Franklin Covey (FC) Q1 2026 Earnings Transcript
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 16 2026
0mins
Should l Buy FC?
Source: NASDAQ.COM
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Analyst Views on FC
Wall Street analysts forecast FC stock price to rise
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 15.790
Low
22.00
Averages
27.33
High
38.00
Current: 15.790
Low
22.00
Averages
27.33
High
38.00
About FC
Franklin Covey Co. is a global content and solutions company focused on individual and organizational performance improvement. The Company provides professional services in 150 countries and territories around the world. Its segments include North America, International Direct Offices, International Licenses, Education Practice, and Corporate and Other. The North America segment offers organizations to solve the problems that require changes in human behavior, including leadership, productivity, execution, trust, and sales performance. This segment includes sales personnel and operations that serve the United States and Canada. The International Licensees segment is primarily comprised of its international licensee’s royalty revenues. The Education Practice segment includes its domestic and international education practice operations. The Corporate and other information includes leasing operations, shipping and handling revenues, royalty revenues from Franklin Planner Corp.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Franklin Covey Q2 2026 Earnings Highlights
- Revenue Growth Momentum: Franklin Covey reported total revenue of $59.6 million for Q2 2026, reflecting a 5% year-over-year increase, with a notable 7% growth in Enterprise North America, indicating strong execution and growth momentum that supports future revenue and cash flow enhancement.
- Increase in Multi-Year Contracts: The company reported a 16% year-over-year growth in deferred revenue to $59 million, with 62% of revenue coming from multi-year contracts, which not only enhances revenue predictability but also lays a solid foundation for future financial stability.
- Strong Cash Flow Performance: Free cash flow for the second quarter reached $13.2 million, showing significant growth compared to the previous year, reflecting successful working capital management that further supports future investment and growth plans.
- Full-Year Performance Outlook: Management reaffirmed the revenue guidance for fiscal 2026 at $265 million to $275 million and adjusted EBITDA at $28 million to $33 million, demonstrating confidence in the second half's performance while emphasizing ongoing execution and market opportunities.
See More
Franklin Covey Q2 Earnings Report Analysis
- Earnings Performance: Franklin Covey reported a Q2 GAAP EPS of -$0.17, missing expectations by $0.20, indicating challenges in profitability that may affect investor confidence.
- Revenue Status: The company achieved revenue of $59.6 million in Q2, which is flat year-over-year, although it slightly beat expectations by $0.9 million, reflecting weak market demand.
- Future Guidance: For fiscal 2026, Franklin Covey projects total revenue in the range of $265 million to $275 million, indicating cautious optimism about future growth, but market conditions remain a concern.
- Adjusted EBITDA: The company anticipates adjusted EBITDA between $28 million and $33 million, providing a specific range, yet the feasibility of achieving this remains to be seen and its impact on overall financial health is crucial.
See More
Expected Earnings Reports for Q1 2026
- Penguin Solutions Earnings: Penguin Solutions, Inc. (PENG) is expected to report an earnings per share of $0.28 for the quarter ending February 28, 2026, reflecting a 20% decrease year-over-year, although it has beaten expectations every quarter in the past year, with the highest beat at 44%.
- Franklin Covey Earnings: Franklin Covey Company (FC) is projected to report an earnings per share of $0.00, representing a 100% increase compared to the same quarter last year, despite missing the consensus by 20.93% in Q3 2025.
- Bassett Furniture Earnings: Bassett Furniture Industries, Incorporated (BSET) anticipates an earnings per share of $0.17 for the quarter ending February 28, 2026, which is a 19.05% decrease from the previous year, and it missed the consensus by 23.33% in Q4 2025.
- Industry Comparison: According to Zacks Investment Research, FC's 2026 Price to Earnings ratio is 19.26, higher than the industry average of 15.80, indicating stronger earnings growth potential compared to competitors, while BSET's ratio of 14.74 suggests a relative competitive advantage.
See More
FranklinCovey Partners with Hospitals to Enhance Patient Outcomes
- Patient Satisfaction Improvement: FranklinCovey's collaboration with various hospitals has successfully increased inpatient satisfaction from the 26th to the 76th percentile within four months for a non-profit healthcare network, significantly enhancing patient experience and strengthening market competitiveness.
- Leadership Turnover Reduction: Advent Health achieved a 50% reduction in leadership turnover through FranklinCovey's solutions, which not only improved team stability but also saved costs associated with recruitment and training, ensuring continuity in patient care.
- Employee Engagement Boost: In a hospital system with over 500 beds, FranklinCovey's interventions led to a 50% increase in employee engagement and a 37% rise in team trust, directly enhancing operational efficiency and quality of patient care.
- Surgical Incident Reduction: A metropolitan area hospital experienced a 52% reduction in perioperative incidents after implementing FranklinCovey's strategies, which not only improved patient safety but also reduced potential costs associated with medical errors, thereby enhancing the hospital's reputation.
See More
Leadership Report Reveals Current State
- Leadership Scarcity: Only 7% of leaders are rated by their teams as demonstrating both high performance expectations and care, a combination proven to drive sustained excellence and engagement, highlighting a significant leadership gap in organizations today.
- Trust Crisis: Only 42% of employees view their leaders as trustworthy, while 62% describe their leaders' management style as outdated, indicating a critical trust deficit that undermines team morale and performance in the modern workplace.
- Technological Adaptation Lag: 70% of employees report that AI and technology are advancing faster than their company's culture can adapt, with 80% describing their managers' AI leadership as
See More
FranklinCovey Recognized Again as Top Sales Training Company
- Industry Recognition: FranklinCovey has been named a 2026 Top 20 Sales Training Company, highlighting its exceptional performance and influence in the sales training sector, thereby reinforcing its market leadership.
- Client Success Approach: With Helping Clients Succeed®: Strikingly Different Selling, FranklinCovey assists sales teams in overcoming challenges like unpredictable sales results, enhancing customer satisfaction and sales performance, with clients realizing significant ROI.
- Innovation-Driven: The company leverages AI-driven coaching, immersive solutions, and analytics-based learning to enhance sales teams' adaptability, enabling them to meet rapidly changing market and customer expectations, thus driving business growth.
- All Access Pass: The FranklinCovey All Access Pass® offers various learning modalities, ensuring sales professionals continuously acquire essential skills and knowledge, allowing them to stand out in a competitive landscape and drive sustainable performance improvements.
See More
Franklin Covey Q2 2026 Earnings Highlights
- Revenue Growth Momentum: Franklin Covey reported total revenue of $59.6 million for Q2 2026, reflecting a 5% year-over-year increase, with a notable 7% growth in Enterprise North America, indicating strong execution and growth momentum that supports future revenue and cash flow enhancement.
- Increase in Multi-Year Contracts: The company reported a 16% year-over-year growth in deferred revenue to $59 million, with 62% of revenue coming from multi-year contracts, which not only enhances revenue predictability but also lays a solid foundation for future financial stability.
- Strong Cash Flow Performance: Free cash flow for the second quarter reached $13.2 million, showing significant growth compared to the previous year, reflecting successful working capital management that further supports future investment and growth plans.
- Full-Year Performance Outlook: Management reaffirmed the revenue guidance for fiscal 2026 at $265 million to $275 million and adjusted EBITDA at $28 million to $33 million, demonstrating confidence in the second half's performance while emphasizing ongoing execution and market opportunities.
See More
Franklin Covey Q2 Earnings Report Analysis
- Earnings Performance: Franklin Covey reported a Q2 GAAP EPS of -$0.17, missing expectations by $0.20, indicating challenges in profitability that may affect investor confidence.
- Revenue Status: The company achieved revenue of $59.6 million in Q2, which is flat year-over-year, although it slightly beat expectations by $0.9 million, reflecting weak market demand.
- Future Guidance: For fiscal 2026, Franklin Covey projects total revenue in the range of $265 million to $275 million, indicating cautious optimism about future growth, but market conditions remain a concern.
- Adjusted EBITDA: The company anticipates adjusted EBITDA between $28 million and $33 million, providing a specific range, yet the feasibility of achieving this remains to be seen and its impact on overall financial health is crucial.
See More
Expected Earnings Reports for Q1 2026
- Penguin Solutions Earnings: Penguin Solutions, Inc. (PENG) is expected to report an earnings per share of $0.28 for the quarter ending February 28, 2026, reflecting a 20% decrease year-over-year, although it has beaten expectations every quarter in the past year, with the highest beat at 44%.
- Franklin Covey Earnings: Franklin Covey Company (FC) is projected to report an earnings per share of $0.00, representing a 100% increase compared to the same quarter last year, despite missing the consensus by 20.93% in Q3 2025.
- Bassett Furniture Earnings: Bassett Furniture Industries, Incorporated (BSET) anticipates an earnings per share of $0.17 for the quarter ending February 28, 2026, which is a 19.05% decrease from the previous year, and it missed the consensus by 23.33% in Q4 2025.
- Industry Comparison: According to Zacks Investment Research, FC's 2026 Price to Earnings ratio is 19.26, higher than the industry average of 15.80, indicating stronger earnings growth potential compared to competitors, while BSET's ratio of 14.74 suggests a relative competitive advantage.
See More
FranklinCovey Partners with Hospitals to Enhance Patient Outcomes
- Patient Satisfaction Improvement: FranklinCovey's collaboration with various hospitals has successfully increased inpatient satisfaction from the 26th to the 76th percentile within four months for a non-profit healthcare network, significantly enhancing patient experience and strengthening market competitiveness.
- Leadership Turnover Reduction: Advent Health achieved a 50% reduction in leadership turnover through FranklinCovey's solutions, which not only improved team stability but also saved costs associated with recruitment and training, ensuring continuity in patient care.
- Employee Engagement Boost: In a hospital system with over 500 beds, FranklinCovey's interventions led to a 50% increase in employee engagement and a 37% rise in team trust, directly enhancing operational efficiency and quality of patient care.
- Surgical Incident Reduction: A metropolitan area hospital experienced a 52% reduction in perioperative incidents after implementing FranklinCovey's strategies, which not only improved patient safety but also reduced potential costs associated with medical errors, thereby enhancing the hospital's reputation.
See More
Leadership Report Reveals Current State
- Leadership Scarcity: Only 7% of leaders are rated by their teams as demonstrating both high performance expectations and care, a combination proven to drive sustained excellence and engagement, highlighting a significant leadership gap in organizations today.
- Trust Crisis: Only 42% of employees view their leaders as trustworthy, while 62% describe their leaders' management style as outdated, indicating a critical trust deficit that undermines team morale and performance in the modern workplace.
- Technological Adaptation Lag: 70% of employees report that AI and technology are advancing faster than their company's culture can adapt, with 80% describing their managers' AI leadership as
See More
FranklinCovey Recognized Again as Top Sales Training Company
- Industry Recognition: FranklinCovey has been named a 2026 Top 20 Sales Training Company, highlighting its exceptional performance and influence in the sales training sector, thereby reinforcing its market leadership.
- Client Success Approach: With Helping Clients Succeed®: Strikingly Different Selling, FranklinCovey assists sales teams in overcoming challenges like unpredictable sales results, enhancing customer satisfaction and sales performance, with clients realizing significant ROI.
- Innovation-Driven: The company leverages AI-driven coaching, immersive solutions, and analytics-based learning to enhance sales teams' adaptability, enabling them to meet rapidly changing market and customer expectations, thus driving business growth.
- All Access Pass: The FranklinCovey All Access Pass® offers various learning modalities, ensuring sales professionals continuously acquire essential skills and knowledge, allowing them to stand out in a competitive landscape and drive sustainable performance improvements.
See More
