Franklin Covey Reports Second Quarter Fiscal 2026 Financial Results
SALT LAKE CITY--( BUSINESS WIRE)--Franklin Covey Co. (NYSE: FC), a global leadership and organizational performance partner, gives strategy the human edge. We help clients achieve breakthrough results and transform how they execute strategy at scale. Today, the Company announced its financial results for the second quarter of fiscal 2026, which ended on February 28, 2026.
Second Quarter Fiscal 2026 Financial Overview
The Company’s consolidated revenue for Q2 FY2026 was $59.6 million, which was flat to Q2 FY2025. Consolidated invoiced amounts for Q2 FY2026 grew 5% over the prior year. The Company’s financial results for Q2 FY2026 include the following:
Paul Walker, President and Chief Executive Officer, commented, “Our second quarter results reflect the importance of what we do and the traction of our go-to-market transformation. We delivered our second consecutive quarter of 7% invoiced growth in Enterprise North America as strong execution on our go‑to‑market strategy continues to gain traction. We believe we are at an inflection point where the return on investment from our transformation is becoming evident.
"This momentum comes as AI is reshaping how work gets done, and we are seeing increased demand for FranklinCovey's expertise in helping organizations strengthen the human side of execution—leadership, trust, change management, sales performance, collaboration, and disciplined execution. FranklinCovey is uniquely positioned as a long-term performance partner, helping organizations navigate AI‑driven opportunities and complexities to deliver sustained performance.”
Jessi Betjemann, Chief Financial Officer, said, “In the second quarter, we translated operational momentum into improved profitability and strong cash generation. Adjusted EBITDA increased to $4.1 million, operating cash flow was $16.3 million, and free cash flow improved to $13.2 million. We also returned $17.0 million to shareholders through the repurchase of approximately 947,000 shares, while maintaining $76 million of liquidity. We are reaffirming our FY2026 guidance of total revenue of $265 to $275 million and Adjusted EBITDA of $28 to $33 million, in constant currency.”
Fiscal 2026 Guidance
The Company expects to return to growth in both revenue and Adjusted EBITDA in FY2026 as the benefits of its go-to-market transformation and cost reduction actions begin to increase revenue, lower costs, and flow through improved results.
Based on current expectations, the Company affirms the following guidance, in constant currency:
This guidance reflects the positive momentum the Company is seeing and expecting in both the Enterprise and Education divisions, balanced with a disciplined view of the risks and opportunities ahead as it continues to execute in an uncertain macro environment. The Company anticipates strong invoiced growth in FY2026 which the Company believes will translate into meaningful reported growth in revenue and Adjusted EBITDA in FY2027.
Earnings Conference Call
On Wednesday, April 1, 2026, at 5:00 p.m. Eastern (3:00 p.m. Mountain Time) Franklin Covey will host a conference call to review its second quarter fiscal 2026 financial results. Interested persons may access a live audio webcast at https://edge.media-server.com/mmc/p/qux2545x or may participate via telephone by registering at https://register-conf.media-server.com/register/BI2c1e170bc74e4643ad0d7d53976bef49. Once registered, participants will have the option of 1) dialing into the call from their phone (via a personalized PIN); or 2) clicking the “Call Me” option to receive an automated call directly to their phone. For either option, registration will be required to access the call. A replay of the conference call webcast will be archived on the Company’s website for at least 30 days.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including those statements related to the Company’s future results and profitability and other goals relating to the growth and operations of the Company. Forward-looking statements are based upon management’s current expectations and are subject to various risks and uncertainties including, but not limited to: general macroeconomic conditions; renewals of subscription contracts; the impact of strategic projects and initiatives on future financial results; growth in and client demand for add-on services; market acceptance of new products or services, including new AAP portal upgrades and content launches; impacts from geopolitical trade tensions and the general business environment; and other factors identified and discussed in the Company’s most recent Annual Report on Form 10-K and other periodic reports filed with the Securities and Exchange Commission. Many of these conditions are beyond the Company’s control or influence, any one of which may cause future results to differ materially from the Company’s current expectations, and there can be no assurance that the Company’s actual future performance will meet management’s expectations. These forward-looking statements are based on management’s current expectations, and the Company undertakes no obligation to update or revise these forward-looking statements to reflect events or circumstances subsequent to this press release.
Non-GAAP Financial Information
This earnings release includes the concepts of Adjusted EBITDA and Free Cash Flow which are non-GAAP measures. The Company defines Adjusted EBITDA as net income or loss excluding the impact of interest, income taxes, intangible asset amortization, depreciation, stock-based compensation expense, and certain other infrequently occurring items such as restructuring and building exit costs. Free Cash Flow is defined as GAAP calculated cash flows from operating activities less capitalized expenditures for purchases of property and equipment, curriculum development, and content or license rights. The Company references these non-GAAP financial measures in its decision-making because they provide supplemental information that facilitates consistent internal comparisons to the historical operating performance of prior periods, and the Company believes they provide investors with greater transparency to evaluate operational activities and financial results. Refer to the attached tables for the reconciliation of the non-GAAP financial measure, Adjusted EBITDA, to consolidated net income (loss), a related GAAP financial measure, and for the calculation of Free Cash Flow.
The Company is unable to provide a reconciliation of the above forward-looking estimate of non-GAAP Adjusted EBITDA to GAAP measures because certain information needed to make a reasonable forward-looking estimate is difficult to obtain and dependent on future events which may be uncertain, or out of the Company’s control, including the amount of AAP contracts invoiced, the number of AAP contracts that are renewed, necessary costs to deliver the Company’s offerings, such as unanticipated curriculum development costs, and other potential variables. Accordingly, a reconciliation is not available without unreasonable effort.
About Franklin Covey Co.
Franklin Covey Co. (NYSE: FC), a global leadership and organizational performance partner, gives strategy the human edge. We help clients achieve breakthrough results and transform how they execute strategy at scale.
Our Enterprise and Education Divisions develop high-performing leaders at all levels of the organization and align people around purpose and priorities. Through proven, principle-centered frameworks and practices, we build high-trust leaders, teams, and cultures and help organizations translate strategy into consistent execution.
Our approach enables lasting, repeatable results by helping clients identify, align, and execute their most important priorities. This approach has been tested and refined through more than 40 years of work with tens of thousands of leaders and organizations – from Fortune 100 and 500 companies to small and mid-sized businesses, as well as educational institutions and government entities.
We provide professional services in over 160 countries and territories through directly owned operations and licensee partners, serving both enterprise and education clients. Our solutions are delivered through the FranklinCovey All Access Pass® and Leader in Me® subscriptions which combine world-class content and tools with the trusted expertise of consultants, coaches, and facilitators and are available in multiple modalities and in more than 20 languages.
Learn more at www.franklincovey.com and explore exclusive content across our social media channels: LinkedIn, Facebook, X, Instagram, and YouTube.
FRANKLIN COVEY CO.
Condensed Consolidated Statements of Operations
(in thousands, except per-share amounts, and unaudited)
Quarter Ended
Two Quarters Ended
February 28,
February 28,
February 28,
February 28,
2026
2025
2026
2025
$
59,647
$
59,612
$
123,692
$
128,698
14,374
13,866
30,045
30,241
45,273
45,746
93,647
98,457
43,497
45,087
89,618
92,291
1,510
-
4,954
1,984
455
-
1,129
-
1,140
1,016
2,239
1,967
670
1,098
1,357
2,196
(1,999
)
(1,455
)
(5,650
)
19
(63
)
107
(43
)
220
(2,062
)
(1,348
)
(5,693
)
239
80
272
422
(134
)
$
(1,982
)
$
(1,076
)
$
(5,271
)
$
105
$
(0.17
)
$
(0.08
)
$
(0.45
)
$
0.01
11,422
13,102
11,816
13,097
11,422
13,102
11,816
13,236
$
4,102
$
2,060
$
7,784
$
9,734
(1)
Adjusted EBITDA (earnings before interest, income taxes, depreciation, amortization, stock-based compensation, and certain other items) is a non-GAAP financial measure that the Company believes is useful to investors in evaluating its results. For a reconciliation of this non-GAAP measure to a comparable GAAP measure, refer to the Reconciliation of Net Income (Loss) to Adjusted EBITDA as shown below.
Reconciliation of Net Income (Loss) to Adjusted EBITDA
(in thousands and unaudited)
Quarter Ended
Two Quarters Ended
February 28,
February 28,
February 28,
February 28,
2026
2025
2026
2025
$
(1,982
)
$
(1,076
)
$
(5,271
)
$
105
63
(107
)
43
(220
)
(80
)
(272
)
(422
)
134
670
1,098
1,357
2,196
1,140
1,016
2,239
1,967
2,664
1,346
4,093
3,513
1,510
-
4,954
1,984
455
55
1,129
55
(338
)
-
(338
)
-
$
4,102
$
2,060
$
7,784
$
9,734
6.9
%
3.5
%
6.3
%
7.6
%
FRANKLIN COVEY CO.
Additional Financial Information
(in thousands and unaudited)
Quarter Ended
Two Quarters Ended
February 28,
February 28,
February 28,
February 28,
2026
2025
2026
2025
$
32,484
$
34,520
$
68,739
$
74,657
9,154
9,031
20,359
20,473
41,638
43,551
89,098
95,130
17,500
15,065
33,593
31,529
509
996
1,001
2,039
$
59,647
$
59,612
$
123,692
$
128,698
$
27,155
$
28,974
$
56,710
$
61,795
7,073
7,059
15,746
16,036
34,228
36,033
72,456
77,831
10,777
9,331
20,683
19,741
268
382
508
885
$
45,273
$
45,746
$
93,647
$
98,457
$
5,921
$
4,843
$
11,190
$
13,587
1,025
483
3,460
1,903
6,946
5,326
14,650
15,490
416
(313
)
(519
)
(47
)
(3,260
)
(2,953
)
(6,347
)
(5,709
)
$
4,102
$
2,060
$
7,784
$
9,734
FRANKLIN COVEY CO.
Condensed Consolidated Balance Sheets
(in thousands and unaudited)
February 28,
August 31,
2026
2025
$
13,717
$
31,698
50,191
68,415
5,336
5,165
26,188
24,199
95,432
129,477
13,177
14,324
32,449
34,551
31,220
31,220
239
231
33,972
33,109
$
206,489
$
242,912
$
835
$
823
6,611
8,780
97,936
106,534
25,021
16,327
21,840
24,828
152,243
157,292
11,695
14,718
4,501
3,991
168,439
176,001
1,353
1,353
229,610
230,251
121,001
126,272
(1,162
)
(1,032
)
(312,752
)
(289,933
)
38,050
66,911
$
206,489
$
242,912
FRANKLIN COVEY CO.
Condensed Consolidated Free Cash Flow
(in thousands and unaudited)
Two Quarters Ended
February 28,
February 28,
2026
2025
(unaudited)
(5,271
)
105
3,596
4,163
2,515
2,171
4,093
3,513
510
(145
)
450
287
(338
)
-
10,796
2,682
16,351
12,776
(2,763
)
(2,271
)
(4,085
)
(2,380
)
-
(324
)
(6,848
)
(4,975
)
9,503
7,801