Franklin Covey rises on better-than-expected revenue and strong cash flow

LootboxPhobia · 2026-04-01T21:01:40+00:00

Franklin Covey's second-quarter revenue was $59.6 million, exceeding expectations, but the net loss per share was $0.17, below expectations. The company's cash flow improved, and it repurchased nearly 950,000 shares. It is expected that total revenue for fiscal year 2026 will be between $265 million and $275 million, reflecting an anticipated improvement in profitability.

LootboxPhobia

2026-04-01 21:01:40

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Investing.com – Franklin Covey Company (NYSE:FC) reported second-quarter revenue that beat analysts’ expectations, but earnings came in below forecasts. This leadership training company delivered strong cash generation and continues to move forward with its share repurchase program.

The company reported second-quarter revenue of $59.60 million for the period ended Feb. 28, unchanged from the year-ago period, but above the $58.70 million analysts generally expected. The company posted net loss per share of $0.17, missing analysts’ expected earnings per share of $0.05. Billings in its North America enterprise business rose 7% for the second consecutive quarter, while consolidated deferred revenue increased 7% to $101.5 million. Adjusted EBITDA surged 99% to $4.10 million, compared with $2.10 million in the prior-year quarter.

In after-hours trading on Wednesday, the company’s shares rose 5.3%. The company generated $16.30 million in operating cash flow this quarter, compared with $(1.40) million in the year-ago period, and free cash flow improved from negative $3.60 million to $13.20 million. During the quarter, Franklin Covey repurchased about 947,000 shares for $17.0 million, while maintaining liquidity of more than $76.0 million.

President and Chief Executive Officer Paul Walker said: “Our second-quarter results reflect the importance of our work and the appeal of our market transformation strategy. As the continued traction from strong execution of our market strategy remains in view, we delivered a second consecutive quarter of 7% billings growth in our North America enterprise business.”

Total revenue for the Company’s enterprise segment was $41.60 million, compared with $43.60 million a year earlier, while revenue for the Education segment grew 16% to $17.50 million. The company issued its fiscal 2026 outlook, projecting total revenue of $265.0 million to $275.0 million, and adjusted EBITDA of $28.0 million to $33.0 million. The midpoint of the revenue outlook of $270.0 million matches analysts’ consensus expectations, while the midpoint of adjusted EBITDA of $30.50 million reflects an expected improvement in profitability.

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