Franklin Covey Q2 2026 Earnings Highlights
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 02 2026
0mins
Source: seekingalpha
- 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.
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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: 23.420
Low
22.00
Averages
27.33
High
38.00
Current: 23.420
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 to Host Q3 2026 Earnings Call
- Earnings Call Scheduled: Franklin Covey Co. will hold a conference call on July 1, 2026, at 5:00 p.m. ET to review its Q3 2026 financial results, with results expected to be released after market close, ensuring timely access to critical information for investors.
- Flexible Participation Options: Interested individuals can register to participate via a provided link, with options to dial in or use the 'Call Me' feature for an automated call, catering to diverse investor preferences for engagement.
- Replay Availability: A replay of the conference call will be archived on the company's website for at least 30 days post-event, enhancing information transparency for investors who cannot attend live, thereby fostering trust and communication.
- Company Overview: Franklin Covey Co. is a global leadership and organizational performance partner focused on helping organizations achieve breakthrough results, with over 40 years of experience and services spanning 160 countries, showcasing its deep expertise in leadership training.
See More
FranklinCovey Hosts Leadership Webinars to Address Gaps
- Leadership Gap Resolution: FranklinCovey will host two complimentary webinars on June 26 and 30, featuring renowned authors and leadership experts to assist HR and L&D leaders in closing critical leadership gaps, thereby enhancing organizational performance.
- Expert Framework Sharing: Liz Wiseman and Jennifer Colosimo will present in the first webinar on how to reduce rework and missed commitments by establishing clear leadership habits, which will enhance employee trust and engagement, ultimately fostering high-performing teams.
- Navigating Constant Change: The second webinar, led by James Patterson and Patrick Leddin, will explore effective team leadership in a rapidly changing environment, emphasizing the importance of quick decision-making and team collaboration to address frequent disruptions.
- Global Impact: As a global partner in leadership and organizational performance, FranklinCovey serves numerous Fortune 100 companies across 160 countries, showcasing its profound capabilities in enhancing leadership and execution.
See More
Human Factors Hinder AI Adoption
- AI Adoption Barriers: Research from FranklinCovey reveals that 80% of employees perceive their managers as 'hands-off' regarding AI, indicating a significant gap between AI's potential and its actual workplace application, which adversely affects productivity and business performance.
- Lack of Training: Only 14% of workers report receiving any AI training, while 40% say their managers are unaware of their AI usage, leading to inconsistent and scattered implementation of AI projects across organizations.
- Leadership Patterns Impact: The study identifies that leadership patterns encouraging AI use without guidance result in inconsistent outcomes, while framing AI primarily as a cost-reduction tool creates anxiety rather than engagement, hindering proactive participation.
- Solution Launch: FranklinCovey has introduced two customizable solutions aimed at helping leaders and teams establish effective AI usage behaviors, accelerating AI impact through empathy and action, thereby enhancing team confidence and capabilities.
See More
Franklin Covey Reports Revenue Growth in Latest Earnings
- Revenue Growth: Franklin Covey reported total revenue of $59.6 million, flat year-over-year, with a notable 16% increase in Education Division revenue to $17.5 million, indicating strong demand in the education market that is expected to drive future performance.
- Significant EBITDA Improvement: Adjusted EBITDA reached $4.1 million, a 99% increase from the prior year, reflecting substantial improvements in cost control and operational efficiency, which enhances investor confidence.
- Strong Cash Flow Performance: Cash flow from operating activities was $16.4 million, up 28% year-over-year, while free cash flow improved to $13.2 million from a negative position last year, indicating a continued positive trend in the company's financial health.
- Increased Client Confidence: Deferred revenue rose 7% to $101.5 million, with 62% of revenue under multi-year contracts, demonstrating strong client trust and willingness for long-term collaboration, thereby enhancing the company's competitive position in the market.
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
Franklin Covey to Host Q3 2026 Earnings Call
- Earnings Call Scheduled: Franklin Covey Co. will hold a conference call on July 1, 2026, at 5:00 p.m. ET to review its Q3 2026 financial results, with results expected to be released after market close, ensuring timely access to critical information for investors.
- Flexible Participation Options: Interested individuals can register to participate via a provided link, with options to dial in or use the 'Call Me' feature for an automated call, catering to diverse investor preferences for engagement.
- Replay Availability: A replay of the conference call will be archived on the company's website for at least 30 days post-event, enhancing information transparency for investors who cannot attend live, thereby fostering trust and communication.
- Company Overview: Franklin Covey Co. is a global leadership and organizational performance partner focused on helping organizations achieve breakthrough results, with over 40 years of experience and services spanning 160 countries, showcasing its deep expertise in leadership training.
See More
FranklinCovey Hosts Leadership Webinars to Address Gaps
- Leadership Gap Resolution: FranklinCovey will host two complimentary webinars on June 26 and 30, featuring renowned authors and leadership experts to assist HR and L&D leaders in closing critical leadership gaps, thereby enhancing organizational performance.
- Expert Framework Sharing: Liz Wiseman and Jennifer Colosimo will present in the first webinar on how to reduce rework and missed commitments by establishing clear leadership habits, which will enhance employee trust and engagement, ultimately fostering high-performing teams.
- Navigating Constant Change: The second webinar, led by James Patterson and Patrick Leddin, will explore effective team leadership in a rapidly changing environment, emphasizing the importance of quick decision-making and team collaboration to address frequent disruptions.
- Global Impact: As a global partner in leadership and organizational performance, FranklinCovey serves numerous Fortune 100 companies across 160 countries, showcasing its profound capabilities in enhancing leadership and execution.
See More
Human Factors Hinder AI Adoption
- AI Adoption Barriers: Research from FranklinCovey reveals that 80% of employees perceive their managers as 'hands-off' regarding AI, indicating a significant gap between AI's potential and its actual workplace application, which adversely affects productivity and business performance.
- Lack of Training: Only 14% of workers report receiving any AI training, while 40% say their managers are unaware of their AI usage, leading to inconsistent and scattered implementation of AI projects across organizations.
- Leadership Patterns Impact: The study identifies that leadership patterns encouraging AI use without guidance result in inconsistent outcomes, while framing AI primarily as a cost-reduction tool creates anxiety rather than engagement, hindering proactive participation.
- Solution Launch: FranklinCovey has introduced two customizable solutions aimed at helping leaders and teams establish effective AI usage behaviors, accelerating AI impact through empathy and action, thereby enhancing team confidence and capabilities.
See More
Franklin Covey Reports Revenue Growth in Latest Earnings
- Revenue Growth: Franklin Covey reported total revenue of $59.6 million, flat year-over-year, with a notable 16% increase in Education Division revenue to $17.5 million, indicating strong demand in the education market that is expected to drive future performance.
- Significant EBITDA Improvement: Adjusted EBITDA reached $4.1 million, a 99% increase from the prior year, reflecting substantial improvements in cost control and operational efficiency, which enhances investor confidence.
- Strong Cash Flow Performance: Cash flow from operating activities was $16.4 million, up 28% year-over-year, while free cash flow improved to $13.2 million from a negative position last year, indicating a continued positive trend in the company's financial health.
- Increased Client Confidence: Deferred revenue rose 7% to $101.5 million, with 62% of revenue under multi-year contracts, demonstrating strong client trust and willingness for long-term collaboration, thereby enhancing the company's competitive position in the market.
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
