productivity, customer loyalty, and educational improvement for organizations and individuals worldwide. The company operates through three ...
How the Company Makes Money
Franklin Covey makes money primarily by selling leadership development and performance-improvement solutions to organizations under a few recurring and service-based revenue streams. A major source of revenue is subscription-based access to its co...
Franklin Covey Company Earnings Call Summary
Earnings Call Date:Apr 01, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jul 01, 2026
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.Positive Updates
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%).
Negative Updates
Flat Reported Revenue
Total reported revenue for Q2 was $59.6M, essentially flat year-over-year, as a 4% decline in Enterprise reported revenue was offset by Education growth.
Read all updates
Q2-2026 Updates
Positive
Negative
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%).
Read all positive updates
Company Guidance
Management reaffirmed fiscal 2026 guidance of $265–$275 million in revenue and $28–$33 million of adjusted EBITDA, while forecasting continued solid invoiced‑amounts growth that should position the company for accelerating reported revenue, adjusted EBITDA and cash flow in fiscal 2027; Q2 metrics cited in support include consolidated invoiced amounts up 5% (Enterprise invoiced +7%; Enterprise North America ex‑government +10%), consolidated deferred revenue of $101.5M (up 7% YoY), consolidated subscription/committed services invoiced $39.3M (up 16%), and one‑quarter patterns with ~50–55% of back‑half revenue expected in Q4 and ~60–65% of FY26 adjusted EBITDA generated in Q4. Management also reiterated free cash flow will be positive (YTD operating cash flow $16.4M; Q2 free cash flow $13.2M), liquidity of >$76M (cash $13.7M plus $62.5M credit facility), ongoing share repurchases (≈1.6M shares for $28.1M YTD; $50M authorization with ~$20M remaining), and a plan to update FY27 guidance in the fall while targeting roughly a 1‑point per year improvement in adjusted EBITDA margin toward prior ~20% levels.Franklin Covey Company Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
78
Positive
Cash Flow
48
Neutral
| Breakdown | TTM | Aug 2025 | Aug 2024 | Aug 2023 | Aug 2022 | Aug 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 262.03M | 267.07M | 287.23M | 280.52M | 262.84M | 224.17M |
| Gross Profit | 197.45M | 203.57M | 221.07M | 213.49M | 201.91M | 172.90M |
| EBITDA | 9.57M | 14.43M | 46.25M | 39.98M | 38.17M | 23.82M |
| Net Income | -1.40M | 3.07M | 23.40M | 17.78M | 18.43M | 13.62M |
Balance Sheet | ||||||
| Total Assets | 221.26M | 242.91M | 261.54M | 245.92M | 259.15M | 249.65M |
| Cash, Cash Equivalents and Short-Term Investments | 17.52M | 31.70M | 48.66M | 38.23M | 60.52M | 47.42M |
| Total Debt | 831.00K | 7.82M | 6.03M | 15.33M | 24.26M | 32.86M |
| Total Liabilities | 167.25M | 176.00M | 178.40M | 167.26M | 176.34M | 169.79M |
| Stockholders Equity | 54.01M | 66.91M | 83.14M | 78.65M | 82.81M | 79.86M |
Cash Flow | ||||||
| Free Cash Flow | 3.29M | 12.09M | 56.56M | 22.19M | 46.92M | 42.07M |
| Operating Cash Flow | 14.93M | 28.98M | 60.26M | 35.74M | 52.25M | 46.18M |
| Investing Cash Flow | -17.88M | -16.89M | -11.31M | -13.55M | -5.33M | -14.31M |
| Financing Cash Flow | -32.59M | -28.78M | -38.66M | -44.18M | -32.67M | -11.48M |
Franklin Covey Company Technical Analysis
Positive
21.77
Price Trends
16.00
Positive
16.54
Positive
17.93
Positive
Market Momentum
1.91
Negative
75.49
Negative
79.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FC, the sentiment is Positive. The current price of 21.77 is above the 20-day moving average (MA) of 15.31, above the 50-day MA of 16.00, and above the 200-day MA of 17.93, indicating a bullish trend. The MACD of 1.91 indicates Negative momentum. The RSI at 75.49 is Negative, neither overbought nor oversold. The STOCH value of 79.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (62)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $2.15B | 28.72 | 21.03% | ― | 12.50% | 29.40% | |
70 Outperform | $1.10B | 24.31 | 26.10% | 0.97% | 8.69% | 34.58% | |
64 Neutral | $251.50M | -18.76 | -4.11% | ― | -7.02% | -86.27% | |
62 Neutral | $20.33B | 14.63 | -3.31% | 3.23% | 1.93% | -12.26% | |
60 Neutral | $1.26B | 17.06 | 9.11% | 0.65% | -3.81% | -7.05% | |
46 Neutral | $102.02M | -1.29 | -80.76% | ― | -8.73% | -1168.15% | |
45 Neutral | $117.93M | -3.17 | -59.80% | 6.74% | -10.83% | -1669.11% |
* Consumer Defensive Sector Average
FC
Franklin Covey Company
21.77
0.70
3.32%
CRAI
Cra International
166.87
-1.74
-1.03%
FORR
Forrester Research
5.32
-4.06
-43.28%
HURN
Huron Consulting
130.00
-14.11
-9.79%
ICFI
Icf International
69.20
-13.46
-16.29%
RGP
Resources Connection
3.52
-1.76
-33.33%
Franklin Covey Company Corporate Events
Business Operations and StrategyStock BuybackFinancial Disclosures
Franklin Covey Reports Q2 Results, Reaffirms 2026 Outlook
Positive
Apr 1, 2026
Franklin Covey reported second quarter fiscal 2026 results for the period ended February 28, 2026, with consolidated revenue flat year over year at $59.6 million but invoiced amounts up 5 percent and subscription-related invoicing up 16 percent. E...
Financial Disclosures
Franklin Covey Schedules Q2 2026 Earnings Conference Call
Neutral
Mar 18, 2026
Franklin Covey Co. announced it will hold a conference call to review its second quarter 2026 financial results on Wednesday, April 1, 2026, at 5:00 p.m. ET, with results expected to be released after the market close that same day. The company wi...
Executive/Board ChangesShareholder Meetings
Franklin Covey Shareholders Back Board, Pay and Auditor
Positive
Jan 23, 2026
At its Annual Meeting of Shareholders held on January 23, 2026, Franklin Covey Co. reported that shareholders elected all nominated directors, including Anne H. Chow, Craig Cuffie, Donald J. McNamara, Nancy Phillips, Efrain Rivera, Derek C.M. van ...
Business Operations and StrategyStock BuybackFinancial Disclosures
Franklin Covey Posts Q1 Loss But Reaffirms 2026 Outlook
Negative
Jan 7, 2026
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...
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.