Franklin Covey (NYSE:FC) Posts Earnings Results, Beats Expectations By $0.03 EPS

Key Points

• Franklin Covey reported quarterly EPS of $0.62, beating analysts’ consensus estimate of $0.59 by $0.03.
• Management forecast fiscal 2027 revenue of $263 million–$273 million and Adjusted EBITDA of $29 million–$34 million, with stronger invoicing and deferred revenue supporting the outlook.
• Fiscal 2026 revenue fell 2% to $261.5 million, while operating cash flow and free cash flow also declined year over year.

Franklin Covey (NYSE:FC - Get Free Report) issued its quarterly earnings data on Wednesday. The business services provider reported $0.62 earnings per share for the quarter, topping analysts' consensus estimates of $0.59 by $0.03, Zacks reports. Franklin Covey had a return on equity of 17.37% and a net margin of 0.83%.

Here are the key takeaways from Franklin Covey's conference call:

• Management expects growth in fiscal 2027. Guidance is $263 million–$273 million in constant-currency revenue and $29 million–$34 million in Adjusted EBITDA; at the midpoint, EBITDA growth would be about 9%, with roughly 80 basis points of margin expansion. The outlook depends in part on converting stronger invoicing and deferred revenue into reported results.
• Enterprise North America showed stronger forward indicators. Full-year invoiced amounts rose 4% and deferred revenue increased 17%; management said hunter productivity more than doubled versus fiscal 2024 and plans to expand the hunting team by more than 20% in fiscal 2027.
• Fiscal 2026 revenue and cash generation weakened. Revenue fell 2% to $261.5 million, while operating cash flow declined to $21.6 million from $29 million and free cash flow fell to $9.2 million from $12.1 million. Adjusted EBITDA was nearly flat for the year, although fourth-quarter EBITDA increased 9%.
• Education invoicing declined despite modest revenue growth. Revenue rose 2% to $76.2 million, but invoiced amounts fell 10%, partly because of delayed large contracts and a district renewal shifting into fiscal 2027; management expects invoicing to return to growth, though timing of funding decisions remains a risk.

Franklin Covey Stock Up 1.2%

Shares of Franklin Covey stock traded up $0.21 during trading on Wednesday, reaching $17.38. The company's stock had a trading volume of 56,482 shares, compared to its average volume of 50,335. The company has a market cap of $196.18 million, a price-to-earnings ratio of 23.85, a P/E/G ratio of 0.86 and a beta of 0.76. Franklin Covey has a 1-year low of $11.16 and a 1-year high of $26.81. The company has a 50-day simple moving average of $18.16 and a two-hundred day simple moving average of $19.58.

Wall Street Analysts Forecast Growth

Several equities analysts have issued reports on the company. Weiss Ratings reiterated a "sell (d+)" rating on shares of Franklin Covey in a research note on Friday, October 2nd. Wall Street Zen raised shares of Franklin Covey from a "hold" rating to a "buy" rating in a research report on Sunday, August 30th. Two investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $27.50.

About Franklin Covey

Franklin Covey Co NYSE: FC is a global professional-services and training company that helps organizations improve leadership, execution, productivity, sales performance and workplace culture. Its services are designed for businesses, government agencies and other institutions seeking to develop employees and improve organizational performance.

The company provides consulting, training, coaching, assessment tools and digital learning solutions. Its offerings address areas such as leadership development, trust, change management, business execution, customer loyalty and individual effectiveness.

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