Franklin Covey Co. Earnings Call Transcripts
Fiscal Year 2026
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The session emphasized the importance of storytelling, clarity, and connection in presentations, offering a three-step process: develop a compelling story, design clear visuals, and deliver authentically. Practical frameworks and mindset shifts were shared to help presenters inspire action and engage audiences.
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Third quarter revenue grew 1% year-over-year to $67.8 million, with strong performance in Enterprise North America and Education. Adjusted EBITDA rose 14%, and deferred revenue increased 7% to $96 million, supporting a positive outlook for fiscal 2027.
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Q2 saw year-over-year growth in revenue and Adjusted EBITDA, with strong invoiced amounts and deferred revenue positioning the company for accelerated growth in fiscal 2027. Education and international segments performed well, and guidance for fiscal 2026 was reaffirmed.
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Q1 saw a return to growth in invoiced amounts, especially in Enterprise North America, with strong new logo wins and increased multi-year contracts. Revenue and EBITDA guidance for fiscal 2026 are reaffirmed, with growth expected to accelerate in 2027.
Fiscal Year 2025
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A major salesforce transformation and investment in content and technology have positioned the business for renewed growth, with leading indicators showing improvement and a focus on multi-year subscriptions, high retention, and AI-driven product innovation. A new $20M share buyback is underway.
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Fiscal 2025 results met guidance despite a 7% revenue decline, with strong client retention and early signs of growth from go-to-market transformation. Fiscal 2026 is expected to be a year of execution, with invoiced growth leading to stronger reported results in 2027.
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Q3 revenue met expectations at $67.1M, while Adjusted EBITDA exceeded guidance due to cost reductions. Fiscal 2025 revenue guidance was revised to $265–$275M amid client decision delays, but strong deferred revenue and cost actions support future growth.
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Revenue and adjusted EBITDA guidance were lowered due to government-related cancellations and macroeconomic headwinds, but core business segments—especially North America enterprise and education—show strong growth and resilience. The go-to-market transformation is ahead of plan, with robust new client wins and expansions.
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Q1 revenue rose 1% to $69.1M, with education up 11% and enterprise flat as the company transitioned its sales force. Adjusted EBITDA fell to $7.7M due to growth investments, but guidance for accelerated revenue and EBITDA growth in the back half of FY25 is affirmed.
Fiscal Year 2024
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Q4 and FY24 saw strong revenue and EBITDA growth, with significant cash flow increases. Major investments in sales and technology are expected to drive double-digit revenue growth from FY26 onward, though FY25 EBITDA will dip due to front-loaded spending.
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Q3 revenue, adjusted EBITDA, and free cash flow all exceeded expectations, driven by strong performance in both Enterprise and Education Divisions. Deferred revenue and bookings signal continued growth, while new content launches and robust capital returns support a positive outlook.