Franklin Covey Company (FC) AI Stock Analysis

• Market Cap: $239.95M
• Dividend Yield: N/A
• Average Volume (3M): 125.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.23
• Revenue Growth: -7.02%
• EPS Growth: -86.27%
• Country: US
• Employees: 1,084
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Consulting Services
• EPS (TTM): -0.27
• Shares Outstanding: 11,552,552
• 10 Day Avg. Volume: 158,503
• 30 Day Avg. Volume: 125,286
• PEG Ratio: -0.95
• Price to Book (P/B): 3.78
• Price to Sales (P/S): 0.95
• P/FCF Ratio: 20.92
• Enterprise Value/Market Cap: 0.97
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 24.29
• 1Y Price Target: $28.33
• Price Target Upside: 36.40% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.83
• Revenue Forecast (FY): $267.12M

• Rating: 58 Neutral
• Price Target: $22.00 ▲(5.92% Upside)

The score is held back mainly by weakened profitability and sharply lower free cash flow despite strong gross margins and a low-leverage balance sheet. Technicals are supportive but appear overextended, while valuation is weak due to negative earnings. Reaffirmed guidance and improving invoiced/deferred revenue trends provide some offset, but near-term financial headwinds remain prominent.

Positive Factors

High gross margins (~76%)

Sustained ~76% gross margins reflect durable pricing power and high-value intellectual property in training and digital content. Strong underlying unit economics provide a structural cushion for profitability, enabling the company to absorb SG&A variability and fund product development over multiple years.

Conservative, low-debt balance sheet

Very low leverage reduces interest expense risk and preserves financial flexibility. This allows management to pursue buybacks, fund go-to-market investments, or absorb cyclical revenue swings without forced refinancing, supporting multi-quarter resilience and strategic optionality.

Rising deferred revenue and new-logo subscription momentum

Growing deferred revenue and strong new-logo subscription invoicing signal expanding recurring revenue and pipeline conversion from the go-to-market change. Higher services attach and multiyear contracted amounts increase revenue visibility and support durable future revenue, margin, and cash-flow improvement.

Negative Factors

Profitability deterioration to near-breakeven

A material step-down from prior-year profitability undermines return generation and raises questions about cost structure and operating leverage. If margins and earnings do not recover, the company may face constrained reinvestment capacity and weaker returns on equity over multiple quarters.

Sharp decline in free cash flow

An ~82% TTM FCF decline and negative Q1 free cash flow indicate weakened cash conversion and possible working-capital or timing issues. Persistent FCF weakness would limit organic investment, reduce buffer for buybacks or acquisitions, and increase reliance on credit facilities over the medium term.

Revenue volatility and international/China headwinds

Declining reported revenue with specific China weakness and Education contract timing shows structural revenue predictability risk. Reliance on large, lumpy deals and geopolitical exposure can create multi-quarter volatility, complicating forecasting and consistent revenue expansion outside North America.

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 segments: Direct Offices, International Licensees, and Education Practice. It also provides a suite of individual-effectiveness and leadership-development training and products. The company was incorporated in 1983 and is headquartered in Salt Lake City, Utah.

How the Company Makes Money

Franklin Covey generates revenue through several key channels. Its primary revenue streams include corporate training programs, workshops, and consulting services, which cater to organizations seeking to improve employee performance and leadership skills. Additionally, the company earns income from the sale of books, online courses, and digital learning resources. FC has established significant partnerships with various corporations and educational institutions that facilitate the delivery of its training programs. Furthermore, the company offers subscription-based access to its digital learning platforms, which provides a recurring revenue model. By diversifying its offerings and leveraging its intellectual property, Franklin Covey effectively capitalizes on the growing demand for personal and professional development solutions.

Franklin Covey Company Financial Statement Overview

Summary

Strong gross margin (~76%) and a conservative, low-debt balance sheet support resilience, but TTM profitability has deteriorated to near-breakeven and free cash flow has fallen sharply (down ~82% TTM), weakening near-term earnings and cash generation quality.

Income Statement

TTM (Trailing-Twelve-Months) revenue is slightly down (-1.9%) and profitability has weakened materially versus prior annual periods, with a small net loss and low operating margin. That said, gross margin remains very strong and stable (~76%), indicating solid underlying pricing/premium content economics. The main drawback is the sharp step-down from FY2024’s much higher operating and net profitability to near-breakeven TTM results, raising questions on cost discipline and near-term earnings power.

Balance Sheet

The balance sheet is conservatively positioned with very low debt relative to equity in both TTM (Trailing-Twelve-Months) and the latest annual period, which meaningfully reduces financial risk and interest burden. Equity is positive and sizeable, supporting resilience. The key watch-out is that returns on equity have fallen sharply from prior years’ elevated levels, consistent with the recent profitability compression.

Cash Flow

TTM (Trailing-Twelve-Months) cash generation is mixed: operating cash flow remains positive, but free cash flow has dropped sharply (down ~82% TTM) versus the prior annual period. Cash conversion has also weakened versus the strong prior-year profile where free cash flow was a large share of earnings. The positive is that the company is still producing cash from operations, but the steep decline in free cash flow suggests pressure from working capital, investment needs, or reduced operating profitability.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	267.07M	287.23M	280.52M	262.84M	224.17M
Gross Profit	203.57M	221.07M	213.49M	201.91M	172.90M
EBITDA	14.43M	46.25M	39.98M	38.17M	23.82M
Net Income	3.07M	23.40M	17.78M	18.43M	13.62M
Balance Sheet
Total Assets	242.91M	261.54M	245.92M	259.15M	249.65M
Cash, Cash Equivalents and Short-Term Investments	31.70M	48.66M	38.23M	60.52M	47.42M
Total Debt	7.82M	6.03M	15.33M	24.26M	32.86M
Total Liabilities	176.00M	178.40M	167.26M	176.34M	169.79M
Stockholders Equity	66.91M	83.14M	78.65M	82.81M	79.86M
Cash Flow
Free Cash Flow	12.09M	56.56M	22.19M	46.92M	42.07M
Operating Cash Flow	28.98M	60.26M	35.74M	52.25M	46.18M
Investing Cash Flow	-16.89M	-11.31M	-13.55M	-5.33M	-14.31M
Financing Cash Flow	-28.78M	-38.66M	-44.18M	-32.67M	-11.48M

Franklin Covey Company Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 20.77
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 20.77 is above the 20-day moving average (MA) of 18.76, above the 50-day MA of 16.99, and above the 200-day MA of 19.41, indicating a bullish trend. The MACD of 1.16 indicates Negative momentum. The RSI at 73.38 is Negative, neither overbought nor oversold. The STOCH value of 85.05 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FC.

Franklin Covey Company Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRAI	78 Outperform	$1.37B	25.96	27.83%	0.97%	8.69%	34.58%
HURN	75 Outperform	$2.95B	28.72	21.20%	―	12.50%	29.40%
ICFI	74 Outperform	$1.79B	18.08	9.88%	0.65%	-3.81%	-7.05%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
FC	58 Neutral	$239.95M	-175.13	-2.08%	―	-7.02%	-86.27%
RGP	52 Neutral	$147.07M	-1.09	-61.44%	6.74%	-10.83%	-1669.11%
FORR	42 Neutral	$152.02M	-1.78	-43.39%	―	-8.73%	-1168.15%

Franklin Covey Company Corporate Events

Franklin Covey Shareholders Back Board, Pay and Auditor

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 Bever, Paul S. Walker, and Robert A. Whitman, to serve until the next annual meeting or until their successors are elected and qualified. Shareholders also approved, on an advisory basis, the company’s executive compensation program and ratified the appointment of Deloitte & Touche LLP as the independent registered public accounting firm for the fiscal year ending August 31, 2026, signaling continued investor support for the current leadership, pay practices, and audit oversight framework.

The most recent analyst rating on (FC) stock is a Hold with a $21.00 price target. To see the full list of analyst forecasts on Franklin Covey Company stock, see the FC Stock Forecast page.

Franklin Covey Posts Q1 Loss But Reaffirms 2026 Outlook

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.

Franklin Covey to Announce Fiscal Q1 2026 Results

Franklin Covey Co. announced plans to release its fiscal first-quarter 2026 financial results after the market closes on Wednesday, January 7, 2026, followed by a conference call that same day at 5:00 p.m. ET to review the numbers. The company will offer investors and other interested parties access to the discussion via a live webcast and a pre-registered telephone option, with an archived replay available on its website for at least 30 days, underscoring its ongoing efforts to maintain transparency and engagement with stakeholders around its financial performance.

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.

Franklin Covey Reports Q4 2025 Financial Results

On October 22, 2025, Franklin Covey Co. announced its financial results for the fourth quarter and fiscal year 2025, reporting consolidated revenue of $71.2 million for Q4 and $267.1 million for the full fiscal year, both within guidance ranges. The company experienced a decrease in Enterprise Division revenue due to macroeconomic uncertainties and geopolitical trade tensions, while the Education Division remained stable. Despite these challenges, Franklin Covey completed a go-to-market transformation and anticipates strong growth in fiscal 2026, with a focus on expanding its client base and increasing services bookings.

The most recent analyst rating on (FC) stock is a Hold with a $21.50 price target. To see the full list of analyst forecasts on Franklin Covey Company stock, see the FC Stock Forecast page.